Dialogue Volkswagen US CEO Feng Sihan: US auto market Is gradually return to normal | titanium Media Exclusive

Source: Titanium media

a member of Volkswagen Passenger Cars brand Board of Management, Volkswagen Passenger Cars brand American CEO Dr. Feng Sihan

2020 Volkswagen Is a very successful year, almost all of the brand’s performance have been enhanced, and success in gaining the good results, and its performance in the US market are closely related.

reported a Volkswagen brand in 2020 sales revenue reached 88.4 billion euros, up 4.5 percent from the previous fIscal year, to optimize product mix and price positioning of a positive overall performance influence, offsetting the sales decline, the negative impact of market costs and unfavorable currency effects brought about.

but enter 2020, the real economy suffered epidemic “Black Swan”, many industries have been hit, domestic Car sales almost at a standstill state, but let more people unexpected Is, the world Is faced with thIs serious epidemic crIsIs, Europe’s epidemic Is more serious.

Recently, the media titanium Dr. Feng Sihan Volkswagen US CEO conducted an exclusive interview, trying to come out of hIs mouth Volkswagen Group in the fast-growing US market password and forecasts of future US Auto market judgment.

in previous years during the Spring Festival, when many American Car factory Will enter a brief stop for many foreign executives it Is also a good time to leave, when US News reports appear epidemic when Dr. Feng Sihan has returned to Europe, he has spent a lot of time working arrangements over the phone.

until February 3, Dr. Pingsi Han returned to New York after a 14-day quarantine period, the American public’s New York office and factory officially resumed in February 17, Volkswagen Group factories around the United States began to use single-class production of an orderly resumption of production, everything Is moving in the right direction.

United States of epidemic prevention work has achieved initial results, the epidemic Will evolve in Europe Is unknown, and perhaps more severe compared to the overall situation of the United States, before the rapid decline of the curve the peak Will last longer.

Dr. Feng Sihan judge, “It also means, to June or even July, Europe Will be affected by the outbreak, which also affects two aspects of Volkswagen. First, German travel between U.S. and Europe Is now almost at a standstill. second, as a major trading partner of the United states, other countries, including Germany, the situation Will affect the import and export trade in the United states. “

Back forecast for the Automotive market, Dr. Feng Sihan that “the first half of the sharp market decline Will occur, but we expected out of the downturn in the second half, but then if we can maintain thIs trend, even if you can make up the first half the loss also depends on the global economy. “

a Volkswagen rely on to achieve trend growth

past 2020 in the entire US Auto market experienced colder winter than the market expected in the US passenger Car market sales in the second consecutive year, thIs downward trend ever upset a lot of rhythm Car prices, have readjusted strategy In response to market winter.

Volkswagen Group Is no exception, despite the large environmental performance Is not optimIstic, but still through a series of strategic adjustment of the layout of the product matrix, to achieve a contrarian growth. In 2020, Volkswagen of total deliveries in the US market was 4.23 million, a record high, up 0.6% from 2019’s 4.21 million.

The United States has become Volkswagen’s most important regional market, Volkswagen thIs ship Is how to achieve contrarian growth of it in the case of the overall US market decline, our mouths from Dr. Feng Sihan get some answers.

Dr. titanium Fengsi Han told the media: “ThIs Is all thanks to our developed in 2016 and adopted the right strategy to reinforce our weaknesses when we look back over the years. development, had a very rigorous self-examination and self-test, and found that our short board in terms of the SUV, past practice more or less old-fashioned. Therefore, we decided in 2016, preparations for the “front line of the congregation, causing future” strategy the strategy involves a number of key areas. “

” before the public Bank, caused by the future”Strategy which, expand SUV lineup Is a very important part of the present, from small to large SUV SUV, Volkswagen has launched a number of outstanding SUV models, and Will continue to expand the model line-up, in order to meet more consumer demand in the segment among the.

“Secondly, we Will travel as a strategic core electric,” Dr. Fengsi Han admitted. titanium to titanium media to the media

Dr. Feng Sihan that in the next decade, the United States and the world, electric personal travel Will become one of the best ways to travel, so the group introduced a number of very attractive and competitive plug type hybrid models, including the application of the latest Volkswagen MEB platform ID. family, Will also be launched thIs year in the United States.

in line with the Group’s development strategy last year, Volkswagen also unveiled a brand new image, it Is younger, more modern, to convey a more user-oriented philosophy, and use a lot of thIs new image among dIstributors and dIssemination of the general public. it also shows Volkswagen It made the inside and outside innovation.

a number of Volkswagen Group’s brands and models, but Dr. Feng Sihan view, Volkswagen more than that. “We are also concerned that a limited budget, but want to experience German quality and German engineering, there Is a great demand for entry-level models of the US consumer, the United States in the number of such consumers very much, “Dr. Pingsi Han said.

So, after years of preparation, the Volkswagen brand’s sub-brands – Jetta brand came into being in the last year, the Jetta brand of release may be the most successful in recent years, the US Auto industry Is a big event even during the epidemic, still Jetta brand launched. paragraph SUV -. VS7, and have achieved good market response

Dr. titanium Fengsi Han told the media, “All of thIs has laid a strong foundation for Volkswagen, It makes us even when the size of the market decline, can still get a nearly 15% market share. ThIs Is also the highest point in recent years, Volkswagen’s market share, more than the various initiatives we achieve a contrarian growth. “

Second, the fully electric speed up the process

Electric Is one of the most important keywords Volkswagen over the past year, last year in the US market, the Volkswagen Group’s brand new energy vehicle sales have achieved growth, including pure electric vehicles and plug-in hybrids, and the public in fact there Is a greater goal.

in the last few months, Passat plug-in hybrid version became one of America’s best-selling plug-in hybrid model, with more models on the market thIs year, Volkswagen hopes to achieve the target of sales growth.

Weekdays, Dr. Feng Sihan Will be driving a Passat plug-in hybrid version, can drive electric mode most of the time in New York, to some extent, he was driving a electric vehicles, long-dIstance travel if the plug-in hybrid version of the internal combustion engine can switch at any time to let him use.

America’s most Volkswagen Group, the world’s largest consumer market, now Is not only a testing ground for electric strategy, Is gradually developing as a pioneer position, it Will use what it electric strategy in the United States ?

Dr. Fengsi Han said: “Volkswagen Will be introducing a new platform for US electric MEB we took the lead in Zwickau, Germany started the production of MEB models, Zwickau plant Is in Europe. users produce the first ID.3. in the fourth quarter of thIs year, Volkswagen Will produce ID for the US market in the US model. as you see in New York ID. strike through, it Will be a pure electric SUV models, designed for the United States to build. “

It Is reported that FAW-Volkswagen factory in Foshan and New York Volkswagen plant located in Anting have to produce ID. models ready. Plant currently being imported Cars, and make final preparations and testing, Volkswagen Will continue according to the schedule, at the end of thIs year the production of ID. Models in the United States.

aspects of capacity planning, the public Will also make adequate preparations, two factories of new energy vehicles up to a total maximum production capacity of about 60 million, the plant Is designed to meet the most growing demand for new energy vehicles.

“Volkswagen Group in U.S. to 2025 years planned annual production of 1.5 million new energy vehicles, 600,000 of annual production capacity accounted for 40% of the total plan. Volkswagen Will expand over the next 1-4 years, production capacity, the introduction of new models, in order to achieve thIs goal, “said Dr. Feng Sihan told titanium media.

Last year, the Volkswagen Group Boao Forum represents the world’s new energy vehicles meeting: 2035, Volkswagen Group Cars sold in the US market Will be 50% of new energy vehicles in order to implement thIs goal, the Volkswagen Group plans to sell 1.5 million in 2025 in the United States. new energy vehicles.

infrastructure, Volkswagen Is also charged with the joint venture (open Mays new energy Technology Co., Ltd) jointly developed a plan, and Will invest more in thIs regard and more. only through concerted efforts to further improve America’s charging infrastructure, to provide users with a mature public or semi-public charging facilities.

Third, the continued investment in digital technology and other cutting-edge science and technology

large Car enterprIses throughout the world, are going debate about the future of the revolutionary movement to travel, how to do brand in transition, rebranding has become a proposition we are thinking of, public steam Also has its own logic

Dr. Pingsi Han said: “Through our unveiling of new models, you may find that the new brand design incorporates many new elements, new brand design to the digital age born. When you see the new design of Volkswagen, Will be able to feel all the charm of them, such as ID. Models could become a new pinnacle of design Volkswagen. “

These new brand image showed their new product design methods, and new user communication. Dr. Feng Sihan think, in the future, to use more digital content and a completely different media way to communicate with users, the future of Volkswagen vehicles Will achieve a comprehensive Internet and provides many Internet and digital-related services, users can enjoy these services while driving, including the future of the field of digital Autopilot and 5G applications are Volkswagen Group Is focused on the direction of investment.

to the Autopilot, for example, Volkswagen has been made in the early development of the Autopilot systemA lot of investment, Is developing the equivalent of semi-Automatic driving function, thIs technology can be applied under certain traffic conditions, planned in 2022 about the technology put into use.

on the international Autopilot technology generally can be divided into one to five, Volkswagen future electronic architecture Is compatible with all levels Autopilot, which means that the Car can adapt to different computing power level of Autopilot.

It Is reported that Volkswagen Is also working with US technology companies working closely joined Google launched the Apollo platform Autopilot, titanium Dr. Pingsi Han told the media, there are many ongoing planning and cooperation, in the next few months Will be announced some of the information and initial results.

while diminIshed in the future, Volkswagen plans to increase only in the digital realm. Despite the emergence of the current epidemic, Dr. Feng Sihan also firm, said: “Volkswagen Will invest thIs year in the US about 40 billion euros for investment in the digital field, of course, also included the future of Volkswagen products Will achieve a comprehensive interconnected.”

a few days ago earnings communication conference, Dr. Judith Chairman of the Volkswagen Group Board of management of Volkswagen elaborated with Car.Software institutions at the core of the program.

in the Volkswagen headquarters, there are about 4,000 to 5,000 Cars, and software experts in the field of integration in place. In New York, there are hundreds of experts to serve on the Plaza and driving the Group’s R & D department. Volkswagen plans to expand in Europe Will be the team to 10,000 people, and continue to strengthen its own power in the digital field in the United States.

Dr. Feng Sihan move to titanium media gave an example: “In Europe, landing 8th generation Golf, for example, a code Is needed more than the Car if you are a fighter. driving architecture Is more complex, equipped with self-driving Car technology, it may be more complex than the currently most sophIsticated electronic equipment 10-100 times the software Will become the core of the Car. “

four , how to look at thIs year’s Auto market?

If we say that 2020 full-year growth trend over VolkswagenAlmost expected, then 2020 Is faced with so many uncertainties, the sudden outbreak of a new coronavirus upset a lot of business strategic plan, not just in the United States, Europe and the United States currently, and even more serious impact.

Referring now to the Automotive market, affected by many factors, Dr. Feng Sihan admits it Is difficult to predict, he said, “we see every day the United States gradually returned to normal, but services the overall industry recovery Will take time. but for now, can not conclude that thIs year Will affect the purchasing power of the extent. “

about ten days ago, the US research institutions data from several major cities analyzed, the number of returnees, including major US cities and the mobility of labor to work in the service sector, such as restaurants, bit driver, dry cleaners and so on. Data show that only 16% of the labor force flow returned to New York, New York in thIs regard as the most leading cities, and only 44%, and most similar to New York’s major cities, thIs proportion Is about 25%. Many private companies need to use reserve funds to get through thIs period of time.

Dr. Pingsi Han also suggested that “due to produce a second major impact on the epidemic may be that many US companies are currently a large part of the business and export trade-related. Europe and the US Will how fast the speed of recovery from the outbreak Is unknown if the same speed, and the United States, then in the third quarter, the latest fourth quarter, we Will see some kind of rebound. it also depends on the uS government Will take what policies to stimulate the economy, which Will also have knock-on effects on other economies. All in all, it Is difficult to predict. “

If the United States back on track in the fourth quarter at the latest and continues, Volkswagen Group of America business may see some growth in 2021 and 2022. Future prospects, but there are still some obstacles on the road to the future, including the impact of the external environment on the US economy, it had happened before these situations.

VW America’s current supply chain Is very balanced and good management, the production line can be quickly switched to two shifts mode, there are two three factories using two or even three shifts shifts mode. Given the current circumstances, for the loss of production from February to early March, Dr. Feng SihanForecast to make up about 90%. In the management level, the Automotive industry as a whole eco-system has also played an important role in its period.

coming very deadly epidemic of small and medium private enterprIses, although companies such as Volkswagen Group has sufficient ability to resIst rIsks, but the face of thIs storm, Will be the new fIscal year to make certain adjustments, if you use one word to sum up, that Is – cost management.

Dr. Fengsi Han admits: “difficult times, liquidity management Is a key factor in business success facing a serious situation, revenue may decrease overnight, and the company has no cash. inflows, which requires companies to strictly control the cash outflow. otherwIse, no matter how healthy companies Will run out of cash. “

Is not only for Volkswagen Group, cut costs for every moment Car prices are important, the only way to maintain a lean, healthy operation, but we all want to bring trouble because of the epidemic do not last long.

In summary, in the fight against the epidemic, the United States achieved remarkable results, now gradually return to normal. May be the latest in July, the US Auto market Will return to relatively normal situation, but, as said before, global developments Will also have a huge impact.

“Now, we have every day, every week focus on the development of the situation, concerned about the epidemic of global change, because it Will affect the business of Volkswagen in the United States,” Dr. Feng Sihan representation. (ThIs article first titanium media, author / Li Yupeng, interview / Lee extraordinary)