June 02, 2020

·Guangfeike seeks common ground while reserving differences to solve multicultural problems

In the past, the automobile industry has never received such a concern from the media as a joint venture sales company such as GAC Fiat Chrysler Automobile Sales Co., Ltd. (hereinafter referred to as Guangfeike Sales Company). It is difficult for three brands and three cultures to be intertwined in one company. It is even more difficult for Chinese and foreign shareholders to focus on the interests of joint ventures, to open up more innovative management and talent use, and to optimize network optimization. .
As we all know, before January 2015, only GAC Fiat Auto Co., Ltd. was in the world, and with Chrysler Asia Pacific and Fiat Group, GAC Fiat Chrysler Automobile Co., Ltd. (hereinafter referred to as Gifford) replaced the former and Chrysler Jeep. The domestic products have cleared the obstacles.
“Guangfei Fick’s smooth start is the result of the joint innovation and design of the Guangzhou Automobile Group and the Fick Group in a spirit of pragmatic, efficient and sincere cooperation,” said Feng Xingya, Chairman of GAC Fiat Chrysler. “For the sales company, we will not Sales volume is the main assessment standard. The short-term and short-term goals are summarized in 16 words: 'accelerate integration, strengthen synergy, respect each other, and boldly innovate'."
The "Securities Daily" reporter learned that before the establishment of the Guangfike sales company, there were nearly 400 dealers in two channels. Zheng Jie, general manager of Guangfike Sales Co., plans to expand the number of dealers to 500 by 2018. “The current excellent distributors in the two sales networks (Guangzhou Fiat Network and Chrysler Imported Vehicle Network) can be acquired by Guangfike Sales Company. When the brand model is qualified for sales, all dealers will uniformly sell multi-brand models when they reach 500.
Multicultural background problems China's automobile joint venture has gone through more than 30 years. In the past, joint venture car companies have experienced more or less difficulties caused by conflicts between Chinese and foreign parties. The most typical case is Dongfeng Nissan. In less than two years, it was in trouble. With the unified value orientation of China and foreign countries in 2005 and the formulation of the "Programme of Action", enterprises began to embark on the fast track of development.
As we all know, Fiat and Chrysler have had a joint venture experience in China, and the Fiat-Chrysler Alliance puts two big brands in a joint venture to operate and sell at the same time. It is also a very bold action, even if it is stronger than the Renault-Nissan Alliance. . How to ensure that a multi-cultural background of the wide Fick sales company can function properly?
"The way to resolve cultural conflicts is nothing more than seeking common ground while reserving differences," Feng Xingya told reporters as long as the parties to the cooperation reached a consensus on "market-oriented, efficiency-oriented, efficiency-based", and then what measures were formulated. It is.
Feng Xingya emphasized that "the first goal of solving cultural conflicts must be consistent. The purpose of our cooperation is to develop the market and achieve profitability, not the ownership of leadership."
Feng Xingya took the work experience of Guangzhou Automobile Toyota as an example: "I didn't know much about Japanese corporate culture at first, but now I have a deep understanding of it. Now I am exposed to European and American corporate culture, I feel that sometimes I want to ask questions. The way is different, the words are different, the terminology is different, and each person's method of dealing with the problem is different. I think it is very important to break through the innovation and break through the existing patterns and habits."
“Management Innovation Model”
To this end, Chinese and foreign shareholders have designed an unprecedented “management innovation model” for the automotive industry for the Guangfike sales company. Feng Xingya summarized it into three points: one is to establish a performance-oriented performance evaluation system with a team of professional managers; the other is to adopt a hierarchical authorization management model to break the existing management positions of the deputy general managers in the joint ventures. Double-signing system, in order to establish a decision-making mechanism to quickly respond to market changes, improve decision-making efficiency and market rapid response capability; third, change the current personnel dispatch mode, and decentralize the management of the following senior executives to joint venture sales companies .
The reporter learned that Zheng Jie, general manager of Guangfike Sales Company and Chen Daohong, executive deputy general manager, have a brilliant resume. Zheng Jie is also a leader in the mid- to high-end SUV market, which has been marginalized in China. In 2014, Chrysler sold more than 120,000 vehicles in China, an increase of 34.53% over the same period of last year. Among them, the Jeep brand sold 88,000 vehicles last year, an increase of 49%.
"This management model reflects the cooperation concept of GAC and Fick's market-oriented, efficiency-oriented, and efficiency-based." Feng Xingya told the "Securities Daily" reporter.
Mike Manley, president and CEO of the Fick Group Jeep brand, said: "This innovative structure created by GAC and Fick Group will ensure that the joint venture can fully leverage the strength of both parent companies and drive us to better demand from Chinese consumers. Active and quick response."
Step-by-step online sales The Fick Group's five-year strategic plan announced last year mentioned: "The Chinese market is an important strategic market for Fick Group's planning for the next five years. In the past few years, Chrysler, Jeep, Dodge brand imported models and Fiat domestically produced. The outstanding performance of the model in the Chinese market will become the fastest growing brand in China. The new domestic plan will help accelerate the growth of sales volume and market share, thus helping to achieve the Fick Group's investor conference this year to 2018. The sales volume in the Chinese market reached 760,000 units."
According to Guangfike capacity planning, its Guangzhou plant will be put into operation in the first half of 2016, and it is expected that by the end of 2020, the overall planning capacity of Changsha and Guangzhou will reach 700,000 units. By then, Guangfike will have 10 models with market competition. Force model products.
"Fiat Chrysler China and GAC Fiat dealers add up to nearly 400, we hope that 1+1 is equal to 2, but more than 2, to do resource coordination." Feng Xingya told the "Securities Daily" reporter.
Zheng Jie further stated that the outstanding distributors in the two sales networks will become the backbone of the new Guangzhou Auto Fick sales company's unified sales network, and will have the opportunity to obtain the sales qualification of all brands of GAC Fick Sales Company. Create a sales system of all-brand and full-product lines, and further improve channel sales and service levels.
“We have not made a one-size-fits-all integration solution. We have to gradually develop a brand-wide unified network from the best distributors in the two networks. We plan to sell more than 500 dealers in the showroom in two to three years. All brands".
In the rhythm of product launch, the first domestically produced model, Jeep Free Light, will be launched in the second half of this year. The car will also pave the way for the launch of two other compact domestic SUVs in 2016. By 2017, Guang Fick will be China. The market is tailor-made for a Jeep product, and the Jeep brand will cover the entire SUV market segment by the end of 2017.

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