From "earth excavation" to "embroidery theory"
From encouraging "more children to fight," to today's aggressive removal of three-quarters of new car R&D projects, Chery Automobile, driven by Yin Tongyue, has entered a deep-water strategic transformation.
This is one of the “surgical†operations where Yin is Chery’s personal intervention. According to its plan, Chery’s strategic transition period is from 2009 to 2013. During this period, Chery has to undergo a phoenix-like transformation - slowing down new products, re-raising the R&D system, introducing more stringent and solid standards and processes, and pushing quality improvements through standard upgrades.
According to Chery executives, Chery had more than 130 new car projects. After the production department's cost accounting and sales department's market forecast, it has now been reduced to less than 30 projects, while the retained new car will be from 2013 to 2017. Years have been pushed to the market.
Throughout the year, Chery will complete sales of 650,000 vehicles (of which over 170,000 are exported overseas), which is not only far from the target of “guaranteing 700,000 disputes and 800,000†that was set at the beginning of the year, and it is even less than the sales volume of 682,000 vehicles last year. This is the first time that Chery has had a negative sales growth since its establishment 14 years ago. If the export volume is eliminated, Chery’s domestic sales have even dropped from 560,000 vehicles last year to 480,000.
However, Chery's profits have risen against the trend. According to Yin Tongyue, chairman of Chery, Chery’s profit is expected to exceed 1 billion yuan this year, an increase of nearly 40% year-on-year. “Only export revenue exceeds US$1 billion. With the further development of the international market and the optimization of export product structure, Chery will export next year. It is expected that foreign exchange will double."
The steadily increasing profitability is also a sign of "encouragement" for Yin Tongyue. It also indicates that Chery's strategic transformation will go deeper. According to the reporter's understanding, due to changes in the R&D system, the positions of many R&D middle managers will also change, and in order to dock with the new R&D system, Chery’s downstream procurement and production will also have major actions in order to realize the “linkage†of adjustments. effect.
The key "transition period"
General Manager of the Chery Sales Corporation, Ma Dejun, described the attitude of each new product with “extreme careâ€. He knew that the loss of the previous few new products caused damage to the Ruiqi brand.
"If it is in accordance with the previous standards and processes, Ruiqi G3 was listed on the market as early as 8 months ago. But since we must push, we must do our utmost to make each product a quality product." Ma Deyi tried to come through his own words. Explain to the media the differences before and after the Chery transformation.
On December 12, the late Rui Qi G3 finally opened the final price card, starting price of 69,800 yuan. However, the Ruiqi G3 only introduced 1.6L manual transmission models. In order to ensure the safety of quality, the launch time of 1.3L and 1.8L displacements and Chery's self-developed CVT endless transmission will also be extended.
The delayed delivery of new products again and again caused some Chery dealers to complain. Prior to this, most dealers had become accustomed to Chery’s introduction of new products through the dazzling "rapid knife method", although this approach made Chery's bicycle marginal revenue slip.
Ma Deyi said that the Ruiqi G3's CVT model had completed the freezing of industrial production in January this year, but it will not be available until the first half of next year. "In order to verify the reliability of the CVT technology, the company first tested a small number of vehicles and then gave consumers a practical use environment test. So far, the vehicle has traveled more than 30,000 kilometers without any quality problems."
At the Chery plant in Wuhu, the final quality “gatekeeper†of the new product was Yin Tongyue’s group of German experts invited by FAW-Volkswagen from “the former ownerâ€. "They (Germans) don't talk about anything, and (new car quality) doesn't allow them to go offline."
Yin Tongyue, the “heads†of Germans invited from Changchun, added an insurmountable “gate†for Chery on quality control, but it also made selling companies extremely miserable, and new car delivery plans dragged on. The manufacturer’s commitment to distributors cannot be fulfilled.
"In order to meet the new standards and procedures for building a car, Chery has spent three or four times more manpower and two or three times the time than before to build a new product with a quality joint venture." He had dominated the Chery QQ and the Oriental Sons. Chen Haojie, vice president of the Chery Automobile Engineering Research Institute, which developed a number of early models, revealed to reporters that the Ruiqi G3 is Chery's first new product that has passed the new process and new standards.
"The gap between the door seams Chery's previous standard is 6 ± 1.5 mm, starting from the G3 is 4.5 ± 1.5 mm, do not underestimate this 1.5 mm, which is the gap between Chery and the German public standards." Shen Haojie frankly, Chery raised standards The pressure on production and sales faces tremendous pressure. However, in order to improve the perceived quality of consumers, Chery will not give itself up. It will not give itself a way out.
In addition to slowing down the pace of new cars as much as possible, Chery also spent the period before the strategic transformation by significantly reducing its marketing expenses, cutting down unnecessary unnecessary new vehicle R&D projects and using existing vehicle platforms to introduce “variant modelsâ€. Critical transition period. In addition to the normal reforms and the launch of newer products, Chery executives have confirmed to reporters that they will not push new products before 2013.
From "earth excavation" to "embroidery theory"
“From 2013 onwards, with the successive launch of the next generation of products, everyone will see a new Chery that is different from the past.†Facing the accusations that Chery’s products recently introduced to the market are “mostly not newâ€, Chery A senior executive admitted to reporters that Chery is currently in a transition period before the strategic transformation. Many projects have already been launched, and the so-called arrows have to be sent.
However, in terms of Yin Tongyue's view, it is more important than mastering several technologies to create products that truly match the European and American automobiles and design a scientific and rigorous R&D and production process from a long-term perspective. In an earlier interview with the media, Yin suggested that the automotive companies are usually: "seven-point management, three-point technology". Compared with the breakthrough of single technology, process management is more difficult.
“The characteristics of making cars are no different from those of excavating earthwork. There must be no less than a single trip. It is a continuous function. It requires one floor and one floor to climb, and the intermittent function cannot. It is necessary to overcome its own desire for market share and production scale.†In response to Chery’s upcoming challenges, Yin Tongyue’s position is vocal, “it would rather fall out of the top ten in rankings and complete Chery’s strategic transformationâ€.
The biggest challenge facing the reform process is to break the “work division†of Chery’s existing system, which means that some people’s “cheese†must be moved, but Yin Tongyue seems to have no other choice to accomplish the company’s strategic transformation.
On the issue of “Where did the first fire start?†Yin Tongyue chose without hesitation to engage in the deepest R&D system.
The incorporation of several national-level automotive laboratories and nearly 6,000 R&D personnel has enabled Chery to have the largest R&D team in the local car companies. However, due to the long-established R&D system, Chery’s R&D capabilities have not been fully reflected. In market outcomes. Outdated appearance, old-fashioned interior, and product reliability are significantly lower than joint-venture brands, which is the inherent impression Chery’s products have left for end consumers.
"R&D is like embroidering on a white cloth. Everyone embroiders his own flower and everyone puts on a flower. It is a completely different concept." Yin Tongyue told reporters that the adjustment of the R&D system runs through procurement, production, sales, etc. At multiple levels, the development of "moving knives" is to obtain the maximum scope and the deepest "synergy" in process management.
According to Yin Tongyue, Chery’s previous R&D system was to encourage everyone to “embroider their own flowersâ€, that is, to temporarily build a R&D team for a new car project. This division of labor is relatively simple but inefficient, and is not conducive to professional talents. Training; and now, the Chery R&D system is to break the project boundary and set up a R&D system according to the new car development process. For example, some people are responsible for the car door, and some people are responsible for the headlights.
According to the reporter's understanding, the revolution in Chery's R&D system has reached a substantive stage of tackling difficulties, and the most influential one is the middle management of the R&D system. Yin Tongyue also told reporters frankly that due to the complete subversion of the division of labor model, many R&D middle-level positions will change.
Through five years of strategic transformation, can Chery "break into the butterfly"? This question may only have time to give the final answer. However, according to Yin Tongyue, the chief executive, Chery who “almost committed the mistakes that all local auto companies may makeâ€, if it is possible to establish a set of stable processes and standards, it may be possible to avoid summarizing experience through trial and error in the future.
This is one of the “surgical†operations where Yin is Chery’s personal intervention. According to its plan, Chery’s strategic transition period is from 2009 to 2013. During this period, Chery has to undergo a phoenix-like transformation - slowing down new products, re-raising the R&D system, introducing more stringent and solid standards and processes, and pushing quality improvements through standard upgrades.
According to Chery executives, Chery had more than 130 new car projects. After the production department's cost accounting and sales department's market forecast, it has now been reduced to less than 30 projects, while the retained new car will be from 2013 to 2017. Years have been pushed to the market.
Throughout the year, Chery will complete sales of 650,000 vehicles (of which over 170,000 are exported overseas), which is not only far from the target of “guaranteing 700,000 disputes and 800,000†that was set at the beginning of the year, and it is even less than the sales volume of 682,000 vehicles last year. This is the first time that Chery has had a negative sales growth since its establishment 14 years ago. If the export volume is eliminated, Chery’s domestic sales have even dropped from 560,000 vehicles last year to 480,000.
However, Chery's profits have risen against the trend. According to Yin Tongyue, chairman of Chery, Chery’s profit is expected to exceed 1 billion yuan this year, an increase of nearly 40% year-on-year. “Only export revenue exceeds US$1 billion. With the further development of the international market and the optimization of export product structure, Chery will export next year. It is expected that foreign exchange will double."
The steadily increasing profitability is also a sign of "encouragement" for Yin Tongyue. It also indicates that Chery's strategic transformation will go deeper. According to the reporter's understanding, due to changes in the R&D system, the positions of many R&D middle managers will also change, and in order to dock with the new R&D system, Chery’s downstream procurement and production will also have major actions in order to realize the “linkage†of adjustments. effect.
The key "transition period"
General Manager of the Chery Sales Corporation, Ma Dejun, described the attitude of each new product with “extreme careâ€. He knew that the loss of the previous few new products caused damage to the Ruiqi brand.
"If it is in accordance with the previous standards and processes, Ruiqi G3 was listed on the market as early as 8 months ago. But since we must push, we must do our utmost to make each product a quality product." Ma Deyi tried to come through his own words. Explain to the media the differences before and after the Chery transformation.
On December 12, the late Rui Qi G3 finally opened the final price card, starting price of 69,800 yuan. However, the Ruiqi G3 only introduced 1.6L manual transmission models. In order to ensure the safety of quality, the launch time of 1.3L and 1.8L displacements and Chery's self-developed CVT endless transmission will also be extended.
The delayed delivery of new products again and again caused some Chery dealers to complain. Prior to this, most dealers had become accustomed to Chery’s introduction of new products through the dazzling "rapid knife method", although this approach made Chery's bicycle marginal revenue slip.
Ma Deyi said that the Ruiqi G3's CVT model had completed the freezing of industrial production in January this year, but it will not be available until the first half of next year. "In order to verify the reliability of the CVT technology, the company first tested a small number of vehicles and then gave consumers a practical use environment test. So far, the vehicle has traveled more than 30,000 kilometers without any quality problems."
At the Chery plant in Wuhu, the final quality “gatekeeper†of the new product was Yin Tongyue’s group of German experts invited by FAW-Volkswagen from “the former ownerâ€. "They (Germans) don't talk about anything, and (new car quality) doesn't allow them to go offline."
Yin Tongyue, the “heads†of Germans invited from Changchun, added an insurmountable “gate†for Chery on quality control, but it also made selling companies extremely miserable, and new car delivery plans dragged on. The manufacturer’s commitment to distributors cannot be fulfilled.
"In order to meet the new standards and procedures for building a car, Chery has spent three or four times more manpower and two or three times the time than before to build a new product with a quality joint venture." He had dominated the Chery QQ and the Oriental Sons. Chen Haojie, vice president of the Chery Automobile Engineering Research Institute, which developed a number of early models, revealed to reporters that the Ruiqi G3 is Chery's first new product that has passed the new process and new standards.
"The gap between the door seams Chery's previous standard is 6 ± 1.5 mm, starting from the G3 is 4.5 ± 1.5 mm, do not underestimate this 1.5 mm, which is the gap between Chery and the German public standards." Shen Haojie frankly, Chery raised standards The pressure on production and sales faces tremendous pressure. However, in order to improve the perceived quality of consumers, Chery will not give itself up. It will not give itself a way out.
In addition to slowing down the pace of new cars as much as possible, Chery also spent the period before the strategic transformation by significantly reducing its marketing expenses, cutting down unnecessary unnecessary new vehicle R&D projects and using existing vehicle platforms to introduce “variant modelsâ€. Critical transition period. In addition to the normal reforms and the launch of newer products, Chery executives have confirmed to reporters that they will not push new products before 2013.
From "earth excavation" to "embroidery theory"
“From 2013 onwards, with the successive launch of the next generation of products, everyone will see a new Chery that is different from the past.†Facing the accusations that Chery’s products recently introduced to the market are “mostly not newâ€, Chery A senior executive admitted to reporters that Chery is currently in a transition period before the strategic transformation. Many projects have already been launched, and the so-called arrows have to be sent.
However, in terms of Yin Tongyue's view, it is more important than mastering several technologies to create products that truly match the European and American automobiles and design a scientific and rigorous R&D and production process from a long-term perspective. In an earlier interview with the media, Yin suggested that the automotive companies are usually: "seven-point management, three-point technology". Compared with the breakthrough of single technology, process management is more difficult.
“The characteristics of making cars are no different from those of excavating earthwork. There must be no less than a single trip. It is a continuous function. It requires one floor and one floor to climb, and the intermittent function cannot. It is necessary to overcome its own desire for market share and production scale.†In response to Chery’s upcoming challenges, Yin Tongyue’s position is vocal, “it would rather fall out of the top ten in rankings and complete Chery’s strategic transformationâ€.
The biggest challenge facing the reform process is to break the “work division†of Chery’s existing system, which means that some people’s “cheese†must be moved, but Yin Tongyue seems to have no other choice to accomplish the company’s strategic transformation.
On the issue of “Where did the first fire start?†Yin Tongyue chose without hesitation to engage in the deepest R&D system.
The incorporation of several national-level automotive laboratories and nearly 6,000 R&D personnel has enabled Chery to have the largest R&D team in the local car companies. However, due to the long-established R&D system, Chery’s R&D capabilities have not been fully reflected. In market outcomes. Outdated appearance, old-fashioned interior, and product reliability are significantly lower than joint-venture brands, which is the inherent impression Chery’s products have left for end consumers.
"R&D is like embroidering on a white cloth. Everyone embroiders his own flower and everyone puts on a flower. It is a completely different concept." Yin Tongyue told reporters that the adjustment of the R&D system runs through procurement, production, sales, etc. At multiple levels, the development of "moving knives" is to obtain the maximum scope and the deepest "synergy" in process management.
According to Yin Tongyue, Chery’s previous R&D system was to encourage everyone to “embroider their own flowersâ€, that is, to temporarily build a R&D team for a new car project. This division of labor is relatively simple but inefficient, and is not conducive to professional talents. Training; and now, the Chery R&D system is to break the project boundary and set up a R&D system according to the new car development process. For example, some people are responsible for the car door, and some people are responsible for the headlights.
According to the reporter's understanding, the revolution in Chery's R&D system has reached a substantive stage of tackling difficulties, and the most influential one is the middle management of the R&D system. Yin Tongyue also told reporters frankly that due to the complete subversion of the division of labor model, many R&D middle-level positions will change.
Through five years of strategic transformation, can Chery "break into the butterfly"? This question may only have time to give the final answer. However, according to Yin Tongyue, the chief executive, Chery who “almost committed the mistakes that all local auto companies may makeâ€, if it is possible to establish a set of stable processes and standards, it may be possible to avoid summarizing experience through trial and error in the future.
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