Ford wants to rank among China's top three auto brands
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Ford's new Chinese "puzzle"
If you ask today's China, who is the owner of the car ups and downs? Answer: Non-popular is universal.
Ford is not convinced. It will build a large-scale domestic production and sales system and rank among China's top three automotive brands.
Although Ford’s name bears the “fu†that Chinese people value very much, Ford’s journey to China’s automobile market has been extremely difficult. In the 1990s, Ford, who was one step ahead of competitors like Volkswagen and General Motors, began to actively seek joint venture partners in China. He had contact with companies such as Shenyang Songliao Automobile, Dongfeng Automobile, and Xiangtan Jiangnan Alto, but due to culture, ideas, and systems. Many other reasons have failed. In 1996, the tender for a joint venture with Shanghai to produce a sedan saw Ford see a glimmer of hope. However, because his American compatriot General Motors had more than $100 million, he had a great opportunity to sell off Ford at a high price of $1.6 billion.
In 1995, Ford formed a strategic partnership with Jiangling Motors in Nanchang and entered the Chinese commercial vehicle sector, which was still an emerging market at that time, producing the "Quan Shun" brand car. But perseverance in China is the most popular car, not a commercial vehicle. In a sense, Ford still fails to break into the most mainstream Chinese car market. Until 2001, Ford successfully established a joint venture with Changan Automobile Group to establish Changan Ford Motor Co., Ltd., and in January 2003 launched the small car "Fiesta" (Fiesta), debut in the Chinese household car market can be proud of. However, Volkswagen, General Motors, and even the new force Honda, who have long been in full use in China, have all launched models in succession and are not hesitating to wage a price war, so that the newborn “Carnival†will experience life's five flavors.
The history of this scene constantly reminds Ford’s senior executives that China’s auto market is the most flourishing market in the world, and it is also the most competitive market.
Ford, which has yet to enter the first echelon of Chinese car sales, is inconsistent with the position of the world’s third-largest car manufacturer. Moreover, last year's Ford global auto business (that is, not including auto finance business), the loss of 3.9 billion US dollars also stimulated it to make a difference in the Chinese market.
This year, news related to Ford came one after the other: Mazda 3 announced the production of a Ford "Fox" co-production; Ford's wholly-owned subsidiary Volvo (VOLVO) announced the assembly of domestic production at Changan Ford this summer; Mazda took a stake in Changan Ford, the joint venture company Changed its name to Changan Ford Mazda. The news shows that Ford has officially declared war, and is using its comrades rival GM's move - multi-brand portfolio platform. A large-scale domestic production and sales system including Ford, Mazda and Volvo are stepping up to the GM Chevrolet, Buick and Cadillac respectively.
Deployment platform strategy
Ford Motor Group has eight brands in the world, including Ford, Lincoln, Mercury, Mazda, Jaguar, Volvo, Aston Martin and Land Rover. Fox, Mondeo and Carnival are currently sold in China. Ford brand. Now, the "Mazda" brand is gradually being entrusted with heavy responsibility, playing more and more critical in Ford China's entire game.
On April 3, Changan Ford in Chongqing announced that 15% of the 50% joint venture company previously held by Ford will be transferred to Mazda, and the name of the joint venture company will also be changed to Changan Ford Mazda. This will not only increase the idle production capacity of the Chongqing plant, but also use Mazda’s brand, which is widely recognized by Chinese consumers, to achieve the purpose of improving efficiency. Third, the joint venture will also provide Mazda products with two major platforms for Changan Ford (Chongqing Plant). And Nanjing factory) opened the channel.
According to industry sources, Changan Ford’s Chongqing plant will introduce Mazda3 and Volvo S40 in addition to the Mazda3 and Volvo S40. If nothing else, the Chongqing plant will approach the limit of capacity this year.
With a straight-line increase in production capacity, Changan Ford’s total sales plan for 2006 also increased by 119% from last year to 138,000 units, including 60,000 Fox models, 48,000 Mondeo, and 20,000 Mazda3, leaving 1 The 10,000 is the Volvo S40. When Shi Binde, president of Changan Ford, accepted an interview, he said with regret: “We never worry about the sales of products. We only worry about whether the production capacity can keep up with the market demand and may not be able to meet so many orders.â€
In Ford’s platform strategy, besides the Chang’an Ford Chongqing factory, there are also the Nanjing factory and two factories in the FAW system (the Mazda brand’s Changchun and Hainan plants), which will be regarded as the Ford’s top three in mainland China. Manufacturing platform. The establishment of these three major manufacturing platforms will facilitate the realization of shared parts procurement and manufacturing equipment. The products produced will enter their respective sales systems in accordance with different brands. “Changan Ford’s Chongqing plant will be positioned as a mid-to-high-class vehicle production base, while the Nanjing plant will focus on producing economic vehicles and small cars,†an analyst pointed out.
Liu Yiqun, a public relations commissioner of Huadong District of Changan Ford, also stated that since its launch in April last year, the main building of most of the functional workshops in the Nanjing plant has been completed: the stamping shop, welding shop, painting shop, assembly line and administrative office building. With scale, the relocation of the administrative building has also begun. Within three months, all employees will enter the new office.
According to another supplier of parts and components, the planned Nanjing plant with a production capacity of 160,000 vehicles will introduce the new generation of Ford Fiesta and Mazda2 next year, and more Mazda models will enter two factories in the first-tier system.
People will see that Ford’s clear manufacturing platform in China will carry the heavy responsibility of launching a new round of Ford offensive.
Sub-channel "remodeling" brand
Since Ford’s four design centers in Dearborn, United States, have been operating non-stop, people have not stopped criticizing Ford’s stormy brand acquisitions in the last century. The accusations that these platform strategies are designed to integrate automotive design and manufacturing, and Ford’s acquisition of products with distinctive features, are self-contradictory.
Douglas Brinkley, a writer and historian of The New York Times, mentioned in his book "Wheels for the World" that "Learning to think about issues from the perspective of parts sharing is It's crucial, but "if it wants only another Lincoln, then the Jaguar acquisition is also a waste of money."
When these platforms came to China, the same questioning began to take place. The spearhead pointed to the Changan Ford Chongqing factory that will jointly produce Mazda3, Ford Focus and Volvo S40 this year, and the unease has spread rapidly from the inside out.
In March of this year, Volvo China began to release news to the media, stating that the vague coverage of individual domestic media about Mazda 3 and Volvo S40's "common chassis" has seriously damaged Volvo's high-end brand image. This statement explains that the Volvo S40 and the Mazda 3 share a chassis development platform instead of using the same chassis, and the chassis developed on this platform is completely different. Volvo emphasized that "the Volvo S40 is still a high-quality, high-security mid-level luxury car."
In fact, it is difficult to avoid the similar flaws in the less mature Chinese market. It is not clear that more than one-third of the world’s major auto companies use the platform strategy to achieve production. Ford needs to change this concern, at least, what it can do is to separate its sales channels and strengthen its own brand characteristics.
"Ford's lively and exciting" brand appeal has been very successful in Taiwan. We expect that this new mother brand spirit will continue to the product level. Chang'an Ford's sales channels will be fully enhanced this year." Chen Yinheng, Deputy Director of Marketing, Changan Ford Motor Sales Co., Ltd. Emphasize.
Mazda has also established FAW Mazda Sales Co., Ltd. with FAW and will sell all Mazda brand products in the future. They will highlight Mazda's “ZOOMZOOM†dynamic and technology-leading image. The Volvo domestic sales channel, which has successfully established a high-end car image in China, will be in line with the current import car channel, and will ultimately be dominated by Volvo China.
Outside these three major domestic systems, the Ford brand high-end imported cars including Jaguar, Land Rover and Lincoln will also independently own a certain number of networks.
Ford prototype
Ford China Chairman Cheng Meiyi is trying hard to realize a new attempt to integrate the Changan Ford Mazda on the mainland and Ford Liuhe, a joint venture plant in Taiwan Province, to establish a “Great Ford†system—one that includes the human resources of both sides of the Ford Department. Flow, technical support, and shared parts planning.
“Ford’s long-term strategy is to uphold the localization of talents. Teams from Ford Europe, Australia and Ford Liuhe are already well integrated with Chang’an's team, and in particular have leveraged the advantages of Chinese cooperation.†Chang An Ford, one from Ford Six The executives of Hehe are not without pride to say that "Ford Liuhe, 35 years old, has basically no foreigners involved in management. The local president took over all management work 3 to 4 years ago. A similar trend has come for a long time. Looks will also apply to the mainland market."
General Motors and Ford’s joint-venture factories in the mainland have gathered many talents from Ford Liuhe in Taiwan, including Chen Yuanqing, president of Jiangling Motors, Ye Mingxin, deputy general manager of Jiangling Sales Co., Ltd., and Liu Yonghai, general manager of Shanghai GM’s marketing department. It is a relatively well-known number in the industry. In addition, Ford Motor Co. Ltd., the largest distributor in China, has three general managers from Taiwan. In January of this year, Liu Wei, deputy general manager of the Ford Liuhe Marketing Department, was transferred to Changan Ford to serve as vice president of sales. These sales professionals in Taiwan’s background have been valued by the industry. In the future, Taiwan’s professionals will continue to work in the mainland to strengthen their workforce and management. Ford China Vice President Xu Guojun believes that the environment on both sides of the strait is similar and that Ford Liuhe’s talent is an important resource.
When the talents are in place, the replication of the marketing system, the sharing of the parts procurement system, and the promotion of the car design will naturally become the next step. Chang’an Ford’s “Live Wonderful†new brand remodeling plan comes from the successful model in Taiwan. Former Mondeo, Fox and other models have Ford Liuhe involved in the design.
When Ford Liuhe President Shen Yingyi attended the Ford Liuhe Supplier Conference recently, he said that after the future cross-strait three links and free trade became a single market, Ford Liuhe will strive to become the Ford Greater China or Asia Pacific production design center, and require its parts and components. Suppliers absorb advantages from both sides of the strait to enhance their competitiveness and jointly develop the Greater China market.
Under the shape of "Great Ford," Changan Ford Mazda and Ford Liuhe will determine the success or failure of Ford Asia Pacific's new strategy.
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