Media Focus: Junfeng follows the Dongfeng strategy and will never fall behind

August 16, 2020
        (Wuhan Xiawu News on this website) :The 2020 China Automotive Forum was held in Shanghai from August 13th to 15th. The theme of this forum is "New Changes, New Challenges and New Ideas-Leading China's Automotive New Journey". It is hosted by the China Association of Automobile Manufacturers (CAAM). The only industry top forum supported by the Automotive Organization (OICA) and the World Economic Forum (WEF) is the first in the automotive industry after the epidemic this year, and it is also the most high-end, most authoritative, and largest top event.

      Tang Teng, deputy general manager of the strategic planning department of Dongfeng Motor Group Co., Ltd., said at the sub-forum of "Development Strategies and Prospects of China's Mainstream Automobile Groups during the "14th Five-Year" Period" held on the afternoon of August 14. It will be a time to reshuffle the cards. The pattern of the industry will change greatly in the next five years. Many companies that were sitting on the table will no longer exist, and there will be many new entrants. Who can be left depends on who can better seize the opportunity and better meet the needs of Chinese consumers in the future.

      Because of how to follow up and develop Dongfeng's development strategy in the future, Junfeng Automobile must closely follow the application and development of China's intelligent and new energy vehicles, and intelligent advanced technology and intelligent unmanned areas.

      Innovation and development are inseparable from technological progress. The application of intelligence and new energy technologies promotes the innovation and development of enterprises. The future development of Junfeng smart cars and smart drones cannot deviate from the industry development trend. Learning and borrowing from Dongfeng’s "14th Five-Year Plan" is an alternative way for Junfeng.


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Tang Teng: "Fourteenth Five-Year Plan" will be a reshuffle time for the industry


   Today, I was arranged to the end, and it did give me a chance to study seriously. Listening to the introduction of the previous guests really benefited a lot. This is a good thing. But the downside is that the previous guests have almost said it, so I want to very simply share Dongfeng's judgment on some of the current market environment and some thoughts on the future development with you.

   This is the overall development of our automobile in the past few years. Colleagues who have done planning know that when we are doing the "13th Five-Year" plan, we are relatively optimistic about the market. However, in the middle and late stages of the "13th Five-Year Plan", some experts and leaders have already shared with you that 2017 was an inflection point, and then it continued to decline. It is difficult to say whether this year is the bottom. Therefore, if the automobile industry only takes sales figures as an example, we have drawn a circle in the past five years and returned to the original point, but the quality and connotation of the development of the industry have undergone very profound changes.

At this point in time today, we are going to do the "14th Five-Year Plan". Many of the guests and leaders who shared today are planning. All of us who plan are thinking that the "14th Five-Year Plan" is really not easy to do now. , How to do, we have a basic judgment, that is, Dongfeng's basic judgment, uncertain, not optimistic, upgrade, shuffle. This is not necessarily comprehensive, but we think it is a very prominent feature.

   What is uncertainty? Now our Sino-US trade confrontation is intensifying, and the entire international environment will not be too much. In terms of science and technology, some guests did not talk about it, so I would like to say a few more words. Technology should be said to be the most revolutionary factor in social progress. China's auto industry includes the technological advancement of the world's auto industry. Today, many sharing guests use the technology maturity curve. It is true that the technological advancement in the automotive industry has reached a level sufficient to cause some disruptive changes in the industry, because technology is really the most revolutionary influencing factor. This is an example. The company’s digital imaging technology has matured and led to the industry’s giants being subverted in a short period of time. In the next five years due to technological factors, China’s auto industry will undergo some major changes. I believe everyone will have a consensus, and this change has already begun today. We have seen that some companies have already left their seats in the Chinese auto industry.

   The second uncertainty is that market factors and some factors of the Chinese government. FAW, Dongfeng, and Changan are the three central enterprises in the automobile industry. Many leading comrades have said that we have some shortcomings in the system and mechanism, but we do have some advantages. As a central enterprise, one of the advantages of Dongfeng is that we have political The advantages. One of the manifestations is that we have seen some guiding opinions of the country on the "14th Five-Year Plan". The country has a judgment on China’s auto industry. As people in the industry, we feel that the industry has to be shuffled and the pattern has to change. These will bring a lot of challenges and pressures. But from the perspective of the country, this change is not enough. China's auto industry is large but not strong, and resources are scattered. There is really no need for so many auto companies to exist. The government's will is that the concentration of this industry can be further increased. In addition to such a policy and the market's superimposed factors, coupled with large environmental and technological factors, the uncertainty is very huge.

  not optimistic. In the long run, many guests on many occasions will say that China's economy is improving in the long term, and there will be a transition from rapid growth to stable growth. This is a long-term perspective. But in the long history, although five years seems to be long, it should be regarded as a relatively short moment in the history of the automobile industry for more than 100 years. In this moment, there are some uncertain factors and even the downward trend for several consecutive years. Not surprisingly, we believe that the basic judgment for the next five years is not optimistic. The "14th Five-Year" plan must be a very cautious plan, which is also our basic general judgment for this industry. It is even mentioned in the media that now the Chinese auto industry has seen old people cry everywhere but not new people laugh. This is a common phenomenon in our industry and even in the next five years.

   The third one is upgrading. Many of the guests in front of the consumption upgrade have also talked about it, not much. But our upgrade is indeed a transformation facing the auto industry, an opportunity for the development and transformation of new and old kinetic energy, but whether the Chinese auto industry and Chinese brands can seize this opportunity is still a big question mark. Many of our guests said that the total market volume may not have much room for growth in the next few years, and that the future may be based on exchanges. This view is also very clear to everyone. But everyone knows how much difference is there between the average price of the first car and the second car from the statistics? The average consumer car price, the second car and the first car need to be increased by more than 100,000 yuan, and the joint venture brand will be increased a bit higher, probably to 140,000. Self-owned brands are a little lower, about a little over 100,000. So can our current independent brands really meet the needs of such consumption upgrades? Whether we can seize the opportunity is indeed still a big question. Just now, many corporate guests have talked about our technical layout and service to do a lot of things, and it does leave us very limited time to complete these layouts. In addition, in terms of technology upgrades, from the original traditional physical cars to digital cars, the auto industry faces a huge gap in the improvement of its own capabilities.

   The last is to reshuffle. The industry's pattern will change a lot in the next five years. Many companies that were sitting on the table will no longer exist. Of course, there will be many new entrants. Who can be left depends on who can better seize the opportunity and better meet the needs of Chinese consumers in the future.

   How does Dongfeng see such a change? First of all, we must clearly understand what Dongfeng's mission is as a central enterprise in the automobile industry, and take up this mission. Of course, this is also the political advantage of our central enterprise. The "14th Five-Year Plan" is a critical period. Dongfeng will combine the overall requirements of macroeconomics and building an automobile power, combined with the responsibility and responsibility of central enterprises, to win three leaders and one leader. In the future, Dongfeng will lead in quality and independent business. To take the lead and to take the lead in new businesses, one of the first is that we must build cars for the society as well as for the automakers. We must take the lead in enjoying a good car life for the 140,000 Dongfeng employees. This is our Dongfeng’s own travel in the future. And the mission's positioning is three leading and one leading.

Second, we need to further clarify our position in the development process. The SASAC has also put forward many very specific requirements for the future development of central enterprises. To insist on improving core capabilities, we propose that outstanding enterprises must have advanced market insight and strong innovation Capabilities, market development capabilities, product guarantee capabilities, risk prevention and control capabilities, and sustained profitability, these six capabilities must be controlled. The second is also put forward by the central government. It is necessary to adhere to high-quality development. To implement Dongfeng is to firmly grasp the development principle of profitable sales and cash flow profit. This is our familiarity with every Dongfeng employee in the company. . To overcome the behavior of high growth and blind investment, everyone will be cautious about the investment in the "14th Five-Year Plan" round. The third is to adhere to a high level of openness. Our main market may be facing the domestic market, but this does not mean that we do not engage in openness. We still have to adhere to a high level of openness and strengthen autonomy through openness. The fourth focus on doing major tasks is also China’s institutional self-confidence. In the past few years, China’s rapid development of reform and opening up is a very beneficial weapon, which is to focus on doing major tasks.

  The specific development path. Although this diagram is simple, it condenses Dongfeng's positioning and ideas for future development. To be guided by high-quality development, with transformation and upgrading as the main line, we will deepen the business transformation of automotive products to automotive products + services proposed in the 13th Five-Year Plan, and promote the transformation of the value chain of the automotive sector to a technology-leading enterprise. The digital economy promotes digital development and transformation. We will also achieve product upgrades through the creation of commercial vehicles and passenger vehicles. Dongfeng will promote the overall upgrade of brand products and services by creating a new high-end brand of new energy, Lantu.

Specifically, we have several things to do. First, we must solve some major problems in our development during the 13th Five-Year Plan. Last year was the 50th anniversary of the establishment of Dongfeng. The 50-year history of wind and rain has established a strong Dongfeng. It is indeed in 50 years. An old state-owned enterprise in the middle also has many problems. In addition to the mechanism and system that everyone often talks about, we are here with friends from the media and guests from the industry. You also know Dongfeng well, and we have not developed enough in the independent passenger car business. It's not ideal either, so this is what we want to break through during the "14th Five-Year Plan" period.

Our first priority is the strategy of technological innovation. The future development of the industry is the trend of the four modernizations. At Dongfeng, we talk about the five modernizations. We talk about lighter weight more than the industry. Of course, light weight is just like the lighter weight of automobiles, not just that. Simple, at least there are several meanings of lightweight in Dongfeng. One in itself is the lightweight of automotive products, which must be developed. The second weight reduction is to remind ourselves that we are still an enterprise in the manufacturing industry. Although we are talking about service transformation, our base is still manufacturing. We still have to work hard on manufacturing. The third lightweight talks about the future development. It is necessary to integrate the development concept of the entire enterprise's lightweight development, asset-light development, and the use of social capital into the enterprise.

The second Dongfeng proposed the strategy of the Industrial Corridor of the Central Economic Belt. This should be said to be a specific and important strategy for implementing our products + services. We will implement the national development strategy and cooperate with the Hubei Provincial Government to create a million-car industrial corridor in the Hanjiang Economic Belt. . Previously in many forums, many experts also pointed out that the future competition in the automotive industry is not only in terms of products, but the competitiveness of products is not enough to constitute a decisive market competitiveness. It is more about the future enterprise's ability to solve scenarios and customer experience. Improve the ability to solve scenarios. It should be said that Dongfeng’s million-car industry corridor is a concrete manifestation of such a competitive strategy. We do not only make products, but also create a new transportation system. Of course, as a car manufacturer, we only provide transportation in the middle of the big ecology, but our transportation and environmental testing are related to consumption and customers. There are very big ways to use it. Therefore, we want to pass a scenario, the construction of a large future smart transportation system scenario, and launch the future products and services. This is an important strategic idea in the "14th Five-Year Plan" period. An industrial corridor is also our important practice.

Finally, I would like to share with you the Lantu strategy. We released the Lantu automobile strategy not long ago. Lantu Automobile is the seed of a new development strategy under Dongfeng. It is not only an electric car, but also not just a high-end brand. It is a pioneering work of Dongfeng's innovative development, transformational development and deepening reform. The Lantu brand will work hard to interpret Dongfeng’s new thinking on the needs of the new backbone for a better car life, and empower the new backbone for a better life. The Lantu brand is positioned as a true zero-anxiety diagnosis smart brand, allowing cars to drive dreams and contribute to a better life. Mission, Dongfeng is committed to making Lantu a leader in high-end new energy passenger vehicles in China.

In order to achieve this goal, we have formulated a development plan for Lantu in the next 3-5 years. In product planning, Lantu will be user-oriented and precise layout to achieve coverage of cross-border high-performance vehicles such as cars and SUVs. No less than one brand-new new generation car will be put on the market every year starting from 2010. We position Dongfeng Lantu as a new force in car manufacturing. Lantu fully integrates the rich experience of mature car companies and the flexible innovation mechanism of new car manufacturers, and explores an innovative and integrated development model for mature car companies to add new forces to car manufacturing. , To establish a more efficient, innovative, pragmatic and flat management application model. As we all know, the strategy is still being developed and cannot be shared with you too much. I will share it here in a very general way. Under the guidance of the automobile power strategy, under the guidance and coordination of automobile industry associations and industry organizations, Dongfeng, together with friends present, brothers in the industry, and all sectors of society, jointly promote the high-quality development of the automobile industry and help achieve The dream of automobile power.