21st Century Business Herald reporter Du Qiaomei Guangzhou reported that in 2021, under the background of the shortage of the global semiconductor industry and the tight supply chain, Dongfeng Limited also ushered in a key year of product renewal and brand upwards.
As the first automobile joint venture in China with a full range of passenger car and light commercial vehicle products, in December 2020, after streamlining the original seven divisions of Dongfeng Nissan, Dongfeng Venucia, Dongfeng Infiniti, Dongfeng Co., Ltd., Zhengzhou Nissan, Dongfeng Parts Group, and Dongfeng Equipment into five major divisions of Dongfeng Nissan, Dongfeng Infiniti, Dongfeng Co., Ltd., Zhengzhou Nissan and Dongfeng Parts Group, Dongfeng Co., Ltd. realized internal and external resource synergy and strong alliance through business integration, reorganization and optimization. Accelerate the high-quality development of the main business.
However, it is not easy for the "elephant to turn", in the face of the rapid advancement of intelligence and electrification, traditional automobile companies are also facing double challenges in the development process.
"Fuel vehicles still have to continue to do, to ensure that fuel vehicles must be invested, but can not be over-invested, because the proportion of electric vehicles is still rising." Then it is necessary to ensure that there are enough profits in the fuel vehicle to support the investment in the future trend, because electric vehicles are currently less profitable than fuel vehicles, but shareholders have requirements for profits. Dongfeng Limited's goal is to ensure that profits meet future continuous investment. On November 19, on the day of the opening of the 2021 Guangzhou Car Show, Li Jun, vice president of Dongfeng Motor Co., Ltd., said in an interview with the 21st Century Business Herald reporter.
It is worth noting that in order to promote enterprises to reduce the decision-making cycle and accelerate the introduction of new models, while completing the streamlining of the organizational structure, Dongfeng Limited is also continuing to accelerate digital transformation. Among them, in terms of financial informatization, Dongfeng Limited has launched the "Pilot Plan 2.0" project to provide strong support for the front-end business through the combing and integration of financial data.
"The Pilot Plan 2.0 is a sufficiently advanced platform, and what is being done now is the analysis of the revenue of each model, which can be refined to analyze the revenue of each model, and provide a reference for future invested models." Li Jun said.
The following is a transcript of the interview, with abridgements.
21st Century Business Herald (hereinafter referred to as "21st Century"): What is the background of the launch of Dongfeng Limited Pilot Program 2.0?
Li Jun: At the beginning of the joint venture, there was Pilot Program 1.0, and at that time, the accounting system was established from the ERP. However, the entire Dongfeng Limited has 7 business units and more than 300 companies at all levels, so the speed of decision-making at the headquarters is slow. In 2016, dongfeng limited financial accounting headquarters mid-term business plan proposed financial transformation, the need for a tool to achieve flattening.
The first is the unified language, which unifies the accounting language of Dongfeng Limited 387 companies, and then a unified accounting manual, unified accounting rules, and the formation of a four-tier structure such as the operating system, data warehouse, and consolidation system of each company.
"21st Century": What achievements have been achieved since the launch of the Dongfeng Limited Pilot Program 2.0 project?
Li Jun: Because Dongfeng is limited and more complicated, the business part is financial management and strategic management. The Pilot Plan 2.0 project provides effective information support for enterprise management, and can provide sufficient decision-making information support for the management team with the management model formulated by Dongfeng Limited. The ultimate goal of Dongfeng Limited Pilot Program 2.0 is to achieve a key at the headquarters, and the financial statements of the following 387 companies can be automatically generated and formed into different combinations. At present, the project includes 387 companies, more than 100 financial statements, 10 verification rules, and 5 organizational structure systems, which can be seen from various dimensions. From the perspective of the industry, the domestic lead is also a benchmark in the automotive industry.
"21st Century": With the advancement of financial digitalization strategy, what role does it play in dongfeng's limited development?
Li Jun: First of all, the cycle of model introduction will become faster. From the financial point of view, it provides a solid foundation for rapid decision-making, at the same time, the whole process of digitization brings about the improvement of data accuracy, financial automation and modularization, financial personnel have more time to study the front-end business, and the quality of information provided by financial personnel for decision-making layers is improved, thus rapidly promoting the recent introduction of Dongfeng limited models and the reform progress of the business department.
Second, after the digitization of finance, the digitization of front-end business in various fields of the company will be promoted, providing a foundation for the transformation of financial management from transactional finance to analytical finance and then to strategic finance.
"21st Century": In the face of the electrification and intelligent transformation of the automotive industry, what investment and financing has Dongfeng Limited made in these areas?
Li Jun: Dongfeng Nissan has just launched e-POWER. At present, Nissan's investment in Vehicles is in Japan, and dongfeng limited will do a localized custom design, as well as publicity, dealer training and other investments. However, venucia's best-selling D60EV is a model developed by Dongfeng Limited R&D Center's own platform. In the future, there will be new attempts on channels, and direct stores will be considered to establish a Nissan experience center.
21st Century: Will There Be Financial Challenges?
Li Jun: There will definitely be challenges, on the one hand, the inventory problem, on the other hand, the actual benefits of electric vehicles are more challenging than fuel vehicles. But electro-drive is definitely a direction, how to achieve a rapid decline in costs in the field of electric vehicles to ensure good benefits, which may be a big challenge facing finances. The good news is that as the overall volume of electric vehicles rises, the cost of batteries may fall.
"21st Century": Now traditional car companies face the challenge of two-front combat. The field of fuel vehicles should increase investment, because this market cannot be lost, and new business areas must also be invested. What are the financial challenges under this change?
Li Jun: The financial challenge is that the fuel vehicles just mentioned should continue to be done, and it is necessary to ensure that the fuel vehicles must be invested, but they cannot be over-invested, because the proportion of electric vehicles is still rising. Then it is necessary to ensure that there are enough profits in the fuel vehicle to support the investment in the future trend, because electric vehicles are currently less profitable than fuel vehicles, but shareholders have requirements for profits. Dongfeng Limited's goal is to ensure that profits meet future continuous investment.
21st Century: How can finance help and ensure the implementation of policies related to the company's medium-term business plan?
Li Jun: The Pilot Plan 2.0 is a platform that is advanced enough, and what is being done now is a platform for the benefits of each model, which can refine the analysis of the revenue of each model, and provide a reference for future models.
"21st Century": New companies often integrate cross-departmental personnel and managers, break down departmental barriers, and share the risks and benefits of project investment.
Li Jun: It is also discussing, for example, last year there was a discussion about employee shareholding. Now the SASAC also requires share reform to encourage companies to marketize, which is the direction. Another method is to take stock of the core talents in the field of "new four modernizations" to form a talent pool to ensure sufficient core competitiveness.
"21st Century": This year everyone is very concerned about chips, how much impact has the chip shortage had on this year so far? When will this situation ease?
Li Jun: Several cars launched by Dongfeng Limited in the second half of the year have greater demand in the market, but the chip supply side does bring challenges. When entering the fourth quarter, the production capacity of chip factories has been restored, but there are too many needs to be met in the early stage, so there seems to be a gap in the fourth quarter. In the first quarter of next year, it may slowly enter the normal track, but it is also possible that there will still be a chip shortage problem by next June or so. For Dongfeng Limited, the supply of chips has certainly brought some challenges, but through the deployment and combination of models, we are shortening the customer pick-up cycle as soon as possible.
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