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"The French and Chinese teams have undergone a 180-degree change around the Spring Festival. They used to be noisy together. Now the meeting will have reasonable control over the differences. The French side will tell the Chinese after different opinions and ask everyone to find another way to reach a consensus. Su Weibin, general manager of Shenlong Automobile Co., told the "Securities Daily" reporter that the French personnel are very professional. The decline in sales of Shenlong last year made the French recognize the seriousness of the problem and began to consciously deal with the conflict.
In January of this year, the newspaper published "PSA's sales collapse in the two joint ventures in China." The detailed report reads that "French does not trust two partners in China, Dongfeng Motor and Changan Automobile, blindly applying Europe in the Chinese market. The market 'Peugeot against the public, Citroen's game against the standard Renault', blindly pursue the bicycle profit, so that the original market share in China is lost, sales can be described as bleak."
The reporter noted that in terms of mutual trust, the leaders of the Chinese and French sides of Shenlong Automobile have reached a consensus after half a year of running-in. In March this year, the leaders of Dongfeng Citroen and Dongfeng Peugeot were replaced by Chinese local professional managers. Yanhua and Wu Shaoge; Changan PSA's original marketing work controlled by President Monet was also handed over to the Chinese side. The former Changan Automobile Joint Venture Cooperation Minister Shen Ming was appointed as the vice president of Changan PSA Marketing for more than one year.
At the same time, the French side began to respect China's judgment on the Chinese market. "Sino-French sides have reached the strategic goal of 2017 "returning to the track": First, the goal is the same, the market share ranks first; the second is to abandon the past too much pursuit of bicycle profit, instead of measuring the total profit, tracking bicycle income; It is the adjustment, the staff and dealer system ability to return to the track," Su Weibin said.
Why does PSA's market share in China rise to fall?
As a car consumer market with a capacity of 30 million vehicles, China has always been the leader of all countries for three or five years. Even if it is as strong as the Volkswagen brand in China, it will also have ups and downs. The ups and downs of each brand have problems with the product cycle, but in the end, who knows more about the Chinese market, whoever respects the Chinese market, can stand in the forefront.
This point may be deeply felt by the PSA Group in China. Far away, at that time, PSA Group, which suffered from a large loss of muddy losses, fully trusted Chinese partners and launched a variety of new cars suitable for the Chinese market. From 2012 to 2014, it ushered in a three-year high growth period. The market share has increased to 3.76%. In 2014, the growth rate of Shenlong was more than twice the growth rate of the industry, ranking first among domestic mainstream joint ventures.
In 2014, the CEO of PSA Group, Tang Weishi, took the hard work style and re-engineered the marketing strategy by reducing costs and increasing efficiency. In less than two years, PSA realized “turning losses into profit†and the net profit of the group in 2015. Once reached 1.002 billion euros. In this year, PSA sales in China began to go downhill. “Tang Weishi repositioned the Peugeot and Citroen brands in the European market. The Peugeot price was on the standard, and the Citroen price was countered by Renault. It achieved a staged success.†Near the PSA Group, the “Securities Daily†reporter, Tang Weishi later asked China. The market also has to replicate the brand of the European market, biting the profit of bicycles, but the Peugeot brand can be compared with the popular brand in the Chinese market?
Su Weibin also confirmed the above-mentioned person's statement that the bicycle income must be guaranteed. Last year, Shenlong’s bicycle revenue was 20,000 yuan, but the plate was reduced.
Shenlong increased market share and ensured the profitability of dealers. “There is no market share. There is nothing in the market. We can’t sell Luobu cabbage price, but this cake can’t be reduced,†Su Weibin told Securities Daily. At this time, PSA wakes up. In China, the position must be taken first, and the location cannot be found in the auto market.
In June last year, China and France unanimously adjusted the top leaders and second-handers of Shenlong Automobile. Su Weibin succeeded Qiu Xiandong as the Chinese leader of Shenlong Automobile, and Mai Keran succeeded Mu Haoran as the foreign head of Shenlong Automobile. "I came to Shenlong Company for the sake of reputation. I want to make this place look like a look," Su Weibin said firmly. He spent more than eight months, familiar with the company's internal situation, and also gained mutual trust with McCoran. Now the unanimous goal of both China and France is to increase market share.
Last year, the pursuit of bicycle profit brought not only the decline in sales, but also the high inventory of dealers. How to achieve the sales target of 650,000 vehicles in 2017 without increasing the burden on dealers? Su Weibin told the "Securities Daily" reporter that the first thing to adjust is to adjust the regional management out of control and price chaos. "In the first quarter, a policy was issued for the core distributors who had trouble with us, and the inventory was fixed and the dealers were commended; In the second quarter, the fundamental change in business policy was to replace the wholesale volume with the delivery volume, and the problem of the reverse price of the dealers was completely solved, so as to ensure that the dealers did not lose money in the car sales, so that the net profit after the sale.
In March, the channel capacity of Shenlong Auto Dealers is gradually improving. “The sales in the first half of the month were as bleak as before. Now the average daily delivery is 1200 vehicles. The normal level is 1,700 vehicles per day, and there are still 500 vehicles.†Su Weibin said.
The future of new car pricing is in place. Su Weibin knows that the return of marketing is purely a "product." "We will fight the market battles one by one, and concentrate 70% of the market resources on several main models," said Su Weibin. Dongfeng Citroen does not consider sales to stabilize and does not decline, with emphasis on supporting C3-XR, C84 and mid-term changes. Car C5; Dongfeng Peugeot sales to break through, focusing on supporting its 308, 3008, 408, 4008 and 5008.
"Guarantee that the old products will follow the general trend and basically reach 600,000 vehicles. The new products C84, C5 and 5008 will be increased by 50,000 vehicles during the year." Su Weibin further explained that the old products follow the general trend to be decomposed. For example, Elysee and Dongfeng Peugeot 301 have difficulties with the general trend, they have achieved nine achievements; and Dongfeng Peugeot 3008 and Dongfeng Peugeot 4008 can be more and do some supplements.
"The pricing of new products C84, C5 and 5008 will be available in one step during the year," said Su Weibin. The previous Peugeot new car was downgraded to consumers for 6 months and the impression was not good. In the future, Shenlong’s products will be used with caution to reduce prices and try to adopt financial policies. , to send insurance, send maintenance and other ways to attract consumers.
Su Weibin told reporters that Shenlong Automobile really wants to go to 2018. "In the second half of 2018, the first Internet car with the internal code A88C will be launched under Dongfeng Citroen. This is the only open PSA group to Chinese partners. A car in the electrical system, Shenlong Automobile hopes to establish an Internet car benchmark for the PSA Group."
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