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On August 30th, 2009, after less than two months from the establishment of the new GM, President of General Motors China Co., Ltd. Gan Wenwei “impatiently†led his Chinese team to Jilin, signing a low profile for nearly two years with FAW Group. The "marriage contract".
For such an important cooperation, the two sides have not taken great pains to render but adopted a more pragmatic attitude, which is rare in the current bustling auto market. At the unveiling ceremony, when the general managers of FAW Group Xu Jianyi and Gan Wenwei awarded the certificates to General Motors Dde Wei and General Manager Liu Liyan, General Manager of FAW-GM Light Commercial Vehicle Co., Ltd. ("FAW-GM"), the low profile of both parties also seemed to indicate that There is more important thing to do now than to celebrate with champagne.
Unresolved product introduction
After the inauguration ceremony, the new general manager, Dide Weiwei, said in an interview with reporters: “Before the joint venture with FAW, GM had considered other companies, but ultimately believed that FAW Group was the best and most suitable partner. ."
In his opinion, FAW Group is one of the largest auto groups in China and has a good understanding of the local market and has extensive experience in the commercial vehicle market. At the same time, FAW's existing brand, factory facilities and experienced staff are all very favorable resources.
In fact, the commercial vehicles within FAW Group are indeed rich in resources, covering almost all types of vehicles ranging from light trucks to heavy trucks and microbuses to buses. This is a rare resource for GM.
That being the case, GM's ability to bring support to FAW GM on the product line has become a big issue. Jimei heavy market researcher Yang Zaiyu said that in the spectrum of general commercial vehicles, high-end light passengers and pickups are mostly light trucks are not common long-term items.
In the past, introducing new products was almost the most obvious feature of all joint venture companies. From this point of view, how to introduce and develop new products will become a major challenge for Dideway.
However, "the existing products are still based on the light commercial vehicle of FAW Group. In the future, we will also consider introducing some models or technologies from GM. The specific plan will be determined according to market conditions." In response to the reporter's interview, Dexter said so. "The joint venture's product plan will focus on light commercial vehicles as well as commercial passenger vehicles. We will make full use of existing products, and we will actively work to improve the durability of products and improve the cost of use of the products so as to better meet the needs of consumers."
According to him, at present, GM has begun to work on improving and upgrading process management in manufacturing processes, product quality control, and other areas, thereby introducing the most suitable management methods for China's local conditions and advanced production processes to new joint ventures. As for the introduction of new products, it will also be "according to market conditions."
Although there is no new product introduction, FAW-GM hopes to complete the sales target of “80,000 to 90,000 units†this year. By 2010, it will achieve sales of 100,000 vehicles.
"Invisible" sleepy
“FAW Harbin and Hongta are very old state-owned enterprises. There is no problem with the product itself, but its management is backward and its efficiency is relatively low.†In an interview, a person familiar with FAW light vehicle business told reporters.
In his opinion, the introduction of vehicle models is not a good way to revitalize FAW light vehicles.
From the perspective of complementarity between the two parties, the biggest advantage of GM is not the product but the manufacturing process, quality control system and internal management. "We have a profound understanding of the Chinese market and have extensive experience in operating joint ventures in China. The successful development of Shanghai GM and SAIC-GM-Wuling has proved this very well." Daddwick told reporters, "General Motors will make full use of it." Its global resources and best-practice experience accumulated on a global scale have introduced advanced production and quality management systems, engineering development and marketing and other global management procedures for the new joint venture."
At the unveiling ceremony, Wang Yanjun, general manager of FAW Hongta Yunnan Auto Manufacturing Co., Ltd., also admitted that “this cooperation will mainly bring greater support and support to the future development of the subsidiary in the marketing network including the management system and quality assurance system.â€
Not only that, Daddwick has more detailed plans. He said: "At present, the two subsidiaries of the new joint venture company, FAW Harbin and FAW Hongta, operate relatively independently. We are considering integrating some of the functions of the two subsidiaries, especially in the procurement of spare parts. Provide consumers with more reliable and cost-effective products."
In the course of the operation of the new company, Dedward will definitely "draw some of the favorable experience from SAIC-GM-Wuling", but it is still time to test whether it can achieve the desired goal.
“After GM's acquisition of SAIC-Wuling, SAIC-GM-Wuling can achieve leapfrog growth in volume, mainly due to improvements in technology and management models.†Tan Xiuqing, vice president of Shandong Heavy Industry Group, believes that “but unlike Wuling, FAW’s The plates are large and may not be as simple as Wuling in the later stages of transformation."
In his view, these intangible things are more difficult than direct product introduction.
FAW-GM Collaborates on Commercial Vehicles and Dedicated Market