Recently, when Dongfeng Motor Co., Ltd. (hereinafter referred to as Dongfeng Limited) released its annual performance in Beijing, Guan Feng, the president of Dongfeng Limited, showed his business card to reporters. This newly designed business card is printed with the logos of Nissan, Dongfeng, Qichen and Infiniti, which are the new changes of Dongfeng Limited's four brands in 2014.
“We are not satisfied with the market performance in 2014.” Guan Run told the “Daily Economic News” reporter that in 2014, Dongfeng limited sales of nearly 1.2 million vehicles, with a market share of 5.35%, basically the same as in 2013. Among them, passenger cars sold 1.01 million and commercial vehicles sold 190,000. Dongfeng Nissan, the largest passenger car segment of Dongfeng Limited, sold 952,000 vehicles in 2014, a year-on-year increase of 2.8%.
In addition to the slowdown in sales, the inventory crisis experienced by dealers has also been seen as the most serious factor. “Starting in September last year, there was a problem with the operation of the dealers, and there was a high inventory operation dilemma. We found that we adjusted in time and did not squeeze the dealers until the dealer inventory had returned to normal levels in January this year.” Guan Run Said.
In 2015, Dongfeng Nissan's Dalian plant will soon be put into operation. After the release of new capacity, Dongfeng Limited will also temporarily suspend its capacity investment for its subsidiaries, followed by a new period of commodity investment.
New car brand new layout In September last year, Dongfeng Infiniti Automobile Co., Ltd., a wholly-owned subsidiary of Dongfeng Limited, was established. Infiniti's first domestic Q50L was put into operation at Dongfeng Nissan's Fuyang plant, adding new members to the Dongfeng limited product family. In 2014, Infiniti contributed 30,000 units to Dongfeng Limited. Although the sales volume is not high, but for Dongfeng limited, its product line has penetrated into the luxury car camp, and will become an important profit source of Dongfeng limited.
Dongfeng Nissan is still an important contributor to Dongfeng's limited sales and profits. Dongfeng Nissan sold 952,000 vehicles last year, up 2.8% year-on-year. Among them, the self-owned brand Qichen series models sold a total of 114,000 vehicles throughout the year.
For this market performance, Guan Run bluntly said that “there is a problem with the sales method” is an important factor affecting the sales volume of Dongfeng Nissan.
“We have problems with our sales methods. The target set at the beginning of 2014 was very high, which led to pressure on dealers in the first half of last year.” Guan Run said frankly, “In the second half of the year, we gradually adjusted and stopped squeezing dealers to win-win. The angle handles the relationship with the dealer."
In addition, in the light commercial vehicle, Dongfeng Motor Co., Ltd. after nearly three years of adjustment and transformation, with the full implementation of the light truck country's four emission standards as an opportunity, last year sold 239,000 vehicles. Dongfeng Parts Company and Dongfeng Equipment Company, located in Shiyan, also grew simultaneously last year. Among them, Dongfeng Parts Company achieved a net income of 10.967 billion yuan, a year-on-year increase of 21.5%, and an operating profit of 35.5%. Dongfeng Equipment Company completed sales revenue of 2.523 billion yuan last year, an increase of 12.03% year-on-year.
From capacity investment to commodity investment In 2015, after the Dalian plant was put into production, Dongfeng Nissan's production capacity reached 1.5 million. Guan Run said that in the future, Dongfeng Limited will shift its production focus to investment in commodities for its products.
Ma Zhixin, vice president of Dongfeng Limited, also told the reporter of “Daily Economic News” that “the amount of investment will not decrease, but it will only be transferred from production capacity to commodities.”

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