Can Dongfeng's “Grand Autonomy” Dream Become a Reality?

In the development model of independent brands, this time, Dongfeng hopes to find another way.
A few days ago, Dongfeng Motor Corporation released a “large autonomy” strategy. In the next five years, the sales volume of Dongfeng’s own brands (including commercial vehicles and passenger cars) will increase from 1 million in 2011 to 3 million, with an average annual growth rate of More than 20%. Dongfeng will implement the unified integration (including sales network) of the joint venture's already launched and upcoming joint venture independent brands, and all joint ventures' own brands will be linked to Dongfeng's “Shuangfeiyan” logo.
Different from FAW, SAIC and other auto company groups, the current number of self-owned brands, from the reference of the vehicle platform, to the sales network and brand logo integration, Dongfeng "joint-funding and self-reliance" strategy is obviously to tap in more resources . Of course, all this is only at the stage of Dongfeng's internal "sandstorming."
"Dry" D300 plans to target its own brand, Dongfeng released a five-year "dry" D300 plan, the goal is to become the largest group of independent brand production and sales in 2016.
A few days ago, at the Dongfeng own brand annual million auto off-line ceremony and the Dongfeng independent brand mid-term business plan (2012 ~ 2016) conference, Zhu Fushou, general manager of Dongfeng Motor Corporation released the "dry" for the next five years of development. D300 plan.
According to the plan, based on the realization of one million self-owned brands in 2011, the sales volume of Dongfeng's own brands (including commercial vehicles and passenger cars) will reach 3 million by 2016, including 1 million Dongfeng-brand commercial vehicles. There are 1 million Dongfeng brand passenger cars and 1 million other independent brand passenger cars (mainly self-owned joint venture brands). At the same time, the export volume of Dongfeng's own brands will reach more than 10% of the total sales of its own brands (in the first half of 2010, this proportion was only 3%).
It is understood that Dongfeng’s annual sales of its own brands ranks third among Changan and SAIC after the top four auto groups, followed by FAW, and Dongfeng’s goal is to achieve annual sales of its own brand by 2016. One.
It is not difficult to find that in the "Dry" D300 plan, there will be 2 million vehicles that will be realized by self-owned brand passenger vehicles. “Individual brand passenger vehicles are divided into two levels: One is Dongfeng's own brand passenger car with the Dongfeng “Shuangfeiyan” logo. This part was completed by Dongfeng Passenger Car Company, Dongfeng Xiaokang, Dongfeng Liuzhou Auto and Zhengzhou Nissan. In an interview with a reporter from the China Business News, Zhu Fushou said, "On another level, it is completed by Dongfeng's own brands of joint ventures. This part includes the autonomy of Dongfeng Yulon, Dongfeng Nissan, Dongfeng Honda and Shenlong Motor. Brand."
To this end, Dongfeng will invest more than 30 billion yuan in the next five years, of which R&D investment will account for more than 3% of sales revenue. In the next five years, Dongfeng will develop and launch 14 vehicle platforms in the commercial vehicle sector to form the research and development capabilities of four key assemblies such as engines and transmissions. In the field of passenger vehicles, Dongfeng plans to put in 18 passenger cars, and at the same time, it must have the R&D and manufacturing capabilities of three major series of engines and four series transmissions.
"Autonomous reorganization" "It takes a lot of energy and time to design a product from scratch. We have so many joint venture partners that we can fully use their strength," said Liu Weidong, general manager of Dongfeng Passenger Cars.
Of course, in addition to the conventional capital investment in the development of independent brands, Dongfeng clearly has expectations for its joint venture company. A recent example is the Dongfeng Passenger Vehicle Company's A60 product that has already been released. The next step is to develop the model on the Citroen C5 platform.
For the joint venture company, Dongfeng’s appeal actually has more.
“We have also been thinking about whether there will be a new model for the future of the self-owned brand in the joint venture company.” Zhu Fushou said that at the moment, Dongfeng has established a concept that its own brands in the future joint ventures must be linked to the east wind. "Shuangfeiyan" logo. According to its introduction, in order to comply with the above strategies, Dongfeng will then integrate its sales channels under the concept of “greater autonomy”. Specifically, in Dongfeng’s current 4S store of its own brand, all of the models containing the joint venture’s own brands will be Sell ​​together.
"The design of a product from scratch requires a lot of energy and time. We have so many excellent joint venture partners that we can fully use their strength." said Liu Weidong, general manager of Dongfeng Passenger Car Company. The obvious change brought about by this approach is that the joint venture’s own brand has become Dongfeng’s own brand through “reorganization”. “This has, to some extent, led the way for the controversial JV.” An insider of Dongfeng said that what is more important is that the JV’s own brand can technically support Dongfeng’s entire self-owned brand.
However, an objective fact is that Dongfeng Motor has a large number of joint venture brands, and it is not allowed to allow Dongfeng to “create other people’s babies” on its own site. Previously, Dongfeng Nissan and Dongfeng Honda have successively issued their own joint venture brands Kai Chen and Siming, while Dongfeng Yueda Kia and Shenlong are also making joint ventures with their own brands. However, these joint-venture independent brand projects are "independent and independent development."
To this end, Dongfeng not long ago set up the Dongfeng Independent Strategy Committee to promote the integration of the entire independent brand business. In terms of personnel, Dongfeng has made major adjustments and Liu Weidong has taken full control of its own brand business. Liu Weidong’s previous position was the general manager of Shenlong. Dongfeng prepared to use the resources of the joint venture that Liu Weidong had already formed. In the process of leveraging the joint venture, he made efforts to change the situation in which Dongfeng Liuzhou Auto, Dongfeng Xiaokang, Zhengzhou Nissan, and other independent plates were in their respective positions.
The follow-up doubts are due to the need for full cooperation from foreign partners in the joint venture. Therefore, whether Dongfeng's “autonomy” strategy can be implemented smoothly will test the wisdom of Dongfeng executives.
In fact, since Zhu Fushou took office (April 5, 2011, Zhu Fushou served as the general manager of Dongfeng Motor Corporation) and put forward the concept of “grand autonomy”, Dongfeng has already formed a strategic consensus of “back-nurture independent brands with joint ventures” within Dongfeng. .
Dongfeng realized that in the past 10 years, it has established joint ventures with a number of multinational car companies around the world, and with the layout of commercial vehicles in various regions, it has indeed improved its overall strength. However, the growth of the joint venture business segments did not form a backwash effect on Dongfeng's own brands. In the previous joint venture era, Dongfeng acted as a booster for the development of joint ventures. In the subsequent "post-joint joint venture era," Dongfeng was obviously more aggressive in requiring joint ventures to back up their own brand businesses.
"In terms of seeking integration of resources in the Chinese automotive industry, Dongfeng's integration time this time certainly has a certain degree of demonstration significance." Jia Xinguang, a well-known analyst in the automotive industry, believes that "market-for-technology" talks for more than 30 years has remained verbally, and This time, Dongfeng's “autonomy” reorganization has at least some substantial actions in vehicle development and network integration.
However, the extent to which Dongfeng's "autonomy" strategy can achieve its wish is still unknown. Although Zhu Fushou stated that at present, around the joint venture's independent products, Dongfeng has made substantial progress with its joint venture partners, and strategic decision-making has been made between certain parties in the business sector. However, it has not revealed the progress of specific cooperation. .
An objective fact is that the new brand identity of the joint venture's own brand is a common practice in major joint ventures such as Guangqi Honda’s “ideas”, Beijing Hyundai’s “First Look”, and Dongfeng Nissan’s “Kai Chen”. “Dongfeng intends to carry out internal integration, but it is still not known whether the joint venture is fully cooperating with the joint venture.” An auto analyst believes that, for example, “Kai Chen” under the concept of “great autonomy” assigned by the Dongfeng has already established independence. The procurement, research and development and sales system, Dongfeng to "Kai Chen" logo to their own brand identity, and the integration of sales channels into the existing Dongfeng own brand channels, the difficulty is obviously enormous.
On this issue, Nissan (China) Public Relations Department, a responsible person's attitude is extremely cautious: "We have a very good relationship with the Dongfeng, in the future the two sides will discuss specific development details."
In the context of Dongfeng's "grand autonomy" strategy, the concepts and ideas of "joint-funding, self-reliance and self-reliance" have been devised. However, whether the "large autonomy" strategy can be implemented smoothly will continue to test the wisdom of Dongfeng executives.
Dongfeng's “Autonomously Autonomous” Strategic Layout Sales In 2016, Dongfeng’s own brand (including commercial vehicles and passenger cars) had to reach 3 million units, ranking first in sales of the four major group’s own brands (currently third).
In the next five years, R&D will invest more than RMB 30 billion, develop and launch 14 vehicle platforms in the commercial vehicle field, and form the research and development capabilities of four key assemblies such as engines and transmissions. In the field of passenger vehicles, Dongfeng plans to put in 18 passenger cars, and at the same time, it will have the ability to develop and manufacture three major series of engines and four series transmissions.
The Dongfeng Passenger Car Company has already launched the A60 product. The next step is to develop the model on the Citroen C5 platform.
According to Dongfeng's plan, its own brands in future joint ventures, including Dongfeng Nissan Kai Chen, Dongfeng Honda Siming and Dongfeng Yueda Kia and Shenlong’s own brand models, will all carry Dongfeng’s “Shuangfeiyan” logo.
The future of the channel will be to sell all of the models containing the joint venture's own brands in Dongfeng’s current 4S store of its own brand.
Management In order to promote the “large autonomy” strategy, Dongfeng has established the Dongfeng Independent Strategy Committee to promote the integration of the entire self-owned brand business. In particular, in terms of personnel, General Manager Liu Weidong of Dongfeng Passenger Vehicle will fully control its own brand business.

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