Dongfeng: A new journey in the era of micro growth


With the pace of expansion, the Dongfeng "kingdom" is growing.

How to manage this "multinational force"?

How to avoid each company's different companies, different brands fighting each other, rolling each other? "Big synergy" strategy was born -

The old and new careers work together first. Dongfeng will further expand the Shiyan base to the front desk.

The traditional collaboration between Dongfeng Commercial Vehicles Co., Ltd., Dongfeng Motor Co., Ltd. and parts and components companies has been further consolidated; among Dongfeng's joint ventures, Shenlong, Dongfeng Honda, and Dongfeng Nissan have successively provided cooperation projects at Shiyan Base; Dongfeng Industrial Co., Ltd. and Dongfeng Parts Co., Ltd. Get out of the Shiyan base and expand your business.

Technical collaboration is at the heart of many synergies. Fang Chi, director of the Dongfeng Motor Company Technical Center, calculated an account: "Public technology platforms focus on investment. Different sectors make differentiated investments according to the characteristics of product differentiation, which can save 20%-30% of capital investment."

Investment synergy avoids investment projects within the group “fighting”; procurement coordination allows bulk procurement of materials; overseas business collaboration plans unified planning of export products, unified planning of overseas markets, unified establishment of overseas image, and unified arrangement of overseas operations.

One by one, Dongfeng screwed into a rope.

Independent Innovation: Taking on the "National Team" Mission

In May, the red flag sedan with high-profile return made FAW the focus of this year's auto industry. It also triggered the industry’s hope for Dongfeng: When will Dongfeng’s own brand passenger vehicles become the pride of the people?

Last year, Dongfeng's own branded car sales reached 1.13 million, ranking the forefront in the domestic automotive industry.

Compared with China’s largest commercial vehicle, the autonomous passenger vehicle is a short board of Dongfeng.

Last year, Dongfeng’s own brand passenger cars ranked fourth in the country; from January to June this year, it ranked third in the country.

To supplement the short board, the Dongfeng "dry" D300 plan is strongly promoted.

Dry, gossip first. "First" shows the goal pursued by Dongfeng's own business.

According to the plan, by 2016, Dongfeng's total sales of its own brand will reach 3 million. Among them, Dongfeng's own-brand passenger cars must achieve a production and sales target of 1 million within five years. "The world famous automobile brands are accumulating and developing in the long-term cruel competition, and cannot be quick-acting and profit-making. Dongfeng's autonomous passenger vehicle business started late, but Dongfeng never lacks innovative genes," said Zhu Fushou.

Into Dongfeng's technical center, the vitality is blowing.

The new technology center, which covers an area of ​​230,000 square meters and was built for more than 700 million yuan, is mainly responsible for the research and development of self-owned passenger cars, new energy vehicles and related assemblies.

"There are domestic and international advanced design facilities, automotive electronic tests, engine tests, trial positions, and material craft positions, which can simultaneously carry out the design and development of six product platforms and three engine platforms and the simultaneous development of suppliers." Hou Yuming, party secretary of the Dongfeng Technology Center, introduced.

The light of innovation leads the future. "Dongfeng Warrior" won the first prize of national science and technology progress; Dongfeng hybrid electric bus technology won the second prize of national scientific and technological progress; Dongfeng's patent applications and possessions ranked first in the industry.

Break through the foreign technical barriers, a car driving the Dongfeng own brand cars, popular in Shenzhou.

Facing Overcapacity: Accelerating the Process of Industrial Restructuring

Detroit, the fourth largest city in the United States, filed for bankruptcy protection on July 18, bringing great shock and reflection to the global automotive industry.

As a world-famous car city, excess vehicle capacity has become an important driver of the decline of Detroit.

Is China's auto industry facing overcapacity pressure?

At present, although the Chinese auto market has entered the "micro-growth" era, but the impulse of the expansion of vehicle companies remains unabated, have to sing and rush to expand production.

According to the statistics of China Association of Automobile Manufacturers, by 2015, the total production and sales target of SAIC, Dongfeng, FAW, Chang'an, GAC, and BAIC will exceed 28 million, including Chery, Geely, BYD, Great Wall, Brilliance and JAC. The total production and sales target will also reach 12 million vehicles.

This means that the production and sales volume of domestic mainstream auto companies will soar to 40 million by then. "The auto industry may have a structural surplus of production capacity, and some of the enterprises in the adjustment period have relatively surplus production capacity, while some companies with good development status have relatively insufficient production capacity," said Zhu Fushou.

He suggested that the state abolish the policy restrictions that auto companies cannot produce on behalf of workers and allow qualified companies to borrow each other's production bases so as to fully deploy and make good use of their production capacity.

The personage inside course of study analyzes, under the force of the market, will accelerate the elimination of outdated production capacity and speed up industry consolidation.

“The adjustment of the national auto industry will be further accelerated.” Xia Xiaochuan, deputy director of the Dongfeng Motor Corporation’s business management department, believes that mergers and reorganizations are universal laws for the development of the automobile industry, and the state encourages industrial restructuring. In particular, in the case of micro-growth, the willingness of some small companies and companies with weaker risks to join forces to reorganize will increase, and opportunities for some large companies to acquire resources will increase, and industrial mergers and reorganizations will increase.

Faced with the possible structural overcapacity, Dongfeng stepped up to go out.

Overseas business "DH310" plan started -

By 2016, Dongfeng's overseas exports will reach 300,000, becoming the top three exporters in the industry, export volume accounting for 10% of the total sales of self-owned brands, and 10 strategic regional markets will be built to enhance the company's international operation capabilities. "The next 10 to 20 years will be a crucial period for China to move from a big automobile country to a powerful automobile country. Dongfeng will be more proactive in integrating into the global automotive industry with a broader international perspective." The China Automotive Forum held recently On, the Dongfeng people screamed.

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