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The development of independent brands and the overall listing of the Group have become the most important goal of Xu Jianyi’s term of office. If these two goals are achieved, Xu Jianyi will lead FAW Group into a new era.
The personnel change assessment announced by the FAW Group's high-level meeting is only a prelude. For FAW Group, which has Chairman Mao's pro-book "First Auto" honor, General Manager Xu Jianyi's task extends far beyond the success of his predecessor Yan Yanfeng. Under the background of market performance and frequent recent high-level mobilization, FAW Group is brewing a new brand. Reforms.
On September 16, at the high-level meeting of the Standing Committee of the FAW Group Party Committee, Zhang Qijie, general manager of FAW Car Co., Ltd., An Tiecheng, general manager of FAW-Volkswagen Automotive Co., Ltd., and Tianjin FAW Xiali [Review Photo Forum], Ltd. The manager Wang Gang was identified as the candidate list for the deputy general manager of FAW Group. At present, FAW Group has issued a public notice to senior managers and managers of the company. After the public announcement, the new deputy general manager will be among the above three.
Some media reported that the FAW Group's personnel adjustment plan for the current round has been brewing for a long time. Due to pressure from the SASAC, the overall listing of the FAW Group has been put on the agenda. In response to the post-listing management structure adjustments, FAW's personnel layout has also changed.
As early as August 18th, FAW Car and FAW Xiali issued a suspension announcement on relevant reports of the overall listing of FAW Group. On the following day, the clarification announcements issued by FAW Cars, FAW Xiali, FAW Fuwei and Qiming Information, which were listed on the four listed companies of FAW Group, stated that FAW Group had not specified a specific plan for the overall listing, nor had it set a specific timetable. After verification with the controlling shareholder of the company, FAW Group did not engage an intermediary agency to conduct program analysis or consultation on the overall listing issue.
FAW Group currently has eight deputy general managers of Zhao Fangkuan, Teng Tiejiao, Jin Yi, Qin Huanming, Wu Shaoming, Dong Chunbo, Sun Guowu and Xu Xianping. For the new candidates to be created between Zhang Jiejie, An Tiecheng and Wang Gang, FAW Group internal personnel interpreted the matter as normal personnel adjustment and training procedures for reserve cadres.
FAW Group's operating data in 2008 showed that according to the statistics of the same caliber, FAW Group sold 1.533 million vehicles of various types throughout the year, an increase of 6.75% over the same period of last year, and the growth rate was higher than the overall increase of the auto industry; the sales income was 218.4 billion yuan, a year-on-year increase. 8.8%, creating the highest annual sales and sales revenue of FAW Group.
In the joint venture brand of FAW Group, FAW-Volkswagen sold 499,000 vehicles in 2008, ranking first in the national passenger vehicle market. Among them, the Audi brand sold 105,800 vehicles, an increase of 14.8% year-on-year, and it was the absolute leader in the premium luxury car market.
In the FAW Group's own brand front, the sales of medium and heavy trucks of FAW Jiefang Co., Ltd. achieved sales of 134,000 in 2008, exceeding the annual plan of 4,000, and the market share increased by 0.5%.
FAW's self-developed representative products for mid-size sedan and economical sedan Pentium B70 [review picture forum] and Weizhi were also recognized by the market after two years of listing, and were subjected to the 2008 global financial crisis in the passenger car market. Lived the market test. Pentium cars sold 47,700 vehicles in 2008, exceeding the planned volume of nearly 20,000 vehicles. Weizhi has also become the first car with a sales volume of 50,000-60,000 yuan, with nearly 50,000 sales.
However, the economic indicators report of key enterprises (groups) of the automobile industry showed that in the first half of 2009, FAW Group saw a double-digit decline in its operating income. At the same time, the profit of FAW Group was also less than the same period of last year, with a decline of 13%. It became the only company in the “Big Four†automobile group that experienced both a decline in operating income and profits.
According to analysts in the industry, the main reason for the decline in performance comes from the lag in the development of self-owned brands. Under the requirements of product line updating and network layout adjustment, FAW Group’s strategy of strengthening the development of independent brands through personnel changes has become clear.
In the business of FAW Group, joint venture brands, self-owned brands and commercial vehicles have become the three most advantageous sectors. However, the steady growth in sales volume and profit contribution from joint venture brands such as the same automaker and FAW-Toyota are different. Independent brands such as Hongqi, Pentium and Xiali have not been able to achieve rapid development.
It is understood that since the end of 2007, Xu Jianyi has been the general manager of any of the group's automobiles, FAW has been revitalizing its own brand at a faster pace, and “integration†has become the key word for the revitalization plan. A high-level manager of Tianjin FAW once disclosed that FAW's own brand will start with the unified logo first, replacing the previous three logos with a brand new LOGO, and then will also conduct full-scale integration from research and development, production, etc., in sales, Take the "three-in-one" plan.
The so-called "three-in-one" refers to integrating the three brand channels of FAW's passenger car segment into one. After the grid connection, the long-lost Hongqi brand will be able to use market-oriented product strategies to bring market returns. At the same time, Pentium can use Xiali's terminals across the country to rapidly increase sales, while Xiali can use Pentium to enhance its brand image.
In fact, in 2008, FAW Group started to sell red flag and Pentium to the grid. However, FAW Group has not taken any substantial action on whether to integrate FAW Xiali into the existing sales network.
In the nine years that former general manager of FAW Group Yan Yanfeng was in office, through a series of mergers and reorganizations and external cooperation, the development of FAW Group gradually became clear. From the balance of financial revenue in 1999 to 2007, it achieved a profit of 12.3 billion yuan, a year-on-year increase of 252 yuan. %, finally from the state-owned state-owned enterprises into a strong domestic auto group. With media analysis, the development of independent brands and the realization of the overall listing of the Group have become the most important goal of Xu Jianyi’s term of office. If these two goals are achieved, Xu Jianyi will lead FAW Group into a new era.