Chapter 387 - Direction of the Automobile Industry

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The next day, the major media immediately hyped Fan Wuxi's prediction.

The people of GM were very angry, and the commercial representative in China solemnly submitted a letter of protest to the headquarters of Fan's Investment Group, hoping that they would explain to the commercial representative of GM in China about Fan's unscrupulous remarks and publicly apologize for such irresponsible remarks.

The people at the headquarters of Fan's Investment Group made it very clear that our Mr. Fan is the leader in the business giant industry, and his prediction about the business world has not been unfulfilled so far, and what Mr. Fan said is within fifteen years, and now there is still a period of time to verify, and it is not too late to apologize when the time comes to find out that this statement is untrue.

GM's representative in China also wanted to negotiate with the government to urge them to eliminate the impact of the incident on GM, but the government could not afford to provoke Fan Wuxi, so he replied that this was purely a personal statement, and the government had no right to interfere, and as long as it was not a blatant violation of the constitution and laws and regulations, it could not react.

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

However, when the GM headquarters heard that it was Fan Wuxian who said this, not only did it not intend to refute it, but even instructed the representative in China not to do much, since the US speech is democratic, then now China's speech is also democratic, and it is naturally impossible to overreact to this matter, so as not to cause disputes at the political level, so it is harmful to GM's China policy.

You must know that Fan Wuxi's influence in the United States is also very large, even if it is a century-old store like GM, it is necessary to attach great importance to his existence and huge influence, after all, cash is king, and the cash flow in the hands of Fan Wuji's Fan Investment Group is very terrifying, which is incomparable to GM.

Because of such a little war of words, it will not only seem that GM is too calculating, but it will also provoke an unnecessarily strong opponent, which is not worth it.

It's just that the top management of GM is also very confused, why would Fan Wuxian suddenly say that GM will inevitably perish within fifteen years? It doesn't make any sense!

The same question, Wu Zhi Xiaoji was also asking Fan Wuxi.

As the leader of the local automotive industry under Fan's Investment Group. Wu Zhi's small machine can be regarded as raising his eyebrows. 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 Wuxian touched his nose. After thinking about it for a while. said to Wu Zhi Xiaoji. "Because there is a major problem with its business strategy."

Year 1908. William Randt, 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 such as Cadillac. We aim to sell cars for any purpose at any price. Continuously expand the scale of its brand.

GM's competitor Ford Motor Company initially produced only one model of the Model T Ford. GM, on the other hand, manufactures under multiple brands around the world. Later, it acquired companies such as Opel of Germany. Car loans are provided to consumers through their own local financial companies. Sales were further expanded. In 1931, it became the world's largest automobile manufacturer.

However. It is the satisfaction and pride of the leading position that ruins the future of the general. Labor costs, such as high pensions and medical expenses for retired employees, are swelling. After the 1973 oil crisis. Japanese cars have stepped up their export offensive with their compact size and low energy consumption. In 1991, the share of Japanese cars in the U.S. market exceeded 30 percent. As a result, the three major U.S. auto giants, led by General Motors, fell into huge losses at the same time.

Since then, Japan has voluntarily restricted its exports to the United States. This makes local U.S. manufacturers such as GM take things lightly. Neglect to strengthen its own competitiveness. And continue to rely on the traditional model of large cars.

Since many of GM's models have low fuel efficiency, sales will also decline rapidly as gasoline prices continue to soar.

In the heyday of General Motors, it owned many brands such as Cadillac, Buick, Chevrolet, Saturn, Pontiac, Oldsmobile, Opel, SAAB, etc., and participated in many automobile companies such as Isuzu and Fiat, forming a huge automobile empire.

However, when you come out to mix, you always have to pay it back.

First of all, each brand is operating independently, each doing its own thing, resulting in communication difficulties between brands, and failure to effectively integrate in R&D, manufacturing, marketing, service, etc., which virtually increases costs. Secondly, the original intention of implementing the multi-brand strategy is to segment the market, but due to the excessive number of brands, the boundaries between brands are blurred, which not only brings confusion to consumers to choose, but also causes internal friction between brands.

More critically, GM has been unable to focus on developing one or more global strategic models that can really boost sales because of the large number of brands under its umbrella.

The rise of Toyota and Honda is fundamentally due to the excellent performance of global strategic models such as Corollaa, Camry, Accord and Civicc.

However, GM has not had a truly global strategic model, on the contrary, it has been constantly conducting research and development in various market segments, which not only increases the cost of research and development, but also loses valuable market and profit growth space.

Fan Wuzhi said to Wu Zhi Xiaoji, "The starting point of GM's multi-brand strategy is not wrong, but the fault is that it is too multi-branded. Market segmentation is necessary, but over-segmentation will only increase manufacturing costs and marketing costs. Especially in the era of economic globalization, consumers' car buying behavior is increasingly showing a trend of convergence, and the future car will sweep the global market in a middle-of-the-road style. ”

Wu Zhi Xiaoji listened to Fan Wuji's analysis, and listened to it a little preoccupied, and it took a long time to react and ask, "What does the boss mean is that our company should concentrate on developing a model?" ”

Fan Wuxian smiled, "It's also so absolute, at least sedans, hatchbacks and off-road models, as well as mini cars, these are all things we need to develop, as for special models such as wedding fleet cars I mentioned, although they can be produced, they can't be developed as mainstream, they are just piggybacked." What I'm talking about is that you can't engage in multiple brands, but you must have the necessary models, and you must have the main models, which is the key to success! ”

"Got it!" Wu Xiaoji nodded and agreed, "Greed can't chew too much, GM can't play with something that a century-old store can't play, we naturally don't need to try, concentrate on doing a few main models, and doing a good job in the market is the key!" ”

"Yes!" Fan Wuxian agreed, "General is that the appetite is too big, and it is burdened by false fame."

Our purpose is very simple, make money first, business first! ”

In fact, there is another reason why Fan Wuxian did not say it, that is, the power of the automobile union in the United States is too strong, resulting in the high wages of GM's employees, the high cost of automobile production, and the thin profits. But when the financial turmoil hits, the high-end market is the most vulnerable, so it's only a matter of time before they die.

Similarly, for example, South Korea's Ssangyong Automobile Company, also because the union was too strong, the company's shareholders could not support it, and finally everyone ended up together, and the unfortunate thing was that SAIC Group actually ran stupidly to take over, and finally returned in disgrace.

GM and Ford have also fallen to the point of selling brands, but there are naturally not a few people who are willing to take over, and it depends on whether the Americans' tricks can succeed again.

In fact, this kind of brand selling is not a very clever way to get rid of the golden cicada?

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

You must know that the impact of layoffs in large companies is very bad, but there is no such problem as a whole package sale, and if the treatment of employees is poor, it is the problem of the new owner, and it is none of your business to make trouble.

Wu Zhi Xiaoji said to Fan Wuxi, "If the senior management of GM can hear your comments from the boss, they are willing to spend hundreds of millions." ”

"I don't care if they live or die!" Fan Wuxian smiled.

However, in his own car development plan, Fan Wuxian still discussed it seriously with Wu Zhi Xiaoji, and the most important decision was to divide each car into basic, economic, standard, and luxury according to the actual situation in China.

Fan Wuzhi said to Wu Zhi Xiaoji, "We need to design models, improve technology, reduce fuel consumption, improve efficiency, but also have a certain forward-looking, to think of how to spend money for customers, not only to save money on car investment, but also to spend money on car investment, to fully meet the needs of customers of different classes, is the direction of our lifelong efforts!" ”

A person like Wu Zhi Xiaoji can be regarded as very smart, and after listening to Fan Wuxi's instructions to himself, he couldn't help but admire, and then gave a thumbs up next to Fan Wuji, "High!" It's really high! ”

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