Crossing 2007
- Innovative development from FAW's 1.43 million and 123 billion RMB
The new year's bell has not yet ringed, and FAW people will be happy to send two messages. One is sales of 1.43 million cars in 2007; the other is a profit of 123 billion yuan. The two messages are identical, but they are frequent in the industry.
Undoubtedly, after several decisions and adjustments, FAW Group Corporation has stepped into a scale economy platform after its innovative development in 2007; an old state-owned enterprise with a heavy burden and heavy responsibility has climbed in the already internationalized market competition. Another peak.
Some figures show that: In 2007, FAW Group sold a total of 1.43 million medium-, heavy-, light-, sedan-, passenger-, and micro-automobiles, and realized sales revenue of 188 billion yuan, a year-on-year increase of 23% and 26.5%. The profit realized was 12.3 billion yuan, a year-on-year increase of 252%.
The plan targets of 1.35 million units, revenues of 165 billion yuan, and profits of 3.5 billion yuan, established by FAW in 2007, have made such a big leap in such a fierce market competition?
-- The release of accumulated energy for many years is an important factor in the significant leap forward of FAW's operations. In 2007, FAW Yanfeng said in a New Year message that during the “10th Five-Year Plan†period, FAW increased input, speeded up adjustments, concentrated on accumulation, laid a solid foundation for the company’s layout, technology equipment, and product R&D, and won a strategic plan. Product structure and competitive advantages of car development. In a word, it shows the energy and reserves of FAW. Insiders analyzed that the rapid growth of FAW's operating performance in 2007 was the release of the energy for the “Tenth Five-Year Plan†adjustment and concentrated accumulation. There is no two major structural adjustments in the past. The construction of the four major new bases that did not exist in 2003 will not be effective. This is also the foremost move of FAW.
In 2003, three major bases for the construction of FAW's tight belts (FAW Jiefang Truck New Base, FAW Car New Base, and FAW-Volkswagen New Base) have entered the output period. These three bases together with Tianjin FAW Toyota Plant 2 are also called FAW's four new bases. The completion of the four major new vehicle bases has laid a solid resource base for FAW to fight for the market.
Modern factory buildings, modern equipment, and modern technologies and processes are building a huge delivery bed for the automotive industry. This huge bed of production not only witnessed the rapid development of FAW, but also wrote an endless musical movement for its future.
According to relevant sources, the release of this potential by FAW people under the environment of healthy development of the Chinese economy and the automotive industry is a prerequisite for them to win a good and fast development. In 2007, they helped the Group achieve a new peak in sales, sales revenue and profits by improving management, accelerating output, expanding sales, strengthening autonomy, and expanding cooperation. The formation of a large R&D structure, the innovation of institutional mechanisms, and the continuous renewal of employees' concepts have provided strong support for the future development of FAW. The future of FAW is full of sunshine and rain.
——The new product launch promoted the rapid adjustment of the market structure. FAW gained a double share of profit and share. In 2007, FAW Cars and Trucks two major systems accelerated the pace of product R&D, increased the intensity of new product launches, and significantly enhanced market performance.
On June 21st last year, XENIA Xenia, a small-car product of FAW Jilin Auto Co., Ltd. and Japan Daihatsu Industrial Co., Ltd., officially went public. Three grades and six models caused a shock in the small-car market. After six months, 08 Senya reloaded in Beijing. Into the battle, with a higher quality and more choice of colors favored by consumers. On July 11th, with the symphony of world-class music master Tan Dun underway, FAW-Volkswagen Volkswagen brand's first B-Class Magotan 1.8TSI and its full range of products were launched. This product has led the new trend of China's mid- to high-end cars. In August, Pentium 08 was listed in Beijing at the first anniversary of the Pentium launch. Three months later, the Pentium 6MT, equipped with an internationally leading 6-speed manual transmission and a new 2.0L MZR engine, was unveiled in Guangzhou. In the midst of most 5-speed manual transmissions, the Pentium 6MT entered the market. Highlight the research and development strength of FAW Car. It sold 2800 vehicles a month after its launch. Tianjin FAW Toyota listed four models last year. The first was the new COROLLA Corolla sedan, followed by the revised Corolla EX, followed by the full promotion of the new Vios sedan. In early December, the new LAND CRUISER, the king of the four-wheel drive, was successfully launched. Become the biggest highlight of the annual off-road vehicle.
On July 15 last year, FAW Plant celebrated the occasion when people celebrated the festival. The Liberation Company solemnly launched the sixth-generation heavy truck Jiefang J6 with a contemporary world-class standard. Not only has it caused strong repercussions at home and abroad, but it has also improved the product structure of the liberation truck, laying a solid foundation for maintaining the leading position of FAW's domestic commercial vehicles and entering the international market. According to statistics, in 2007, FAW Jiefang achieved sales of 125,000 vehicles, of which heavy vehicles increased by 235% and tractors increased by 110%. In one fell swoop won the industry sales, market share double material champion.
——Changes in the marketing system have brought about changes in marketing standards and marketing concepts, which have enabled major brands to achieve high growth in scientific and standardized operations. Many media have said that 2007 is an innovation year for FAW Marketing, because there have been too many changes in the FAW marketing system and mechanism. The transformation of the marketing system has brought about changes in marketing standards and marketing concepts, so that the major brands have achieved high growth in scientific and standardized operations.
Through continuous adjustment of marketing strategies and policies, FAW Car Co., Ltd. controls the cost-effectiveness relationship with its major competitors, launches special editions, model cars, and explores the balance between quantity and price. Sales volume continues to hit new highs, with annual sales exceeding the 80,000 mark. FAW-Volkswagen has deepened its marketing revolution and introduced advanced foreign concepts into its headquarters, emphasizing rapid and effective market responses. Sales volume remained at 40,000 for 7 consecutive months, leading the auto market for 11 consecutive months. FAW Toyota's marketing system is integrated through three joint associations to enhance overall combat capabilities. In 2007, the number of orders reached 313,300 and became the mainstream company for passenger cars in China. Liberation Marketing strives to improve the accuracy of forecasting changes in demand for key varieties, establishes a dual-line process for planning and management, and enhances the profitability of distributors by providing training for distributors and commercial policy support, so as to effectively enhance system capabilities and technological potential. We ensured high growth at a high base this year.
——Cost management is an evergreen tree that allows the company to maintain its sustainable growth. It allows FAW to obtain sufficient nutrients and energy in the competition. In the FAW Interview, almost everywhere you can see the big slogan “cost reduction, survivalâ€. FAW people have linked cost management with corporate survival. A manager responsible for marketing told us this way: Cost management is a big problem that must be solved in modern enterprise operations. Especially in the market competition dominated by price war, cost control has become the maintenance of enterprise development. The key to improving profitability. To this end, FAW placed its cost-reduction work at a strategic height, boldly carried out system and mechanism innovations, actively explored long-term effective mechanisms, and included cost reduction work in its annual corporate policy, so that cost reduction targets were deeply rooted in the hearts of the people. In 2007, through strengthening the Group's procurement standards system, resource platform construction, and information system construction, the ability to purchase cost reduction systems was enhanced. FAW Cars has digged its internal potential and reduced 20% of the total cost plan and measures. Through the continuous reduction in the cost of bicycles, the increase in overall sales, and the improvement in the profit structure, the profit target of 180 million yuan in the year is expected to be rewritten to 600 million yuan. FAW-Volkswagen reduced costs by RMB 1.9 billion throughout the year through suppliers' product cost closure meetings, competition with competitive vehicle models, benchmarking, bundled price reduction, and global procurement. According to statistics, in 2007, the entire FAW Group reduced its cost through activities by more than 3 billion yuan. The 30 billion yuan is not a small number. It not only provides support for 1.43 million FAW sales and 123 billion profit targets to achieve and even future development. And it embodies a kind of spirit and a kind of consciousness. This kind of consciousness originates from the market and may also be attributed to the market.
According to experts, 1.4 million vehicles are a hurdle to enter 2 million vehicles. Now that FAW has passed this hurdle, the target of 2 million vehicles may not be far away. It is reported that FAW has set its marketing target of 1.7 million units this year, and 1.7 million vehicles means that FAW will launch a full-scale attack on the overall target of the 11th Five-Year Plan.