Shenlong, The Last Fight

Sales decline, high level turbulence, cut capacity...

In recent years, Shenlong vehicle, which is at a low ebb, is seeking to revive.

Based on the assurance of internal and external environment, and aiming at thoroughly changing the plight of the company and solving the fundamental problem of how to survive in the current period and how to return to a normal orbit in the future, the new leading group of dragon motors, headed by Chairman Zhang Zutong and vice chairman Olivier, first faced the media in the form of video conferencing in June 12th.

In May this year, Shenlong Automobile announced the latest personnel adjustment. Zhang Zutong, the Standing Committee and deputy general manager of Dongfeng Motor Group Committee, served as chairman of Shenlong company, Secretary General of Peugeot Citroen group (PSA) and Olivier, head of China regional business.

PSA believes that Oliver, who is well versed in China's auto market and Chinese culture, will give the group a competitive edge in improving its current performance in China.

However, at present, the dragon is facing more complicated internal and external environment.

The sudden outbreak of the new crown pneumonia has led the Shenlong dragon in the epidemic center to undergo a major exam. At the same time, with the superposition of the European epidemic, it has caused a certain impact on the global supply chain and production of Shenlong. At present, the challenges faced by Shenlong are huge and the task of development is also very arduous.

According to the statistics of the Federation, the sales volume of Shenlong Automobile in the 1-5 month of this year was 17876, down 67.3% from the same period last year.

In the face of the decline, the dragon's change needs courage to break the boat, and most importantly, the dragon's determination to change and survive from top to bottom is also very firm.

"Shenlong has a very important strategic position in Dongfeng and PSA business territory. Both the subjective will and the objective reality, both shareholders have confidence, determination and ability to do the dragon well. In order to make Shenlong go back to normal orbit as soon as possible, both sides have made a series of support arrangements in terms of products, manpower, material resources and financial resources. Zhang Zu pointed out in an interview with reporters.

Of course, reform will not be plain sailing. In terms of product, marketing and management mode, it faces many years of "Shenyang". The management team headed by Zhang Zutong and Olivier still faces many difficulties.

Facing problems directly

It is undeniable that in the past few years, the products of Peugeot and Citroen brand launched in the Chinese market have been criticized for their appearance, location, pricing or salvage rate. Shenlong senior officials also had a deep reflection on this issue.

"Shenlong has encountered difficulties in recent years. I think there are two points to be summed up at the manager level: first, the managers of Dongfeng sent to Shenlong do not fully understand PSA. Second, the managers sent by PSA to Shenlong did not fully understand the Chinese market. There are some differences of opinion in the day-to-day management process. These divergent opinions cause the internal efficiency of Shenlong company to be low. Zhang and Zhang confessed.

Aiming at the problems facing Shenlong, as early as the second business meeting in 2020 held in May 8th, Shenlong company confirmed the next three key tasks of "sales promotion, total staff income and expenditure reduction, quality improvement", with a view to turning the difficult situation as quickly as possible.

"Shenlong sales volume is the first difficult problem. The first thing that came to Shenlong was to visit the dealers, and also found some problems. At the end of the network, the price order and sales order of the dealer side were relatively chaotic, causing some dealers to sell cars, and some dealers could not sell the cars on the root." Zhang Zutong told reporters.

Therefore, in the field of marketing, the company decided to change from target driven to demand driven, cancel the target bundling and delivery of incentive points, and set up practical and challenging goals from the basic capabilities; focus on channels, and follow up network activation and single store sales promotion.

"In China, there are three essential elements to make the automobile business well: the first is the product, the second is the brand, and the third is the internal related management and the corresponding ability of the company, and the management efficiency. The management team of Shenlong company must always adhere to the principle of maximizing the benefits of joint ventures. "

Zhang Zutong believes that in the future, Shenlong must strengthen its marketing capabilities, activate channels, enhance cooperation partners' confidence and ensure continuous sales growth.

It is understood that since the comprehensive resumption of production in March 25th, Shenlong company has achieved a positive growth in sales volume for three consecutive months, gradually coming out of the impact of the epidemic.

According to the "Yuan" plan formulated last year, Shenlong will return to the sales level of 400 thousand vehicles in six years.

Compared to the peak of the 700 thousand, the revival goal may be slightly conservative. In terms of the objective environment, this goal is practical and challenging. This is the cruel reality that Shenlong needs to face in the past few years. The user needs to find it a little bit, and his confidence needs to be recovered a little.

Opel import is on the agenda

The next round of changes in China's market will also determine the future of the dragon.

In addition to continuing to implement the "Yuan" plan put forward by Shenlong in 2019, Zhang Zutong once again stressed that the strategic position of Shenlong company in the shareholder's business has not changed. The goal of doing well in the present and long-term goals has not changed; and the confidence of Shenlong company's "return to the track" has not changed.

"The Chinese market is one of the most important strategic markets in the PSA world. It will never give up. Relying on Shenlong, the strategy of actively developing the Chinese market will never change. PSA achieved global success in 2019 and created a new profit record. It has the ability and willingness to continue investing in China and revitalize its performance in China. Olivier confessed to the media.

Olivier believes that in the future, PSA group will become one of the four largest auto manufacturers in the world after merging with FCA group. It has better market coverage and larger industry scale, and will have very good synergy effect and good development prospect in China.

Further cooperation has also brought new opportunities. It is understood that Dongfeng and PSA are discussing closely the plan of importing Opel brand to Shenlong company.

"German brand is very attractive to Chinese customers. As far as I know, there is no German brand in Dongfeng's current product sequence. After mergers and acquisitions, PSA and FCA will become a bigger business. The combination of Dongfeng, including PSA and FCA, will bring more opportunities, including opportunities in manufacturing, and opportunities for new brands. " Olivier said in an interview with the twenty-first Century economic news reporter.

As for China's adaptability to products, new arrangements have been made for both shareholders.

"The first is to make Shenlong's products based on PSA's concept and technical strength become excellent products, high-quality products, and closer to the needs of Chinese customers. The second is to tell the story of Peugeot and Citroen two brands in the Chinese market through Shenlong company. The third is to move Chinese customers with quality products and services. Zhang Zutong pointed out.

Therefore, Shenlong company, Dongfeng and PSA are more open on the product platform. Under the condition of respecting intellectual property rights and meeting brand standards, joint venture's R & D center and Dongfeng Technology Center can jointly develop China's products, thus supporting the joint venture's future product line.

In the next three years, in view of China's market and consumer demand, Shenlong Automobile will launch 14 new models, each brand has new models every year. The new Peugeot 2008 is the first oil and electricity symbiotic vehicle built on the platform of CMP. It is also the first global vehicle launched by PSA group in the Chinese market.

In addition, the PSA group will also arrange more global products, which will be supplied to the global market by the production of Shenlong in China, to release the energy produced by Shenlong company and realize the "dragon production" for the whole world.

In the future, Shenlong will also become the sole production base of PSA group's global strategic vehicle project E43.

?