Wu Song: Creating GAC System Engineering

November 22, 2012 Guangzhou Auto Show, Deputy General Manager of GAC Group and General Manager of GAC Passenger Cars Wu Song received an exclusive interview with reporters. He stated that GAC sets up standards and continuously improves the overall system engineering that belongs to GAC. The following is an overview of all interviews. content.

Reporter: Would you please introduce us to GAC Global R&D Network?

Wu Song: GAC Global R&D Network is based on the Guangzhou Automobile Research Institute's Hualong New Base and combines global independent research institutes to create a mass transit supply chain through the creation of Guangzhou Automobile's mass production process, and to bring it together to form a global R&D network. The Guangzhou Auto Show, "GAC Global R & D Network" display part of the products, including pure electric vehicles, electronic security products.

In addition, GAC Global R&D Network is also building a platform for talents to find a platform that embodies their values. If they do not exist in the form of a single network, they will be relatively single. Everyone knows that there are many schools in the academic field. This kind of platform gives the consumer a space and comes in or goes out freely.

Reporter: Some analysts believe that GAC has invested a lot in the process of building Chuanxiong. There are also some waste of resources. Is this true? How do you view this?

Wu Song: First of all, the local waste is common in the industry, but overall, the strength of GAC is manufacturing capacity. Secondly, in cooperation with Toyota, GAC manufactures, quality, technology, supply chain, management, marketing layout, etc. All trained a group of talents.

The research and development of GAC adopts an open form, and it fully integrates international and domestic resources, because Cantonese people are more cautious in doing things and will not make dreams a reality. Since 2005, GAC began to plan its own brand, and the Institute was established in 2006. The exploration of the premise will be implemented in 2007 when there is sufficient preparation and will be implemented without hesitation. In such a short period of time, there is only a few firm determinations among domestic companies. Guangzhou Automobile has invested RMB 6.8 billion. Such a large amount of investment is due to the risks and difficulties that the independent brands may encounter.

First, starting from high- and mid-level cars, because Guangzhou Automobile is familiar with mid-to-high-end cars, the former sales are also good to mid-to-high-end cars; secondly, there are more talents in this area, so the introduction of technology is also introduced from the middle and high level, while leaving development. Space, but in order for products to compete with international brands on the same platform, GAC not only needs to introduce technologies, but also digests and absorbs new technologies before remanufacturing. In this way, after the launch of Guangzhou Automobile Chuanqi, it not only shocked Asian brands but also made European auto makers feel pressured.

Reporter: The concepts of Japanese companies and joint ventures have a great impact on Guangzhou Automobile in the near future. Will there be more pressure on Chuanyu's massive investment? And will GAC have lost money if it has invested?

Wu Song: There are pressures, but this will prompt GAC to accelerate development. It is not a year or two for GAC to treat risks. After the listing of A+H shares, it is even more important to consider these risks. I believe that as things subside, everyone will look at them in a rational way. With the rapid increase of investment, through joint efforts with some willing suppliers and some long-term struggles, everyone will work hard to serve the final customers, which is also conducive to saving resources.

Reporter: Does the A-level brand independently developed by GAC and the A-class platform provided by Chery are the same? What is the A-Class location to be launched?

Wu Song: It is different. Our A-class car platform has been built as early as three years ago and it is positioned in the middle and senior level. Its product platform will be higher than its joint venture brand. If we want to stand firm in China, we must plan from a global perspective. We will also consider launching a variety of models. The engine will have a displacement of 1.4T and 1.6L. The new energy A-class concept car demonstrated today will be connected with GAC. Cars put into the market next year have a certain degree of correlation.

Reporter: Just now you mentioned that GAC's sales target for next year is 65,000 units. How does this sales volume reach?

Wu Song: The sales target of GAC passenger car in 2013 was 65,000. To achieve this goal, the pressure was very great. It was close to 4,000 units last month. This month will be close to 5,000 units, and it is expected to approach 6,000 next month. Taiwan, now GAC has only one model 2.0, 1.8T actually has four-wheel drive and two-wheel drive after launch, 1.8T two-wheel drive is sufficient to reinforce some 2.0 models, while four-wheel drive can fill the price range of 160,000 to 210,000 SUV blank. Therefore, with 1.8T plus 2.0L, it is entirely possible that the impact target will be reached.

In addition, the 2013 model car will also have three power configurations of 1.8L, 2.0L and 1.8T. Chuanqi has four new models: new style, new interior, new power, new technology, the latest electronic technology, quality and stability is very good, does not lose the Japanese joint venture brand, each car out of the problem only one point, and very These problems will be dealt with soon, this is not simple. The company has hired about 600 people from the Honda Toyota Engine Division. After five or six years of integration, these people are generating tremendous power.

Reporter: I want to understand the current channel construction of Guangzhou Automobile?

Wu Song: Guangzhou Automobile promoted the "4S+S" channel model, built new stores in key core cities, and supplemented with various MS satellite stores. There are currently two core 4S stores in Guangzhou, each of which has its own satellite shop. In addition, GAC has focused its efforts on prefecture-level cities and provincial capital cities. At present, 90 4S stores have been built, and by the end of the year, 119 and other types of sales stores will reach 150 by the end of the year.

Reporter: Will GAC Auto Brands Have New Plans in Overseas Markets Next Year?

Wu Song: This is positive, GAC has set up a special agency. Including cooperation with Chery, Chery has 15 factories overseas and we will borrow them. We also conduct one-year inspections this year. We have also found general agents in South America. Some prototypes have already been sent. This year, we will strive to export cars to Europe because European market protectionism is very prominent and it is difficult to enter the European market. However, if we can enter the European market, we will further prove the capabilities, quality, performance and various advantages of GAC products.

Reporter: I interviewed two car owners before. They trust the quality and quality of Chuanqi. How can GAC ensure quality?

Wu Song: There are several aspects of quality assurance. First, the technology for product introduction is mature. Secondly, Guangzhou Automobile has also formed a system for so many years. GAC focuses on cultivating talents. In the field of engines, the most authoritative individuals have come to GAC. Through cooperation with Japanese companies, they have also brought a set of quality systems. In addition, we have found many talents in overseas markets. They have experience in R&D, experience in developing their own brands from small to large, plus a combination of suppliers at the supplier level. A complete supply chain system has been established and the quality of these products can be resolved within the supplier. In addition, we also establish some standards and continue to enhance and transform them. With the passage of time, the quality of Chuanyu will become higher and higher, and the cost will become lower and lower. At the same time, the complexity of the staff's operations will also decrease. This is a systematic project as a whole, and it is also Guangzhou Automobile's current ability to build the characteristics and strengths of Chuanxi.

Reporter: Recently, from the analysis of data, Chuan’s sales exceeded 4,000 units. The sales of SUVs in these two years are not bad. Now that some international brands have launched small SUVs, does GAC have such plans?

Wu Song: It is brewing, will be based on the A-class car platform, will soon launch a small SUV. The sales performance of Chuanqi GS5 is relatively better. The main reason is that SUVs develop relatively quickly in China. Many joint venture brands do not bring the most advanced products to China. The Chuanyu sedan is a Class B. Compared with A-class SUVs using B-class platforms, now all SUVs in the same class must be large in size, and the space feels good. Actually, they take B-class and A-class cars, plus the price is relatively cheap. The quality and workmanship are further enhanced on the basis of the car. These advantages are concentrated and the sales performance of the SUV can be imagined. In fact, as an independent brand, it is difficult to reach the 150,000 price point. With the customer experience, more and more people now like the GS5.

Reporter: At the beginning of the listing of Chuan Chuan, experiential marketing forms were adopted throughout the country. Afterwards, this kind of experiential marketing was less. What is the reason?

Wu Song: When Chuan Chuan was just listed, he launched a test drive experience event “No Curvy Communicating in the World” across the country. Now it is flooded with too many rumors. GAC set up a special communications section to take charge of the communication. GAC passenger vehicles took one hundred million yuan this year to organize this kind of activity. This year, there are a total of about 800 games. It is directly related to the formation of sales and everyone's experience. It was found that the test drive test experience is very important, and GAC will further strengthen the test drive and experience of consumers on testimonial products.