Five-year potential breakthrough in the 2013 Chery brand transformation into the second stage

Who is expected to become the future multinational brand of Chinese cars? There are usually three answers in the minds of ordinary people: Chery, Geely, and BYD, in no particular order. At least today, this is a multiple-choice question with only three alternative answers. Not long ago, the annual “New Global Challenger” report released by the Boston Consulting Group in the United States deepened this understanding. The report shows that Chinese companies account for 33 of the 100 most developing companies in the world that are most likely to challenge old multinationals. Among them, nine Chinese companies such as Geely Automobile and Anshan Iron and Steel Co., Ltd. are on the list. Seventeen Chinese companies, including Chery Automobile, BYD, Huawei, Lenovo, and Haier, have been on the list for two consecutive years.

This ranking is based on the comprehensive consideration of the company's international revenue, business scope, employment, and global infrastructure construction. The reporter noted that Chery is the only unlisted company among China's top three auto companies. The reason why it is able to win two consecutive rankings is closely related to its internationalization strategy and technological R&D capabilities. According to Mai Dewei, managing director of the Boston Consulting Group in Beijing, some companies list this year's list for next year, mostly because they failed to meet the “going out” strategy on time or missed the opportunity for a technological leap.

This is an exciting news for China’s auto brands’ full-scale growth. It is worth mentioning that among the three listed auto companies, Chery is the only state-owned enterprise and has ranked first in the sales of domestic self-owned brand cars for 10 consecutive years. Its business operation methods and development trajectory have more research value. According to Yin Tongyue, chairman of Chery Automobile, the corporate shape is not important. The important thing is how to constantly "refresh" itself. If the scale is bigger, we must continue to think about it, and we dare not have the slightest slack.

A few days ago, Chery released its annual strategy for 2011, “Growth 2011” in Beijing, with an annual sales target of 800,000 vehicles, with a strategic focus on “technology, international, brand, and responsibility”. In interpreting the term “growth”, Yin Tongyue said: “Growth is not only the growth of scale, but also the growth of core strength. In 2011, Chery will further promote strategic transformation, adjust and optimize product structure, promote organizational change, and strengthen product development. And quality has jumped."

Going back to Chery's development trajectory, it is not difficult to find that Chery formulates a special strategy for the company's own situation and market environment each year. 2008 was an important turning point. In that year, Chery proposed a transition from "fast and good" to "good and quick". This is the second consecutive year Chery has ranked among the top four cars in sales, and achieved cumulative sales of 1 million in 2007. A new strategy after the car. In September, A3, which devoted four and a half years of research and development efforts, was officially introduced to the market. The “multi-children gang fight” that had been mentioned many times before was no longer used, and was replaced by a comprehensive boutique strategy.

Jin Yibo, assistant to Chery Automobile's general manager, said that in 2008, Chery had successfully passed the first stage of “becoming a leader in its own brand” and formally stepped in to create an “international visionary, technology-driven, reliable Chinese car”. “Brand” is the second stage of the goal. In order to achieve the second stage goal, Chery has formulated a six-year development plan, namely, Potential 2008, Layout 2009, JingGeng 2010, Growth 2011, Development 2012, and Breakthrough 2013.

Literally, the six-year development plan seems to be a simple spelling game, but in fact, each year's planning Chery has its own priorities. In 2009, the year of "layout", Chery's changes were enormous. In that year, Chery first delineated the four major brands. According to different market positioning, Chery was divided into Chery, Raychem, Wei Lin and Kai Rui. This is the first year that Chery’s multi-brand strategy is launched, and it is also the first year that Chery has established a high-end brand strategy. With the success of A3, Chery began to build a higher level, more refined content of the G5, G6, hopes to use a new high-end brand Rui Qi, changing the low-end impression on the market over the years.

Despite the ups and downs in the process of going high-end, Chery's strategy has been steady. In 2010, its strategic direction became clearer: In February of that year, the new base of Chery Automobile R&D Center was officially launched; in April, Chery and Better Place of the United States signed an electric vehicle cooperation agreement in Beijing; in July, Asia’s largest and total investment exceeded 20 The Chery Auto Testing Technology Center of 100 million yuan was formally listed; in August, Chery’s new energy sales company began operations; in September, Chery announced the formal launch of the business division system, with the six divisions leading the company’s external sales and internal R&D; in October, Chery officially established the construction of the R&D center in Shanghai; in December, with the listing of the Ruiqi M1 (4S store) EV, Chery cooperated with several companies on the demonstration and operation of pure electric vehicles. Compared with the acquisition of Volvo Geely and Buffett's BYD, Chery did not have a staggering move in 2010, but laid a solid foundation in the low-key operation. In particular, the overall breakthrough of Chery’s overseas strategy has added points to its achievements in the “New Global Challenger” report, and it has become one of the most prominent domestic Chinese companies with international development.

This is the main content of Chery's “Fine Farming 2010”, which includes many specific strategies and future plans, while “Growing 2011” and “Developing 2012” are more like the progress of “Fine Farming 2010”. From 2008 to 2012, the five-year "latency" was for a full-scale transformation in 2013, and this transition is not to overthrow again. Instead, it is based on the promotion of brand premium capabilities and the realization of Chery's becoming a mainstream car in China. Business and dream of a truly international brand.

According to Guo Qian, Deputy General Manager of Chery Automobile, “The core value of a company is its ability to constantly change according to changes in the environment. In the past 10 years, Chery has creatively seized the market and developed it with a flexible mechanism today. Chery has reached a scale of 700,000 vehicles, and continuing to pursue the scale development in the past is a way of thinking, but this means that quality and technological development will be insufficient.In the coming period of time, our new products will not increase in speed as before. So fast, but if we were to develop a product in the past, we would need to invest 100 manpower. Today we will invest 200 manpower."

According to the plan, in 2011, Chery Automobile will have 5 traditional new cars on the market, including the high-end model Ruiqi G6 (4S shop). During the year, new pure electric vehicles and extended-range electric vehicles will be introduced, while medium-sized hybrid and plug-in hybrid vehicles will also be industrialized. The self-developed second-generation DVVT and third-generation TGDI engine series products will be put into production one after another. The CVT automatic transmission will be fully equipped with the main models, and the AT automatic transmission will also enter the test phase of the vehicle. In addition, Chery will accelerate the research and development of the fourth-generation HCCI stratified combustion technology engine, 8AT transmission, and the GDCT dry transmission that represents the future development direction.

"Everything is an innovation of continuous function. The competition of enterprises is mainly the development, management, cost control, market development, especially the corporate culture. These capabilities constitute the fighting power of the company in the market." Yin Tongyue said