Liu Weidong explained the transformation of Shenlong marketing system: the overall "downsizing"

After a new round of overall "downsizing," Shenlong began to stand on a new starting line. It is understood that the main point of this restructuring of Shenlong is to reduce the level of management, avoid dispersion, and integrate services. The specific content includes the reorganization and optimization of sales regions, and the number of large regions has been reduced from 20 to 8. In terms of corporate structure, it has been reduced from the previous eight departments to the current five departments, and the three levels have been reduced to two levels. Shenlong's reforms can be described as bold and resolute. This is also the first time that mainstream manufacturers have re-engineered this year. How much influence will this reform have on Shenlong's future? Where will Shenlong go in the future? Recently, Liu Weidong, general manager of Shenlong Motor Co., Ltd. and deputy general manager of Dongfeng Company, accepted the interview. The number of business offices dropped from 20 to eight, Liu Weidong said. “The focus of institutional reform lies on the flat management of enterprises. We have implemented flat management in various commercial offices in the first half of the year. In the second half of the year, we have reduced the number of commercial offices. This is the second time that the company has adjusted its number of commercial offices within two years. The difference is that the last adjustment was to change the number of commercial offices from less. In order to meet the needs of channel development, in 2002, Shenlong Motors increased 12 representative offices to 20 representative offices. This time, it reduced the 20 representative offices to eight. “Dragon Motors now has 94 four-in-one shops throughout the country. We now think that the maturity of outlets needs to strengthen the strength of the headquarters. In the past, we increased the Ministry of Commerce because it was in the early days of market development and the dealers were not very mature. Therefore, the Commerce Department needed to guide the distribution. Business, to help dealers to open up the market, but the current situation is the need to develop the dealer's own management level," Liu Weidong explained. The reason for this year's reduction in sales target of 100,000 to 110,000 units of Shenlong Motors has been divergent in the industry. The view is that the company is dissatisfied with the dissatisfaction of investors and shareholders due to sluggish sales, and therefore demands management and marketing. Adjust accordingly. There have been media reports that Shenlong Motors and the French PSA Group had a direct relationship with the local board of directors held in early July this year. At that time, the French car manufacturer expressed concern about the profitability of the production plant in China, and stipulated that the loss of Shenlong this year could not exceed 300 million yuan. Liu Weidong does not believe that the reform of Shenlong Motors is entirely "forced by circumstances." He admitted that due to the aggressive market conditions in the past year, the confidence of the manufacturers was inflated and the sales target for this year had been overestimated. "The goal we set at the beginning of the year was to produce and sell 150,000 vehicles, but we have now adjusted our sales target. The final target for this year's Shenlong will be 100,000-110,000 vehicles," said Liu Weidong. According to Liu Weidong, the reason for the adjustment of Shenlong Motors was that at the end of last year, the dual brand strategy implemented after the Peugeot brand was added put forward requirements for the existing structure. He also recalled many ideas about the organizational structure of the company. “When Peugeot first entered, he had thought of many options, including the establishment of two companies or even three companies. But after more than a year of operation, Shenlong has become more and more determined. It is believed that it should be a group appearance.” 3%—4% of employees receive retraining. “Only people who are expelled from the company and no enterprise is expelled from the company must be a good company.” Liu Weidong responded to the outside world by questioning the personnel exchanges in the Shenlong institutional reform. In this institutional reform, there were no major changes in the positions of the main personnel of Shenlong Automobile, but adjustments were made. The senior staff has been streamlined and increased the efforts to attract talents from the market. At the same time, this adjustment is not just the adjustment of the Chinese staff, but the adjustments made by both shareholders. In the region, the chief representative of the business representative office has adjusted a great deal because of the reduction in the number of people. In addition, a special deputy director has been set up in each of the major regions to be responsible for big customers, group purchases and government public relations. The management team of Shenlong believes that the increase and decrease of corresponding personnel can reduce the management scope. Liu Weidong emphasized that due to the current implementation of flat management is based on process-oriented, that is, process-design organization-state analysis (including fixed posts, fixed editors)-post match. So layoffs are inevitable. Liu Weidong told reporters that the number of layoffs is not large, accounting for only 3%-4% of the total, and the laid-off workers are not laid off but trained. Previously, Shenlong Motors had required that each department should have a 5% turnover rate. The main purpose of adjustment is to increase speed, optimize processes, and optimize organizational structure. “Now it takes only two hours to respond from the purchase of a car to the financial book.” Liu Weidong gave examples of the high efficiency after the optimization process. This year, the country’s hard-to-reach production of over 2.3 million cars can be felt from Liu Weidong’s words. The sudden downturn in the auto industry this year is beyond the expectation of Shenlong. With regard to the severe situation in the future, Liu Weidong believes that the fierce competition in the auto market this year is just a beginning. This kind of competition will grow bigger and bigger as time passes. “The meager profit era of cars has come.” said Liu. Liu Weidong thinks that there are two main reasons for the poor days of the car companies: First, the country's macro-control this year, and second, the car manufacturers are more optimistic about the market's estimates this year. However, he also stressed that macro-control is only a representation, and the fundamental problem lies in the tightening of monetary control over consumption. Liu Weidong said that before 50% of Shenlong Motor’s products were purchased through installments, it is now less than 10%. And dealer financing has also encountered difficulties. He said that the issue of car loan risk for banks and insurance companies can be completely controlled through annual review, but it is clear that financial institutions do not want to do so at this time. Liu Weidong expects that the production of cars at the end of this year will be 2.2 million, which will not exceed 2.3 million at most. He also believes that inventory at the end of the year will increase. Liu Weidong was born in October 1966 and is from Guilin, Hubei Province. He graduated from Wuhan Institute of Technology (now Wuhan University of Technology) in 1988. After graduating, he served as product designer, technologist, deputy section chief and deputy director of the former No.2 Steel Leaf Spring Co., Ltd., and served as general manager of Dongfeng Zhongxiang Automobile Spring Co., Ltd. in July 1996. He was transferred to the board of directors of Xiangfan Dongfeng Motor Electric Co., Ltd. in April 1998. He served as vice chairman of Siemens Automotive Motors (Shanghai) Co., Ltd., and served as the director and party committee secretary of Dongfeng Corporation Trucking Co., Ltd. in June 1999. He was transferred to the general manager of Shenlong Automobile Co., Ltd. on April 4, 2001. , July 12, 2001 was appointed as deputy general manager of Dongfeng. Related Links: Shenlong joint venture bank Tuojiao Loan announced on the second day of the drastic reform of the Shenlong Auto Marketing System, Shenlong Motor in Wuhan and China Everbright Bank, China CITIC Industrial Bank, Bank of China respectively signed a "sales of financial services network agreement." The three banks provide credit support, capital settlement and other financial services for the Shenlong Auto Dealer. In fact, under the current background that banks are generally reluctant to lend to the auto industry, Shenlong Motor’s move will benefit its sales. According to reports, Shenlong Motors and the three banks set up a car sales financial service network, which will give full play to their respective advantages in networks, products and services, and benefit each other. The bank provides financial support to Shenlong Motors sales outlets, which will promote the development of Shenlong Auto outlets and the sales of Shenlong Auto Sedan; and the bank can also incorporate Shenlong car dealers into its own customer network, which not only expands the advantages of customer groups, but also effectively controls them. Risk.

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