The auto business report reported on July 11 that the second round of personnel adjustment after SAIC entered the “Double Chen era†officially kicked off. The executives of Shanghai GM, Shanghai Volkswagen and SAIC passenger cars all changed.
Among them, the change of the general manager of SAIC passenger car is quite eye-catching. Previously, the position has been represented by Group President Chen Zhixin. At the SAIC Group cadre meeting at the end of June, Wang Xiaoqiu, general manager of Shanghai General Motors, was promoted to vice president of the group and concurrently the general manager of SAIC passenger cars.
It is worth noting that compared with Shanghai GM and Shanghai Volkswagen, only Wang Xiaoqiu is the general manager of SAIC passenger cars, and also serves as the group vice president. The position of SAIC passenger cars in SAIC is highlighted. Corresponding to the personnel changes, SAIC's own brand has been performing well in recent times, failing to meet the established profit target for three consecutive years. And Wang Xiaoqiu’s appointment is to realize the double flowering of SAIC’s passenger car brand and profit.
Independent change of defense When the former chairman of SAIC Group Hu Maoyuan retired from retirement in April, the position was handed over to the former president Chen Hong, and the former executive vice president Chen Zhixin was promoted to the position of president and the general manager of SAIC passenger car.
The personnel changes at the level of the SAIC Group were referred to by the industry as SAIC from the "Hu Maoyuan era" into the "double Chen era." Since then, the general manager of SAIC Passenger Vehicle, which was temporarily represented by Chen Zhixin, has become a hot spot. Who can become the focus of the successor of the industry? The new round of personnel changes of SAIC Group is highly anticipated.
On June 28, SAIC held a group cadre meeting, officially opening a new round of personnel restructuring under the “Double Chen eraâ€. It is understood that the appointment of several major personnel appointments in the meeting, covering the three major business segments of Shanghai GM, Shanghai Volkswagen and SAIC passenger cars.
Shanghai Volkswagen, general manager Zhang Hailiang was promoted to the group vice president, his position was formerly the general manager of the joint electronics Chen Xianzhang; Shanghai General, the general manager Wang Xiaoqiu transferred to the general manager of SAIC passenger cars, the former deputy general manager Wang Yongqing replaced Wang Xiaoqiu.
Surprisingly, Wang Xiaoqiu just became the general manager of Shanghai General Motors in August 2013. In less than a year, he quickly transferred to the SAIC passenger car. This kind of joint venture company executives reverted to the industry's usual practices in the independent sector, which was logically interpreted as SAIC Group's self-sufficient business and achieved joint venture and self-support.
Previously, Chen Hong had proposed a long-term goal: SAIC Group should become a first-class, internationally competitive enterprise. He believes that the premise of achieving this goal is that SAIC's own brands should establish a foothold in China and internationally.
In fact, Wang Xiaoqiu, who is the general manager of SAIC passenger cars and the vice president of SAIC, is unique in the three business segments of the same level. In other words, Wang Xiaoqiu has a higher administrative level within SAIC, and the status of SAIC passenger cars in the group has also been upgraded as never before.
According to the reporter of the Auto Business Daily, Wang Xiaoqiu officially took office on June 30th.
The return of the technical school "Wang is a technical origin, we are very welcome to his arrival." On July 8, relevant personnel of the SAIC Group Public Relations Department told the Auto Business Daily reporter.
Looking at Wang Xiaoqiu's personal resume is not difficult to find, he is a veritable SAIC "old-age" figure. Since entering SAIC, Wang Xiaoqiu has worked in various positions within SAIC, including Deputy Director of SAIC Quality Supervision Center, Deputy Director of SAIC Industrial Technology Center, and Deputy Manager of Shanghai Volkswagen Quality Assurance Department. Later, he served as the first passenger of SAIC Passenger Vehicle. As general manager, he left in 2009. It can be said that every work of Wang Xiaoqiu is closely related to technology. According to this industry commentary, "Wang Xiaoqiu is the originator of SAIC Group's own brand."
After leaving for more than four years, Wang Xiaoqiu went through the experience of Shangchai General Manager and General Manager of Shanghai General Motors and returned to the SAIC passenger car. “The intention of SAIC Group is quite obvious. When the brand cultivation in the early stage has already gained something, we will once again focus on the technical level, indicating that SAIC recognizes that the brand development needs to be revitalized through technological breakthroughs at this stage.†Senior auto industry analysts said to the Auto Business Reporter.
It can be proved that Cheng Jinglei, deputy chief engineer of SAIC Group and executive director of the strategy and business planning department, was also appointed to the vice president of SAIC to take charge of SAIC's strategic technology.
In fact, SAIC’s own brand has indeed reached a critical juncture of revitalization. The performance of SAIC's own brands this year is not satisfactory. Its production and sales data for June showed that the production and sales volume of Roewe and MG brands in the first six months were 105,420 and 102,340 respectively, down 7.91% and 3.22% year-on-year. "The description of the production and sales express report that SAIC passenger cars are indeed facing certain difficulties. Of course, domestic independent brands have the same dilemma," said the SAIC Group public relations department.
Looking back at the SAIC passenger car to establish the Roewe brand, the first few years of buying the MG brand from Nanqi, SAIC's own brand embarked on the road of rapid development. In 2012, Roewe and MG brands achieved an annual production and sales of 200,000 units and sales exceeded 20 billion yuan. However, SAIC passenger car plans to enter the stage of profit growth this year, and set a target of profit of 100 million yuan, but sales have fallen, and still losing money.
“A large amount of R&D investment in the early stage is difficult to rely on sales volume in the short term,†added a person from the SAIC Group public relations department. At the same time, the domestic independent brand market has also undergone great changes compared with a few years ago. The SAIC Roewe brand has earned a good market reputation for its high-altitude practice. However, in recent years, companies such as Chery and Geely have been developing positively and creating mid- to high-end brands to catch up, and rising stars such as Great Wall, Changan, and Guangzhou Automobile have also emerged. The market competition is not as strong as it used to be.
All of this is the reality of Wang Xiaoqiu’s eyes. After more than seven years of development, SAIC's own brand has already faced the critical point of win-win both brand and profit.
According to the Auto Business Daily reporter, at the shareholders meeting held on June 19, Chen Hong was dissatisfied with the brand power of SAIC in recent years, and believed that there has not been a brand that is “simple and straightforwardâ€. In the sales composition of Roewe and MG brands, Roewe 350 and MG3 accounted for more than 65% of the overall sales share, and the shares of Roewe 550 and MG6 were narrowing. According to relevant analysis, an important reason for the slowdown in sales growth of Roewe and MG is the aging of the models. "There will be an MG sedan in the second half of this year, and there will be an SUV next year. There is no new car plan for the Roewe brand." Zheng Rongqing from the SAIC Passenger Vehicle Market Communications and Public Relations Department told the Auto Business Daily.
It is gratifying to note that SAIC's early R&D investment is currently bearing fruit. On April 8th, a new generation of in-cylinder direct injection engine jointly developed by SAIC Passenger Vehicle and GM was officially released. The new powertrain named “CUBE-TECH†includes MGE series and SGE series direct injection in cylinder. Engine, TST 6-speed dual-clutch transmission, TST 7-speed dual-clutch transmission, and a new generation of engine start-stop system. In addition, the Roewe brand frequently demonstrates its strength in new energy. Roewe 750 Hybrid, Roewe 550 plug-in strong mix and Roewe E50 pure electric three cars have been mass-produced, the technology covers hybrid power, plug-in and pure electric three directions.
Wang Xiaoqiu of the technical school will continue to deepen in terms of technology, and enhance the brand power through the development of technology and the acceleration of the model, thereby increasing sales and profits.
Both inside and outside "Some other shortcomings of SAIC are in overseas markets compared to other independent brands." The senior auto industry analyst said to the Auto Business Reporter.
It is understood that Geely, Chery and other independent car companies have been operating in overseas markets for many years and have achieved good results, and overseas market profits have become an important part of profits. In comparison, the SAIC passenger car is quite inferior. According to relevant data, SAIC's own brand sales in the overseas market in 2013 were only 10,000 units, and this year's target is only 12,000 units. This is also inconsistent with Chen Hong’s goal of “domestic first-class, internationally competitiveâ€.
However, Yu Jingmin, who is in charge of SAIC's overseas business, was transferred to the SAIC passenger car together with Wang Xiaoqiu in this round of personnel adjustment, showing the intention of SAIC passenger vehicles to force overseas. It is understood that Yu Jingmin will succeed Jiang Jun as the deputy general manager of SAIC passenger cars, in charge of marketing.
When working in the overseas business department of SAIC, Yu Jingmin's mission was to let the two brands Roewe and MG go overseas. The transfer to SAIC passenger cars will undoubtedly add overseas combat experience to SAIC passenger cars. It is understood that Yu Jingmin was sent by SAIC to South Korea to become an important Chinese personnel of SAIC in Ssangyong. After returning to China, he has been in charge of SAIC Overseas Business Department.
The above-mentioned senior auto industry analysts bluntly said: "The weakness of SAIC's overseas market, to a certain extent, also shows the weak development of SAIC's dual-brand strategy." In fact, MG, as an asset that SAIC integrates from overseas, has a lot of overseas sales. Oh, but it has not won the hearts of overseas consumers. Although SAIC MG returned to its home country in 2006, SAIC’s product introduction plan has not progressed.
In the sales of Roewe and MG double brands of more than 200,000 units, the proportion of MG is only about 25%. According to relevant analysis, similar to domestic, SAIC Group can only stimulate market demand through more follow-up product support.
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