See the Rainbow After the Storm--Dragon Company for 12 Years

Twelve years ago, when the first Citroen sedan was driven off the production line by Shenlong, people could not make a clear judgment on the prospect of a family car. However, 10 years later in 2002, Dongfeng Citroen brand products of Shenlong Motor Co., Ltd. have sold 85,088 vehicles, achieving a rapid growth of up to 60% compared with 2001; in 2003, the sales of complete vehicles of Shenlong Motor Co., Ltd. exceeded 103,000 vehicles, making it one of the few in China. One of the members of the “100,000 Clubs” of passenger cars has made tremendous contributions to the promotion of household cars in China. The dragons did not stop there, but they wanted to advance to higher goals. On January 7 of this year, the foundation of 300,000 units of Shenlong Motors was laid. In April, Dongfeng Peugeot 307, which represents the dual-brand development strategy, went offline. All this is to realize the dream of Shenlong people, that is, "to build the most valuable brand in the Chinese national sedan," and to become the "hundred-year-old shop" of the Chinese auto industry. Part I: It is difficult to go through hardships and do not change your business. During the “Seventh Five-Year Plan” period, the state formally put forward the determination of the automobile industry as a pillar industry of the national economy, and decided to build a universal car factory with an annual output of 300,000 vehicles, and handed over the only project that was built on an economic scale to the strength of the time. The second car manufacturer (now Dongfeng Company), the strongest and most inquisitive car, will bear. The Shenlong sedan project was approved by the state in January 1988 and started planning. In order to find the ideal partner, the Dongfeng people who are interested in cars rushed up and down and searched for it. They finally found a French company with a long history of auto development and sincerity. On May 18th, 1992, the company was established as a joint venture between Dongfeng Motors, a company with the highest technology starting point in China's automotive industry history, the latest introduction of products and the largest investment, and a shareholder of France’s Citroen Company. The company was established as a modern company. The car production and operation base began to be built in Wuhan, which is located in the middle of China's nine provinces. People named the new life bred by the combination of the Chinese civilization and Western French civilization as “Dragon”, hoping that it will grow rapidly and achieve rapid development as soon as possible. Shenlong started construction from 1988 to February 1993. In November 2000, the first phase of the project passed the national inspection and acceptance, and it took more than 10 years before and after. During this period, the competitive situation of China's economy inside and outside the environment and the automotive market has undergone tremendous changes, most of which have changed. All are bad for dragons. When investing in Shenlong, the relevant government departments of the country had made an overly optimistic estimate of the car's entry into the family and demanded that “the starting point of the selected project must be high, and it must be close to and reach the level of the world at the same time.” and fully meet the “joint development, joint venture” The general requirements for the construction of factories, export-oriented, import substitution. To this end, the Shenlong project was included in the national key projects for the “Eighth Five-Year Plan” and “Ninth Five-Year Plan”: the construction scale is to produce 300,000 cars and 400,000 engines per year; the first-phase project will form an annual output of 150,000 cars. The production and operation capacity of 200,000 engines has invested over 10 billion RMB in the project. This decision directly led to Shenlong’s financial burden, the lack of funds, and the high cost. Compared with other rolling-wheeling development and rolling investment auto factories, Shenlong lost its competitive advantage. At the same time, Shenlong company also encountered difficulties in its construction. The third year after the first batch of Citroen ZX sedan went offline, that is, in 1995, Shenlong held a board of directors in Paris to adjust the original investment and construction plan, and plans to achieve the scale of the first phase of the project. It is scheduled for 1996. It was completed and put into production on July 1. However, this plan was eventually postponed due to various factors. The construction of Shenlong was a full two years late, but the lost market can not be calculated in two years. Due to a variety of reasons, although the Shenlong project was planned early, it was still under construction when market demand was strong. When the consumption of official vehicles rushed, there was little opportunity for Shenlong due to the introduction of models targeting home cars; 1992 On September 4th, the first Citroen ZX sedan was assembled by Dongfeng and completed in Xiangfan. At this time, hatchbacks are now in the European and American markets for the most part, accounting for almost 70% of their market share. However, in the hearts of the Chinese people, “there is no end to the end” lacks the style of the car in the traditional concept, and few people can associate it with the romantic, avant-garde France. The just-started, stagnant private car market has allowed Products and technologies are ahead of Fukang suffered a cold and white eyes at the birth; when the Fukang 988 sedan was put on the market, he wanted to catch up with the last train of public funds. He did not expect a major flood, and the country strictly controlled the bus consumption. The fruit of the hand was passed by Shenlong, and the market sales of Shenlong were seriously hindered; when the market was once again bursting, the consumption of official vehicles had been upgraded from a mid-range economy to a high-end luxury model. Audi A6, Guangzhou Honda and other models were in hot hands... ... As a pathfinder for family cars, Shenlong people have encountered unprecedented difficulties. Middle section: Let's clear the clouds and see the sunny dragons are not intimidated by difficulties. In April 2001, "Dragon exchanged!" Liu Weidong, a 35-year-old man, was transferred to the general manager of Shenlong and he took over 10 billion yuan of Shenlong's assets. Under the gaze of “whether he can reshape the dragon”, Liu Weidong began to observe, began to think, and then started the action... The single product has always been an important “bottleneck” that restricts the development of Shenlong. On November 29, 2001, Shenlong launched the Fukang “New Liberty” with RMB 97,800, which took the lead in breaking the psychological price of mid-range economical car customers expecting to be under RMB 100,000. It was called “one in the winter. Put the Chinese fire." To take this opportunity, Shenlong Company put forward the loud slogan of “Building the First Brand of Jiajiao”. Driven by this resounding slogan, Shenlong’s sales began to strengthen. In the whole year of 2001, 53,194 vehicles were sold, an increase of 2.23% year-on-year. In 2001, Shenlong Company launched the new models of Beverly EM "Century Trend", "Fukang" "Times", Sarah Picasso, and light-colored interior car, breaking the single, sluggish and boring sales of the entire Dragon vehicle company for a long time. Afterwards, Shenlong Ren also resolutely gave up its intention to change the face of the Beverly 988. In June 2002, Dongfeng Citroen Elysee, a brand new mainstream model with a price of 139,800 yuan, was launched. This made the entire automobile market a real shock and achieved sales of 28,603 vehicles. It became the highest-selling model for domestic new cars. In the product structure formed on the structure of Fukang, Elysee, Picasso, Saina four series, more than a dozen varieties, manual, automatic complete, the powertrain covers 1.4L, 1.6L, 2.0L three mainstream stalls, models including single Car, hatchback, sedan sedan product line. The dragon's long-lived product has disappeared and she finally has the opportunity to feel proud. However, Shenlong's deep problems have not yet been solved! These years, Shenlong Co., Ltd. is like a pot of water that cannot be boiled. There are two main reasons for this: First, the French side is not active enough, and there is not enough support in terms of models, technology, funds, etc.; Second, the ideas of the Chinese and French sides. Not completely integrated. The joint venture partner France Citroën, in fact, is only a sales company affiliated to the PSA Group. It does not have the ability to develop products. In addition to selling cars to make money, the continued development of the company will not be considered. This is exactly the same as the Guangzhou Peugeot joint venture in that year. Will Guangzhou Peugeot's tragedy be repeated in Shenlong? Dongfeng only has a joint venture with Citroën Sales Co., Ltd., and it is impossible to talk with upper-level PSA professionals. The development of products requires a layer of separation. "In such a low-level joint venture, a few years ago, companies must not close their doors!" Liu Weidong was anxious. "The joint venture company must increase the level of cooperation and it must continuously develop new products." Liu Weidong, one of the directors of Shenlong company, Miao Wei, went to Paris to discuss with PSA to increase the level of joint ventures, increase investment, and expand cooperation. He has frequent contact with other international companies. . "Either end this unreliable 'marriage' with Citroën and re-find a partnership or expand the scope and grade of the joint venture." In September 2001, Miao Wei and Liu Weidong came to France’s PSA headquarters. As soon as they opened their minds to explain their wishes, PSA President Foltz told them: “I fully understand what you mean. We immediately set up a working group to conduct consultations.” After many negotiations and consultations, in October 2002, Dongfeng and PSA Peugeot Citroen signed an expansion joint venture contract. The cloud that hindered the development of the Dragon was finally dispelled, and Shenlong has since entered a new period of development. Part II: As a full moon, on January 23rd, 2003, Shenlong has a brand new dragon company. The objective that Shenlong people set for themselves is to achieve annual production and sales of more than 150,000 vehicles within three years. With an annual output of 300,000 units, the Dongfeng Peugeot 307, which represents the dual-brand development strategy, officially went offline.With the formal introduction of the Peugeot brand, Shenlong Motors has two leading cars: Dongfeng Citroen and Dongfeng Peugeot. The brand's series of products, in terms of product brand management, have achieved a historic transformation from a single car brand to two major car brands.For the implementation of the dual brand strategic objectives, Shenlong people have made meticulous arrangements. The organizational structure of "one company, two brands (Dongfeng Citroen and Dongfeng Peugeot)", in the brand operation mechanism, formed two brands, two brands operating the Ministry of Commerce, two brand marketing service networks, further refine the product Market positioning: In the management mode, a long-term responsible system is adopted, and senior managers above the department level implement the principle of cross-selling between China and France. It is convenient for both parties to effectively communicate, communicate, and complement each other in management, and Shenlong people think of all the factors that hinder the development of the company, and they all propose very good solutions. At the same time, Shenlong Company seized the opportunity to actively promote internal management and The reform of the mechanism seeks breakthroughs and innovations in the management system.According to the requirements of the second phase of the Shenlong project, by 2006, Shenlong will have three product platforms, two brands, Dongfeng Citroen and Dongfeng Peugeot, as well as the production capacity of 300,000 cars. In the next 6 years, Shenlong will launch a brand new basic vehicle every year. Through the capacity building and product development of the second phase of the project and the implementation of the dual-brand marketing strategy, Shenlong will maintain an annual average of 30 years. Sales growth rate of more than %, to achieve more than 300,000 sales in 2007, with an annual sales income of RMB 30 billion, Shenlong will be ranked among the most influential car companies in China. Look back at the company for the past 12 years. Today, people can clearly see that during the period of reform and opening up and economic transition, institutions, mechanisms, Conflicts and contradictions in terms of ideas are inevitable. The frictions and collisions between Chinese and foreign cultures are also inevitable. The entrepreneurial and developmental process of Shenlong reflects the inexorable inevitable process, stage, and path for the Chinese auto industry to go abroad and achieve international cooperation. No one can surpass his time, and no other company can surpass its time.Dragon's hard exploration for the car to enter the family will never be forgotten. Looking into the future of Shenlong, people have reason to believe that It is because of countless frustrations that we know that success is precious. Standing on the new starting point, Shenlong will be able to write a new chapter in the development of the Chinese automobile industry. It will also be able to develop more of its own in the Chinese automobile arena. The dragon's dream will finally come true. Our reporter Zhang Fengyu