The "exclusive" agreement between Dongfeng and PSA made Dusen's "one-and-two-servant" Chinese market strategy fail and led to its direct replacement.
After hitting the club, he did not hit the ball. If this happens in a professional golf game, you will be amazed at the player's amateur performance.
But a similar scene happened in the Chinese auto market, and the brand of the second-largest automobile manufacturer in Europe, Citrus Citroën (PSA), had just hit such a foul ball.
According to the plan, after the Spring Festival, PSA will announce the results of its joint venture with Hafei Motor. The "Global Finance" reporter also received such a reply from PSA China and Hafei Automobile respectively before the Spring Festival. However, as of this writing, the two parties still did not publish the news as scheduled. However, due to Dongfeng’s acquisition of Hafei Motors, the joint venture has no practical significance.
What makes PSA hard to say is that the idea of ​​setting up a second joint-venture company to produce passenger cars in China has become an odorless ball due to the "oversight" of the "exclusive" contract with Dongfeng Company. . This low-level error led directly to the departure of Dusen, CEO of PSA Executive Vice President and former Chinese Affairs Department. Duson is an active promoter of the joint venture between PSA and Hafei.
This result fully shows that after experiencing the painful lessons of “technology-for-marketâ€, some Chinese domestic auto manufacturers have improved their capabilities in joint ventures and cooperation, and the changes in the Chinese auto market have also caused transnational giants to face more than ever before. More complicated environment.
Fatal negligence
The first task of Hua Riman after he took office is to properly handle the trouble left by his predecessor Dusen.
"There is no prospect, it is best not to go on." Dongfeng insiders told the "Global Financial" reporter, in the production of passenger cars is no longer possible, Dongfeng reorganization of Hafei is almost a foregone conclusion, January 1, 2008 officially took office of the PSA The top executives of the Chinese affairs department, Hua Riman and Hafei Motors, still asked Dongfeng for their views on establishing a joint venture company. However, Dongfeng Company believes that due to the current imminent market conditions, the establishment of a joint venture company that specializes in the production of high-end light commercial vehicles has greater risks. In the event that Hafei Motors will soon join the Dongfeng family, the significance of joint ventures between the two parties is not significant. Euphemistically recommend that it stop the establishment of a joint venture company.
For DFG's attitude, PSA is already expected, but how to cover up the low-level mistakes it made is a scratching issue.
On June 29 last year, Duson signed a memorandum of understanding on behalf of PSA and Hafei Motors in Beijing Lightning, stating that both parties intend to jointly establish a joint venture company with a 50% shareholding in the company and produce and sell up to 10 high-end light commercial vehicles. At this point less than a month before Duson took office.
In accordance with PSA's assumptions, through the establishment of a joint venture with Hafei, it completed its layout of the second joint venture company for passenger vehicles in China in order to achieve the goal of selling 1 million vehicles in the Chinese market in 2015. At that time, the reorganization of Dongfeng Motor and Hafei Automobile was still in contact. Therefore, Hafei, who was eager to find a way out of the hydrangea thrown by PSA, was very active. In an interview with reporters, relevant parties of Hafei Automobile clearly stated that it was PSA's experience in cars.
For Hafei Motor's undisguised confession, Dusen also responded positively. “If the cooperation with Dongfeng Motor Corporation goes smoothly, why does PSA have to set up a company that produces passenger cars with Hafei Motors or other companies? Now it is certain that The joint venture established with Hafei Motors Co., Ltd. produced the first car with 8 or less commercial vehicles.†On September 8th, Duson held a media conference in Tianjin, and many of his colleagues, including the reporters Made supreme suggestions.
But Duson is obviously a little too optimistic. On December 4th, PSA suddenly announced that Dui Sen, the deputy general manager of Shenlong Co., took over Dussmann’s leadership in China, and Dusen, who had served less than half a year, was transferred back to France. According to Le Wannian, manager of PSA China Public Relations Media Communication Department, “Dunsen completed his mission in China. This is a normal move.â€
However, things may not be as simple as the official PSA statement. The "Global Finance" reporter learned that Duson was removed from China is Dongfeng and PSA signed an "exclusive" agreement, the two sides agreed that PSA can only have a company in China to produce passenger cars, that is, Shenlong company, which The existence of the agreement completely frustrated Dusen's plan of "darkness". "Douson led the PSA astray, leading to strategic mistakes." Insiders of Dongfeng Company commented on the failure of PSA. The person also disclosed that Dongfeng and Nissan also signed an agreement with the same content, which guarantees Dongfeng’s interest in the joint venture company.
Remedy
The new PSA president who took office at the beginning of last year, Streep, valued the Chinese market and listed China and South America as the overseas markets for PSA's priority development. Dusen, who once served as general manager of the company, was also entrusted with responsibility.
For Steve's appreciation, Dusen is naturally grateful, and vigorously put into the work. On June 1st, 2007, Dusen officially took office less than 24 hours. The reporter of this journal interviewed him separately. This was the first time for Duson to interview the reporter.
In the conference room of the PSA's China Affairs Department, Duson described to reporters with enthusiasm the grand blueprint of PSA in China. At that time he apparently did not realize that he was running on a dangerous road.
Duson who returned to China clearly appreciates Volkswagen's "one-servant and two-dominant" model and has given it to PSA as a good recipe. At a media meeting, Dusen once sighed: "Why did PSA have only one partner in Dongfeng in China for so many years?"
In Dusen's view, the "one servant and two owners" cooperation means that multinational corporations can control Chinese partners through the allocation of vehicle resources to maximize their profits. Volkswagen is the biggest beneficiary of this approach. However, after Dongfeng Company produced the "protective" agreement, Duson's outcome is not difficult to predict.
Cheng Yuan, a veteran of China’s auto journalist, once disclosed in an article that Volkswagen would also like to establish its third joint venture with Dongfeng in China that year but was rejected by Dongfeng. Adhering to the "exclusive" agreement also caused Dongfeng to suffer a lot. Among the three major automobile groups, Dongfeng’s foreign partners are the weakest.
After the idea of ​​a joint venture with Hafei to produce passenger vehicles failed, Stref quickly adjusted his strategy toward China and replaced him with Dusen who caused trouble for PSA. He also tried to improve his relationship with Dongfeng. If it wasn't for the snow that forced him to change his plans, Stref would also like to fly to Wuhan before the Spring Festival and have a longing for the Spring Festival with his Chinese partners.
According to the latest long-term strategic plan released by Shenlong, during the period from 2008 to 2013, Shenlong Motor Co., Ltd. will have more than 20 new models on the market. This year, production and sales will increase by 30% year-on-year and put into production five new products. PSA also promised to import the Citroen mid-to-high-end model C5, which had just been listed in Europe at the end of last year, into the second factory of Shenlong to improve the unfavorable situation of the decline of the Citroen brand's influence.
According to industry insiders, PSA is one of the first multinational automobile manufacturers to go to China to make gold, but has repeatedly made strategic mistakes, which has caused it to lag far behind its major competitors in the Chinese market. The PSA and Hafei joint venture "farce" ended, in essence, announced that the multinational car giant's layout in China has no more room. After this lesson, can PSA wake up?
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