Changan Suzuki Cai Yong: Now it is a good time to start from scratch.

Regardless of how early Suzuki came, the task before Cai Yong today is almost to start from scratch. Just as the new car "Qiyue" name will be listed, the message is passed: Now, the company is moving from scratch.

Time back to 20 years ago, when the Chinese market basically only five cars: Santana Jetta Bukang Alto. Today, FAW-Volkswagen and Shanghai Volkswagen both broke through tens of millions of sales, and Shenlong is also emerging from the trend of pursuing a record-breaking increase in the number of new highs - only two car manufacturers that year are still still trying to find a breakthrough.

In this "bigger than bigger" era, the A-Class's wheelbase is less than 2640mm and it's embarrassing to greet people. The problem with Changan Suzuki is not only that there are too few new cars, but also that the new cars are too small.

Both of these issues are of vital importance to any one company. Even if FAW-Volkswagen can not help but want to lengthen the Magotan, let alone other brands.

Therefore, Cai Yong, the executive vice president of Lian Chang'an Suzuki, did not find a way out. Its predecessor, Qi Yue, is the first product to be launched. It is an A+ class product. Unlike previous products, the main selling point of this car is large space and high configuration. The question placed in front of Chang An Suzuki can be said to be full of irony. However, it is clear that Chang'an Suzuki is preparing to “step forward from now on.”

Youth is slowly missing a good game

If we compare the 14-year-old Chang An Ford as a teenager, Changan Suzuki is definitely a young man from the ages. Changan Suzuki, established in 1993, has now passed its 21st year.

But this young man is not strong enough. FAW-Volkswagen, which was founded almost simultaneously, has just held a high-profile event on the off-line ceremony of the 10 millionth product. At this time Changan Suzuki, the cumulative production and sales just over 1.73 million.

In Cai Yong’s view, the main reason behind the slow development of Changan Suzuki's early stage is the lack of new products. “In the past, Changan Suzuki had always lacked a complete product plan. Since the listing of the new Alto in 2009, there have been no new cars for four years, and it was precisely in those years. The golden period of the rapid development of China's auto market has resulted in the loss of product competitiveness year by year, which has widened the gap with competitors, and has affected brands, networks, marketing and many other aspects, which ultimately manifests itself in the lag in corporate development.”

The problem of product planning has not only begun to emerge in recent years. Since the introduction of Alto and Antelope in the 1990s, Changan Suzuki has only introduced the third model Swift. After the introduction of Tianyu in 2006, it was a three-year off-duty period. By 2009, the new Alto was introduced. With the introduction of these three products, Changan Suzuki has also entered a brief peak period. From 2010 to 2011, Changan Suzuki exceeded 200,000 vehicles for two consecutive years.

After a long period of time, Chang'an Suzuki began to lose sales in 2012, and completed sales of only 147,500 units in 2013, less than 70% of the 2011 peak.

In the years of rapid growth of the Chinese auto market, Changan Suzuki has been slow to develop, and this has directly led to the risk that this veteran joint venture will gradually become marginalized.

Ronald Cai Yong

The lack of product planning is actually related to the Japanese attitude toward Changan Suzuki. In the previous equity structure of Changan Suzuki, Changan Automobile accounted for 51%, Suzuki Motor Co., Ltd. accounted for 25%, Japan Shuangri Corporation accounted for 14%, and Suzuki China accounted for 10%. Only 35% of the shares actually belong to Suzuki. This shareholding allocation also made Suzuki’s attitude toward Changan Suzuki somewhat lukewarm.

However, with the settlement of Changan Suzuki's equity changes in October this year, the attitudes of shareholders, especially Japan, have been positively changed. In this equity change, Suzuki Motor Co., Ltd. and Suzuki (China) Investment Co., Ltd. increased their shareholdings to 50%, and Changan Motors sold 1% of the shares, eventually reaching a 50:50 ratio.

Since 2011, Changan Suzuki’s high-level mutual visits have been frequent among shareholders. In the face of a huge potential market in China, Suzuki has shifted its strategic center to Changan Suzuki. After this time, the relationship between the two parties has become closer and they have jointly become Chang’an. Suzuki formulated the “1855 Strategy”, which means that as of 2018, a total of five or more new products will be put into production, and the annual production and sales of automobiles will reach 500,000. “Now is a rare opportunity for Chang’an Suzuki to develop. This has laid a solid foundation for us to re-enter the fast lane of development.”

Chang An Suzuki, one of the key surgeons behind this stock-adjustment, was Cai Yong, who was then the head of the Changan Automobile Joint Venture and Cooperation Department.

Speaking of Cai Yong, this may be a somewhat unfamiliar name for the media. He has never worked for a joint venture company. But for Changan Suzuki's understanding, Cai Yong is less than anyone else. Cai Yong was the trader of Changan Suzuki, and the parent company Changan Automobile had a well-thought-out choice.

After graduating from Chongqing University, Cai Yong worked in Changan Automobile and served as Deputy Director of the Changan Automobile Office Secretariat, Minister of Development Planning, Assistant President of Changan Automobile and Minister of Joint Venture and Cooperation Department. Especially when he was the head of the joint venture and cooperation department of Changan Automobile, he made it known to Changan Automobile's joint ventures.

In addition to Changan Suzuki’s change in equity, the spin-off of Chang’an Ford and Chang’an Mazda, and the formation of Chang’an PSA, these major projects involving joint ventures have left Cai Yong’s wisdom and presence.

“Cai has been in charge of Changan’s joint venture business for many years and is familiar with Chang’an Suzuki himself. Second, he has multi-sectoral and cross-field management experience, especially in strategic planning, project promotion and communication and coordination. The style of service is more vigorous and resolute, fancy details and efficiency," commented colleagues who had worked together at Chang'an Automobile.

On November 6, Cai Yong received a notice of appointment. “The challenge is great, but I would rather see it as an opportunity to once again allow this veteran joint venture to rejuvenate its youth.”

The first thing after Cai Yong took office was to lead the senior management team of Changan Suzuki. Under the leadership of Chang Bao’s president Zhang Baolin, he went to Japan to meet Japanese shareholders such as Suzuki and communicated on the next personnel arrangement and future development strategy. And communication.

This is not the first time Cai Yong has communicated with Japan to develop Changan Suzuki. During the period when Cai Yong was the head of the joint venture and cooperation department of Changan Automobile, he had participated in the formulation of Changan Suzuki's development plan on several occasions. However, this time, Cai Yong's identity has changed. He is more concerned about how to put the requirements and plans of both shareholders to implement the joint venture company.

“From the beginning of 2011 until the first half of this year, both shareholders have made the development strategy, goals, and paths of Changan Suzuki in the future.” For the planning of Changan Suzuki, Cai Yong has been involved, and this is also his ability to Feel free to accept the challenges of confidence.

After returning from Japan, Cai Yong accepted an easy car at the Guangzhou Auto Show. An exclusive interview with four media including the automobile industry and the economy has thrown Chang'an Suzuki's "heart" strategy to win, but this strategic model is not formed in just seven days as some media have interpreted.

“Heart to win is an integrated strategic thinking that is based on the changes in the market, especially the actual demands of consumers, and is based on the five major systems of product, marketing, service, management, and branding. It was born not at one stroke, it was Both shareholders looked at the current situation and the development of Changan Suzuki, and after a long period of brewing, repeated investigations and conclusions."

The first task after Cai Yong’s arrival was unified thinking. First of all, it requires that all levels of the company's internal management strictly follow the "four one" principle, that is "a goal, a team, a voice, consistent action", set a good example, and bring a good team. At the first employee meeting, Cai Yong also pointed out that “everyone who is responsible for the company and work, is willing to communicate and cooperate, and is motivated is my friend. We must work together to bring together even greater cohesion.”

We have reached a consensus that Chang'an Suzuki’s employees, including all company executives, regardless of nationality, job title, age, and gender, must take Changan Suzuki’s interests as their highest interest. This is a prerequisite for all work. Any violation of Chang’an Suzuki’s principle of maximizing profits is unacceptable.

For Changan Suzuki, who is seeking a breakthrough, it is necessary for such a hard-working surgeon to understand his deep problems and achieve the right remedy.

From break to layout

Almost all people today can open up such prescriptions. The most effective way to solve the sales dilemma is to introduce more new vehicles.

After resolving restrictions on product introduction, Cai Yong can boldly layout for Changan Suzuki. The first is to introduce new products, increase sales, take marketing services as the traction, and drive the recovery of Changan Suzuki's entire system.

At present, both shareholders have planned at least five products for Changan Suzuki by 2018, including Feng Yu, which will be listed at the end of last year, Qiyue, which will be listed soon, domestic VITARA, which will be listed next year, and two new products. Starting from these new products, Changan Suzuki's sales will shift from the original A00 and A0 products to A0, A and SUV.

Cai Yong talked about his judgment: “My logic is that product enhancement will bring brand improvement, brand promotion will bring product premium, product premium will bring profitability to products, and profit space will promote product strength. The improvement is to grasp the product is to grasp the future."

In addition to product planning implementation, Chang'an Suzuki has many advantages in its 20-year accumulation. In the eyes of Cai Yong, Changan Suzuki is still a treasure house full of wealth. Having worked hard in the Chinese market for more than 20 years, Changan Suzuki’s brand influence has already been deeply rooted in people's minds, especially in the western region. The Alto car of that year round the dream of many young people owning the first car. This was also one of the reasons why the new Alto was listed on the stock market after its introduction of stagnation in 2009. In addition to a certain brand influence, Suzuki's lean production concept is one of Changan Suzuki's masterpieces.

Walking in Changan Suzuki's factory area, everywhere can see such a slogan "small, light, short and beautiful", this strict control of cost management philosophy in Changan Suzuki has been deeply entrenched. “Including our workers, installing a part on a work station takes a few steps. Each action requires a few seconds to complete. It is very ridiculous. It includes how wide the factory is, how narrow it is, and the requirements are very strict.” Cai Yong said, "Suzuki has done more thorough than Toyota in cost control."

At present, the domestic automotive market has shifted its focus of consumption to the third and fourth line markets. This is seen as another opportunity for the development of Changan Suzuki. “We currently have more than 1,200 outlets (more than 300 in 4S stores), most of which are located in the third-tier, or even the fourth-tier markets. This is good for us.”

During the Guangzhou Auto Show, Cai Yong visited Changan Suzuki distributors in South China and conveyed to them the determination of Changan Suzuki’s transformation. “Now one-third of distributors are old dealers who had been working with Changan Suzuki in the 1990s and they have a lot of feelings for us. I talked with them about some ideas, and they agreed with both hands. Finally we hit the hands. The last sentence is: Let's work together!".

Cai Yong has put forward new requirements for dealer management: First, a stable business policy allows dealers to rest assured that they do not cut prices for rebates. Second, dealers have become an important channel for the spread of product power and brand power. “I told them that after the customer arrives at the store, don’t say that I’m a cheap car. Let’s talk about how high the car is and how good the quality is. The cheap is not our main selling point.”

At the same time, in Cai Yong’s plan, he hopes to treat the service as an important selling point for Changan Suzuki. “It is learning sea fishing. In the future, everybody will think of Changan Suzuki. The service is good. Buy this car and be assured that it will serve you. It's a lot less troublesome. To achieve such an effect in the end.”

However, Cai Yong also admitted that "it may take several years, not a short time to achieve, at least three to five years."

Of course, sea fishing is not easy to learn. Long-term low-profit and unstable business policies have caused some dealers to lack motivation. It is not enough for dealers to improve their service levels and only give them permission to promise the next future. Cai Yong's tough wrist will help the implementation of his dealer management concept. "For dealers must be strictly controlled, can not reach the standard, would like to back off the network and back, we want quality. To tell the truth, the current number of networks for our 500,000 sales support enough."

With the successive listing of new products, Cai Yong plans to complete sales growth of at least 20% next year and restore to the peak level reached in 2011, which was 210,000 units. "If these 20% increments cannot be guaranteed, there will be no use in other systems and management strategies."

At present, Changan Suzuki has formed a full life cycle management system with products as the leader and the marketing department taking the lead. From production-oriented to market-oriented changes, “the previous product R&D was developed by the Japanese side itself and seldom considered the characteristics of the Chinese market. From the beginning, Suzuki had repeatedly researched and heard in the Chinese market during product R&D. The Chinese side has combined many elements that target the Chinese market. In particular, Kaiyue's rear space is very much in line with the needs of the Chinese market."

There is also a small story here. At the earliest when planning to introduce the Kaiyue car, not only did Chang'an Suzuki's Chinese side, but even the Japanese executives also clearly stated that the design of Kaiyue must meet the consumption trend of the Chinese automobile market and requested the R&D personnel from Suzuki to To the design status that Chinese consumers expect, we would rather not introduce." After five years of research and development and 9 rounds of Chinese market research, this is the only A-Class sedan that fits the needs of Chinese families. It can also be seen from this that Suzuki is also changing the Chinese market.

For Kaiyue, Cai Yong has given unprecedented attention, including online commercials, he must personally review.

In Cai Yong’s plan, Qiyue will add Fengfeng next year, and sales of the two new products will reach at least 100,000 vehicles. This year Fengfeng’s sales are expected to reach 45,000 units. Qiyue’s listing is a battle for Cai Yong and Chang’an Suzuki who is in transition to achieve success without fail.