Wealth

Chapter 387 Auto Industry Exhibition Direction

In the major media on the second day, there was a sudden hype about Fan’s disease-free predictions.

The people of GM were very angry. The commercial representative in China solemnly submitted a letter of protest to the headquarters of Fan's Investment Group, hoping that they could explain to the commercial representative of GM in China about Fan Wuyi's confession and comment on this kind of non-compliance. Public apology for responsible speech.

The people at Fan Investment Group’s headquarters made it very clear that we, President Fan, are the industry leaders in the business world. His predictions about the business community have not yet been fulfilled. Moreover, President Fan said that it was within 15 years. Nei, there is still a while to verify it, and if this is not true, it is not too late to talk about an apology.

The representative of General Motors in China also wanted to negotiate with the government to urge them to eliminate the impact of this matter on General Motors. However, the government was also unable to provoke Fan Wu's disease, and replied that this was purely a personal statement. There is no right to interfere, as long as it is not a blatant violation of the constitution, laws and regulations, no response can be made.

Upon hearing this reply, the representative of General Motors in China sent a fax to the US headquarters to discuss a plan to deal with the matter.

However, when General Headquarters heard that Fan Wubing said so, not only did it not intend to refute it, but even ordered the representative in China not to go too far. Since the speech in the United States is democratic, the speech in China is now democratic, which is naturally impossible. To overreact on this matter, so as to avoid disputes on the political level, then there is no harm to GM's China policy.

You must know that Fan Wuyi’s influence in the U.S. mainland is very large now. Even a century-old store like General Motors must attach great importance to his existence and great influence. After all, cash is king, and Fan’s investment group holds The cash flow in hand is very scary, which is unmatched by GM.

Because of such a bit of verbal controversy, it will not only appear to be too pretentious, but it will also easily get into an unnecessarily strong opponent, which is not worth it.

However, the senior executives of General Motors were also very confused. Why would Fan Wuyao suddenly say that General Motors would definitely die within fifteen years? This seems totally unreasonable!

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

As the leader of the automobile industry under Fan Investment Group. Wu Zhi's little machine was exasperated. Not only successfully completed the task assigned to him by the boss. Still establishes 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 want to say that?" Fan Wuyao touched his nose. After thinking for a while. Said to Wuzhi Xiaoji. "Because of a major problem with its business strategy."

In 1908. William Rand, the owner of the carriage factory, founded General Motors. Initially there was only one Buick brand. Then, within a few years, six successive acquisitions of more than 20 brands including Cadillac. The goal is to sell cars at any price and for any purpose. Continue to expand the scale of its brand.

GM’s rival, Ford Motor Company, initially produced only one model of the Model T Ford. And GM carries out production under multiple brands all over the world. Later it acquired German Opel and other companies. Provide car loans to consumers through its own financial company. Further expand sales. In 1931, it became the world's largest automobile manufacturer.

However. It is the satisfaction and pride of the leading position that ruined the future of the universal. Labor costs such as high pensions and medical expenses for retired personnel continue to expand. After the oil crisis in 1973. Japanese cars have strengthened their export offensive with their small size and low energy consumption. In 1991, the share of Japanese cars in the U.S. market exceeded 30%. As a result, the three major U.S. auto giants, based on GM, suffered huge losses at the same time.

Since then, Japan has independently restricted auto exports to the United States. This makes domestic manufacturers such as GM take it lightly. Neglect to strengthen their own competitiveness. And continue to rely on the traditional model of large cars.

Due to the low fuel efficiency of many GM models, as gasoline prices continue to soar, their sales will also drop rapidly.

In the heyday of General Motors, it owned Cadillac, Buick, Chevrolet, Saturn, Pontiac, Oldsmobile, Opel, saaB and other brands, and invested in several automobile companies such as Isuzu and Fiat, forming a huge Car empire.

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

First of all, each brand is operating independently, each doing its own set, causing difficulties in communication between brands, failing to effectively integrate research, manufacturing, marketing, and service, which invisibly increases costs. Secondly, the original intention of implementing the multi-brand strategy was to segment the market. However, due to the excessive number of brands, the boundaries between brands were blurred, which not only brought confusion to consumers, but also caused internal friction between brands.

More importantly, due to too many brands under GM, GM has been unable to concentrate on driving one or several models that can really pull

Global strategic models.

The huge sales volume of global strategic models can minimize costs and greatly increase the profitability of bicycle sales. The fundamental reason for the rise of Toyota and Honda lies in the outstanding performance of global strategic models such as 11aa, camry, rd, and others.

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

Fan Wubing said to Wuzhi Xiaoji, “General Motors’ multi-brand strategy is not wrong, but the fault lies in its excessive branding. Market segmentation is necessary, but excessive 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. In the future, cars will sweep the global market in a modest style."

Wuzhi's small machine listened to Fan Wuyi's analysis very well, and he was a little fascinated. It took a long time to react and asked, "What the boss meant is that our company should concentrate on driving a car model?"

Fan Wubing smiled, "It is also so absolute. At least sedan, hatchback and off-road models, as well as mini cars, these are all we need to drive. As for the special models such as the wedding fleet cars I mentioned, although they can be produced , But it can’t be opened as a mainstream, it’s just a matter of fact. What I said is that we can’t get multiple brands, but we must have the necessary models, and we must have the main models. This is the key to victory!"

"Understood!" Wu Xiaoji nodded and agreed, "If you are too greedy, you can't chew it badly. We don't need to try things like GM, which is a century-old store. We naturally don't need to try. That’s the key!"

"Yes!" Fan Wuyao agreed, "General Motors just has too much appetite and is exhausted by his fame.

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

In fact, there is another reason Fan Wuyao did not say, that is, the US auto union is too powerful, which leads to high salaries of GM employees, too high auto production costs, and low profits. GM's market is no longer available in the United States. How to compete with Japanese cars, in addition to high-end cars such as suVV, there is still a battle. But when the financial turmoil hits, the high-end market is most vulnerable, so their demise is just a matter of time.

Similarly, for example, Ssangyong Motor Company in South Korea was also too strong because the union was too strong and the shareholders of the company could not support it. In the end, everyone died together. The unfortunate thing was that SAIC Motor ran to take over stupidly, and finally fell into disgrace. Return.

GM and Ford have also fallen to the point of selling brands, but naturally there are not a few people who are willing to take over. It depends on whether the Americans' tricks can be successful again. When it comes to doing business, they can outperform the Americans. It's really not much.

In fact, this method of selling brands is not a very clever way to get out of the shell?

Not only can part of the funds be recovered and cash flow can be improved, but part of the employees can be dumped to each other, and a large amount of expenditure can be saved. The pressure on the head office will suddenly be reduced a lot, in exchange for the space and space for strategic contraction. Time, regroup for a comeback.

We must know that the impact of layoffs in large companies is very bad, but there is no such problem in the overall package sale. If the treatment of employees is poor, it is a problem with the new owner, and it is none of your own business to make trouble. NS.

Wuzhi Xiaoji said to Fan Wubing, UU reading www.uukanshu.com "If GM executives can hear your boss's comments, they are willing to spend several hundred million."

"I care about them life and death!" Fan Wuyao smiled.

However, in the planning of his auto show, Fan Wubing still carefully discussed with Wuzhi Xiaoji. The most important decision was to divide each car into basic and economical models according to the actual situation in China. , Standard type, luxury type, and even Fan Wubing has begun to consider adding smart type to these types, of course, that is absolutely high-end.

Fan Wubing said to Wuzhi Xiaoji, “When we make cars, we not only need to be able to design models, improve technology, reduce fuel consumption, and improve efficiency, but also be forward-looking. To save money on automobile investment, and to spend money on automobile investment, to fully meet the needs of customers of different classes is the direction of our life's hard work!"

People like Wuzhi Xiaoji are too smart. After hearing Fan Wubing's instructions to him, he couldn't help but admire him. Then he gave a thumbs up next to Fan Wubing, "High! It's really high!"

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