·Introduction of personnel to take technology outside SAIC's own brand to turn losses

How to realize the self-owned brand to turn losses into profit, will push the new SAIC Chairman Chen Hong to the “winds and waves”. In May of this year, Chen Hong, the former president of SAIC, succeeded Hu Maoyuan as the chairman and party secretary of the group. The independent brand is the fortress that SAIC has been unable to attack for a long time. Today, this important task has been blamed on Chen Hong's shoulders.
On June 19th, a shareholder meeting based on celebrations and dividends was held as scheduled. At the meeting, investors repeatedly raised various sharp questions: "As a leading manufacturer of domestic automobiles, if the self-owned brands do not do much, the sales volume does not mean much, what is the company's plan?" "Last year, the independent brands can achieve profitability. But the annual report shows that it is still a loss, how to change the trend this year?"
In the face of investors' doubts, Chen Hong said that although SAIC's own brands have spread out various market segments in the past eight years, the brand influence is weak, and it has not yet made a profit. The main reason is that the high-end models such as Roewe 550 and 750 have not achieved economies of scale. In addition, the joint venture brand continues to explore, which further aggravates the downward trend of independent brands. The next step is to expand the sales of SAIC's own brands in the mid to high-end market by enhancing the user experience. Of course, this is not an open source of continuous research and development and marketing investment. It is reported that the R&D cost of the Roewe 550 hybrid model has reached 1.16 billion yuan.
At the beginning of the year, the goal of SAIC Group was to make a profit of 100 million yuan for its own brand this year. This means that SAIC passenger cars should achieve a sales bottom line of at least 230,000 vehicles. From the performance of the first half of the year, SAIC hopes to achieve profitability this year. Not too big.
Therefore, Chen Hong began to act frequently. On July 3, SAIC announced that Wang Xiaoqiu, the former general manager of Shanghai General Motors, was promoted to the position of vice president of the group and also served as general manager of SAIC Group passenger car company. As we all know, SAIC Motor Vehicle Company plays a decisive role in SAIC. This personnel change is good news for the independent passenger car segment.
On the 25-year resume of Wang Xiaoqiu, he has been engraved with the seal of SAIC. He has served as Shanghai Volkswagen Quality Director, Deputy Director of Shanghai Automotive Industry Technology Center, General Manager of SAIC Group Co., Ltd. Passenger Vehicle Branch, Shanghai General Manager and a number of important positions. In particular, Wang Xiaoqiu is the first general manager of SAIC Passenger Vehicle Company, and he knows the development of it.
Promoting Wang Xiaoqiu is just part of Chen Hong’s layout of SAIC’s entire self-owned brand. At the group level, in addition to Wang Xiaoqiu, Cheng Shenglei, who was promoted to vice president at the same time, will be in charge of SAIC strategic technology. Before the promotion, he was the deputy chief engineer of SAIC Co., Ltd. and the executive director of the strategy and business planning department. Before that, he was the dean of SAIC Engineering. At the same time, Yu Jingmin from the overseas business department of SAIC Group will serve as the deputy general manager of SAIC Motor Vehicle Company and assist Wang Xiaoqiu in his work. Yu Jingmin has a very rich experience in overseas markets and is very beneficial to the expansion of his own brand. This shows Chen Hong’s good intentions.
At the same time, at the SAIC Group cadre meeting held on July 7, Chen Hong proposed to put the construction of independent brands at the core of the overall development. To this end, SAIC announced that it plans to set up a venture capital company in Silicon Valley as a “window” to capture the dynamics of foreign advanced technologies and further enhance the strength of SAIC's own brands. To this end, Chen Hong personally led the team to the US Silicon Valley research and inspection.
In addition to looking for opportunities in the United States, SAIC is also setting up a research center locally, focusing on the latest automotive technologies and addressing the source of future technologies for SAIC.
"MG not only has to be big, but also has to do it." Chen Hong has repeatedly raised this idea at SAIC's internal meeting. SAIC will operate Roewe and MG separately, and MG is likely to introduce an international team to operate. At present, SAIC has set up special funds to fully launch the brand strategy optimization project to clarify the differentiated competitive advantages of Roewe and MG brands in the market, and the definition of dual brands will be more clear.
At the same time, SAIC's independent brand overseas strategy has quietly accelerated. Following the cooperation between the MG brand and the Chia Tai Group in the market in Thailand at the end of 2012, the first batch of 65 SAIC Chase MAXUS V80s exported to Thailand have arrived in Thailand one after another, which means that SAIC's self-owned brand commercial vehicles have a comprehensive overseas strategy in Southeast Asia. In June this year, SAIC cooperated with a local factory in Egypt to produce the Roewe 750 model by means of CKD. In addition to SAIC's Birmingham Longbridge plant in the UK, SAIC has formed three major CKD project bases.
In addition, SAIC has taken advantage of the export opportunities brought about by the establishment of the Shanghai Free Trade Zone and is preparing to accelerate the development of overseas markets through the free trade zone. The free trade zone has broken through the previous rules and regulations, and has relaxed policies on taxation and foreign exchange use. This has created opportunities for SAIC, which has always wanted to expand its overseas business.

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