AutoBeta(AutoBeta.net)10/09 Report--

DPCA's first dual-brand 4S store officially opened in Jiaozuo, Henan Province. The store can sell Dongfeng Peugeot and Dongfeng Citroen models at the same time, but the two brand showrooms have their own entrances and exits to remain relatively independent. DPCA said that this is to show the different positioning and culture of the two brands.

In September this year, DPCA issued a "yuan" revival plan, in which the implementation of dual-brand coordination in sales channels, so as to enhance the health and vitality of the network, while the dual-brand positioning is clearer, with their own characteristics. Shenlong plans to build 60-80 such "dual-brand collaborative outlets" across the country this year.

For some time to come, Shenlong Automobile single-brand authorized store and dual-brand collaborative store will coexist in parallel. Some dealers said that this can increase the optional models after customers arrive at the store, while dealers expand the market capacity without much increase in financial and human investment. DPCA believes that this move will improve the profits of dealers and improve the efficiency of the dealer network.

Under the serious decline in sales and the continued loss of performance, DPCA seeks improvement measures in many ways to turn the tide and realize the revival of the two brands in the Chinese market.

Sales have declined for three consecutive years. DPCA achieved only 253400 vehicles in 2018, down 31.88% from the same period last year, while cumulative sales from January to August of this year were only 81000, down 56.7% from the same period last year. At the same time, the performance report shows that DPCA lost 2.5 billion yuan in the first half of this year, which is quite dangerous.

"We are only one step away from having to withdraw from China," a person close to the board of Peugeot Citroen said in an interview with foreign media. It's really that serious.

At present, DPCA has launched plans to reduce operating costs, closing a factory in Wuhan and selling a second plant in Wuhan, leaving only three factories in Wuhan and a plant in Chengdu, and the number of employees has been reduced from 8000 to 5500 by the end of the year and to 4000 by 2020.

On September 4, DPCA officially released the "Yuan" revival plan, which will be carried out in three stages.

The first stage is the Peiyuan stage (2019), in which DPCA will focus on reducing costs, reducing the enterprise's break-even point to less than 180000 vehicles, and striving to change its cash flow from negative to positive.

The second stage is the Guyuan stage (2020-2021), in which DPCA will achieve stable profits, annual sales will be raised to 250000 vehicles, and the break-even point will be reduced to 150000 vehicles.

The third stage is the Tuoyuan stage (2022-2025), when the annual sales of DPCA will stabilize at the level of 400000 vehicles.

In order to achieve the above goals, DPCA has begun to improve its products, marketing and operation. Including the launch of 14 new models in the next three years, products are more localized, product pricing is more pragmatic; pay attention to dealer profits, the implementation of dual-brand collaborative management; the operating mechanism is efficiency-oriented and so on.

For users, in September, Dongfeng Peugeot issued a 10-year or 200000-kilometer powertrain warranty, while Dongfeng Citroen issued a seven-day refundable service pledge.

The inaction of a few years ago led to today's dilapidated situation. DPCA needs thorough reform to get out of the predicament. Dealers are connected to the grid, speed up product development, focus on marketing, and so on. This time, can the dragon tide over the difficulty?

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