“Installment savings,” Why Great Wall Motor’s international strategy, can do better than most American brands

When “Basically we want to develop a Car, do not need to be dry by the Baoding.” told the US media at the Frankfurt Motor Show in Germany, Wei Jianjun said casually. Even after a full day of conference and interview arrangements, the Great Wall Motor’s head of air of slightly tired, pace Is slowing down, but still can feel full of confidence between words. Current “new knowledge Automobile market”, we have to lIsten to chairman Wei Jianjun, talk about the international strategy of Great Wall Motors.

The last chairman Wei Jianjun and sat down to talk face to face dates back to the spring of 2016, that time Is the Great Wall Hover H6 Car rIsing star, has just launched a models designed to appeal to younger users Coupe version of the model, and the brand WEY cocoon want out, officially released in November the same year. Today I learned that early in 2016 in brewing, in addition to WEY brand, there are several new subsidiaries, their business scope, covering everything from body stamping dies, body electronics, seats, lights, new energy sources to fuel and powertrain, battery and so on almost all Car production needed to support the business.

“twice landing Frankfurt Motor Show,” “to enter the EU in 2021”, “advanced in Europe and then into the United States,” and so on “high light” information lead to an upsurge in domestic public opinion in the media, but in and Wei Jianjun, chairman of the interview, I hear more, Is “in order to reduce development costs and components business,” “low-growth Automotive market Is the new normal. “” global brands have a competitive advantage “,” to create a global explosion models of a single product. “ such a pragmatic dIscourse. Survival and development of enterprIses Is always a top priority, “to become the world leader in luxury SUV” under the brand vIsion, Great Wall Motor has a slow and steady “installment savings” the strategic plan.

First, let’s open the Great Wall Motor’s official website, count the number of the Great Wall Holding Group member companies. In thIs one contains the Frankfurt Motor Show thIs together to participate in the four core components of the company: hive easy to create, cellular energy, Noble Automotive, electronics ManderElectric . Why make great efforts to self-built parts supply system, as well as independent workshops Will become a self-financing enterprIse? In fact, behind some “bitterness of the past.”

“the original intention of the development of parts, to several stages, the first stage we have three objectives: ‘reduce costs, development speed, master the core (technology) ‘, Why these three purposes, because our company Is too small, suppliers do not play with us, to bring you to play particularly expensive, and time can not guarantee. “Speaking of former tough period, was able to feel some frustration among the Baoding man speech, “there are a lot of things are forced out, all these years we are the divIsion structure, then put them all into something a company.”

Careful readers may Will find, among the four companies participating in the Frankfurt Auto show, there are three parts are incorporated in 2019, in 2019, these parts enterprIses also known as the “Great Wall Motor xx business unit.” Commenting on the development course of these years, Wei Jianjun talking about: “Parts of the Great Wall in thIs area Is still doing relatively solid, in fact, you did not see those, even our body dies we did not come all the mold can do it, the equipment Is very advanced , the first and second mold industry in the country Is certainly not us, we do not have a large scale, we can be routed to the top four, the quality should be first. we basically involved the category of Automotive die, all have housing Automatic transmIssion, with a pass rate of more than foreign products, mold cylinder head of the engine are our own doing. “high-quality, low-cost parts supply, used to be the Great Wall Car unattainable too soft underbelly, under the “forced resignation”, eventually became an advantage GWM.

With the expansion of the product line, the Great Wall Automotive parts suppliers to enter the second stage: “insufficient competition within the system, the mechanIsm Is not perfect, excellent costPotential Is less obvious. Improve the mechanIsm, the introduction of competition, their phased implementation, thIs stage Is the stage in recent years, with good results, they progress very quickly. They used without knowing its name, call the first of several DivIsion, now plays hIs name , cellular Peter ah ah ah Noble, and now they are to attract business to the Great Wall. “Wei Jianjun Speaking of these parts business Is like talking about their children, they have the fledgling in the international competition in the market have achieved good results, and for Great Wall Motor, these companies are independent of its parts global market strategy to the smooth progress of the foundation.

remember the “highlight” information points mentioned in the beginning of thIs article do? I am sure you readers these days in the major media platform to see a lot, but in fact at the scene of thIs interview, Wei Jianjun and not as we imagine so, “categorically”, in my opinion, he still maintained a mature entrepreneur of the situation prudent and rational: “ and entering a regional market, there are elements of luck, time and timing, of course (luck) can not touch, there may be a long wait. “And from WEY responsible for coordinating the brand to enter the European and American markets related projects, but also WEY brand power control system design and engine control systems director at Mr. Weiner, we learned that Great Wall Motor to enter the brand identity Will WEY European and US markets, products and sales in these markets also have a clear plan ( click ).

it Is true that Europe and the United States Is really two benchmark of the market, but they are to the Great Wall Motor, a greater role Is to help enhance the brand value. for promoting the “internationalization” of thIs the purpose of the matter, Wei Jianjun has a clear judgment: “

itself Is international competitiveness, a volume up, narrow category, there Is a single product cost competitiveness, and the other (the benefits) after an international brand Is the competition itself force. “Whether it Is in Europe or the United States to enter the market, or what Is also the time to enter, the ultimate goal of Great Wall Motor Is to enhance competitiveness, and ways to reach thIs goal Is to reduce costs without outside:” These developed countries, especially Europe, took R & D expensesWith, our investment Is not more than 4%, they have to be 10 percent, the United States had thIs advantage, high efficiency. “

Clearly, in addition to well-being and high labor costs in developed countries to fight outside the Great Wall Motor in seeking greater competitive advantage, which Is the Wei army of” explosive single product “concept:” we want to form more large single product, now the country also known as ‘explosion models’ to do ‘global explosion models’,

how would you improve the development, production, infrastructure, logIstics, efficiency (sales) network to a height, a single product Is actually very, very important, we do a lot of research, you Will find a very humble vehicles, such as Xenia (prototype vehicle for Daihatsu) of a Car, selling 170,000 units in Southeast Asia Each year, 170,000 units in the US (market) Is part of the star (of products), big stars, that Car to sell 170,000 units per year, you can not imagine, so that you have to internationalization, the internationalization of these things can be diluted up. “

” Hella Fox, thIs pickup, global sales of 520,000 units per year, we the United States, all of us (pickup) together manufacturers, dry 400,000, how many Cars you see, people a Car, how you play with others, play does not go. It Is only through thIs international spread out a single product, South Africa, South America, Southeast Asia, we call it a compact pickup, also known as medium-sized pickup, the (level of) the total annual Car sales of 300 million units, various brands, the amount of 300 million units, so that internationalization Is a necessary way to go. “Although the body a certain amount of overseas markets and the United States can not compete, but they are together, the Wei army seems, Is the wide blue ocean.

When low growth and even upcoming against the United States Auto market growth “new normal”, “up” and “sea” at stake Is the US brand Car prices to survive the two-step, Great Wall Motor publIsh WEY brand by the end of 2016, the first to complete the “up” step, and thIs At the same time the pace of internationalization Is gradually accelerating. “

characterIstic of all great powers Cars are doing well, all the Cars are small countries do well, you see American, their Cars do well, Germany not, there are several successful German Car companies, because they do not depend on the country, which Is dialectically. “Wei Jianjun says.

If I have a friend read Carefully placed above goes on Great Wall Motor’s official website screenshots, you Will find, in addition to which many independent parts enterprIses, as well as the South African company Car Hafer, Hafer Cars Australia the company, Harvard Motor America, 俄罗斯哈弗 Car manufacturing companies, and so dIstributed in all continents of the subsidiary, they planted the seeds of Great Wall Motor, Great Wall Motor Carrying the future in the “new normal” trend of the market.

“relieved”, chairman Wei Jianjun attended the interview, which was the first to emerge feeling in my heart. An old saying: “moving troops and horses, forage ahead” in the Great Wall Car brand and WEY wait for “luck” at the same time, parts enterprIses operate independently of one step ahead lay a solid foundation to hone and upgrade in the international market, until the time comes open up the vehicle market becomes a matter of course. I am sure you readers see here, you can understand the meaning of the title “installment” of words. Great Wall Motor’s wIsh “explosive single product” early bear fruit in various markets around the world, for the process of internationalization of Great Wall Motors and we Will continue to focus.