Construction approvals missed 166 discount to face a new round of validation projects to improve the block, Chery decided to establish their true in the Russian car factory. It chooses the fastest construction method is to buy a ready-made factory
Business Review, Toyota. the other hand, China's domestic car companies are still residual weak unbearable, the pain of the heart suddenly faint. But on this occasion, a message that Chery, but also felt a glimmer of encouraging.
2008 3 on 5, Chery Godfather Zhanxia to lead and to stay Fabo Shi Yin Yuan Taofei Yao went to Russia. less than a month, Chery is already the top two go to Russia. Last year the big three-Yin Zhou Biren, and Fan-Long Yao led the study at the Russian plant matter. This Chery to put a large sub-satellite, ready to shoot 30 billion yuan, in Russia, rapid acquisition of an existing auto plant.
true sources. The existing car plant is 俄罗斯索克 Group's Jiri factory It previously had work on behalf of the South Korean Kia annual capacity of 30 million units. I must tell you, I am excited. to Chinese auto companies to quickly gain a firm foothold in Russia, without which it seems no other way, The Chery to such a style all their own out.
previously had to rely on Chery representative in Kaliningrad 阿芙多托尔 car assembly plant, because the SAR duty-free concessions, it had opportunities in the Russian market share. But The Russian government on behalf of the factory assembly line with restrictions, on behalf of the proposed plant was made to raise OEM prices of Chery, otherwise the amount will be given to other more profitable brands. Chery do not agree, the final blow two sides.
this , Chery Automobile Company of China, and all the same dilemma faced in Russia. Our car companies even more passive than in European and American powers the car. European and American car powers through the approval of Russia 166, gained in the Russian plant can have a 3-year preferential imports of parts and components. but because the Russian Government is worried that after 3 years of Chinese enterprises can not achieve the required plant conditions of Russia, or China's auto companies fear the Russian government for its direct competition with local car companies, all of the Chinese car companies out of 166 of the Act, the means that we have in this country can not have any preferential treatment plant.
this is not the only bitter fruit. This year, following the approval No. 166, after a new round of China's car blocked again , the Russian government increased its vehicle certification standards imported cars, car exports to Russia a strong inspection program that requires authentication from 13 to 36 items, those previously obtained in the form of Chinese enterprises are also certified up to June 2008 sales. As a result, China's auto exports to Russia a virtual standstill.
in Russia has been a certain market-based Chery (more my own eyes com) can not be allowed to suddenly disappear from the pain of this market situation. it than the other Chinese car companies have a good start, Chery can not ruin the good start, how do? only immediately start construction works in Russia, so we see Chery high-level non-stop to Russia.
the fastest way to buy a ready-made factory plant. Chery is indeed bold vision and courage, it really hands. I feel their admiration. Now the only worry is whether Russia will action to stop the acquisition. But think about it, they have no reason. It is said that Chery to make the acquisition succeed, and to have the appropriate personnel management facility, the United Automobile Corporation, the joint acquisition of Ukrainian. Here, sincere wishes for success Chery.
Now for the Chery, I want to say is that last more than a year, Chery in Russia Sturm und Drang, but indeed, as the image, not to communicate well with customers, not willing to play their own advertising, not very solid to train international talents, at least to be worse than we expected.
acquisition of Russian factories are now, if successful, Chery is a great opportunity, but also a huge challenge. plant transformation and management is not easy, cost improvement and market power is relatively low, will allow the Chinese domestic car companies of pressure. hope Zhanxia to and Yin Yao can to overcome this difficult situation, and create a Chinese cars in Russia in the new century.
's contemplation of a sea Zhao Yi
make contributions for Chery in Russia and the subsequent course of the story of competition for the overseas market for Chinese cars to write a book useful reference
and handed the car keys into the Mercedes-Benz, and looks really dumbfounding. I opened the car too much, this car is not bad ah! describes the car's performance, including vehicle navigation device equipped with Geely production.
Zhao Yi tall thin Maple Automobile Geely International Corporation's general manager. Maple company to develop the overseas market, it is Unfortunately, he is not obsessed with the vision of the scope of its sales, and other vested Geely Automobile sales company. Maple current model is mainly based on several variants of Beverly platform car, which apparently made him difficult to satisfactory. < br> However, Zhao Yi without any frustration, as he never complained from Heilongjiang nowhere to escape the cold southern winter as. he felt that he would once again successfully .2007 Chery exports to Russia 37 100 results is hard on his past as a ratification.
2007, Chery sold 381,000 total, of which domestic sales of 261,200, 119,800 exported. exporting vehicles into Russia's sales account for a third of the share. This is the hi unexpected. Chery early 2007 to determine the total sales volume target is 393,000, of which domestic sales target of 323,000, exports 70,000. The result is exported to the Chery save a lot of face. < br> Chery can do Tsutsumiuchi loss Diwai fill, the list should be grateful to Zhao Yi is indispensable one. If not, then the deputy general manager of Chery International, forward-looking vision and bold execution, Chery in Russia Sales have certainly not as brilliant report card in 2007.
Russia's achievements in the inspired action .2008 Chery's overseas market sales of Chery to set the overall goal of 48 million, of which domestic sales target of 300,000, sales target of 180,000 overseas. after the end of 2007, Chery Chery revoke the establishment of Chery International, overseas utility companies, strategic planning, global automotive market, under the jurisdiction of an international manufacturing company Chery, Chery international sales company, Chery Automobile Research Institute and Overseas International branch. Chery focus more on overseas.
but it seems way out for the occasion in all, Russia has brought bad news to Chery. subject to the impact of policy adjustment, Chery OEM assembly commissioned in Kaliningrad plants significantly increased the cost of product assembly of Chery, Chery had to stop in Russia resulted in the assembly, directly from the domestic vehicle exports to Russia.
this way, duty-free assembly of Chery in Russia due to the low price advantage disappear . But then, in mid-February 2008, Russia came the news that the Government has increased its vehicle certification standards for imported cars, car exports to Russia need to authenticate the items from 13 to 36 items, those in China the form of previously granted certification of the enterprise vehicle sales up to June 2008. including all the Chinese Chery Automobile Company, including exports to Russia added a high threshold.
more unfortunately, in March 2005 Russia issued Decree No. 166, batch plant in Russia, foreign companies can import parts and components offer 3 years, but has been approved in all 49 (including parts enterprises) foreign enterprises, the Chinese car companies have been approved without a Under this Act construction.
Although this is the result we all want to see, but for Zhao Yi, he Chery Russia in the operation process of the project, his thoughts and actions are not as shy as he was. The Chery veteran former international, with two years to complete silence Chery market in Eastern Europe, including Russia, a large number of basic work even decisive.
Yincuoyangcha make a series of overseas Zhao Yi could not complete his vision, but he laid the foundation while filling Chery Despite the current impasse, but it is still more than other Chinese car companies have a better platform, Chery has been recognition in Russia, the price pressure has not previously big, he had to work hard in the brand and quality space.
Zhao Yi Who?
2006 年 8 months, the eve of leaving Chery, Yi Zhao for lively discussion at the beginning of the Chinese car companies in the fate of Russia, who wrote for the media, own-brand car company responsible for export affairs officers of Chery in Russia to achieve such remarkable results, with Chery to have such a good command of English, Russian, a deep understanding of advanced automotive technology professionals inseparable. breaking into overseas markets, the way the hand will destroy some of Chery dealer Siberia with Russia's Yi, who is?
he was born in 1961; Beijing Institute of Aeronautics in 1979, admitted to professional learning in aircraft design; entered college in 1983, Harbin Aircraft Manufacturing Factory, in the famous work of Yun-12 aircraft design; Special 1985 recruited into the army to become the Air Force stationed in Engineering Hafei military representative with technical expertise, monitoring Dolphin helicopter when the French production process in China.
Zhao Yi described above the first major phase of life. The second stage, from 1989, 1988 years, the students of encouragement, said he abandoned the Early automotive electronic control projects, and in Poland and Ukraine and other Eastern European countries, and energy savings projects EFI cars.
2004 年 4 months, the mother was seriously ill, wandering in Eastern Europe, 10-year-old Zhao Yi returned to care for the elderly. that time, China's auto industry has entered a blowout of his in Shenzhen and Shanghai, some friends persuaded him to stay in the country. > year in September, Zhao Yi chose Chery to begin the third phase of his life. To some extent, this choice Chery's overseas business achievements, but also to the Zhao Yi was born in 1961 in the Chinese automotive industry hot find their place.
1. to find opportunities to
2004 年 10 factories 27, Zhao Yi Chery official to go to work. his direct boss is the January 2004 Chrysler Corporation back from the U.S. University of Michigan, Dr. Zhang. Zhang's title is general manager of Chery International, Zhao Yi is his first personal interview, the two meet each other before. very natural, Zhao Yi Chery Eastern Europe responsible for the work.
the time being, Chery overseas export business has been started, but basically no experience to draw, listen to the overseas distributors to promote, especially in the Chinese auto industry blowout in 2003, overseas sales can not really take Chery eyes.
But Europe at that time began China's auto hot there, many dealers rushed to China to find the right agent to get the car manufacturers. these people have done a lot of brands, through the Japanese cars, Korean cars from obscurity to the formation of the whole process of a big brand, they are very clear, Chinese cars will go international.
shorter. With the initiative to
Zhao Yi's sales team a total of 3 individuals, in addition to running his own in a foreign country there are two people outside of his work in the country to assist .2005, Zhao Yi lived abroad for 8 months, traveled to Romania, Hungary , Yugoslavia, Russia, Ukraine, Kazakhstan, these Eastern European countries, but also to Israel.
this year, Zhao Yi sold 2,600 vehicles, be over-fulfilled the task, but the greater achievements of the entire Eastern Europe is that he With a fairly comprehensive understanding of the market. He made a lot of partners to learn about different countries trade barriers and technical barriers, that these national political, economic, and the situation in the automotive industry, but also car dealers to find out which of these countries Who is the real master.
most importantly, through these basic knowledge, Zhao Yi that he overseas development trend of China's automobile made the right judgments, to the Chery cars in overseas markets especially in Eastern Europe strategy accurate grasp.
in Russia, if coupled with tariff and freight, Chery Automobile will not reflect the price advantage. South Korean car has been assembled in the territory of Russia. so, not Chery car prices lower than the Korean cars. car quality than others, technological content and not as people, the brand has no influence, no price advantage, then it will die.
Zhao Yi, told reporters that Russia had, so the price of Chery cars in the Russian approach to competitive advantage manufacturers can not expect the prices down, that would be a vicious cycle, manufacturers do not price room to improve product quality and reliability, let alone improve the technological content of it, and that too cruel.
he said : I tell them to install three of the four ways to install and unreasonable tariff barriers we must try to avoid, this is the way out. Many journalists and even tears, and therefore, all his distributors have been bargaining him out of the office.
Yi said, Advertising is the the factors of quality and reliability, but this little bit of advantage but was Russia's high tariffs, high freight rates and higher marketing costs consume profits of their heads. Therefore, the local plant, participate in the competition, sales growth, which is Chery closely interlocking ring overseas operations, basic construction is local cooperation.
Zhao Yi think it is easy to understand way, a lot is to avoid customs duties, which is successful model, is that many people know the common sense, do not they teach you. intention to build factories in Russia agreement. as early as February 12, 2003, Chery has signed with Iran SKT CKD project agreement. from Eastern Europe, project director of Chery, Zhao Yi visited from house to house he could know all the Russian car company , hope to cooperate and build factories.
2005 年 3 months, the Russian Prime Minister signed the No. 166 substantially reduce tariffs on imported parts. Yin Yao decided to start construction in Russia.
Earlier, Chery introduced through intermediaries, contacted a Novosibirsk, Russia hopes to sell the Chery QQ, a large distributor. Zhao Yi came after Chery I hope that dealers can and Chery joint venture factory, which will be the first Novosibirsk car factory. In order to facilitate this, Zhao Yi Yin Yao, accompanied by a special trip to visit the governor of Novosibirsk 托洛昆斯基.
Chery factory in Novosibirsk and other government approvals to be done when the accident occurred, on the one hand Chery found in Kaliningrad can enjoy a special tax exemption on your behalf to the factory, there is no investment risk, effective but also fast, on the other hand there is an Chery to power want to partner with another joint venture plant in Russia. The end result is Chery initiative to withdraw the approval. business, enclaves, only 11,500 square kilometers of the Kaliningrad Special Economic Zone. because to enjoy duty-free special economic zones policy, many Chinese auto companies are hoping to cooperate with the assembly of its cars, Chery cars in China is the only successful enterprises.
March 2005, Zhao Yi's first visit to this company, Kia was then negotiating with South Korea does not recognize China 阿芙多托尔 car apathy. Zhao Yi perseverance, in each other and collapse, according to Kia after November 23 that year, the two sides shook hands for the first time 26 months .11, .12 intent to achieve co-operation commission processing 1 March, Chery's kind of cars began shipping to Russia.
give up in the Chery plant in Novosibirsk, the including Great Wall, Geely, including many Chinese car companies are inspired by the Decree No. 166 of preparing plant in Russia, but none was successful. At that time the situation was not so tight, we are reporting the first start. , dumping, do not focus on quality, so that the Russian government is difficult to believe that the Chinese car companies can really enjoy the preferential terms under Act 166, building a real Russian car factory.
166 Decree of the preferential tariff cuts conditional. ; 3-year period, you have to built the factory bigger way, not just an assembly plant, but within 5 years, you must ensure that your product localization rate, otherwise the past will all enjoy the benefits come to spit 166 construction projects under the laws of the biggest traps and hidden parts of Russia's difficult to adapt supply system supporting the requirements of OEMs, both price and quality, this is the real risk.
In fact, the Chinese auto plant in Russia, almost all plans assembly plant project. At that time the concept of the Chinese cars still not ready vehicle plant in Russia prepared for the construction projects are many so-called In walking a fine line, there is no long-term planning, investment does not scale. Of course, that the Chinese car company the size of the control risks.
Zhao Yi, but that such a discount KD construction project to some extent under the conditions will reduce the problems of high tariffs, but is not seen to reduce transport costs, SKD vehicle transport costs even higher than the contrary, therefore, only from the SKD, CKD eventual transition to the four overseas vehicle production process that is available to address the high high freight tariffs and fundamental way.
things, Moreover, our real addition to its own resistance, the more also came to regard the large international car manufacturers and the local automobile industry, is their manipulation of the government, in a sense they are afraid of China competitiveness of enterprises. Therefore, we must take to build on established production systems, including vehicle and parts supply system, not only in Russia's national interests, but also in line with our corporate direction and business interests, in addition to considering a business outside of their own commercial interests must consider its social responsibility. investment, increased risk, but the game is now shopping the integration and full use of available resources, based on these premises, to choose a suitable investment and risk, seek to better mix and timing, and a faster rate to achieve this process, the project can really make sense. Zhao Yi for 166 factories under the Act thought the door would close so quickly. Fortunately, due to its relying on the SAR Government is extremely low prices, which since 2006 have enjoyed two years in the Russian market, the siren song of life.
2. grasp of the total Distribution
2007 年 8 10 May, Chery and Iran's largest auto group IRAN KHODRO and Canadian investment firm SOLITAC signed an agreement in Wuhu, the three parties are prepared to invest 370 million U.S. dollars in the Iranian northern province of BABOL City MAZADARAN a joint venture. The joint venture will Chery CKD using parts produced, production and sales of S21 models (ie QQ6), sales in Iran and neighboring countries.
this initiative in 2003 with the Chery company signed with Iran SKT CKD project, this time even though only Chery has a 30% stake in the joint venture, but mastered the Chery products and technologies will obviously be in charge of the joint venture by Chery Automobile sales services in Iran.
2005, the co-assemble CKD Chery hopes to sell 33,000 cars in Iran, and eventually 3000 were not achieved. Zhao Yi that the reason is that Chery only sell parts to others, not involved in business aspects, the results of poor cost control, leading to Chery in Iran retail prices are not competitive.
in Overseas sales must take control of the main aspect is the distribution of Zhao Yi overseas exploration in 2005 concluded a year.
previous overseas marketing is not really marketing, trade, international trade is equivalent to do at home. Many large foreign distributors came to China hoping to get overseas Chinese car brand in the total distribution rights. Zhao Yi that only the dealer can do to their own flat channels, the control part of the cost of marketing to be able to make the car more competitive retail prices force.
how, who would not like myself care about the Chery brand building, care services Chery, Chery brand awareness and concern for the construction. in the Russian market, Chery is to rely on the middle at first institution .2004 April, Xi Aisi International Affairs Consultation Center Deputy Director Zhu Jing Cheng Zhou Biren and Chery signed a co-development of the Russian market, Zhao Yi project is responsible for Eastern Europe, he conceived the strategy is to plant the Russian Chery, then set up an independent distribution company car.
did not expect that at first do not agree with Chery Zhao Yi's proposal. They think that may appear two problems: First, financial risk; Second, control and operational capacity.
British IM Group (China) Director and General Manager of Shang Degang that China's independent foreign car companies have such total distribution risk, but not unworthy. He told the is convinced that he set this mode is right. To this end, he kept repeating Chery's General Assembly meeting this small, encountered leaders also said repeatedly. In order to dispel doubts about the leadership, Zhao like a lot of ways, such as said by international banks in the form of loans or guarantees to avoid financial risk, but head office has been his card, Zhao refused to go to Russia to open a copy so stuck up
2 months, ultimately, reflect the Yin Yao Chery helm as the courage, he agreed .2005 December 15, Zhao Yi set up in Russia but also China's Chery Automobile companies engaged in overseas total distribution of the first wholly-owned subsidiary - Chery Russia.
Chery allocated to the Russian headquarters of the company without a penny, Zhao Yi had hired a local distribution of Mercedes-Benz and Volkswagen have professional managers who cover it (Gennady Pavlov) as general manager. cover Zhao Yi smaller than that of a years old, he stayed with the Russian subsidiary of Chery Zhao through the entire process of the establishment.
order to solve this problem, they use the right distribution of intangible assets such as Chery, to convince distributors to provide office for their house free of charge, the company set up a month later , book dealers have paid in advance on the $ 700,000.
Zhang Lin, general manager of Chery International, come to know about the matter, first felt terrible, I feel like an international crook to do so, the last audit, there was no any problems, but also surprised. In this way, a set of Chery in Russia established its own distribution network slowly up.
2006 年 4 24, Chery Automobile production off the assembly line in Russia, Kaliningrad, April 27, the Chinese Embassy in Russia held in the listing ceremony, this series of activities for the Chery tremendous publicity. Later, Zhao Yi and Yin Yao dinner and a glass of wine he was King of Zhao Yi, said: in a good word to say difficult, but today I said, you are good like! because of cultural and language barriers, information asymmetry, coupled with some driven by commercial interests, the middle and induction to enable them to expand in Russia there are too blind and optimistic. In a sense, the language of Zhao Yicheng to Chery Russia played an important role in the cause of . Zhao Yi said, more friends, integration of various resources. This is inside the blood flowing with Russia, because 50 years ago, at the beginning of China's auto industry is in the former Soviet Union with the help of Big Brother and guidance to achieve, we just today to hand in an incomplete responses, I hope Big Brother is still able to get the guidance and care of the Soviet Union. If that terrible, terrible speed only the Chinese people, but that the expense of the Chinese people's blood, sweat and time in exchange for life, like the Chinese people want to have a good holiday, as want to enjoy life. br> This mode of communication so that the Russian journalists feel at home. Zhao Yi said, so, they raise some questions and then no longer bitter and polarized. Yi Zhao a person to face 70 reporters in Russian for almost 90 minutes, the entire Discussion Q & A to be a friendly process. media people.
language such good communication quality of automotive technology and industry knowledge, and the good market situation in Russia, have contributed to the cause of Chery in Russia. But Zhao Yi still think that he was able to lead the Chery success in Russia, the main reason lies in the proper construction of distribution strategy and its general mode of doing. , is the industry-wide trend towards the development. Day, Chery has signed with Ukraine SKD letter of intent, but to no avail. Zhao Yi Yin write a report to the General, that the Russian model should be applied Chery to set up his own distribution company, to re-enter the market.
Yao Yin very much agree with, specifically give him a telephone call, said: Companies with Yao Yin received his party plane. drive a wedge between the meter, on the General Yin sincere compliment on my fifth day after the good kind, I was in the interests of the Chery deal of time in Ukraine, Chery has decided to let me get out of.
Zhao Yi is actually not difficult to prove that the interests everywhere in the maintenance of Chery. In Russia, against all the odds and set up a wholly owned subsidiary of interference is a good example. Another example is China, which has not a car company and foreign distributors to sign the right of the total distribution, franchise fees to the other request, Zhao Yi, and Bulgaria, a BMW dealer also sells a result of the negotiations, the other party to pay $ 1,200,000 to the Chery franchise fee, but still give him an office and a car used to provide three years of free marketing training.
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