“GAC GROUP’s new transformation and reform has taken a solid step forward, we will move forward, live up to expectations, and present a new Guangzhou Automobile to you in the next three years!” Standing at the end of 2024, Feng Xingya, the general manager of the group, firmly gave the outside world an expectation and a plan related to the future trend of Guangzhou Automobile.
But looking back on the past year, if we say that the rapid changes in the market have given all newcomers the chance to shine their swords, GAC has encountered more frequent challenges this year.
Since the general environment began to make a fuss about electrification, like many large automobile groups, GAC, which has a lot of joint venture business, is under the pressure of transformation brought about by the compression of the fuel vehicle market on the one hand, and on the other hand, the uncontrollable public opinion also makes it ponder the direction of the current market development.
“how on earth should we go on, and how can we extricate ourselves from the predicament?” GAC really knows the answer to this question.
From which angle should we look for it? Previously, many people would have thought that for the automobile group, which grew on the back of joint ventures, it was estimated that 01:30 would not be able to break free from the shackles of directional thinking.
It is not easy to balance the business development of all sectors in the transformation.
Nowadays, in China’s auto market, there is no law of development to follow.
In the face of ever-changing competitive formats, the single theory system is likely to restrict the pace of enterprise development.
Having said that, we have to say that with the momentum of industry-wide volume technology and volume marketing gradually infiltrating into every corner, the former style of state-owned enterprises has been almost wiped out in large automobile groups.
Today, when GAC dares to publicly announce the launch of a three-year “Panyu operation” to promote a new round of reform, it will invest at least 50 billion yuan in R & D and industrialization in the next three years.
And it is hoped that through four major reform measures and five guarantees, independent brands will account for more than 60% of the group’s total sales in 2027, challenging independent brand sales of 2 million vehicles.
We prefer to believe that such a story is not a scene.
From joint ventures to autonomy, GAC’s vision of the future is always supported by more concrete plans and means.
Joint ventures to maintain stability is a prerequisite for reform.
As for the current market, GAC itself has said that with the penetration of new energy for more than half of consecutive months, its own brand has become a new leading force in the domestic automobile market.
At the same time, fundamental changes have taken place in the product structure and the main body of competition in the automobile industry, new energy vehicles have also entered the second half of intelligence, and automobile enterprises have stood on a new starting line.
Presumably, these industrial backgrounds have become the key to the future development of GAC.
Based on this premise, the end of the year is approaching, regardless of whether GAC gives a bold proposal to build a new GAC with a three-year Panyu plan, for the outside world, we would rather see the strength that belongs to GAC from the existing preparations.
First of all, we must admit that in the territory of GAC, the development of joint ventures has always occupied a very important position, which means that the landing of any plan is inseparable from the awakening of existing joint ventures.
In the past two years, because the audience of Jeep and Mitsubishi brands in China is getting fewer and fewer, the demise of Guangzhou Auto Fick and Guangzhou Automobile Mitsubishi always makes people feel some helplessness, but in the final analysis, there is no room for any car company that can’t keep up with the times in the Chinese market, and there is no special relationship between whether it is a joint venture or not.
However, for GAC itself, when the joint venture business focuses from large and comprehensive development to Guangzhou Automobile Toyota and Guangzhou Automobile Honda, what we need to solve now is not only to maintain the development trend of Chuanqi and Ian, but also to bring the whole group back to the peak it was many years ago, it is still on the bright side.
To this end, although Toyota and Honda always have their own insistence, what GAC means is that the future of the joint venture will not be allowed to develop along the old path.
As Feng Xingya predicted with the change of technology and market competition the joint venture company will further expand at the level of new energy and intelligence including the input of manpower and resources.
From now on, with the official release of GAC Toyota Platinum Intelligence 3X and Guangzhou Auto Honda Ye P7 as nodes, GAC joint venture business may restart a new journey, with the self-driving force of the development of the times to promote enterprises to have a better understanding of the Chinese market.
More importantly, if the joint venture wants to find confidence, it must be inseparable from the group’s real insight into the Chinese car market.
Given the market performance this year we all know that due to the squeeze of the joint venture brand by the overall market the pressure on GAC’s joint venture business is almost visible to the naked eye.
Under the restriction of the rhythm of electric transformation, it is still very difficult to wrestle with other Chinese car companies.
Especially under the premise that the guidance of public opinion is so unfavorable, I really do not know from which angle to cut into the broken circle.
Now, as GAC GROUP aims at the “Panyu operation” for three years and initiates a comprehensive top-down reform, to a large extent, it is also promoting the focus of the entire joint venture business to return from the free-range development in the past to maintaining steady-state progress and self-precipitation.
In the final analysis, no matter which method GAC Toyota and GAC Honda will adopt in the future, if GAC GROUP wants to gain some advantage in the industry competition, its future business focus and main battlefield must depend on what position Chuanqi and Ian will be in the industry in the future.
Time is running out and the reform is just in time.
Not long ago we can see that GAC GROUP moved his headquarters from Guangzhou CBD to Panyu.
Hearing such news, outsiders will think that this is due to the chain reaction caused by GAC’s poor market performance this year, and it has to move its headquarters to the plant in order to save operating costs.
In this regard, Feng Xingya also joked that “the GAC Center located in CBD is originally GAC’s own property, and there is nothing that can’t afford to pay the rent.
” In the final analysis, the message we can get from this small move is that GAC needs to immediately accelerate the bottom-up decision-making of the whole group.
If you want to make a decision you have to hear gunfire.
” Despite the fact that Feng Xingya’s subsequent explanation is so straightforward, in my opinion, in this rapidly changing era, there is really nothing more intuitive and faster than opening up the communication channels between the upper echelons of the enterprise and the market.
Enhance the ability to integrate research, production, supply and marketing, strengthen resource coordination, streamline organizational structure, optimize staffing, compress establishment and departments, and merge functions to maximize production efficiency and minimize comprehensive costsThereby improving the comprehensive competitiveness of products, improving marginal revenue, and improving profitability.
“, , since this is the group’s top management’s hope to see the future development of GAC, then based on this, all reforms related to Trumpchi and Ean have become well understood.
, At present, GAC has indeed invested more than 50 billion yuan in independent research and development, and has applied more than 20,000 patent applications, of which invention patents account for more than 42%.
In the field of new energy, industry-leading magazine batteries, super fast charging, and quark electric drive technologies have been mass-produced, and all-solid-state battery technology will also be loaded into vehicles in 2026 as planned.
However, in view of the severity of the situation, Feng Xingya proposed that GAC will launch 22 new models of its own brands intensively in the next three years, including 7 models that will be launched in 2025, fully covering all mainstream new energy power forms such as pure electricity, extended range, and plug-in hybrid.
In terms of R & D and industrialization, the group will invest at least 50 billion yuan to ensure the funding needs of the “Panyu Action”.
on the basis of implementing the “328” talent project, it will also implement a talent doubling plan to strengthen the talent team.
Presumably, among these, the burden and task that falls on Trumpchi and Ian must be the heaviest.
,,, For independent development, the two have always had their own focus.
In order to avoid competition in the industry, Trumpchi, which focuses on the fuel (hybrid) vehicle market, and Aian, which focuses on pure electric vehicles, both have development plans with clear boundaries.
However, at this stage, as the technical boundaries adhered to by each company become increasingly blurred, GAC has no choice but to reorganize its independent business in order to reduce costs and increase efficiency.
On several public occasions, Ai ‘an General Manager Gu Huinan expressed early that Ai’ an would include range-increasing power in the product series.
At this Guangzhou Auto Show, with the Haopin HL really coming to us in the form of dual power, the development plan related to Ai-An hybrid has naturally been implemented.
In fact, GAC’s performance has always been good in building its own brands.
, Trumpchi is almost the only one among the China brands that can completely focus on the MPV market.
In terms of the annual sales performance of pure electric vehicles, Ai ‘an has always been among the top three in the industry in the past two years.
At the same time, the internationalization process of the two has also made great progress so far.
However, as competition becomes fierce, the market has become more and more requirements for GAC.
In the future, it is indeed hard to say whether GAC can effectively fill the gap between it and the leading China car companies in 2024 through reform.
,, but now, just like Feng Xingya’s self-summary,”If there were no reforms and no determination to comprehensively adjust and change, every enterprise would face the same crisis, so GAC cannot wait and is determined to start.
Action, released GAC’s three-year ‘Panyu Action’, which is a comprehensive and thorough reform in response to the general trend and operating conditions.
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