“From the Shanghai Auto Show to the Changchun Motor Show, the FAW Group's own brand lineup is on its own debut, which also marks the official opening of FAW's own brand integration.†At the Changchun Motor Show site, Deputy General Manager Xu Xianping FAW Group to the “Daily Economic News†The reporter said.
On July 15, coincided with the 56th anniversary of the establishment of FAW Group and the opening of the Changchun Motor Show, at the announcement ceremony of Tianjin FAW New Xiali and Xinweizi, the general manager of FAW Group Xu Jianyi and Deputy General Manager Xu Xianping FAW executives took Tianjin. FAW management unveiled and jointly unveiled the Xiali N5 and Vizier V1. After the logo was announced, Xiali, who is known as the national car, will bid farewell to the brand logos that have been used for many years and replace it with the traditional logo of FAW Group.
Each section is inclined to independent brands
“The group company places high expectations on the Red Flag and Pentium brand. The independent brand is the most important task of FAW Group's current work, but it is also a shortcoming of FAW, which makes us feel great pressure.†FAW Car [18.95 1.34 %] A person from the sales company marketing department told reporters.
Looking at the performance of FAW's own brands in recent years, it can be seen that liberating commercial vehicles is still acceptable, but it has been attacked by Dongfeng Motors, Beiqi Foton Motors and CNHTC and Other companies. Although Hongqi is still a state-level concierge vehicle, it is on the civilian market. The performance has always been tepid; FAW Xiali [9.14 0.44%] has a satisfactory sales volume, but the profit of small-displacement vehicles is meagre, which causes Xiali to face a decline in profits caused by “increased output but no increase in revenueâ€; Pentium, despite sales exceeding expectations, remains Can not hold up the overall development of FAW's own brand.
In contrast, self-owned brands such as SAIC, Chery, and Geely have developed rapidly, not only surpassing FAW in sales, but also having many advantages in technology research and development. Therefore, making FAW's own brand bigger and stronger as soon as possible became the sole choice for Xu Jianyi, the new head of FAW Group.
“This unified logo will be a substantial step forward in the integration of FAW's own brands,†an insider of FAW Group told the “Daily Economic News†reporter. “In the future, FAW Group will provide financial support, talent introduction, R&D, production and sales. All aspects will be tilted to independent brands."
According to an insider from FAW, as early as the end of June of last year, Xu Jianyi discussed the development strategy of FAW's own brand with the same steam hundreds of senior managers on the development strategy seminar of FAW Group, planning to introduce talents, R&D, production, marketing, etc. Accelerate the pace of development of independent brands.
In June of this year, Wang Fachang, who had made great contributions to the development of Hongqi, returned to FAW from the position of the executive deputy general manager of FAW Toyota Sales Co., Ltd., and was the deputy general manager and general manager of the sales company of any steam car company, which was interpreted by the industry as FAW Group began to force its own brand from personnel.
In order to strengthen R&D efforts, FAW will also integrate the research and development resources of FAW Car and the R&D resources of FAW Technology Center. The new R&D center will be coordinated by FAW Car Co., and this year it will allocate 4.23 billion yuan for independent research and development.
FAW's investment in research and development has quickly received results. In early July, the ET3 engine independently developed by FAW Car was successfully rolled out in small batches. The reporter also learned during the FAW interview that the second plant of FAW Car, which was opened in September last year, is progressing smoothly and will be completed and put into production by the end of next year, with an annual output of 200,000 vehicles. After the project is put into production, the expansion project will reach three platforms A130 and B131. The production capacity of the models will solve the problem of the current capacity shortage of FAW Car.
Tianjin FAW into a breakthrough
The integration in marketing will be the most critical step in the development of FAW's own brand. In September last year, the FAW Red Flag Division and the Red Flag Sales Company were all revoked, and the FAW sedan was centralized; in terms of sales model, the red flag also changed from the past direct sales to network sales, and Pentium was sold on-line.
Earlier, a high-level manager of Tianjin FAW once revealed to the reporter of “Daily Economic News†that the integration of FAW's own brand will begin with unified identification and on-grid sales. This news was confirmed by Wang Fachang, Deputy General Manager of FAW Car. Wang Fachang said that the unified logo is indeed in the planning process, but there is no timetable for when to achieve the unity of all logos. FAW-related officials also told reporters that the unification of New Xiali and Xinweizi in this auto show is the first step in marking unification.
Industry experts believe that unified labeling is a gradual process. FAW has chosen Tianjin FAW as a breakthrough because it is a wise choice. Although sales of Xiali are high, changes in signage have little effect on consumers, while red flag and Pentium brand logo changes need to be more effective. Long process.
At present, FAW Group's own brand strategy is still progressing step by step, Xu Jianyi said that to promote the development of independent brands, we must first solve the problem of survival and fully reverse the passive situation of business operations.
Industry analysts believe that FAW's own brands have fully integrated their own brands in R&D, production, sales and other fields. This is an inevitable choice for FAW to become bigger and stronger. At the same time, the positions of Red Flag, Pentium, Xiali, and Vizi are different. Can be unified coordination.
There is no timetable for the overall listing
In addition to efforts based on existing resources, the use of external forces to develop independent brands is considered by many to be one of FAW's options.
Earlier it was reported that FAW will acquire Brilliance Automotive and use Huachen's production capacity and its own brand to make it bigger. However, this news was quickly denied by Brilliance.
In addition to acquisitions, divesting bad assets and auxiliary businesses to further promote FAW’s joint-stock reform is one of Xu Jianyi’s most important tasks at the moment. At present, Dongfeng and SAIC have already been listed as a whole, and only FAW has yet to act.
Xu Jianyi once stated that FAW's future direction is to deepen reforms and independent innovation, and overall listing financing is also a sure development path. A veteran of FAW told reporters that the overall listing is definitely an important goal of FAW development. Once the listing is successful, FAW will develop its own brand and many other problems will be solved as soon as possible.
Currently, FAW Group has five listed companies, namely Tianjin FAW Xiali, FAW Sihuan, FAW Car, FAW Fuwei and Qiming Information. In June last year, FAW Sihuan leased its subordinate subsidiary vehicle company to FAW Jiefang Automobile Co., Ltd. for operation and management at zero consideration, which was interpreted as a signal for the overall listing of FAW.
According to industry sources, FAW's excellent assets are in the joint venture company. If the Chinese company's equity in the joint venture company cannot be injected into the overall listing plan of FAW, the value of FAW will be greatly weakened. This is one of the problems that FAW needs to crack before it is listed on the eve of listing. Judging from the current situation, only through internal resource integration to achieve overall listing goals, backdoor FAW Car may be a better choice.
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