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2024-09-08 Update From: AutoBeta autobeta NAV: AutoBeta > News >
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In the face of the cold winter of the car market and the continuous decline in sales performance, DPCA launched a full-staff marketing plan. Recently, Dongfeng Automobile Shenlong Company held a ceremony of all-staff public relations, all-staff marketing and all-staff action to mobilize the broad masses of employees to glow and shine in their respective positions, protect the company's image in their own unique way, and transmit the positive energy of the brand. Maintain a good product reputation.
"Please all the staff to take action, all public relations, all marketing, all action, together to become the company's spokesman, guardian and spokesman." Li Jun, party committee secretary and executive deputy general manager of the Dragon Company, said that the rise and fall of the Dragon is not only related to everyone here, but also to all stakeholders.
Founded in May 1992, DPCA is a joint venture between Dongfeng Automobile Group Co., Ltd. and France's PSA Group. It owns Dongfeng Peugeot and Dongfeng Citroen brands. It reached a sales peak of 710000 vehicles in 2015 and then declined year by year. Shenlong sold 255000 vehicles in 2018 and accumulated sales of 113579 in 2019, down 55 per cent from a year earlier and 84 per cent lower than at its peak.
According to the performance report, DPCA's revenue fell to 7.053 billion yuan in the first half of 2019, down 60 percent from the same period last year, with an operating loss of 2.53 billion yuan. In the past 18 months, DPCA has made a cumulative loss of 6.2 billion yuan.
In the past year, the Dragon has made frequent adjustments to solve the problem of disagreement between China and France, so as to improve the efficiency of decision-making as soon as possible.
Li Jun once said, "the reform of the Dragon Company 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 a company organizational structure suitable for the future production and marketing scale of 20-300000 vehicles, to improve the decision-making efficiency and operational efficiency of DPCA, to strengthen marketing management contacts, and to create a clean political ecology. "
In terms of products, Peugeot 3008, 4008, 408, Citroen C3-XR, C4 and C5 AIRCROSS, C6, Elysee, etc., all led to a decline in sales due to the lack of product competitiveness. In 2019, DPCA has only launched a new 508L model with a starting price of less than 160000 yuan, but the market response is not enthusiastic, with an average monthly sales of only about 500units, which is difficult to save the current DPCA sales dilemma.
According to the meta-plan issued by the Dragon, the annual break-even point of the Dragon will be reduced to 150000 vehicles from 2020 to 2021. In 2020, Shenlong will launch a new generation of 2008 models and launch four new energy products at the same time. DPCA also promised to make a more in-depth study of Chinese customer perception, continuously improve Chinese design and quality reference system, and make product prices more pragmatic and sincere.
As a condition of reducing its stake in the PSA Group and promoting the merger with the FCA Group, Dongfeng signed a new agreement with PSA, extending the joint venture period of Shenlong Motor to 2037, 10 years longer than the original plan. In addition, with the continued introduction of new brands, synergy and sharing of resources in DPCA, PSA will commission DPCA to use its production base to produce PSA export products, launch new brands and vehicles to DPCA, and provide financial assistance.
Although PSA Group has said publicly many times that it will not withdraw from the Chinese market, in the face of a highly competitive market environment, if DPCA still fails to stop the bleeding in 2020, the situation will become extremely dangerous.
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