Five-year remarkable performance of Dongfeng Motor's multi-dimensional layout

Recently, Dongfeng Motor Company (hereinafter referred to as "Dongfeng Motor") deputy general manager and Party Standing Committee member Liu Weidong said publicly: "Dongfeng Motor holds the Ningde era and talks about a new battery company that matches the vehicle, such as a power battery. In the layout of the company, the company must do it by itself.” In response to an interview with the “China Business” reporter, the relevant person in charge of the Foreign Publicity Department of the Work Department of the Party Committee of Dongfeng Motor Co., Ltd. explained: “In terms of the industry, any automobile factory is currently facing The pressure of new energy is very huge. The focus of Dongfeng Motor's residence is to grasp key technologies and core resources."

The data show that from January to September this year, Dongfeng Automobile has sold a total of 2,885,900 vehicles, and exported 47,000 units of Dongfeng Automobiles, an increase of 75% year-on-year; auto sales of 1,107,500 units of self-owned brands have grown by 6.14% year-on-year; Dongfeng New Energy Automobiles Sales There were 34,300 vehicles, an increase of 130.5% over the same period last year.

Innovation and reform

In the past five years, Dongfeng Motor has achieved certain achievements. However, in order to achieve a more long-term development, Dongfeng Motor carried out two drastic reforms in June this year. The objectives of the reform and adjustment are its joint venture companies Dongfeng Yulon and Zhengzhou Nissan.

In the past five years, Dongfeng Motor’s cumulative sales volume was 173.4447 million units, and its vehicle sales volume grew at an average annual rate of 6.9%; sales revenue increased from 388.4 billion yuan in 2012 to 57.1 billion yuan in 2016, with an average annual growth rate of 8%; It grew from 36.2 billion yuan in 2012 to 55.2 billion yuan in 2016, an average annual increase of 9%. Revenue and profit growth faster than sales growth. It is worth mentioning that the average annual growth rate of Dongfeng Auto's own brands in the past five years was 4.5%.

However, as a joint venture company of Dongfeng Motor, the development of Zhengzhou Nissan has always been unsatisfactory. On June 12th, Dongfeng Motors transferred 51% of Zhengzhou Nissan’s 51% stake to Dongfeng Motor Co., Ltd. (hereinafter referred to as “Dongfeng Co., Ltd.”) for 788 million yuan. After the transfer is completed, Dongfeng will hold a 79.651% share of Zhengzhou Nissan, which is a wholly-owned company.

Just two days after Dongfeng Motor’s “Moving Knife” Zhengzhou Nissan, Dongfeng Motor also adjusted Dongfeng Yulon’s “withdrawal without withdrawal” and adopted a professional manager system. The shareholders of both parties increased their capital by 800 million yuan. In this regard, Dongfeng Yulong returned to Taiwan. Yulon Group has full management. The industry believes that Dongfeng Motor's reason for doing so lies in the performance of Dongfeng Yulong. Its current situation and the goals of Dongfeng Motor are quite different.

When Zhong Shi, a well-known commentator in the automotive industry, talked about Dongfeng Motor, he said: “In fact, the overall performance of Dongfeng Motor is still expected, and it will be stripped of projects that are considered to be dragging down. The next step will be to focus on the strength of the brand through synergy effects. Coordinated development."

Deepen the layout

There have been industry insiders told reporters: "The growth of self-owned brands and the growth of sales are more dependent on SUV models, and lack of certain reserves in core technology." To overcome this drawback, Dongfeng Motor Corporation and China were the first in February of this year. The Auto Group Company has signed a strategic cooperation framework for the establishment of a “forward-looking common technology innovation center.” The two parties stated that they will cooperate on the technical level.

In addition to the increased investment in technology, Dongfeng Motor also did not relax in the layout of new energy vehicles. “Dongfeng Motor clearly defines the distribution of new energy vehicles from the top floor design. From the perspective of energy conservation, emission reduction, transformation and upgrading, each business unit must develop new energy vehicles.” said the person in charge of the Dongfeng Motor Party Committee Propaganda Department.

At present, Dongfeng Motor and Renault-Nissan announced that they will establish a joint venture company, Especial New Energy Automobile Co., Ltd., which focuses on the research, development and production of new energy vehicles. "Based on the Renault-Nissan Alliance A-class SUV platform, the Dongfeng and Renault-Nissan alliances will each play their part. The advantages of forming a joint development team to develop a smart network-linked new energy vehicle adapted to the Chinese market and sold globally.” Dongfeng Motor’s Party Committee Propaganda Department explained.

In the development of self-owned brands, “Dongfeng Motor Passenger Vehicles still adhere to the '4+2' model. What is the '4+2' model, where '4' refers to Fengshen, Fengxing, demeanor, scenery, '2' It is the carrier of two innovations, namely Dongfeng Yulong and Dongfeng Kaichen,” Liu Weidong pointed out.

At the overseas layout level, according to the Dongfeng Motor Party Committee Propaganda Department, “Dongfeng Motor will launch more than 40 products in more than 70 countries and regions in the next five years, and upgrade and upgrade to achieve technology upgrades, performance upgrades, and quality. Upgrade and service upgrade will comprehensively improve Dongfeng’s own brand's product competitiveness.Overseas dealers will increase their number of outlets to 912 and overseas after-sales service outlets to 971, and strive to achieve 150,000 overseas sales in 2020.”

Talking about the future, Liu Weidong has stated publicly that “Dongfeng Motors will independently develop, develop, strengthen systems, and lead the future by 2020, combining the two strategies of “green energy” and “intelligence” to achieve independent research and development. Leading in the country.” After divesting the performance of Zhengzhou Nissan and Dongfeng Yulon, five years later, Dongfeng Motor will hand in another report card.