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Economic Information Daily: Dongfeng Motor's Micro growth tests the internal strength of automobile enterprises. Editor's note: on the 40th anniversary of reform and opening up, an important problem sweeping across China is to choose the right connection solution. The spring tide in China has lasted for a long time. As one of the important witnesses of the cause of reform and opening up, Dongfeng company has experienced an extraordinary 40 years

from building for the army to realizing the conversion from military to civilian in 1978, from piloting the corporate reform in 1992 to moving the headquarters to Wuhan in 2003 to start the global strategy... In these 40 years, Dongfeng company has grown from small to large, from large to strong, forging a Dongfeng that is both bold and aggressive, pragmatic and innovative, inclusive and open. As one of the few domestic auto companies that have experienced the 40th anniversary of reform and opening up, every leap of Dongfeng company is deeply branded with reform and opening up

in October this year, China's automobile production and sales continued the downward trend since July. In the first 10 months, the overall auto production and sales volume also fell year-on-year, and the overall performance was lower than expected at the beginning of the year

the automobile market has entered the era of micro growth, which is bound to accelerate the reshuffle of the automobile industry. Some automobile brands may gradually withdraw from the market, and those products that vigorously promote technological upgrading and strive to meet market demand will usher in spring. Facing the market situation of micro growth, as one of the largest automobile groups in China, Dongfeng company believes that micro growth is the time to test the internal strength of automobile enterprises. Under the situation of micro growth, an excellent enterprise can still achieve good development

As one of the largest automobile groups in China, Dongfeng has gone through nearly 50 years of development. From the second automobile manufacturing plant, which was first built in 1969, to the annual production and sales of 5000 cars in 1978. In 2017, Dongfeng company produced and sold more than 4million vehicles annually, with sales revenue of more than 630billion yuan and taxes paid of nearly 60billion yuan. The production and sales volume ranks second in China's automobile industry and 65th among the world's top 500 enterprises. Compared with the initial stage of reform and opening up, Dongfeng company has rebuilt 800 Dongfeng

in the past three years, the number of patent applications of Dongfeng company has reached 5562, including 1037 invention patent applications, and the number has increased year by year. The number of patents authorized reached 4404, including 501 invention patents, and the number also increased year by year. By the end of 2017, Dongfeng had a total of 9056 valid patents, including 754 invention patents

it is understood that since the 12th Five Year Plan, Dongfeng company has won the number of science and technology awards in China's automotive industry, ranking first in the industry

in the first nine months of this year, Dongfeng company sold nearly 2.2 million vehicles. Among them, nearly 1.9 million passenger cars were sold, and more than 320000 commercial vehicles were sold. Against the backdrop of the continuous decline of China's auto market, Dongfeng company has made remarkable achievements

on the eve of the 2018 Beijing auto show, Dongfeng released a brand-new brand strategy, and put forward the brand core value of "quality, wisdom, and joy". Both products and services should conform to the core concept. 4. Measurement control system: we should integrate the brand core value into the process of product development and service, and strive to build a world-class brand. The industry expects that in the past two years, new products that fully carry the core concept of the brand will be introduced to the market

Huang Gang, director of the strategic planning department of Dongfeng company, introduced that Dongfeng is now developing products that have begun to implement such a concept, including the Dongfeng Aeolus new generation AX7, which was launched in September and is equipped with windlink3.0 artificial intelligence vehicle system, which represents the direction of Dongfeng's intelligence and brings a pleasant experience to customers

"in addition to implementing the brand concept on the product side, we are also planning new projects at the group level, so that our Dongfeng brand can be further interpreted in the embodiment of brand image and core values. At present, this project is under planning." Huang Gang said

after years of accumulation, all brands of Dongfeng company have started the process of improvement and upgrading. In terms of independent passenger cars, they are upgrading their physique according to the new concept, which should not only reflect the brand value, but also maintain differentiation. In terms of commercial vehicles, we will promote the "1+2" brand strategy. The three major commercial vehicle brands, Dongfeng shuangfeiyan, Liuqi Chenglong and Huashen, learn from each other and maintain their respective personalities, so that the core values of the brand can be better presented

Qin Jie, spokesman of Dongfeng company, said that Dongfeng is currently promoting the overall development in nine aspects, including excellent products, excellent services, excellent enterprises, smart manufacturing, smart cars, smart travel, green safety, open cooperation and harmonious sharing, and constantly promoting the development of the enterprise around the goal of "three leading and one leading"

deepen reform and promote strengthening and expansion

the history of Dongfeng company has played a great role in promoting the overall development of China's experimental machine industry, which is a history of reform. In order to adapt to the internal and external environment of enterprise operation and development, Dongfeng dares to be the first in the world, and constantly remoulds the system and mechanism, becoming a model for the reform of state-owned enterprises

since 1983, Dongfeng company has become one of the first enterprises to implement profit increasing contracting and implement hierarchical management contracting system. Later, Dongfeng company was included in the first batch of 57 enterprise group reform pilots, and was the first to launch a system reform plan to build a three-level company system, transforming from a factory type to a company type. In the new century, Dongfeng company has implemented the development strategy of "integrating into development, cooperating and competing, becoming stronger and bigger", implemented a proactive international cooperation strategy, and accelerated the improvement of independent innovation capability

"Dongfeng has a long history of foreign cooperation and many partners. In the cooperation, Dongfeng has always cooperated with partners with an open and win-win mentality, mutual respect and common prosperity, and jointly built with the resources of both sides. With the goal of maximizing the interests of the company, it analyzes its change law in the market to judge the degree of wear and tear to succeed." According to Huang Gang, Dongfeng has formed a relatively perfect system over the years. In the process of the growth of China's auto market, Dongfeng has shared benefits with its partners. In the context of promoting reform and opening up, the pattern of the automotive industry itself is undergoing major changes. Both independent brands and joint venture brands are facing new challenges, so it is more necessary to discuss and deepen cooperation under the new situation. In the future, Dongfeng and its partners will continue to discuss the next development plan under the premise of openness, cooperation and win-win results

in 2001, Dongfeng company obtained 25% equity of Yueda Kia automobile company, accelerating the pace of cooperation with multinational automobile groups. In 2002, Dongfeng cooperated fully with Nissan Motor Company and became the first joint venture automobile enterprise in China with a full range of trucks, buses, light commercial vehicles and passenger vehicles. That year, Dongfeng and PSA Peugeot Citroen also further expanded the level of cooperation. In 2003, following Dongfeng Honda components and Dongfeng Honda engines, Dongfeng Honda vehicle joint venture was established. In 2010, Dongfeng Yulong Automobile Co., Ltd. was jointly established with Taiwan, China Yulong automobile group. In 2012, it cooperated with Germany's gertrak in the field of gearbox and made a joint venture with Germany's Smith in the field of trailer, acquired Swedish T company and established the company's overseas R & D base. In 2013, Dongfeng and Volvo jointly invested in the field of commercial vehicles and Renault in the field of passenger vehicles. In 2014, Dongfeng became a shareholder of Peugeot Citroen Group

Chen Xinglin, vice president of Dongfeng Automobile Co., Ltd., chairman and general manager of Dongfeng auto parts (Group) Co., Ltd., said that in the 40 years of reform and opening up, Dongfeng has taken an extraordinary and brilliant road of development. The joint venture between Dongfeng and Nissan is still the largest, deepest and most extensive foreign joint venture project in China's automotive industry

over the years, through the continuous deepening of opening-up, Dongfeng company has introduced and gone out, gradually promoting the enterprise to become stronger and bigger, and has long ranked second among domestic automobile enterprises and first among commercial vehicles. New products and technologies such as new energy vehicles and intelligent joint systems have developed rapidly

at the same time, not only the traditional vehicle manufacturing business, but also emerging businesses such as automotive finance, smart travel, e-commerce and big data have also developed rapidly in recent years. Since 2012, Dongfeng's auto finance business has grown rapidly, with a compound annual growth rate of operating profit of more than 30%. So far, the contribution of operating profit has exceeded 10%. In 2017, Chuangge Financial Leasing Co., Ltd. was established to expand its business areas. In that year, 7795 new financial leasing units were realized, and the scale of loan assets reached 6.56 billion yuan. The travel business is booming, and travel platforms such as "Dongfeng travel" and "easy to enjoy" have been established

full of confidence in the future market

in the face of the sluggish domestic auto market, Dongfeng is still full of confidence in the future market

"at the beginning of this year, the total volume of automobile sales has declined for the first time in nearly 20 years, which has indeed attracted people's attention. However, in the long run, there will be growth after 2019. In the next five years, China's automobile market is expected to reach a scale of 33million units." Huang Gang said that the total scale of the domestic automobile market is still relatively large, and there is still room for growth in the next five years

in 2018, Dongfeng Co., Ltd., a joint venture between Dongfeng and Nissan under Dongfeng, released the fourth medium-term business plan - "triple one" plan. It is planned to increase vehicle sales by 1million vehicles on the basis of 1.52 million vehicles in 2017, and to reach 2.6 million vehicles by 2022

"at present, the automotive industry has entered the stage of micro growth. It is a challenging plan to release a new medium-term business plan at this time. In the situation of micro growth, an excellent enterprise can still achieve growth, which is our confidence in the future, so we still set a growth target of 1million vehicles." Chen Xinglin said that this growth plan is based on the research and judgment of China's future market development, which is to realize the new "five modernizations" of lightweight, electrified, intelligent, connected and shared automotive products. A core point of this medium-term business plan is to take Zhixing technology as the guide, and make an in-depth layout of Zhixing technology and electrification in the future commodity strategy

according to the new medium-term business plan, Dongfeng Co., Ltd. will account for 30% of plug-in and hybrid power by 2022, reaching 700000 units. At the same time, the localization of the whole business path of Dongfeng Co., Ltd. will be improved. In the future, there will be more than a dozen models responding to Zhixing technology to be gradually put on the market, including Dongfeng Nissan, Dongfeng Qichen, Dongfeng shares, Zhengzhou Nissan, etc. At the same time, we will strengthen the lean production and lean procurement of all goods, requiring the localization rate of all goods to reach 70% when they are launched, and many requirements to reach 100%

in August this year, Dongfeng and Huawei signed a deepening strategic cooperation agreement again, which is related to the strategy of Dongfeng automatic driving and Lianhe digital operation. At the same time, Dongfeng has also established cooperation with Baidu and some start-up high-tech enterprises to promote the development of intelligent technology

Huang Gang introduced that in the future, Dongfeng will maintain two technical routes in parallel in terms of intelligence. In traditional cars, it is the gradual self driving of ads and the cooperation of traditional international suppliers, and then orderly and steady progress. L3 products will be launched to the market around 2020. In addition, for highly autonomous driving and driverless driving above L4 level

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