"FAW-Volkswagen is in the last and only window of transformation, we have no way out except to fight against the water, only to live with one heart to die."
This deafening internal notice was exposed, which makes people wonder if this car company has fallen into a historical low?
Back in the 90s of the last century, China had just started the process of automobile industrialization, and FAW-Volkswagen, as the first batch of joint venture car companies, could be described as proud and complacent. Today, with its technology, brand and channel advantages, it is still one of the number one players in China's passenger car market.
But with the surging of the new energy revolution, the former king began to feel unprecedented pressure. At present, FAW-Volkswagen has to hold its ground in the traditional fuel vehicle market, and at the same time must stride into the electric vehicle track, which is destined to be a battle to the death.
Perhaps it was precisely because of the overwhelming crisis that we had to sound the clarion call for "breaking through". However, it is not enough to mobilize the pledge, FAW-Volkswagen must use the strength of the whole plant to make bold changes in terms of products, marketing and services.
The crisis window is a top priority
The white-hot competition in the domestic auto market is not an exaggeration to describe it with the word "miserable". In addition to the vigorous development of independent brands, even the corps of foreign-funded car companies are constantly increasing the domestic market. The once strong hand is in a huge predicament, and FAW-Volkswagen obviously understands it.
Judging from the latest data of the Passenger Association, in the first four months, although FAW-Volkswagen's retail sales increased slightly year-on-year, the monthly sales in April fell by 15.6% year-on-year, and the situation is very grim. Industry insiders bluntly said that it will be a huge challenge to maintain a dominant position in terms of brand power and product power in the future.
Yan Jinghui, who is well versed in the development of car companies, believes that the attitude of FAW-Volkswagen as if facing a great enemy is very necessary. As a veteran joint venture car company, the top priority is to take the initiative to accelerate the transformation of new energy and firmly occupy the commanding heights of the market before the window closes.
In other words, at this moment of crisis, FAW-Volkswagen must spare everything and launch its combat effectiveness throughout the system. Without consciousness, urgency and courage, all efforts will be in vain.
The product is a big knife and axe
How to "break through"? A closer look at FAW-Volkswagen's recent measures shows that it is determined to take the initiative.
In terms of product strength, FAW-Volkswagen is clearly focusing on increasing electrification. Since the beginning of this year, the ID.3 and ID.6 have been upgraded one after another, and the ID.4 was also launched in April. The product line of hybrid and plug-in hybrid is also accelerating, and now there are two plug-in hybrid vehicles available under the Jetta brand. In the future, FAW-Volkswagen will increase its efforts to promote electric vehicles.
In addition to increasing the size of new energy, for the existing traditional fuel models, FAW-Volkswagen has recently been crazy to increase prices and profits, and let go of promotions to boost sales. Bora, Tanying, Tanyue and other hot-selling models, cash discounts are much higher than in previous years. Especially for some old models, the cash discount is as high as 5-70,000 yuan, which frequently hits a record high.
This time, he went into battle almost shirtless, decisively raising prices and making profits in exchange for market share, trying to accumulate sales and market share for subsequent new energy models. This can be said to be the first price paid by FAW-Volkswagen for "breaking through".
The battle of channels to retain consumers
But it's not enough to fight a product war. Subsequently, as the traditional king of joint venture vehicle manufacturers, FAW-Volkswagen must also fight the channel war with the attitude of the king.
Today's consumers are becoming more rational and pay attention not only to product hardware, but also to software services. As a link between products and consumers, the channel link is bound to make every effort to transform and upgrade to give consumers a new experience.
FAW-Volkswagen is clearly aware of this, and in recent years it has spared no effort to expand digital and intelligent channels online and offline. The online layout involves vehicle e-commerce, second-hand cars, finance and other links; Offline intelligent upgrades are carried out through marketing, distribution, and maintenance.
The goal is clear: to maximize consumer retention. With endless competitors emerging and consumer demand escalating at a high speed, the situation of channel construction is more urgent than ever.
This may be why FAW-Volkswagen has to issue an internal "breakthrough" alarm and must mobilize the strength of the whole factory to go to this special battle.
Internal and external troubles, life and death
In fact, FAW-Volkswagen's various actions all show its current anxiety.
The external environment undoubtedly gave it the most pressure. In April 2023, the overall sales of mainstream joint venture brands fell sharply, and the retail share of the three major camps of Japanese, German and American brands in China was no exception. Obviously, in the face of the rise of independent brands and the squeeze of other foreign brands, the joint venture car companies that once occupied the commanding heights are suffering an unprecedented impact.
At the same time, internal transformation has also become a top priority for FAW-Volkswagen. In 2023, FAW-Volkswagen plans to achieve an annual sales target of 1.9 million to 2 million units. To achieve this goal, we must fight hard to accelerate the transition to electrification, while ensuring that sales of traditional combustion engine vehicles do not fall off a cliff.
According to a source, FAW-Volkswagen launched the "breakthrough action" this time precisely to increase pressure and unify ideological understanding. Obviously, it has realized that it is a matter of life and death at this critical moment, and must work together to tide over the difficulties.
In a word, FAW-Volkswagen is undoubtedly in a predicament at present, and the internal and external difficulties have forced the car company to fight against the tide and live to the death. But even if it finally passes through this "final window", it will face more and more brutal competition in the future, and it still needs to be fully vigilant. Perhaps this is the underlying reason for "all as one".