AutoBeta(AutoBeta.net)09/02 Report--

The sharp decline in sales comes as the Chinese leader of the Sino-French joint venture Dragon Motors welcomes a new candidate. Li Jun retired and Chen Bin took office.

On September 2, after a study by the party committee of Dongfeng Automobile Group Co., Ltd., Chen Bin was appointed assistant to the president of Dongfeng Motor Group Co., Ltd., and executive deputy general manager and party committee secretary of Shenlong Automobile Co., Ltd.

At the same time, the above-mentioned decision on the readjustment of the leadership was also announced at the cadre meeting of Shenlong Automobile Co., Ltd., which means that Li Jun will no longer serve as deputy general manager and party committee secretary of Shenlong Automobile Co., Ltd.

(Li Jun)

Li Jun officially became deputy general manager of DPCA in December 2018. that year, DPCA's annual sales fell to 253400, a drop of 31.88% compared with the same period last year. Li Jun takes on the task of adjusting the enterprise structure, making a recovery plan and reversing the performance situation.

In its first year in office, DPCA sold 113579 vehicles in 2019, down 55% from the same period last year.

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. "

Under the leadership of Li Jun, DPCA puts more emphasis on the "pragmatic" strategy. In September 2019, DPCA officially released the "Yuan" revival plan, which was promoted in three stages: the first stage is the Peiyuan stage (2019), in which DPCA will focus on reducing costs and reducing the enterprise's break-even point to less than 180000 vehicles, and strive to achieve positive cash flow from negative to positive. The second stage is the Guyuan stage (2020-2021), in which DPCA will make a steady profit, the annual sales will be raised to 250000, and the break-even point will be reduced to 150000; the third stage is the Tuoyuan stage (2022-2025). At that time, the annual sales of DPCA will be stable at the level of 400000.

Judging from the final result, the Shenlong Yuan plan has been thwarted. In the first half of this year, the new Peugeot 2008/e2008 and Citroen C3L went public, but failed to save Shenlong's declining sales. DPCA's cumulative sales from January to July this year were only 26782, down 64 per cent from a year earlier. Even if the car market returns to positive growth in July, DPCA's monthly sales were only 3545, down 68.4% from a year earlier.

On the other hand, even if sales fall sharply, the loss of DPCA has narrowed sharply. According to the relevant performance report, in the first half of 2020, the operating income of DPCA and Dongfeng Peugeot Citroen Motor sales Co., Ltd. was 3 billion yuan, down 57.5% from the same period last year, and recorded a loss of 1.3 billion yuan, down 48.66% from the same period last year. In addition to streamlining the enterprise structure and personnel, DPCA has also improved the utilization rate of resources and disposed of spare capacity.

Today, the burden of saving the performance of Shenlong falls on Chen Bin.

According to the information introduction, Chen Bin was born in October 1976 and joined the work in July 1998. He has successively served as assistant to the factory director of Shiyan Factory of Dongfeng Dena Automobile Bridge Co., Ltd., and the Minister of Purchasing Department of Dongfeng Dena Automobile Bridge Co., Ltd., deputy secretary and secretary of the Communist Youth League Committee of Dongfeng Motor Co., Ltd., party committee secretary of Dongfeng Motor Co., Ltd., general manager of Dongfeng Motor Co., Ltd., assistant president of Dongfeng Automobile Group Co., Ltd. Executive Deputy General Manager and Party Committee Secretary of Shenlong Automobile Co., Ltd.

(Chen Bin)

It is reported that Chen Bin, who is the leader of the group, is expected to allow DPCA to get more resources from Dongfeng Company.

Dongfeng also pointed out that the adjustment of the main leaders of DPCA is a prudent decision made by the party committee of Dongfeng on the basis of the company's 14th five-year Plan. Dongfeng Company will continue to perform its duties, play a good shareholder role, firmly support the development of DPCA Automobile Co., Ltd., and promote the whole value chain back to a healthy track.

After changing the Chinese leader, DPCA still needs to solve the problem fundamentally if it wants to get out of the predicament.

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