2022 will be a year of ups and downs for the Chinese automobile industry. The complex international situation, chip shortage and other factors have had a huge impact on the entire industry. However, in the unexpected changes, some companies still delivered outstanding results, and FAW-Volkswagen is the most typical one. According to the latest data, in August this year, FAW-Volkswagen's monthly new car sales in terminals reached 167,575 units. In the first eight months, the cumulative new car sales of terminals have reached 1211,192 units, ranking first in the country, and continues to lead the passenger car market.
Looking at the dozens of Sino-foreign joint ventures competing in the Chinese market, from which perspective, FAW-Volkswagen is recognized as the most successful and attractive joint venture car company. Starting from Changchun, after 31 years of hard work, FAW-Volkswagen has currently owned a total of 5 production bases across the country. More importantly, through FAW-Volkswagen, Germany's strong technical accumulation in the field of automobile manufacturing, has been perfectly combined with China's broad market and complete industrial chain, and has jointly achieved a "nature combination" in the field of automobiles in China and Germany.
common interests are always the first
When talking about the reasons for FAW-Volkswagen's success, we can analyze it from the three aspects of "time, place, and people".
"Time" refers to the reform and opening up policy. More than 40 years of reform and opening up have built a long-term stable relationship between China and Germany. The stable relationship between the two countries supports and drives German companies to continue to deepen their cultivation in the Chinese market.
"Georgement" refers to the overall excellent automobile industry environment in the country. At present, China has been firmly ranked first in the world's automobile market for more than 10 years, and the automobile industry has accounted for about 10% of the domestic GDP, playing an increasingly important supporting role in stabilizing the economy and maintaining growth. More importantly, China has also cultivated a prosperous soil for innovation, and China's automobile industry has become an important part of the world's automobile landscape. The most important of the three factors of
is "people harmony". Both the Chinese and German shareholders of FAW-Volkswagen have a strong sense of identity and belonging to the joint venture.
Among them, Li Zhihong, Secretary of the Board of Directors and Director of the General Manager's Office, was deeply touched. "Achieving the maximization of FAW-Volkswagen's interests is the common goal of both Chinese and German shareholders." Li Zhihong said that for FAW-Volkswagen, both shareholders have a highly consistent strategic goal, namely, work together and empower comprehensively to help the company's development. For example, in the empowerment of talents and cadres, candidates with cross-cultural communication capabilities and a global vision will be assigned; in the layout of the industrial chain, the localization of product technology and parts will be focused on, and they will be committed to driving and stimulating local partners to develop, grow and grow together.
is a long-term partner
FAW-Volkswagen Sales Co., Ltd. Executive Deputy General Manager and Volkswagen Brand Executive Director Michael Mayer first came to Changchun in 1995, when the Sino-German joint venture was just established. In 2017, Maideyue returned to FAW-Volkswagen again and was surprised by the earth-shaking changes that took place here: "Recalling the first time I came here in 1995, FAW-Volkswagen's products were relatively single and the output was low. Today, it has become China's largest joint venture automobile manufacturer, with a world-class organizational structure and talent system. This can be said to be the most impressive change I have ever experienced."
From the start-up stage, to the explosion stage, and to the current market leader, Maideyue believes that the reason for FAW-Volkswagen's success is that both Chinese and German shareholders have always put the interests of the joint venture first. Under the open culture of seeking common ground while reserving differences, FAW-Volkswagen, both grassroots employees and shareholder representatives, always remain patient and actively try to solve problems. Fact-based communication and dialogue have become an indispensable and key component within FAW-Volkswagen.
FAW-Volkswagen (Technology) Deputy General Manager Andreas Dick came to China in 1999 and has experienced many different positions at FAW-Volkswagen.As a highly qualified "FAW-Volkswagen", he also believes that the key factor in FAW-Volkswagen's success is that both Chinese and German shareholders are committed to establishing a long-term close cooperative relationship and always working for a win-win situation.
In Diade's view, both Chinese and German shareholders are not satisfied with obtaining the maximum profit through FAW-Volkswagen in a short period of time, but instead stands on a decades-long span to think about the long-term development of this joint venture. This idea of cooperation has also become a solid foundation for FAW-Volkswagen to achieve success.
joint venture has entered the 2.0 era
From the initial exchange of market for technology to the current shareholders' achievement of win-win results, FAW-Volkswagen has not only become a model for domestic joint venture car companies, but its benchmark effect has also spilled into the entire industry.
Build a "manufacturing power" has become a national strategy. In the process of upgrading and transformation of my country's manufacturing industry, the driving effect of the upstream and downstream technological progress of the entire industrial chain has become more obvious. As a leader, FAW-Volkswagen has driven and stimulated the rise of many related companies in terms of product technology and localization of parts.
When it first started to start running, many of FAW-Volkswagen's parts relied on imports from Germany. At present, the domestic production rate of parts of some models of Volkswagen brand has reached 100%, which has effectively helped the development of local parts companies. For example, the domestic "No. 1" power battery CATL was to output its first set of vehicle-mounted power battery technical standards and quality requirements through the FAW-Volkswagen Bora New Energy Vehicle Project, and based on this, it has become a world-class battery company step by step.
In the past two years, with the continuous development of electrification and intelligent technologies, the automobile industry has also ushered in a major change that has not been encountered in a century. Although some people believe that the hot selling of new energy vehicles in China is guided by policies, the role played by the trigger and promotion of the automobile industry itself cannot be ignored. FAW-Volkswagen, which is at the forefront of the market, has keenly noticed changes in user needs early on, and based on this, it has started a new digital transformation with the user as the center. This strategic transformation of
has received the greatest support and guidance from Chinese and German shareholders. FAW Group Chairman Xu Liuping personally proposed the concept of joint venture cooperation 2.0, clarifying the growth goals of high-efficiency transformation, innovation-led, and accelerated changes.
It can be foreseen that in the next new market competition, FAW-Volkswagen will still be the backbone of the Chinese automobile market. The long-term and continuous investment of Chinese and German shareholders expresses their unanimous optimism for the future of FAW-Volkswagen. More importantly, as a model of Sino-German cooperation, "achieving win-win results" has become the DNA of FAW-Volkswagen. Standing at an important node of the 250th anniversary of the establishment of diplomatic relations between China and Germany, this concept of "creating win-win for the same" will undoubtedly become the best link to connect the two sides in future industrial cooperation, cultural exchanges, and even the mutual exchanges between the two countries. It will also provide model reference and value reference for more cross-border exchanges and cooperation.
Image source: FAW-Volkswagen
