AutoBeta(AutoBeta.net)06/13 Report--

In 2020, the joint venture DPCA launched two new cars in succession, including the Dongfeng Peugeot 2008 and the Dongfeng Citroen C3L. It seems that PSA Group has saved its performance in the Chinese market with the rapid development of new cars, while also informing consumers that it has no plans to withdraw from the Chinese market.

On June 12, Olivier, executive vice president of PSA Group and president of China, stressed to the media at the Dragon Automobile Communication Conference that PSA has a history of more than 200 years, has experienced critical moments such as World War I and World War II, and will not withdraw from the Chinese market because of short-term difficulties.

Zhang Zutong, member of the standing Committee of the Party Committee and Deputy General Manager of Dongfeng Motor Group Co., Ltd., also said that PSA will not have a plan to withdraw from the Chinese market, nor will it have such a plan. He also said that in fact, whether Renault's withdrawal or the persistence of the Dragon is a decision made under the grand strategy of development.

Zhang Zutong also said that for the decline in sales, the Dragon has also taken some measures in the past, but the result is not very ideal, but the Dragon can not dwell too much on the past, the real problem is that the goods are more Chinese, to make the PSA product technology closer to the Chinese market, mainly lies in three elements, including products, brands and management efficiency.

It is worth noting that Dongfeng is one of the shareholders of PSA Group. In the signing of the joint venture contract renewal last year, Dongfeng and PSA have reached an agreement to continue to support the development of DPCA. At the same time, Dongfeng needs to make concessions. As a result of the merger of PSA Group and PCA Group, Dongfeng, as a shareholder of PSA, will withdraw part of its stake in accordance with the needs of the merger.

In December, Dongfeng and PSA signed an agreement to expand business cooperation in China, including the extension of the DPCA joint venture and the introduction of new brands and models. According to the latest agreement, in order to further expand the strategic partnership, the duration of the joint venture of DPCA will be extended to 2037, an increase of 10 years. At the same time, DPCA will also obtain the right to operate the new PSA brand in China, and consider introducing it into DPCA's production, giving play to synergy and sharing resources. If nothing happens, the new brand refers to the "German Opel" brand.

At present, DPCA uses the "Yuan" plan released in 2019 as the strategic plan for enterprise revival. In the second phase of 2020-2021, DPCA will implement a series of reform measures to improve operating capacity, reduce the break-even line to 150000 vehicles, and gradually increase sales to 250000 vehicles.

Due to the poor management of DPCA, strategy and market layout, brand management and other factors, DPCA sales have declined for four consecutive years. After sales climbed to 710000 in 2015, DPCA fell to 253000 in 2018, widening the decline in 2019. The cumulative sales of DPCA in 2019 was 113579, down 55% from the same period last year, failing to meet the target of 180000. DPCA lost nearly 4 billion yuan that year. DPCA has also become one of the fastest-falling joint ventures in the Chinese market.

In 2020, the Dragon continues to launch the streamlining program. After the resumption of work, DPCA restarted the competition for employees to take up posts, this time aimed at front-line employees, involving a total of more than 5000 employees, it is reported that the competition for employment or staff reduction of more than 30%. DPCA insiders said the resumption of the competition was a continuation of the plan, which had planned to reduce the total number of employees from 8000 to 5000 in 2019, but was shelved for various reasons.

In addition, documents from the Wuhan Economic Development Zone show that the local government intends to support DPCA in disposing of idle capacity and disposing of the assets of the DMC-1 plant in the form of government storage. At the same time, the government will exempt the company from property tax and land use tax in 2020.

According to the new car plan of DPCA, the two brands will invest a brand new model every year, and their models will also make more localization changes. Data show that DPCA's cumulative sales from January to May in 2020 were 17857, down 66.24% from the same period last year, partly due to the epidemic in Wuhan. It can be expected that the key problem to be solved by DPCA this year is "survival".

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat