Strategy of Shanghai Volkswagen

Business Strategy Management Seminar Final Exam Shanghai Volkswagen Automotive Co. Department: Department of Mechanical Specialty: Mechanical Manufacturing and Automation Class: Class 4 Number: 49 Name: Lei Zhou Shanghai Volkswagen Automotive Co. With an annual production capacity of more than 450,000 vehicles, the company's products include Santana, Santana Vista, Passat, Polo, Touran, and Touguan, five platforms, six series and dozens of varieties. The birth of Shanghai Volkswagen put an end to the history of China's automobile industry, which had been wandering at a low level "behind closed doors", and opened up the way of utilizing foreign investment, introducing technology and accelerating development. Over the past twenty years, Shanghai Volkswagen self-accumulation, rolling development, creating a new model for the development of China's car industry. In exploring the road of joint venture in China's car industry, Shanghai Volkswagen has risen to the challenge, boldly explored, and walked out of the road of utilizing foreign capital, introducing technology, and rolling development, which has provided a brand-new development concept and successful practice mode for China's automobile industry, especially the rapid development of the car industry in the mid-to-late 1990's. In expanding its own production scale, Shanghai Volkswagen has also expanded its own production scale. While expanding its own production scale, the company carried out the localization of Santana sedan to revitalize China's car parts industry. This cross-region, cross-industry ambitious systematic project has driven the technological progress of a large number of supporting industries, laid a solid foundation for the formation of parts and components production in line with international standards, and played an irreplaceable role as a cornerstone for the vigorous development of the domestic car industry. In the spring breeze of reform and opening up, Shanghai Volkswagen has achieved excellent results. After many additional investments by various parties, the registered capital of the company increased from the initial RMB 160 million to RMB 11.5 billion; the total assets increased from RMB 980 million to RMB 36.94 billion. After the first, second and third phases of technological transformation projects and asset acquisition, Shanghai Volkswagen has now formed a layout of five production regions and a technology development center; by the end of 2009, the company had produced and sold a total of 5.18 million cars of various types, making it the largest car enterprise in China in terms of the number of cars retained. In view of Shanghai Volkswagen's outstanding performance and great success in its own development and market competition, the two sides of the Sino-German joint venture have renewed the extension of the joint venture contract in advance in 2002, extending the term of cooperation to 2030. In a cross-border, cross-cultural, cross-era, cross-technology background, Shanghai Volkswagen Chinese and foreign parties cooperate sincerely and forge ahead. The company has been honored as one of China's Top Ten Joint Ventures for eight consecutive years, topped the list of the country's largest 500 foreign-invested enterprises for eight consecutive years, and has been recognized as a National Quality-Effective Enterprise for nine consecutive years. In the course of development, Shanghai Volkswagen has created a number of firsts in China's car industry. As a successful model of Sino-foreign cooperation after China's reform and opening up, Shanghai Volkswagen has become a window for the world to understand China. In the development mileage, Shanghai Volkswagen has created a number of firsts in China's car industry. Advanced technology and equipmentAfter three phases of major technological renovation projects, Shanghai Volkswagen has now formed a production layout with four production areas (Automobile Factory No. 1, No. 2, No. 3 and Engine Factory) and a technology development center. Shanghai Volkswagen has world-class production equipment and processes. Modular production mode assembly line, advanced laser online testing equipment, to ensure stable and reliable car manufacturing quality; advanced fully automated stamping production line, the only two 2000T fully closed rapid prototyping multi-station presses in China, and a large number of robotics, to ensure the precision of the production of stamped parts; a large number of welding robots, advanced laser welding technology, which greatly improves the strength of the steel structure and surface finish; double-sided welding robots, and advanced laser welding technology, which greatly improves the strength of the steel structure and surface finish; double-sided welding robots, and advanced laser welding technology, which greatly improves the strength of the steel structure and surface finish. and surface finish; double-sided galvanized steel plate, advanced cavity wax injection process, combined with advanced car painting process and automatic spraying equipment, to ensure that the body for many years of anti-corrosion. Rigorous quality management Quality is the life of Shanghai Volkswagen. Shanghai Volkswagen adheres to the spirit of Volkswagen of Germany, which is "to manufacture cars as meticulously as crafts", establishes a perfect quality assurance system and quality assessment system, and persistently implements and adheres to the standards of high technology content, strong safety and lean manufacturing. 1995, Shanghai Volkswagen took the lead in China's automobile industry in passing ISO9001 quality system certification. 2001, Shanghai Volkswagen passed ISO9001 certification. In 1995, Shanghai Volkswagen was the first in China's automobile industry to pass the ISO9001 quality system certification, and in 2001, it passed the VDA6.1 (quality system of the Association of the German Automobile Industry) and ISO9001 (2000 version) system audits. 2001, Shanghai Volkswagen was honored as a "National Customer Satisfaction Enterprise", and won the "National Quality Management Prize" for the first time by the state. In 2001, SVW was honored as "National Customer Satisfaction Enterprise" and won the "National Quality Management Award" for the first time, and in 2003, SVW was honored as "National Customer Satisfaction Service Star Team" and "Shanghai Advanced Unit for Implementing Customer Satisfaction Project". In 2004, Shanghai Volkswagen won the "Shanghai Quality Gold Award". Shanghai Volkswagen Quality Control Center has the largest and most technologically advanced comprehensive matching measurement room in China, and its quality inspection means have been modernized and digitized. Strong Development Capability As a joint venture, Shanghai Volkswagen has insisted on taking the technology road of introducing, absorbing and self-development in its development over the years, and has vigorously improved its product development capability. In the evaluation of 2005 Shanghai Municipal Enterprise Technology Center, Shanghai Volkswagen Technology Center ranked first in the industry. In terms of hardware facilities, Shanghai Volkswagen has invested a total of 2 billion yuan over the years. Up to now, the company has a large-scale and advanced technical center, equipped with complete hardware facilities for independent development of bodywork and matching development of engine, electrical appliances and chassis; the first professional test track for cars in China with international standards, integrating all kinds of special road surfaces and complete facilities; and a quality assurance laboratory with advanced experimental equipments in the world, including metallic, non-metallic and electrical equipments. There are many advanced experimental equipments in metal, non-metal, electric appliances and so on. In the cultivation of technical talents, Shanghai Volkswagen has established a high-efficiency and high-quality product development team through TTA training and project cooperation, and basically has development leaders in various fields. After going through the localization stage of introduction, digestion and absorption, as well as the stage of joint development, Shanghai Volkswagen has entered the stage of increasing the construction of independent development capability. The export version of right-hand-direction POLO sedan developed by Shanghai Volkswagen was successfully exported to Australia in batch in 2003; in March 2004, Santana 3000, which was independently developed by Shanghai Volkswagen, was successfully launched. The PASSAT Pilot, which was called "the best local model created by excellent designers using excellent development mode" by the expert panel of "China Auto Pictorial" "Annual Ranking 2006", was launched in November 2005 and continued to sell well, with demand outstripping supply. The PASSAT Pilot has continued to sell well since its launch in November 2005, with demand outstripping supply. Perfect product series Santana Since its introduction in 1984, Shanghai Volkswagen Santana has carried out hundreds of technical improvements, and has successively launched several models such as 99 Rookie, Century Rookie and Junxiu, etc. The technical content has been continuously upgraded and has been maintaining good sales momentum, which is regarded as the "evergreen" in China's automobile world.

PASSAT The Shanghai Volkswagen Passat was successfully put into production in December 1999, and quickly became a classic of the mid-range sedan.

The newly launched PASSAT Pilot in November 2005 maintains the classic quality of the Passat brand while integrating more elements to meet the needs of Chinese consumers, with a luxurious and sporty exterior design, a comfortable and delicate interior space, and a precise and solid handling performance. Polo In April 2002, Shanghai Volkswagen Polo, which represents the international advanced level of today's automobile industry, was officially launched. In the introduction of this latest model of international compact family sedan, Shanghai Volkswagen has truly realized global synchronous planning, synchronous production and synchronous listing. 2006 June, Shanghai Volkswagen further launched the POLO Jinxiang and Jintiao, which have gained the market's popularity. Santana 3000 "The Transcendent" The Santana 3000, Shanghai Volkswagen's first self-developed product, was successfully launched in March 2004. As the vertical replacement of Santana 2000, the "Transcendent" not only has a more fashionable and modern appearance, but also has a greater improvement in the air conditioning system, electronic control system and comfort system. Touran Officially launched in November 2004, Shanghai Volkswagen Touran applies simple, fashionable design concepts, both the comfort and safety of a sedan and the versatility of the MPV, in the family, business and leisure to achieve a perfect combination of the first truly meaningful multi-functional sedan in the country. Skoda The Skoda Mingrui, which is going to be listed in 2007, comes from the latest PQ35 platform, equipped with advanced 1.8TFSI engine, with perfect safety configuration and humanized design, introverted and atmospheric appearance, rich configuration and excellent quality, which is believed to be a new excellent model of Shanghai Volkswagen with strong market competitiveness. Brand new marketing services Shanghai Volkswagen is the largest sedan manufacturer in China with the largest number of cars, and its products and marketing service network also spreads all over the country. After more than two decades of continuous development, Shanghai Volkswagen's "four-in-one" dealers and authorized service stations have reached more than 1,000, with a coverage rate of more than 70% in prefecture-level cities across the country, ranging from Sanya in the south to Mohe in the north, Jiamusi in the east, and Kashgar in the west, forming the widest and densest distribution of sedan marketing and after-sales service network. As one of the earliest automobile enterprises to introduce customer relationship management (CRM) in China, Shanghai Volkswagen planned and implemented a CRM program in 2001. Over the past five years, Shanghai Volkswagen's CRM has become more and more perfect, and has been awarded as the best CRM implementation enterprise in China's automobile industry in 2004 and 2005. in September 2005, Shanghai Volkswagen's after-sales service hotline was launched with the new number 10106789, which marked the completion of the pre-sales and after-sales call center business integration work, an important part of CRM, In October 2005, Shanghai Volkswagen launched a new service brand "Techcare", which provides customers with the best service for purchasing and selling products and services. In October 2005, Shanghai Volkswagen launched a new service brand "Techcare", which provides customers with a full range of services such as purchasing, using, exchanging, and decorating the car, so that customers can truly experience 360-degree full care. The organic integration of systematic sales service, transparent and honest used car replacement, convenient auto financial service, personalized auto accessories, and owner's club to maintain customer loyalty with standardized professional services are the six pillars of Shanghai Volkswagen's service brand. Over the years, Shanghai Volkswagen has been committed to the development and production of environmentally friendly cars that combine safety, power, economy and comfort. At present, Shanghai Volkswagen's various models have met the requirements of emission regulations at least two years earlier than the time stipulated by national regulations, among which the emission standards of Passat, Polo and Touran can reach the level of Europe IV. Since 2007, Volkswagen has been implementing the 'Volkswagen Group (China) Powertrain Strategy', with the goal of reducing the average fuel consumption and emissions of all Volkswagen models in China by 20% by 2010. Volkswagen will focus on the popularization of TSI engines and DSG transmissions.On July 15, 2008, the signing ceremony of Shanghai Volkswagen's Jiangsu Yizheng project was held in Nanjing in a low-profile manner. This is the sixth Volkswagen vehicle project in China after FAW-Volkswagen settled in Nanhai Town, Foshan, Guangdong Province, and the third vehicle production base and fifth plant of Shanghai Volkswagen after Shanghai and Nanjing. The surfacing of Yizheng plant means that the layout of Volkswagen's southward strategy has basically been finalized, and the new round of Volkswagen's attack on the Chinese market has been opened, and the challenge of production and sales of 3 million units has become the new goal of Volkswagen in China. Affected by the financial crisis that broke out in the previous year, the growth rate of China's economy and China's automobile market have slowed down. After the temporary growth slowdown from 2008 to 2010, China's GDP growth will return to the track of stable and rapid growth. In addition, the solid foundation laid by Volkswagen's 30 years of development in China has also provided Volkswagen with the strength to release and implement the 2018 strategy, which is a directional strategy guiding Volkswagen's development and will drive Volkswagen to achieve the goal of doubling its sales volume in the future. 2018 is not a final end point, and corresponding strategic adjustments will be made according to the future changes in China's economy and automobile market. The 2018 strategy articulates the vision and goals of Volkswagen Group (China) and the two joint ventures***, as well as the direction of long-term development for the future For automobile manufacturers, the most direct indicator of success is sales volume, which reflects consumers' preference for brands and products. Under the guidance of the 2018 strategy will further fulfill its commitment to introduce more of the most advanced and environmentally friendly products and technologies to China, and at the same time meet the needs of Chinese consumers by continuously improving product quality and service standards Shanghai Volkswagen has invested 2.4 billion euros to focus on the development of new technologies, the introduction of new products, the construction of the brand image, and the upgrading of the sales network and services, with the goal of establishing China's most The goal is to establish the most competitive automobile sales network in China. At present, Volkswagen Group's three major brands in China - Volkswagen, Audi and Skoda - have a wide coverage and mature dealership system, and Shanghai Volkswagen is going to further expand its network coverage on this basis, so as to provide a guarantee for doubling its sales volume and doubling the number of dealerships in the future. Many people have realized that small and medium-sized cities will become new growth points in China's auto market, so Shanghai Volkswagen will make strengthening its sales network in these markets one of its future priorities." Since the launch of the Shanghai Volkswagen Ranger in 2008 Shanghai Volkswagen will bring Chinese consumers more locally developed models that better meet their needs." Sustainability in the automotive industry. When people talk about sustainable development, they always associate it with environmental protection, although Volkswagen Group has always been committed to being the most environmentally friendly automaker, which is already a prerequisite for Volkswagen's sustainable development. But with BYD's sustainable development of electric vehicles to there are still many points of shortcomings in the automotive power of the sustainable existence of a large gap is not unique Shanghai Volkswagen's success is by no means a coincidence, the success of the marketing strategy, management strategy, the success of additional investment and commitment to the core of the technology research as well as the senior management of the leadership of the development of the future strategy, laying the groundwork for the success of the necessary factors for the success of the Shanghai Volkswagen. "The pursuit of excellence and always strive for the first" as the core concept of Shanghai Volkswagen, not only to become the country's first-class enterprises, but also in line with the trend of global economic integration, among the ranks of the world's first-class car companies, and strive for the development of China's automobile industry and China's economic take-off to make their due contribution.