Li Yugen "The auto market is still developing steadily"


There will not be much change in the car market next year. Not long ago, Dongfeng Yueda Kia Motors Corporation had some important personnel changes, and there were various kinds of speculations. Recently, the company’s new general manager, Li Weigen, made some clarifications during an exclusive interview with the newspaper. Li Yugen said that after the first quarter of this year, the Chinese auto market was utterly deserted, and manufacturers and distributors were in a difficult position. Modern Kia executives believe that it is more appropriate for those who choose to have sales experience to act as top managers at this time. This point, he was sent to China to take over Cheng Dayu. Li Shugen, 52 years old, graduated from Electrical Engineering Division of Korea National University of Seoul. He joined Hyundai Motor in 1977. He has been responsible for Hyundai Motor's overseas market since 1996. He had six years of modern US and Canadian markets, and was modern before serving in China. Vice President of Kia Motors Corporation. When negotiating Beijing Modern Project, he was one of the major negotiators of modern times. The overseas marketing and understanding of the Chinese automobile market are unsurpassed in the top management of Hyundai Kia. Li Shugen spoke highly of Zheng Dayu's work performance, saying that Zheng had a long-term experience in plant construction. During his tenure, “the original small factory was cultivated to an annual output of 130,000, and the success of the Maxima was also achieved.” Zheng is 64 years old. In the previous period, the middle and senior management of modern Kia were relatively old, and the company’s top level decided to use a group of young people. Zheng’s retirement was “a coincidence in time, and it caused some speculation in the media”. Li Shugen said, "The Chinese auto market has recently been a bit cold, but its development potential is very large." The Chinese car market has increased by about 15% this year. Dongfeng Yueda Kia has sold more than 60,000 vehicles in early December, an increase of 22% over last year and 7 percentage points above the average level. Li Yugen said that this should be considered relatively good, but because of the launch of two new models in the second half of this year, it is slightly lower than their own expectations. Li Shugen believes that China's car market will not change much next year. Some research institutions predict that this may increase by 10% to 15% and reach 270 to 2.8 million vehicles this year. He said, “This is a considerable increase, I think the auto market. It is better to continue to develop steadily.” He said that his most urgent task now is to increase the brand awareness of Farcruss in a short period of time. “The effect of a new car is put on, and the factory must be running at full capacity.” The reporter asked: Will Yancheng's 300,000-scale second factory plan be postponed or cancelled due to changes in market conditions? Li Weigen revealed that the second plant is currently preparing for approval documents, and the time for formal completion of production is expected to be 2007. At that time, the Chinese automobile market will surely be alive. They will also add some new products and fully operate the second factory. "Everything is now proceeding as planned. The key is to wait for the National Development and Reform Commission's approval document." Far ship pricing has nothing to do with Beijing Hyundai Sonata. He introduced that next year Dongfeng Dongfeng Yueda Kia will have to add a new model. It is a brand new model that Kia has just launched, with a displacement of between 1.6 and 1.8 liters, because it is necessary to fill the Maxima and FarShip. The gap between. Although the new model shared a platform with the Elantra, it was three years later than the Elantra development. As a result, the original defects of the Elantra were improved and some new technologies were added. Therefore, he was "confident to the sales effect of the new car." . The reporter asked by the trend that Dongfeng Yueda Kia’s models are always on the same platform as Beijing Hyundai. For example, Yuanjian and Sonata, and then pushing one model and the same platform as Elantra, will this result in the “same-door competition”? Li Shugen said: "Not only in the Chinese market, but in other overseas markets, including the United States, Kia and Hyundai are also competing on the same platform. Although it is a car on the same platform, there are some differences in the exterior design and the personality of the car." We avoid vicious competition and good-faith competition is inevitable.” He emphasized that other manufacturers, such as FAW-Volkswagen and Shanghai Volkswagen, also use the same platform, and they can be regarded as not being between the two masses. Hostile competition: Volkswagen has also divided four brands in Europe, and actually has a lot of overlapping products to compete in. Although sales in the Chinese market are more modern than in Asia, sales in Western Europe, including Germany, the United Kingdom, and Kia are all better than modern ones. To be more, the reporter asked: When the ship is listed, the price is set relatively high, and public opinion circles believe that it is the intention to give Sone Tower the vacant market space, which is the sacrifice made by Dongfeng Yueda Kia for the modern era. Within the modern Kia Group, Will Kia control the interests of Kia because it controls Kia in the modern era? Denying this possibility, he said: "This kind of thing can never happen. The outside legend is totally groundless. "Because, after all, there are two joint ventures, and their respective Chinese partners are different, it is impossible to sacrifice the interests of the other party for the benefit of one party, and the Chinese partner will not agree. He said: "The price of Yuanjian is purely Dongfeng Yueda KIA's own business. It is the former general manager’s grasp of the market. He believes that in the high-end car market, the price is not the most important factor, so he added a better configuration, the price will go up, and the price is reasonable from the perspective of cost performance. Li Yugen introduced that product pricing is negotiated and agreed upon by all three parties. Far-ship pricing has nothing to do with the Sonata. However, Sonata’s first introduction of the market has a benchmark for price, so it is only the Sonata’s. The price, as a reference, is the same price system as Sonata or a little price difference, which is set by the tripartite negotiation of the cooperative company, which has nothing to do with the modern headquarters. Until now, people in the South Korean economic community have a concern that South Korean companies have all invested in China, and that South Korea will not have the problem of technology and capital being hollowed out. Li Yugen believes that although South Korea’s investment in China has recently increased, the industry has moved to China. The shift tends to be more serious, but the Chinese auto industry, including parts and components, is not competitive enough. Many of the original If we want to import from abroad, we will not have much competitiveness. It will take some time for China's manufacturing competitiveness to come up, so it will not be easy for some people in South Korea to worry about domestic "hollow-out technology and funds." The top priority is to quickly increase the competitiveness of raw materials.China has recently become a “black hole” for the source of mineral resources, and the world’s resources have attracted China.However, the Chinese market is very large, the market demand is large, and there will be competition for the development of products. The reporter noticed that in recent years, the multinational companies investing in China have become more and more inclined to bring in their own original parts factories in China. If a host company develops its own system like this, the reporter is worried It is difficult for China to form a unified auto parts market in the future, and China’s auto industry will not be able to form a unified auto parts market.” Li Weigen said that it is not these manufacturers who are interested in creating a system. The key is that domestic auto parts companies lack competition. Forces, manufacturers are the last resort, Dongfeng Yueda KIA has ten The entry of a home-supporting plant into China is a lack of competitiveness for local raw materials in China, and he believes that the following Korean companies must develop into local enterprises as quickly as possible.Modern Kia has also built factories in the United States, and the level of raw materials processing industry in the United States is world-class. South Korea's spare parts companies do not need to follow the US market.Li Weigen believes that Japan's spare parts companies were once supported by a system cluster and a factory, and Korean companies inherited the Japanese part company culture. But recently this situation in Japan began to change. From the Nissan start, under the premise of guaranteeing quality, whoever has the lowest price is adopted. After Renault purchased Nissan, the first reform was to disrupt the original Nissan parts system, and not to exclusively supply spare parts suppliers. But global procurement, as long as the quality is achieved, whoever buys can be.The Japanese companies and South Korean companies entering China will all develop toward this trend in terms of parts and components, not only rely on one to eat, so that parts and components companies can develop and grow.

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