Regional Headquarters Moves to China's Volkswagen


In almost a month, Volkswagen and GM announced that their headquarters in the Asia Pacific region will be moved to China. At present, the masses of the "boss" in the Chinese automobile market and the GM, which is known as the "second child", are fighting to win the Chinese auto market. “Whether China can achieve long-term success and sustainable development has become the key to the overall long-term success of General Motors. During the Beijing Auto Show, Volkswagen announced that it cancelled its former Asia Pacific headquarters and was established within the legal framework of Volkswagen (China) Investment Co., Ltd. “Volkswagen Group (China)” Soon after, General Motors Chairman and Chief Executive Officer Wagner announced in Shanghai that GM’s Asia Pacific headquarters will be officially relocated from Singapore to Shanghai, China, and two weeks ago, General Motors China even He also said that he will invest $3 billion with SAIC to deepen his business in China. In less than a month, General Motors has repeatedly announced several important decisions related to China. It is not difficult to see that GM is in China. The movement for development is getting faster and faster, and the intensity is also increasing, and it is increasingly important that China’s auto market is playing a more important role in the development of GM’s Asia Pacific and even the entire global business.” Wagner said: “At present, GM’s business in the Asia Pacific region is 85 % is concentrated in Northeast Asia, China, South Korea, Japan, and so will The move of Asia-Pacific headquarters to Shanghai, China will help us move closer to the business center and work more closely with strategic partners in the Asia-Pacific region so that we can more effectively expand our business in the future. Zhuo Yikai, President of GM’s Asia-Pacific Business Unit, emphasized: “We believe that Singapore is a good place to start a business, but our business model has changed a lot. At present, China has become and will continue to be the fastest growing automotive market in the world. Therefore, whether we can achieve long-term success in China and sustainable business development has become a key factor in the long-term success of General Motors Corporation. Choosing Shanghai as the new headquarters in the Asia Pacific region demonstrates the importance of the Chinese market in the development of GM’s Asia Pacific region and the entire global market. According to reports, GM’s Asia Pacific region is the fastest-growing area of ​​General Motors' business, including 14 countries such as India and New Zealand, with a total of 22,600 employees. The current Asia Pacific headquarters in Singapore serves as the business of General Motors in the entire Asia-Pacific region. The department in charge of operations consists of major departments such as finance, law, procurement, planning, human resources, public relations, and finance, and currently employs 90. General Motors has established Shanghai GM and Pan-Asian automotive technologies in cooperation with SAIC. Six joint ventures, including the center and SAIC-GM-Wuling Automobile Co., Ltd., cover a wide range of product lines from mini-vehicles to luxury cars and many other major market segments. The product line is very rich, and the market share ranks second and continues to grow. The relocation of GM's Asia Pacific headquarters is in progress, and the team responsible for the transition work is already in place in Shanghai, and it is expected that all relocations will be completed in January of next year. In addition, GM Overseas Development Co., Ltd. in Singapore will not be relocated to the headquarters. Impact will continue to be responsible for GM’s new additions The sales of imported cars and service work Another common performance of GM in accelerating its distribution in China is to announce that it has increased its investment in the Pan Asia Automotive Technology Center, another joint venture in China, with an investment of 2.1 billion renminbi. Announced that General Motors will accelerate the development of its most unique and important joint venture in China - the Pan Asia Automotive Technology Center. It will increase investment and invest RMB 2.1 billion to strengthen the construction of hardware and software for Pan-Asia. Its core competitiveness is to build it into the most technologically advanced and best-equipped automotive engineering design and research and development base in the Chinese automotive industry.As the first Sino-foreign joint venture automobile R&D center in China, the Pan-Asian Automotive Technology Center is an initiative of GM and SAIC. The new mode of Chinese automotive R&D in China, and the “Pan-Asia model” have no precedent in the international automobile industry, one of which is to plan to build a large-scale and most fully functional international standard special test driveway in the Pan-Asian Automotive Technology Center. Currently in the guidance of the General Motors and SAIC Group's global testing site expert group and At the same time, Pan-Asia is making final confirmation on the location of the test drive yard, and in the next three to four years, Pan-Asia will also set up several new domestic and world-leading facilities, of which the most notable Virtual development facilities that use the world’s most advanced digital development technologies, as the first set in the country and the only virtual development facility at present, based on GM’s global digital design platform, will greatly shorten the product development cycle and rapidly improve Pan Asia The vehicle's self-developed capability, and the planning of the chassis movement and dynamics measurement laboratory, will provide strong support for Pan-Asia's further improvement in research capabilities, and new noise and vibration laboratories synchronized with GM's global standards will be built in the same period. Advanced Facilities In addition to all-round enhancements in hardware facilities, Pan Asia will continue to foster the core automotive design and R&D talents with the support of General Motors and SAIC. It is expected that by 2005, the number of engineering centers will be current. The number of people from 670 to 900 will increase to 1200 by 2010. “VW has already occupied a considerable share of the Chinese automotive market. We hope to continue to maintain this status.” The intention of the masses to move their Asia Pacific headquarters to China has been brewing for a year. As early as March last year, when Dr. Lei Sengeng had just assumed the position of President of Volkswagen Asia Pacific, he had stated that he would move the Asia Pacific headquarters to China. When he met with the Chinese media for the first time in two months, he even stated that he would move his family to China, and that his wife would also live with him in China. Later I heard that he not only sold his house abroad, but also shipped all the furniture to China. After nearly a year of preparation, this promise of Resona was finally honored. The eve of the Beijing Auto Show, the public specially prepared a media meeting, at which he announced the news to everyone. Resona can say that Volkswagen will re-adjust its business structure in China. The main content of the adjustment is to establish "Volkswagen Group China" (but still use the legal name of "VW Group (China) Investment Co., Ltd.) instead. The former Asia-Pacific region, as the primary organization for the unified management of China's business, is directly responsible to the Volkswagen Group's global board of directors and assumes more management responsibilities and exercises regional headquarters functions. And to this end, a new leadership structure, the Executive Management Committee, has been formed. Dr. Lei Sengeng, former Asia Pacific President of Volkswagen Group, assumed the position of President of China, and led all Volkswagen Group's business in China. He directly reported to Dr. Wei Zhibo, Group Global Vice President and Head of China Affairs. The Executive Management Committee also includes Han Nick, Executive Vice President, Sales and Marketing, Dr. Shi Lede, Executive Vice President, and Technology Supervisor; Ke Rudi, Executive Vice President, in charge of procurement; Dr. Zhang Yuxin, Executive Vice President, responsible for human resources and public affairs, At the same time continue to serve as the chief representative of the Beijing representative office of Volkswagen Group; there is also a recently appointed executive vice president in charge of finance. Reesen said that the main purpose of establishing the "Volkswagen Group China" is to facilitate the quickest response to the situation in China and the surrounding areas in China. This is a major adjustment in the Volkswagen Group's global strategy. A year ago, Resona once told this reporter that “The Asia-Pacific region is a vast region. China is the most important member of this region, and China is the most important partner of the public in this region. President of the Volkswagen Group in the Asia-Pacific region, in order to better work in this region, I certainly should live here; Volkswagen has established a joint venture in China, Volkswagen's business in China has also developed for many years, I hope I live After China's arrival, it can better promote the cooperation and development of both sides. China is a country with a long history and hopes to have a better understanding of this country during its work and life.” VW built its regional headquarters in Beijing instead of Changchun and Shanghai are simply hopeful that the two joint ventures will realize that Beijing is a “middle ground” and that the public will not “bias” to which side. Obviously, he hopes to leave an objective and fair image. Through this move, Volkswagen has once again demonstrated its great importance and confidence in the Chinese market. In order to maintain its leading position in the Chinese automotive market, Volkswagen Group intends to further expand its investment in China. From 2003 to 2008, the additional investment will total 6 billion Euros. At that time, Volkswagen Group's output in China will reach 160. 10,000 cars. Lei Sieng said that China’s auto industry has already had a very good foundation. China has a population of 1.3 billion but only sells more than 700,000 cars per year, so we can be sure that the development space of the Chinese car market is very huge. It is impossible for automakers to give up. “Volkswagen already has a considerable share of the Chinese automotive market. We want to continue to maintain this position. In the next two to three years, China’s auto market will undergo great changes because of competition. The ultimate beneficiary of this change is China’s The result of competition among consumers is that they can obtain more automotive products they like.” “Automobiles are becoming an important driving force for China’s economic development, and Jiajiao will soon become the main body of China’s auto industry” After the people of a country have resolved their food and clothing, they will inevitably enter a new era of consumption represented by housing and automobiles. This is a common law of the world that is not based on human will. In particular, it has entered the threshold of a per capita GDP of 1,000 US dollars, and the sedan has gradually become one of the main options for the upgrade of the consumption structure. According to forecast, China's vehicle ownership will reach 33.56 million in 2005, 56.69 million in 2010, and 133.03 million in 2020. In particular, the "explosive" growth in 2003 led to the advancement of China's auto industry three years in advance. The Chinese auto industry has entered a period of rapid growth based on mass consumption. The auto society is heading towards us. The automobile is the engine for sustained economic growth and the propeller for upgrading the industrial structure. While China is gradually becoming a new automobile production base, taking automobile as the lead industry will promote industrial upgrading in a wide range and become an important carrier for China's new industrialization. The wide range of industries and industries that automobiles can drive can accommodate and absorb a wide range of new technologies, new materials, new processes, and new equipment. The scale of production, market size, and output value, taxation, and employment that can be created can be created. The large number of jobs, the large and lasting effects on the national economy, and the importance of improving the quality of life of the people are hard to compare with other industries. For a long time to come, the automobile industry will become one of the most important drivers of the growth of the national economy. There is no doubt that the enormous appeal of the Chinese automotive market has attracted multinational corporations. They have moved their regional headquarters to China, indeed, to respond more quickly to the Chinese market and, more importantly, to gain greater market share and profits. .

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