The financial crisis was an absolute test for the establishment of Chery Automobile for only 12 years.
However, Chery’s report card is very bright. From January to May this year, Chery’s sales exceeded 179,000 units, a record high, and the sales volume increased by 65% ​​year-on-year! And for the 10th consecutive year, it won the championship of domestic independent brand sales.
Under the adverse situation, where is the secret of Chery's growth?
Perseverance in technological innovation
Chery will launch 10% of new products every year, and keep up with the trend of the times. Chery News spokesman Jin Yibo told the "Manager": Chery does not innovate for innovation, but pays attention to accumulation and summarization, dares to take the road that others have not gone through.
As we all know, the development of Chery has not been smooth. In 2004, there was a negative growth in performance, and the capital chain encountered serious problems. Even in that case, Chery invested more than one billion yuan in research and development. “At that time, the funds for R&D were not enough, and part of the funds were still found in bank loans.†Jin Xiaobo said, “This year, Chery invested 13% of its sales revenue in R&D. Chery’s goal is to become an international company. It must have Its own core competencies and brands. Therefore, it will be hard to save R&D and continue to train.â€
Since 1997, Chery has submitted more than 3,600 patent applications, has 1,600 national automotive technology patents, developed and reserved more than 20 new models, breaking many technical difficulties, such as body technology, automotive-controlled electronic technology, engine technology , high-end automatic transmission technology and so on.
The engine is the core component of the car and is the core of the product's cost structure. However, the development of domestic engine technology lags behind and the engine has always depended on other countries. In order to break through this technical threshold, Chery invested 3 billion yuan to start developing and manufacturing the Chinese's own engine. In the turmoil of the outside world, 18 "ACTECO" engines with displacements ranging from 0.8 to 4.0 liters, from three-cylinder engines to V8, from gasoline to diesel, and all emissions to European standards were developed. Now, all Ricky cars use engines with independent intellectual property rights.
Another breakthrough technology innovation of Chery is the newly developed 6-speed high-end automatic transmission. The automatic transmission can automatically change the transmission ratio according to the engine load and the speed, so that the car can obtain good power and fuel economy, and reduce the engine emission pollution. Chery has become the only company in China that has developed automatic transmission technology. "February next year, this new technology can be applied to the product."
In order to take advantage of the technological advantages of countries around the world, Chery has established overseas research institutes such as the Detroit branch, the Tokyo branch, and the Sydney branch, which are widely available in the local area, and are simultaneously developed with the Chery Automobile Engineering Research Institute and two national engineering and technology centers. This technical force collects the latest scientific and technological information based on future changes in energy, the environment, and society. Through research on new energy sources, new technologies, new materials, new processes, and trial production technologies, Chery has a long-term technological reserve for development. “Italian talents have a talent for art, and Chery asked them to do the modeling of cars; Australia’s automotive technology is developed, they do research and development of automobile structures, including automatic transmission technology; while domestic manufacturing has advantages, it is necessary to build basic car bodies.†Jin Yibo said.
Transformed into multiple brands
In foreign countries, Chery Automobile was mainly engaged in product sales. Now it is transformed into cooperation with local companies for production and sales. It is a form of partnership. This collaborative innovation is an effective form of Chery to open up the international market. At present, Chery invested 2.9 billion yuan in expanding the share of domestic and overseas emerging markets. So far, 9 factories have been established in the world and 6 factories are under construction.
In the face of this year's downturn, Chery has adopted an expansion strategy. It has changed the single-brand strategy that it had adhered to for 10 years, and added three brands: Riich, Rely and KARRY. Among them, Wei Lin is a high-end commercial vehicle brand, Rui Wei is a mid- to high-end car brand, and Kai Rui is positioned in the low-end commercial vehicle sector, mainly for the township and the new rural market, mainly for miniature passengers and trucks, and competes for large scale with the old van. market share. This is the biggest brand revolution of Chery Automobile in 12 years.
Chery has also made drastic changes and innovations on its sales network and established three independent sales networks. Among them, the Chery Automobile Sales Company is responsible for the marketing of the Chery brand, the newly established Kirin Automobile Sales Company is responsible for the marketing of Weilin and Ruiqi, and the commercial vehicle sales company is responsible for the marketing of the Kairui brand and builds a large and complete sales system. .
"Chery hopes to add high-end brands and change the low-end brand image that has accumulated in consumers' hearts for a long time. In this sense, multi-brand strategy is the biggest innovation." Jin Yibo said.
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