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FAW-Volkswagen recently issued an urgent notice to all employees, calling for "breakthrough action", indicating that it is at a critical moment in the company's transformation. In the context of the rapid development of new energy vehicles, FAW-Volkswagen is facing huge pressure for transformation.
In order to cope with the increasingly fierce market competition, FAW-Volkswagen has increased the sales discount of its models, and at the same time accelerated the pace of electrification and intelligent transformation, hoping to successfully realize the transformation and upgrading of the enterprise.
FAW-Volkswagen is facing a crisis of transformation
Today's automotive market is undergoing major changes unseen in a century. The rapid development of new energy vehicles has had a huge impact on the survival of traditional automobile companies. FAW-Volkswagen, as the largest joint venture automobile enterprise in the mainland, will not escape the doom of new energy reshuffle.
FAW-Volkswagen is a leading enterprise in the continental automobile industry and has long occupied the top spot in domestic automobile sales. However, in recent years, with the rise of domestic brands and the vigorous development of new energy vehicles, FAW-Volkswagen's market position has been shaken.
In the first four months of this year, FAW-Volkswagen's sales increased by only 0.9% year-on-year, slowing down significantly. Compared with BYD, which is the No. 1 company in the industry, FAW-Volkswagen's sales gap has widened, and its market share has also fallen from 11.1% last year to 8.1%.
Not only FAW-Volkswagen, but also other joint venture brands are also facing the dilemma of declining sales. In April, the overall retail sales of joint venture brands fell 26% year-on-year.
Among them, the market share of Japanese automakers decreased by 3.6 percentage points, the market share of German automakers decreased by 2.2 percentage points, and the market share of U.S. automakers decreased by 2.6 percentage points. Joint venture brands are losing their dominance in the Chinese market at an accelerated pace.
The new energy vehicle market is becoming a new blue ocean for automobile companies to compete for. FAW-Volkswagen does not have a leading position in the field of electric vehicles and needs to accelerate its layout. In the first four months of this year, the cumulative sales of pure electric passenger cars in China exceeded 1 million, a year-on-year increase of 1.5 times.
Domestic car companies such as BYD, Geely, and Xiaopeng seized the opportunity, making FAW-Volkswagen unable to succeed. The fierce competition in the field of new energy has brought great pressure to FAW-Volkswagen.
FAW-Volkswagen launched the "Breakthrough Action" to respond to market challenges
In the face of the increasingly severe market environment, FAW-Volkswagen realized that the company was in a critical period of survival, and launched a rescue plan called "Breakthrough Action", hoping to open up the situation in the new energy competition.
In order to alleviate the pressure of declining sales, FAW-Volkswagen has recently increased sales discounts for various models. A number of its hot-selling models have launched car purchase discounts of 3-70,000 yuan. This is mainly achieved by reducing the retail price of the model, and FAW-Volkswagen expects this price strategy to quickly increase sales.
FAW-Volkswagen plans to vigorously promote the development of electric vehicles and intelligent connected vehicles by 2024. The number of electrified models will increase to more than 10, accounting for more than 20% of total sales. At the same time, it will also carry out innovation in autonomous driving technology and enter the field of intelligent mobility. Only by using electrification and intelligence can FAW-Volkswagen seize the opportunity of the new energy era.
FAW-Volkswagen will also increase its efforts to expand overseas markets through its Jetta brand. The Jetta brand will vigorously develop overseas demand and enhance global competitiveness. This will help FAW-Volkswagen reduce its dependence on the single Chinese market and further achieve global development.
Looking forward to the transformation and upgrading of FAW-Volkswagen
FAW-Volkswagen is in a period of strategic transformation in the corporate life cycle, which is a critical moment in the development of the business. Although the launch of the "Breakthrough Operation" is a little late, as long as the opportunity is seized, FAW-Volkswagen still has hope to achieve a successful transformation.
Although FAW-Volkswagen is facing arduous transformation pressure, its brand influence is still there, and its technical strength should not be underestimated. As long as the transformation route is appropriate, focusing on new energy and intelligent networking, FAW-Volkswagen still hopes to gain a firm foothold in the competition and maintain its position in the industry.
FAW-Volkswagen also needs to innovate in management and culture in order to leverage the vitality of the organization. It is necessary to boldly introduce the competition mechanism, break the rigidity of thinking, and stimulate the enthusiasm of employees for innovation. At the same time, it is also necessary to adjust the corporate culture to adapt to the new energy era and provide spiritual power for the transformation.
Government policy support is also crucial in the transition process. Relevant departments need to increase support for enterprise technological innovation to provide policy dividends for FAW-Volkswagen's transformation. At the same time, it is also necessary to continuously optimize the business environment so that enterprises can fully demonstrate their innovation vitality in the market competition.
FAW-Volkswagen is at the crossroads of enterprise development, and the future is very uncertain. However, as long as we seize the opportunities of new energy and new technologies, FAW-Volkswagen still has the possibility to achieve a new life and create new glories. The success or failure of this "breakthrough operation" will determine the fate of FAW-Volkswagen in the new era.