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GWM: How to break through the barriers?

From:Internet Info Agency 2020-08-13 17:56:36

On August 11, the 12th China Auto Blue-Book Forum (CABF 2020) with the theme of "The Winter Buds" was held in Wuhan. In this forum, Mr. Wei Jianjun, Chairman of Great Wall Motor (GWM), as one of the important guests, proposed an important barrier for traditional car companies to face transformation. As the helm of Great Wall Motors, the reform of traditional car companies is imperative. Only by breaking through himself can he gain the recognition of consumers and a larger potential market.

In the forum, not only talked about the global trend of energy conservation and emission reduction, but also mentioned the far-reaching significance of the development of the "new four modernizations" to the automotive industry. In addition, he also talked about whether smart electric vehicles will replace traditional cars and become mainstream in the future.

Nowadays, in the era of global economic downturn, the dividends will be exhausted, coupled with the constant "encirclement and suppression" of overseas brands and new power car manufacturers, the transformation of traditional car companies is imminent.

Mr. Wei said in the forum:"GWM, as one of the independent brands, is not enough to pursue traditional craftsmanship, and intelligence and electrification are the future trends. In addition, the biggest problem of traditional car companies is not the barrier of technology. It is not the shortcoming of the battery, but the system, mechanism, and cultural changes. Only by "reborn" can the real transformation be completed."

In today's era, all car companies are thinking about how to find a new shore by riding the wind and waves and setting sail as a new starting point if they break the circle. However, the system of domestic auto companies has become a "blocker" that hinders progress. Under such a premise, only institutional reforms can have a broader future.

And what is the system? How to reform the system? This problem has become a problem faced by the top leaders of all car companies. Simply put, the system is the management authority division system established by state agencies and institutions.

And such a system is gradually being weakened today. Many government departments are increasing the convenience and benefit of the people's wellbeing. The same is true for car companies. They can’t blindly stand high. If they want to gain more market, they must put aside their attitude and cater to consumers to have room for survival.

As we all know, GWM has always adopted "semi-militarized" management, and such a system has been through 30 years, and it is no exaggeration to say that it is successful. However, such a system will gradually be eliminated in the future. Why do you say that?

Thirty years ago, GWM developed from a small private factory to a private car company listed on the Hong Kong Stock Exchange. It was difficult step by step, but with the belief of "Improving little by little everyday", it opened the market step by step and achieved success. For thirty years of highlight moments, do you think this is considered a success?

However, many problems are hidden behind the success. The “semi-militarized” management system limits the future development of GWM. The ideological obstruction of employees and the division of authority in the system hinder the progress. Therefore, what urgently needs to be resolved is how to reform the system.

Not long ago, Mr. Wei Jianjun, chairman of GWM, gave the answer. He once said: “In the face of reform, Great Wall Motors must build a customer-centric, product strategy-led strategy, four major brands as a combat group, and a single-model vehicle for combat. The unit uses R&D, product digitization, supporting procurement, biotechnology, and marketing as the resource platform to facilitate business operations, and the organizational operation system supported by functional platforms such as finance, human resources, quality, process, and enterprise digitization, accelerate organizational changes." From this passage, we can see that Mr. Wei is ready for change and has implemented it internally.

In addition to institutional reforms, institutional changes are also inevitable. First of all, car companies should break up the barriers between departments so that all departments can communicate and work together under the premise of good operation. Secondly, a competition mechanism must be established within the enterprise to further tap potential young people and at the same time give them more room for improvement. Finally, it is necessary to establish an employment mechanism to enable capable employees and responsible employees to play a role.

In fact, GWM has been constantly changing, especially in a bad environment. Only through reform can new directions and outlets be found. In February of this year, GWM completed its global layout, and 11 production bases made GWM truly international. In March, a letter from a hundred dealers co-signed to GWM Chairman Wei Jianjun and President Wang Fengying, which became a good story in the automotive industry.

In April, after the domestic epidemic eased, the rapid resumption of work and production also reflected the changes in the internal mechanism of GWM, and rapid response was used to deal with the impact of the epidemic. During the opening of the two sessions in May, President Wang Fengying, as a representative of the two sessions, put forward five proposals and suggestions on issues such as the high-quality development of China's autos and the path to globalization.

In June, during the Haval Brand 500 celebration, the 521 global strategic layouts further promoted the internationalization of the GWM brand. The above changes are just simple marketing strategies to outsiders. But in fact, these measures are the best proof of the changes in internal mechanisms, and they also verified the principle that Mr. Wei put forward on the forum to connect the brand, commercial enterprises, and research and development, and at the same time to connect the combat unit, in order to simplify the internal process, and strengthen the brand and company management.

The cultural concepts of traditional car companies have long been formed. At this point, GWM must learn from emerging car manufacturers. Their concepts cater to the needs of modern consumers. At the same time, the development of smart cars is also the general trend. These emerging automakers that have survived to this day are not new in the brand establishment time.

In fact, the definition of new and old has long been blurred. In an era of extreme openness, nostalgic objects can also be called new things, and new things can be called old events after the baptism of time. Both traditional car companies and new power car companies need continuous innovation, especially brand-level innovation and technological innovation. In addition, traditional car companies also need to integrate more Internet thinking and face the changes of the times with the spirit of continuous learning.

At the forum meeting, Mr. Wei also said: “Now traditional car companies and new power car companies will stand on the same track sooner or later. Emerging automakers cannot always be new powers, and traditional car companies cannot always build cars behind closed doors."

Through the above viewpoints, it is sufficient to prove that GWM has already seen the cultural differences between enterprises, brands, and consumers. Only by complementing the differences between the three can a company or brand become bigger and stronger.

And we can see the complementation of cultural differences between car companies, brands and consumers from the naming of GWM's recent models. The first is the naming of Haval Da Gou. This naming is the result of voting from many netizens, which is the best proof of the cultural differences between the three. The second is the naming of Ora's "white cat", "black cat" and "good cat", allowing it to walk into the preferences of consumers and tap into more in-depth potential consumer groups. Then WEY released the Tank 300 at the Chengdu Auto Show that just ended. The integration of different cultures makes the audience circle of car companies wider.

In the discussion at this forum, Mr. Wei shared many of the current problems facing car companies, and at the same time shared the magic weapon of how car companies will revolutionize in the future. With the advent of the "new four modernizations" wave, it is not only an unprecedented opportunity brought by the automotive industry, but also the beginning of change. As the helm of GWM, how to seize the opportunity and accelerate the transformation of the enterprise has become a top priority.  In addition, through the changes in GWM in the first half of the year, we can see that the company continues to deepen its internal system, mechanism, and cultural changes, and grow rapidly in the reform.

Editor:Zhao Chun