Chapter 387 Development Direction of the Automobile Industry

Chapter 387: Development Direction of the Automobile Industry

In the past two days, all major media outlets were hyping up Fan Wubing's prognosis.

People at GM were very angry. The commercial representative in China solemnly submitted a letter of protest to the headquarters of Fan Investment Group, hoping that they could explain to the GM commercial representative in China about Fan Wubing's unrestrained talk and address this unfairness. Public apology for responsible speech.

People at the headquarters of Fan's Investment Group made it very clear that Mr. Fan is a leader in the business world, and his predictions about the business world have not been fulfilled so far. Moreover, what Mr. Fan said was within fifteen years. Well, I still have some time to verify it. If I find out that what I said is untrue, it won’t be too late to apologize.

The GM representative in China also wanted to negotiate with the government to urge them to eliminate the impact of this matter on GM. However, the government could not afford to offend Fan Wubing, so they replied that this was purely a personal statement and that the government We have no right to interfere. As long as it is not blatantly unconstitutional and illegal, we cannot react.

After hearing this reply, GM's representative in China sent a fax to the U.S. headquarters to discuss a response plan to the matter.

However, when GM headquarters heard what Fan Wubing said, not only did it not intend to refute, but it even told the representatives in China not to get into trouble. Since the speech in the United States is democratic, then the speech in China is also democratic now, so it is naturally impossible. If we overreact on this matter to avoid political disputes, it will do more harm than good to GM's China policy.

We must know that Fan Wubing has a very large influence in the United States. Even a century-old company like General Motors must attach great importance to his existence and huge influence. After all, cash is king, and Fan Wubing’s Fan Investment Group has The cash flow they control is terrifying, something that GM cannot match.

Going into a big fight just because of such a little verbal dispute will not only show that GM is too preoccupied, but will also provoke an unnecessarily powerful opponent, which is not worthwhile.

However, GM's top executives were also very confused. Why did Fan Wubing suddenly say that GM would be destroyed within fifteen years? This seems completely unreasonable!

Wuzhi Xiaoji also asked Fan Wubing the same question.

As the leader of the automobile industry under Fanshi Investment Group. Wuzhi Xiaoji felt proud. Not only did he successfully complete the task assigned to him by his boss. It has also established its own prestige in the industry. At this time, he is no longer the ordinary rich man who specializes in selling inflatable dolls.

"Why do you say that?" Fan Wubing touched his nose. After thinking about it for a while. Said to Wuzhi Xiaoji. “Because there are major problems with its business strategy.

"

1908. William Lant, who was originally the owner of a carriage factory, founded General Motors. Initially there was only one brand: Buick. Then within a few years, it successively acquired more than 20 brands including Cadillac. Aiming to sell cars at any price and for any purpose. Continuously expand the scale of its brand.

GM's rival Ford Motor Company initially produced only one model, the Model T Ford. GM, on the other hand, carries out production of multiple brands around the world. Later, it acquired companies such as German Opel. Provides car loans to consumers through its own financial companies. Sales were further expanded. In 1931, it became the world's largest automobile manufacturer.

However. It was the satisfaction and pride in its leading position that ruined GM's future. Labor costs such as high pensions and medical expenses for retired personnel continue to expand. After the 1973 oil crisis. Japanese cars have stepped up their export offensive with their small size and low energy consumption. In 1991, Japanese cars' market share in the United States exceeded 30%. As a result, the three major American auto giants, led by General Motors, fell into huge losses at the same time.

Since then, Japan has independently restricted automobile exports to the United States. This makes American manufacturers such as General Motors take it lightly. Neglect to strengthen its own competitiveness. And continue to rely on the traditional model of large cars.

Since many GM models have low fuel efficiency, their sales will fall rapidly as gasoline prices continue to soar.

In the heyday of General Motors, it owns Cadillac, Buick, Chevrolet, Saturn, Pontiac, Oldsmobile, Opel, saaB and other brands, and has stakes in many automobile companies such as Isuzu and Fiat, forming a huge automobile empire.

However, if you come out to hang out, you will always have to pay it back.

First of all, each brand operates independently and does its own thing, causing communication difficulties between brands. There is no effective integration in research, manufacturing, marketing, services, etc., which invisibly increases costs. Secondly, the original intention of implementing a multi-brand strategy is to segment the market, but due to too many brands, the boundaries between brands are blurred, which not only brings confusion to consumers, but also causes internal friction between brands.

More importantly, because it owns so many brands, General Motors has been unable to concentrate on developing one or several models that can truly drive

Global strategic model.

Global strategic models have huge sales volume, which can minimize costs and greatly increase bicycle sales profits. The fundamental reason for the rise of Toyota and Honda lies in the excellent performance of global strategic models such as 11aa, camry, rd, etc.

However, General Motors has never had a truly global strategic model. On the contrary, it has continued to conduct research and development in various market segments, which not only increased research and development costs, but also lost valuable market and profit growth space.

Fan Wubing said to Wu Zhi Xiaoji, "GM's multi-brand strategy is not wrong, but it is wrong to have too many brands. Market segmentation is necessary, but excessive segmentation will only increase manufacturing and marketing costs. Especially in the era of economic globalization, consumers' car-buying behavior is increasingly showing a trend of convergence, and future cars will sweep the global market with a moderate style."

Wu Zhi Xiaoji listened to Fan Wubing's analysis and was a little fascinated. It took him a long time to react and asked, "Boss, what you mean is that our company should concentrate on driving one type of car?"

Fan Wubing smiled and said, "That's absolutely true. At least three-box cars, two-box cars, off-road models, and micro cars are all what we need to drive. As for special models such as the wedding fleet cars I mentioned, although they can be produced, they cannot be driven as mainstream, just as a side dish** I mean we can't have multiple brands, but we must have the necessary models, and we must have the main models, which is the key to success! "

"I see!" Wu Xiaoji nodded in agreement, "You can't chew too much. Even a century-old company like GM can't handle it, so we naturally don't need to try. We should focus on making a few main models and doing a good job in the market!"

"Yes!" Fan Wubing agreed, "GM just has too big an appetite and is burdened by false reputation.

Our goal is very simple, making money is the main thing, business first!"

In fact, there is another reason that Fan Wubing didn't say, that is, the American auto union is too powerful, resulting in GM's employees' wages being too high, the cost of automobile production being too high, and the profit being thin. GM's market in the United States can no longer compete with Japanese cars, except for high-end cars such as SUVV, which still have the strength to fight. But when the financial storm hits, the high-end market is most vulnerable, so their demise is just a matter of time.

Similarly, for example, the Ssangyong Motor Company in South Korea, the shareholders could not hold on because the union was too strong, and finally everyone was finished. The unlucky one was SAIC Group, which foolishly ran to take over, and finally returned in disgrace.

General Motors and Ford also fell to the point of selling brands, but there are naturally many people willing to take over. It depends on whether the Americans' evil plan can succeed again. When it comes to doing business, there are indeed not many people who can beat the Americans.

In fact, this practice of selling brands is not a very smart way to escape?

Not only can it recover some funds and improve cash flow, but it can also dump some employees to the other party, saving a lot of expenses. The pressure on the head office will suddenly be reduced a lot, in exchange for the space and time for strategic contraction, and regroup to make a comeback.

You must know that the impact of layoffs in large companies is very bad, but there is no such problem if the overall package is sold. If the treatment of employees is poor, it is the problem of the new owner, and it is none of their business to make trouble.

Wu Zhi Xiaoji said to Fan Wubing, "If the top management of GM could hear your comments, they would be willing to spend hundreds of millions."

"I don't care about their life or death!" Fan Wubing laughed.

However, Fan Wubing still discussed his auto show plan with Wu Zhi Xiaoji seriously. The most important decision was to divide each car into basic, economical, standard and luxury types according to the actual situation in China. Fan Wubing even began to consider adding smart types to these types. Of course, that is definitely the high-end one.

Fan Wubing said to Wu Zhi Xiaoji, "We who make cars not only need to design models, improve technology, reduce fuel consumption, and improve efficiency, but also have a certain degree of foresight. We need to think about how customers should spend money. We can not only save money on car investment, but also spend money on car investment. Fully meeting the needs of customers from different classes is the direction of our lifelong efforts!"

Wu Zhi Xiaoji is a person who is also very smart. After listening to Fan Wubing's instructions to him, he couldn't help but admire it, and then gave Fan Wubing a thumbs up, "Great! Really great!"

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