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

DPCA, which is at a low ebb, released a six-year recovery plan on the eve of the 2019 Chengdu auto show, which is particularly pragmatic compared with previous sales targets and revitalization plans.

The revival plan of DPCA is named "Meta Plan". The time node is from 2019 to 2025 and is divided into three stages:

The first stage is 2019, focusing on "surviving". At this stage, DPCA plans to reduce the break-even point to less than 180000 vehicles through cost-cutting measures, and strive to achieve positive cash flow.

The second stage is 2020-2021, through the implementation of a series of reforms to restore the capacity of the system, sales gradually increased to the level of 250000 vehicles, while the break-even point further dropped to 150000 vehicles, achieving stable profits.

The third stage is 2022-2025, the company plans to achieve a breakthrough in sales through product restructuring and more Chinese product launch, return to the scale of 400000 vehicles and stabilize, and promote the sustainable development of the whole value chain.

There is no denying that DPCA has a long way to go to realize its revival plan.

Dragon has been in a continuous decline since 2015, when its annual sales reached an all-time high of 704000 vehicles. In 2016, Dragon sales fell 15.2% compared with the same period last year; in 2017, total DPCA sales fell by more than 37%; and in 2018, DPCA sold 253400 vehicles, down 31.88% from the same period last year. Cumulative sales from January to July this year were only 74000, down 56% from a year earlier, marking the 13th consecutive month of decline in sales since July last year.

According to the previously released half-yearly results, Citroen Automobile and Dragon Motor sales Co., Ltd. was only 7.053 billion yuan, down more than 60 percent compared with 17.653 billion yuan in the same period last year. At the same time, the two companies lost 2.532 billion yuan in the first half of 2019, nearly 70% of the total loss in 2018, compared with a profit of 200 million yuan in the same period last year. DPCA has made a cumulative loss of 6.2 billion yuan in the past 18 months.

In the face of the current development of DPCA, Li Jun, executive deputy general manager of DPCA, said: "according to the 'yuan' plan, DPCA will turn around its losses in 2020."

In the next three years, according to the Chinese market and consumer demand, DPCA will launch 14 new models, each brand will have new models every year. The existing products, according to the feedback of consumers, optimize the configuration and equipment function of the model, enhance the charm of the product, and launch a variety of customized and exclusive models according to the "1mm N" strategy of the model.

In the face of future competition, DPCA has launched engines that meet the requirements of national six b regulations, and all models will be switched in 2020, three years ahead of the policy requirements. DPCA also got the L3 autopilot test license in Chongqing at the beginning of this year, joined Baidu's Apollo autopilot biosphere, and plans to start testing in Shanghai in early October to prepare for the next L3 self-driving technology landing application in China.

In order to boost consumers' willingness to buy, DPCA's Dongfeng Citroen and Dongfeng Peugeot have also launched a series of service and replacement policies, which will take longer to bear fruit.

'We must make a thorough change and properly handle the relationship between current management, reform and development, 'Mr. Li said. The market doesn't give us much time, so we have to make decisions and react quickly.

It can be predicted that the coming year will be a critical year for the Dragon, and whether it can regain its footing after four years of turmoil will be a key battle.

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