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Dongfeng Motor is running at an unprecedented speed.
On October 16, Xu Ping, Chairman of Dongfeng Motor Corporation, and Tang Weishi, President of the French Peugeot Citroen Group (hereinafter referred to as “PSAâ€) jointly scooped up the groundwork for the foundation of the 4th plant of Shenlong Company in Chengdu Longquan District; on the 17th, General Manager of Dongfeng Automobile Zhu Fushou and CEO of Huawei Technologies Co., Ltd. Consumer Yu Chengdong spoke with each other at the signing of a strategic cooperation agreement. The two companies will have a three-phase cross-border in the fields of automotive electronics, smart cars, and IT/ICT informatization. Cooperation; On the 18th, Dongfeng Nissan’s fourth factory in Dalian was formally put into operation, forming a strategic layout of vertical and horizontal aspects.
Dongfeng Motor’s Vice Minister of Strategic Planning, Wang Binbin, was interviewed by the “First Financial Daily†and other media on the 17th. He revealed that the second phase of the cooperation with Huawei will be reflected in Dongfeng Motor's “Thirteenth Five-Year Planâ€. The cooperation strategy between Dongfeng and Huawei is divided into three phases. The second phase of the two parties jointly plan future cooperation products in the networking of vehicles and realize the intelligentization of vehicle interconnection.
Expand production capacity to grab the market
As one of China's four major automotive groups, Dongfeng Motor sold 3.5,439,900 vehicles last year, achieving sales revenue of 455.03 billion yuan, a record high. In the first half of this year, Dongfeng Automobile sold 1.921 million vehicles, an increase of 12.1% over the same period last year.
Dongfeng Motor has maintained steady growth in recent years, but faced with the rapid growth of production and sales volume of FAW, SAIC and other automobile groups jointly with the car giants of the Volkswagen Group and General Motors, it will inevitably suffer from certain pressure. As a company with the largest number of joint venture car companies among domestic auto companies, Dongfeng Motor continues to increase its open cooperation to enhance its competitiveness.
Since last year, Dongfeng Motor has joined Volvo in the formation of a new Dongfeng Commercial Vehicle Co., Ltd., committed to the development of the Dongfeng brand commercial vehicle, reorganized Sanjiang Renault, and signed a joint venture contract with Renault to form the Dongfeng-Renault-Nissan “Golden Triangleâ€; this year 3 In December, Dongfeng Motor Corporation invested 820 million euros in shares to become the largest shareholder of PSA. The Dongfeng Motor and PSA's fourth plant with an investment of 12.3 billion yuan was also laid in Chengdu. The total designed production capacity was 360,000 units per year. It was put into production at the end of 2016; the first phase of Dongfeng Liuliu Liudongxin Base Construction Project has been put into production in July this year. The project plans to invest a total of 6 billion, and overall plans to produce 400,000 passenger cars and 100,000 commercial vehicles; this month, 18 The 28th-month Dongfeng Nissan Fourth Plant Dalian Plant was officially put into production. The first phase of the project will have a total investment of 5 billion yuan and an annual production capacity of 150,000 vehicles. It will mainly produce Nissan SUVs, and the second phase will have a capacity of 300,000 units. In addition, Dongfeng Passenger Car Company's new energy plant was started in Wuhan Economic and Technological Development Zone last year and is expected to be fully completed and put into operation by the end of this year, mainly for energy saving and Hybrid vehicles and energy production of conventional cars. The factory plans to have an annual production capacity of 160,000 units and will invest 2.4 billion yuan in the first phase.
According to the “Twelfth Five-Year Plan†of Dongfeng Motor Corporation, the company’s 2015 sales target is locked at 5 million vehicles.
Making Powerful Brands
Since September of last year, the market share of China's autonomous passenger vehicles has “declined for a second timeâ€, and the market share did not stop falling until September this year. In this regard, Zhu Fushou believes that although there is a sense of crisis in independent brands, but the crisis does not mean that there is no opportunity, the key is to find the shortcomings of the development of its own brand, and to solidly promote its own brand strategy, for the development of independent brands in China Difficulties should be kept in a normal state of mind.
It is worth noting that Dongfeng Motor Co., Ltd. is always taking special care of Dongfeng Fengshen, its own brand, in accelerating the layout of SUVs, new energy vehicles and smart cars. In the fourth plant of Shenlong, 10,000 of the production capacity is for the production of Dongfeng Fengshen SUV models AX8 or AX9. At present, Dongfeng Fengshen has produced its first AX7 product equipped with a PSA powertrain and will use its advanced technology and mature production lines to produce high-end SUVs at low cost.
Huawei's development of WindLink products and services for Dongfeng was first carried on the Dongfeng Fengshen AX7. This system integrates a high-resolution 9-inch touch screen, enabling dual-screen interconnection of mobile phone cars through both wired and wireless methods.
Some industry insiders believe that the new SASAC assessment is no longer just a corporate profit assessment criteria, the operating conditions of independent brands have also become an important reference standard, which is one of the reasons for the decision-making level of Dongfeng Motor to tilt its own brand resources.
Due to the lack of scale, Dongfeng Fengshen Passenger Vehicle has not yet made money. Li Chunrong, general manager of Dongfeng Passenger Vehicle Co., Ltd. once said in an interview with the media that one of the main reasons why Aeolus performed poorly for many years was that it failed to take out SUV models. “The next step is to move from the raw force to the main force. To make the scale and benefits really become the main force, the first thing is to do a strategic model. Our AX7 is a strategic model.†Li Chunrong accepted the “First Financial Daily†on the 17th. Such as when interviewed by the media.
Wang Binbin pointed out that although Dongfeng Motor Company and Huawei cooperated with the AX7 of Dongfeng Passenger Car Company for the first step, the cooperation with Huawei in the future should be the entire Dongfeng Motor Group. The second stage of the cooperation between the two companies is to jointly realize the vehicle. The intelligentization of interconnection, the long-term planning of the third phase is the joint development of smart cars by both parties, and ultimately the realization of smart cars with emotional autopilot.
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