What does Geely rely on to break through 2 million vehicles?

China Economic Times: As a representative enterprise of self-owned brand cars, how can Geely create its own brand?
Yang Jian: Since Geely announced its transformation in 2007, it has carried out "two adjustments" (from rapid development to steady development adjustment, from product line management to brand line management adjustment) and "two transitions" (from internationalization to global Change from technology Geely to quality Geely.
In terms of internationalization, Geely has acquired the conditions for globalization after Geely's acquisition of Volvo and DSI and its participation in British Manganese Copper. From the global market, Volvo is a luxury car, Geely is a popular car, and Geely's model is a full range of high, medium and low grades. From the perspective of regional markets, Volvo uses developed countries and China as its main markets, and Geely uses China and developing countries as its main markets. Geely is positioning globalization. In the future development, Geely will use 6 economic zones and 10 developing countries as its main markets. At the same time, this also requires changes in the management of Geely. From internationalization to globalization, it means setting up your own factory in many places. The management methods and control methods will change greatly.
Geely now emphasizes quality. In the past, Geely's development mainly relied on talents and innovation, and led the development of the company with technology as the leader. However, at the current stage of development, we discovered that if we leave quality, better development will become empty talk. What Geely needs now is a transition from one platform to another, not a step or a step.
Geely's transformation has a whole set of ideas, and the position of competitors has changed. We must place companies in Korea and Japan on the same competitive platform. Not only must the product design correspond to it, factory equipment and conditions must be the same as the employees, and employees must have the same level. The supplier system will also change. In the past year and the year before last, Geely cut down more than 50 suppliers with unqualified product quality and established a joint venture and cooperation relationship with 26 multinational companies. Among the top 20 parts and components companies in the world, 14 have cooperated with Geely and improved. Parts quality. At the same time, the production of poor quality vehicles was discontinued and their plant equipment was removed. From technology to quality improvement, it is a big step.
China Economic Times: Geely announced the transition in 2007 and now has been more than three years. How to evaluate the transformation results?
Yang Jian: I think that Geely's development has fully achieved the transformation goal set at that time. There is a phased transition, and the next focus is on the adjustment from product line management to brand line management. In the past, Geely’s various production bases were directly responsible to the Group. Now that we have to achieve the goal of 2 million vehicles, such an architecture will need to be adjusted.
Geely now has three sub-brands: Global Hawk, Dorsett and British. The management is divided into three levels: the group is an investment center, the brand management is a profit center, and the factory is a cost center. The group is the main investor and considers the return on investment. Brand companies are responsible for operating, selling products and creating profits. The factory is responsible for implementation, considering how to improve efficiency, quality, and control costs. This management structure is set up to complete the goal of 2 million vehicles, and this structure will be gradually improved.
In particular, what the brand line needs to do in the future is to be close to the market and respond quickly to the market. Our assessment criteria for sales companies are sales revenue, not mere sales, and service satisfaction and sales satisfaction. From paying attention to sales to paying attention to customer needs, this is a great change for Geely.
At the same time, Geely is still adjusting from rapid development to steady development, and it has previously developed at an average speed of more than 30%. However, if it continues to do so, there is no future. This year Geely’s target callback is 18%. In the first quarter, more than 110,000 units were completed, an increase of approximately 24.5%. It is estimated that the completion of the annual task is not a big problem. Geely's development is slightly faster than the national market.
China Economic Times: This year, the domestic and international environment of the automotive market has undergone changes. Uncertainties are increasing. How do overseas markets consider the sales target of 2 million vehicles?
Yang Jian: Our target of 2 million vehicles includes Volvo sales. Geely owns 1.2 million vehicles, of which 300,000-400,000 are sold in foreign markets, mainly in developing countries. We are talking to several countries to discuss cooperation in building factories.
China Economic Times: What does Geely think of its three brands?
Yang Jian: Global Hawk, Emgrand and England, the three brands are parallel, without distinction, but the style is not the same. The number of models under each brand is similar, and each brand has its own high school, low-end models, including cars, SUVs, MPVs, and new energy vehicles.
Geely will implement large matrix management, and each of the three brands will have corresponding departments for sales, procurement and quality in the vertical direction. The horizontal departments will have corresponding functional departments. Each brand will have its own professional leadership and administrative leadership, and 3 brands will share resources. Each brand is focused on the brand's products, but it is unified horizontally and with a large technical system.
I am not worried that parallel brands will develop badly. For example, Hyundai and Kia, especially Kia are now developing very fast. They have a great feeling of competition with Japanese companies. Not a parallel brand will not develop well.
China Economic Times: What plans does Geely have for new energy vehicles?
Yang Jian: Geely now has technical reserves in pure electric vehicles, plug-in hybrid vehicles, diesel vehicles, methanol vehicles, and natural gas vehicles. Geely's pure electric vehicles will be put on the market next year.
Geely's purely electric models will undergo rigorous scientific experiments before going public, such as the Volvo C30. After a collision test, the battery will not be affected under dangerous conditions. Electric vehicles need to do, how to keep the battery safe after a collision, not just driving, how much the driving range. The most important thing is whether it is still safe after an accidental collision. At the same time, the supporting facilities for electric vehicles and the selection of charging methods also need to be further improved.
I think that in terms of the national energy strategy and the development trend of the auto industry, new energy vehicles must be a development direction. But companies must be calm. With policy-driven development, new energy vehicles will certainly develop rapidly, but how to develop them quickly and well, companies need to work hard, can not always take subsidies to become competitive, and truly market-competitive products do not need subsidies.
China Economic Times: How does Geely view the recent joint venture autonomy in the industry?
Yang Jian: Self-determination, joint venture or independent joint venture, it doesn't matter to Geely. We just focus on doing our own thing. We don't see the identity of our competitors. If we do well, we will pay attention and study. .

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