AutoBeta(AutoBeta.net)04/21 Report--

DPCA's loss to the market is evidence of PSA Group's failure in the Chinese market, France's largest carmaker. Sales are declining year by year, but PSA Group has no intention of giving up the Chinese market. Carlos Tavares, chairman of PSA Group, said in an interview at this year's Shanghai Auto Show,"I want to emphasize that PSA Group will never give up the Chinese market. This is very clear."

Tang Weishi has said several times not to give up the Chinese market, but in the face of cruel market and reality, PSA realized what mistakes, or what changes will be made?

When Tang Weishi talked about his own views, he believed that PSA should first make changes in marketing and management.

Tang Weishi said,"Citroen and Peugeot have deep historical accumulation, but we have not communicated well with Chinese consumers about the rich historical precipitation, brand value and brand history of these two brands." This has something to do with the marketing of our brand in China."

This point corresponds to the emphasis of the joint venture company Shenlong Automobile on "telling a good brand story".

Another reason, Tang Weishi mentioned that the decision-making mechanism of the joint venture company is too slow.

Dom said,"That's what we're trying to solve right now. We and our partners agreed that an optimized restructuring of the joint venture structure was necessary to enable us to adapt quickly to changes in the Chinese market." He also stressed that this is not an overnight thing.

At the end of 2018, the organizational structure of DPCA was adjusted on a large scale. Except Gao Dalin, secretary of the Party Committee of DPCA, who was retained, all members of the executive committee above the deputy general manager were changed. Li Jun, former general manager of Dongfeng South Group Co., Ltd., served as executive deputy general manager of DPCA and became the Chinese responsible person of DPCA;PSA Group appointed Massimo ROSERBA as the new general manager of DPCA.

After the new management structure is finalized, Shenlong starts the revival plan of China market, announces to maintain at least one new model for each brand every year, speed up the upgrading of powertrain, etc., and further tells the brand story and strengthens the brand assets based on brand differentiation in marketing.

Deputy General Manager Li Jun said earlier: "Recently, through communication with various channels, we really feel that Shenlong Automobile has problems in the whole value chain such as strategy, planning and brand marketing. What needs to be solved at present is really how to survive and find ourselves in the changing market situation."

From the sales peak of 710,000 vehicles in 2015 to 255,000 vehicles in 2018, Shenlong Automobile has fallen from a mainstream joint venture brand to a marginalized brand in three years. No matter it is internal management, product and marketing, Shenlong has serious problems. And in this big reform, when will the sales volume of Shenlong recover? I'm afraid it will still last for two or three years.

In the past March, Shenlong Double Brand sold only 15861 new vehicles, down 55% year-on-year; overall sales in the first quarter were 34658 vehicles, down 57.7% year-on-year, achieving only 14.7% of the target of 235,000 vehicles.

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