Products can not sell defects are busy recalling losses Dongfeng to throw off Yulon?

With 28 million sales and 50 million production capacity, some experts predict that in the next 3 to 5 years, China's auto industry will set off a new round of reshuffle. However, this change seems to have come earlier than forecasting. Since this year, many companies have sold disastrously and are in awkward situation.

According to the statistics of China Association of Automobile Manufacturers, in August of this year, Dongfeng Yulon’s total sales of its models were only more than 1,000, which was a drop of 68% compared to the same period of last year. The luxury model MasterCEO was totally unattended. In terms of models, from January to August, the sales of the Na Zhijie SUV model declined. The sales of seven SUVs dropped from 1,000 units to 144 units, while the sales of the Nazhijieyou 6 also declined drastically by more than 60%. In September, the new car was listed, the brand-new sharp 3, but the sales volume also accumulated more than 2,000 vehicles.

Source: China Association of Automobile Manufacturers

At the beginning of this year, Dongfeng Yulon had publicly stated that its annual sales volume was 50,000 vehicles, and by the end of August, this sales target had only completed 20%. Once the Dongfeng Department's "Chaoyang Brand" fell to a loss year after year, it can not help but lament. Why did Dongfeng Yulon feel at home?

Looking at the sales volume of Dongfeng Yulon in recent years, it can be seen that in each month of 2016, the total sales volume of Dongfeng Yulon increased gradually compared with the same period in 2015, and the sales volume began to decline sharply in September 2016. The cumulative sales volume for the entire year was only 40,400 vehicles. With a target completion rate of less than 60%, Dongfeng Yulon has become Dongfeng Motor’s most internally loss-making subsidiary.

Note: The green line is the 2015 sales volume, orange is the 2016 sales volume curve

Even in the high sales season of the "Jin 9 Silver 10" vehicle, Dongfeng Yulon has not seen any improvement, and the decline in sales is still evident. In the process of querying data, the reporter found from the AQSIQ 2016 recall record that on August 20, 2016, Dongfeng Yulon initiated a recall of defective vehicles for up to six months, involving 8,919 vehicles, including Na Zhijie. Excellent 67,779 vehicles, Na Zhijie New Nano 5 total 1140 vehicles. Both types of crash sensor acceleration sensor chips are flawed. In extreme cases, there may be airbag warning lights, airbags self-explosion, or the vehicle does not detonate when it reaches the detonation conditions, and there are safety hazards. In fact, the problem with the vehicle is far more than that. Transmission faults, abnormal sound problems, brake shakes and other issues are frequently complained by consumers.

It cannot be denied that Dongfeng Yulon’s recall of defective vehicles is a manifestation of responsibility to consumers. However, automotive products have extremely high security requirements and are slightly biased, which can cause great harm to personal safety. The recall of defective vehicles objectively affects the sales platform of the Dongfeng Yulon to a considerable extent. When the brand is still in the middle of the growth stage of a new brand, the brand image still cannot stand up. Negative news test.

On June 17 this year, Dongfeng Yulong official website announced that it will carry out large-scale reforms and adjustments. In terms of personnel arrangement, except for the general manager and chief financial officer, other professional managers will no longer be assigned by the two major shareholders, and Dongfeng Yulon will obtain the autonomy of personnel. The division of labor between the two major shareholders, the new car R & D and technology led by Yulon; personnel appointed by the Dongfeng Yulong autonomy, the current Dongfeng Yulong general manager Wu Xinfa selected from the social talent, it is reported that Wu Xinfa Taiwan high-level leader of the Yulon Enterprise Group.

The reforms and adjustments led to speculation in the industry. They looked at each other's hands. Dongfeng made a sharp turn and evacuated people to shake off Dongfeng Yulong.

In addition to product defects, Dongfeng Yulon has been criticized by its market leader, Na Zhijie. Na Zhijie's English name is LUXGEN. "LUXGEN" combines the words "Luxury" and "Genius". "Luxury" means "luxury", and "Genius" is "wisdom." In simple terms, the concept that “LUXGEN” must convey is to create a luxurious and comfortable driving experience with forward-looking technology. However, the positioning of high-end Na Zhijie does not have the R&D and design capabilities of the vehicle technology platform, powertrain, etc., and all of its models are still sharing the fourth-generation Renault Espace platform launched in 2003, while the On the other hand, Na Zhijie did not upgrade its models. As domestic independent brands have risen and a large number of new models have emerged in the market, Na Zhijie has gradually lost its advantage.

After undergoing major internal adjustments, whether Na Zhijie can reverse the current dilemma is still unknown. Without the shadow of another big tree, the road ahead will be harder.