With the continuous promotion of the cooperation between Dongfeng Motor Corporation and PSA Peugeot Citroën Group (hereinafter referred to as PSA), the joint venture company in China, Shenlong Automobile Co., Ltd., has once again started a new adjustment. Recently, the reporter learned from the inside of Shenlong Automobile that the two parties have established a new sales company to achieve the separation of production and sales, and promote the development of the shareholders' business in China.
Shenlong Motor insiders told reporters that the establishment of a new sales company is mainly to prepare for the sales volume of one million vehicles. After the new sales company is officially put into operation, the cooperation level of the entire vehicle manufacturing enterprise will be responsible for production R&D, and the new sales company will be responsible for Channel network management, marketing and after-sales service work.
Sales company put into operation in October
“After October, the new sales company formally entered into an independent accounting operation with the existing Shenlong Auto Group and operated independently.†An insider of Shenlong Company told reporters that the company has responded quickly to changes in the work after the arrival of the new sales company. , Shenlong Automobile has already started the "simulated independent accounting" operating model.
It is understood that the current Shenlong Motor Co., Ltd. is a production and sales integration company, the company's marketing headquarters under the jurisdiction of Dongfeng Peugeot Ministry of Commerce and Dongfeng Citroen Commerce Department. After the separation of production and sales, the current main body of Shenlong Automobile will continue to be responsible for production, research and development, and the marketing headquarters will be assigned to the sales company, responsible for sales and after-sales service.
In terms of leadership, Qiu Xiandong, general manager of Shenlong Automobile Co., is still the top leader of the sales company, Mu Haoran, executive deputy general manager of Shenlong Motor Co., Ltd., and Lu Haitao, deputy general manager of business of Shenlong Motor Co., Ltd. will serve as executive vice president and vice president of the sales company respectively. manager.
“Dragon has developed rapidly in the past two years. With the continuous increase in sales volume, the separation of production and sales is a normal evolutionary process.†Zhang Zhiyong, an automotive industry analyst, told reporters.
According to data from the National Passenger Vehicle Market Information Association, Shenlong Motors has achieved sales of nearly 454,000 vehicles in the first eight months of this year, an increase of 28.60% compared with the same period of last year, far higher than the average growth rate of 13.9% in the narrow passenger car market. , ranked eighth in the joint venture sales ranking.
Impact on sales of millions of vehicles
The establishment of the separate production and sales system of Shenlong Company is also an important step to promote the development goals of both shareholders in China. On March 28 this year, Dongfeng and PSA signed a global strategic alliance agreement in Beijing. PSA will increase investment in R&D to production of the joint venture company Shenlong Co., Ltd. to increase its production and sales volume in 2020 to double that in 2013. The annual production and sales volume reached 1.5 million units, of which the Peugeot, Citroen and Dongfeng brand models will each bear the production and sales target of 500,000 vehicles.
“Millions of vehicles are an important threshold and have higher requirements for our system capabilities.†The insiders of the above-mentioned Shenlong Company stated that in this development process, the establishment of an independent sales company is an important step in improving system capabilities. It will help to reduce intermediate communication links, formulate marketing and sales strategies that are more relevant to the market, and increase work efficiency. At the same time, independent accounting can also make the company's accounts more clear and help improve the company's cost control capabilities. In fact, Shanghai GM, Shanghai Volkswagen and other automobile companies have all experienced the stage of development from the integration of production and sales to the separation of production and sales.
In addition to making adjustments in the production and sales system, Shenlong’s layout in terms of products has also started simultaneously. According to the plan, the Dongfeng Peugeot, Dongfeng Citroen and Dongfeng three brands will also guarantee the launch of at least one new product every year. From 2014 to 2016, Shenlong will launch 12 new models to replace the original models. At the same time, it will also cover more market segments.
In terms of production capacity, Shenlong’s three plants in Wuhan currently have a production capacity of 750,000 vehicles per year, and the newly established Chengdu No. 4 plant will also formally form the foundation in mid-October of this year. The designed capacity of the plant will reach 30. Ten thousand units are expected to be put into production in 2016, providing an important guarantee for Shenlong’s million-unit plan.
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