With the successful acquisition of a 14% stake in PSA Motors by Dongfeng Motor, the model for the development of self-owned brands by state-owned auto companies has created new ones. Dongfeng said that this acquisition will not only be a cooperation in capital, but will involve technologies, products and other aspects in the future. For Dongfeng Motor, which lacks technology accumulation, this cross-in-depth cooperation will undoubtedly provide a strong backing for Dongfeng Motor's own brands.
This is the gratitude of Zhu Fushou, general manager of Dongfeng Group, and also the pioneering initiative of Dongfeng to develop its own brand. Prior to this, under the guidance of his large-scale independent strategy, Dongfeng's own brands had already shaken off the state of being inconsistent in previous years and began to show explosive growth. At present, Dongfeng has established three independent brands: Dongfeng Fengshen, Dongfeng Popularity and Dongfeng Fashion. In 2013, Fengshen sold 80,000 vehicles, an increase of 33% year-on-year; popular sales were 180,000, an increase of 31% year-on-year. The number of demeanor was 32,000, an increase of 24% year-on-year. After Zhu Fushou comprehensively combed, Dongfeng's own brand business began to surge forward.
Another legendary figure in the development of independent brands within the automotive state-owned enterprises is Xu Heyi, chairman of Beijing Automotive Industry Group. In 2006, when Xu Heyi was in charge of BAIC, BAIC was still a weak player. The development of Beijing Hyundai and Beijing Benz was far behind their rivals, and their own brands had not landed. Xu Heyi put forward the strategy of group development and requested the simultaneous development of Beiqi Auto, Beiqi JV, BAIC Commercial Vehicles, spare parts and new energy vehicles. Seven years later, Xu Heyi made a satisfactory answer.
In 2013, BAIC Group achieved sales of 2.164 million vehicles, an increase of 18.8% year-on-year; operating income reached 265.87 billion yuan, an increase of 31.8% year-on-year. The vehicle sales volume was three times that of 2006, and operating income was four times that of 2006; total profit was 20 times that of 2006. Among them, Beiqi sold 222,200 units independently, an increase of 201.8% year-on-year. Beiqi Foton sold 665,000 vehicles, an increase of 7.2% year-on-year, and its market share reached 16.3%, up 0.2% year-on-year. Beijing Hyundai Motor sold 1.03 million units, an increase of 20% year-on-year, and operating income of 109 billion yuan, an increase of 34% year-on-year. Beijing Benz sold 116,000 units, a year-on-year increase of 23.9%.
Xu Heyi's other initiative is cross-shareholding. In 2013, Daimler Group acquired 12% shares of Beijing Automotive Co., Ltd. for 625 million euros, and transferred 1% of Beijing Benz shares to Beijing Automotive Co., Ltd., and Beijing Automotive sold 1% of Beijing's Mercedes-Benz sales company shares to Daimler. Le. BAIC will also acquire Mercedes-Benz E-Class platform and technology for its own brand building. This innovative model allows both sides to form a strategic alliance between you and me, and enhance the potential of BAIC.
The third legendary figure is Xu Liuping, chairman of Changan Automobile. Under his leadership, Changan Automobile also achieved a simultaneous leap in self-owned brands and joint venture brands. In terms of autonomy, Changan Passenger Vehicle invests more than 5% of its sales revenue in R&D each year. It has established a five-country and nine-land R&D system in China, Italy, the United States, Japan, and other countries, and has established an international R&D team. Product quality, brand reputation, and sales all show signs of growth. In 2013, Changan Automobile sold 515,500 passenger vehicles, a year-on-year increase of 61.9%, the highest increase among the top ten car manufacturers.
At the same time, the Changan joint venture company has also developed at the same time. In recent years, Changan Ford's product sales have soared. Changan and PSA Peugeot Citroen joint venture domestic DS brand, although the product just listed soon, but also shows aggressive development momentum.
The fourth legend is Hu Maoyuan, chairman of SAIC. SAIC owns two major cash cows: Shanghai Volkswagen and Shanghai GM. Its capital and technical strength are very strong. The development of self-owned brands is not a question of whether they can or not, but rather a question that they would rather not. In the past few years, SAIC Motor has taken the Internet and new energy as the main lines, and its own brand has made considerable progress. In 2013, SAIC Motor sold 30,000 passenger cars, an increase of 15% year-on-year. It is worth mentioning that SAIC's own brand has a higher premium price and is the only brand whose products have entered the mid-to-high end market and gained a place.
In 2009, the State issued the "Regulations for the Adjustment and Revitalization of the Automotive Industry" and designated four big four small groups and encouraged them to promote mergers and acquisitions in the country. The criteria for division at that time were mainly based on the size and sales of the company, and did not regard the independent business as a standard. Therefore, such vibrant private enterprises as Geely, the Great Wall, and BYD are actually excluded from the top four or four, naturally causing criticism in the industry.
Today, if the criteria for the development of self-owned brands, the strategic structure of independent businesses, and development potential are to be re-classified, the original four major small groups will be rearranged. Dongfeng Motor, Chang'an Automobile, Beijing Automotive and SAIC Group, with sufficient development potential for their own brands, will undoubtedly be listed among the four major groups, and their chiefs deserved to be the four King Kong companies that have developed their own brands.
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