AutoBeta(AutoBeta.net)05/09 Report--

Citroen Automobile sales KuaiBao, DPCA double brand sold 9543 new cars in April, down 65.3% from the same period last year, and a total of 44201 new cars were sold from January to April this year, down 60% from the same period last year.

It is an indisputable fact that Shenlong sales continue to decline, falling to 253400 in 2018, but did not expect that the decline in sales of DPCA in 2019 will widen to 60%. In April, double-brand sales were less than 10,000.

When the sales volume of China's automobile market continues to decline and the market competition intensifies, the industry reshuffle will also come. only when the spring tide recedes, will we know who is swimming naked. The dilapidated situation of DPCA now depends on the external factors of the market environment, but the internal human factors may be the main cause.

At the recent Shanghai auto show, Carlos Tavares, chairman of PSA Group, stressed: "it is very clear that PSA Group will never give up the Chinese market."

Tang Wei has said several times that he does not give up the Chinese market, but in the face of the cruel market and current situation, what kind of mistakes does PSA realize? What changes will be made?

In Tang Weishi's view, the joint venture DPCA needs to recognize two major problems: first, there is a deviation in the way DPCA conveys brand value to consumers in the past; second, operational efficiency needs to be improved.

Strengthening in marketing will be the main task of DPCA to convey to consumers what products PSA is selling and tell a good brand story. Tang Weishi said, "both Citroen and Peugeot have a deep history, but we have not well communicated with Chinese consumers that these two brands have rich historical precipitation, brand value and brand history." This has something to do with the marketing work of our brand in China. "

In terms of operational decision-making, Tang Weishi mentioned that the decision-making mechanism of the joint venture company is too slow. Tang Weishi said, "this is also the problem that we are trying to solve at present." We and our partners agree that it is necessary to optimize and reorganize the organizational structure of the joint venture company in order to enable us to quickly adapt 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, with the exception of Gao Dalin, party committee secretary of DPCA, all executive committee members above the deputy general manager were changed. Li Jun, former general manager of Dongfeng South Group Co., Ltd., served as the executive deputy general manager of DPCA and became the Chinese person in charge of DPCA, while PSA Group appointed Massimo ROSERBA as the new general manager of DPCA.

Li Jun, deputy general manager, said earlier: "recently, through communication with various channels, we do feel that DPCA has problems in the whole value chain, such as strategy, planning and brand marketing. What we really need to solve now is how to survive and find ourselves in the changing market situation."

After the new management structure has been established, DPCA has launched a product revival plan for the Chinese market. Shenlong plans to launch 116 new products by 2021, maintain the speed of at least one new model for each brand each year, and speed up the upgrading of the powertrain. At the same time, it will also focus on solving quality problems, improving brand reputation and reshaping image.

From a sales peak of 710000 in 2015 to 255000 in 2018, DPCA has fallen from a mainstream joint venture brand to a marginalized brand in three years, with serious problems in internal management, products and marketing. Gone are the days when joint venture brands were lying around making money, and Dragon lost 3.6 billion yuan in 2018.

The great reform of Dragon Motor is only the beginning of the change, and it is uncertain whether it will work or not, but it will still go through labor pains in the next two to three years.

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