AutoBeta(AutoBeta.net)11/19 Report--

At a time when sales are plummeting, DPCA once again announced internal adjustments. On November 18, DPCA held an internal meeting to announce new departmental organizations and cadre appointments, including abolishing professional vice presidents and improving decision-making efficiency.

Li Guangtao, general manager of Dongfeng Peugeot brand department, will be transferred and David GUERIN, former deputy general manager of Dongfeng Peugeot brand department, will take over as general manager of the brand department. Fr é d é ric CHAPUIS, deputy general manager of Dongfeng Citroen, was transferred back to PSA, and Ren Guang, general manager of Dongfeng Citroen, remained unchanged. Since then, Shenlong double brand has abolished the position of deputy general manager, which is only managed by the general manager.

DPCA said that this organizational evolution plan is a decision made by DPCA through full deliberation, benchmarking and research under the guidance of both shareholders and based on the current business situation and long-term development goals. After adjustment, it can improve the efficiency of decision-making, improve the efficiency of communication, and strengthen a working team of China and France.

At the same time, this is another action of DPCA to actively promote the "yuan" plan in improving operational efficiency after the implementation of dual-brand coordination in the marketing field.

Li Jun, executive deputy general manager of DPCA, said, "the reform of DPCA is imperative and urgent. This reform is a set of systematic planning and comprehensive solution, which involves not only the governance model, organizational structure and decision-making mechanism of DPCA, but also a series of supporting measures such as salary, post, personnel and so on. The core direction of this reform is to build an organizational structure of the company that adapts to the production and marketing scale of 20 to 300000 vehicles in the future, to improve the decision-making efficiency and operational efficiency of DPCA, to strengthen the contact points of marketing management, and to create a clean political ecology. "

Luo Sibo, general manager of the Dragon Company, said that the newly appointed leading cadres should earnestly shoulder their responsibilities and lead the team to act quickly to produce higher-quality products, provide higher-quality services, continuously increase sales, and enhance their market position.

Sales figures show that DPCA sold 9730 vehicles in October, down 47.4 per cent from a year earlier, and accumulated sales of 100779 vehicles from January to October this year, down 54.83 per cent from a year earlier. DPCA lost 2.5 billion yuan in the first half of 2019.

It was only after a serious decline in sales and continued losses in performance that DPCA realized that it was in urgent need of change. Since the second half of last year, DPCA has carried out several rounds of overall reforms to the internal institutional departments, and senior personnel have been adjusted frequently, and all actions have to recover the lost market share. Shenlong proposed that the first thing to solve is the situation of poor cooperation between China and France in the past.

On the operational side, Dragon has launched a plan to reduce operating costs. In 2019, DMC closed a factory in Wuhan and sold its second plant in Wuhan, leaving three factories in Wuhan and Chengdu to continue production operations. At the same time, it launched layoffs to reduce the number of employees from 8000 to 5500 by the end of 2019 and to 4000 by 2020.

In September, DPCA released a "yuan" plan to promote brand renaissance in three stages.

The first stage is the Peiyuan stage (2019), in which DPCA will focus on reducing costs, reducing the enterprise's break-even point to less than 180000 vehicles, and striving to change its cash flow from negative to positive.

The second stage is the Guyuan stage (2020-2021), in which DPCA will achieve stable profits, annual sales will be raised to 250000 vehicles, and the break-even point will be reduced to 150000 vehicles.

The third stage is the Tuoyuan stage (2022-2025), when the annual sales of DPCA will stabilize at the level of 400000 vehicles.

In order to achieve the above goals, DPCA has begun to improve its products, marketing and operation. Including the launch of 14 new models in the next three years, products are more localized, product pricing is more pragmatic; pay attention to dealer profits, the implementation of dual-brand collaborative management; the operating mechanism is efficiency-oriented and so on.

Tang Weishi, chairman of the PSA Group, said publicly many times that "We want to stay in China and absolutely do not want to leave China. This belief is very firm." Through reforms in many aspects, Shenlong has formed a new organization, which should be accelerated in decision-making and operation, but on products that consumers are concerned about, Shenlong should listen to the opinions of more real users and consumers and make practical and effective changes. So as to improve the market competitiveness.

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