At the end of the year, all walks of life are carrying out year-end inventory. Looking back at the Chinese auto market in 2016, the growth rate of production and sales of 28 million vehicles and double-digit growth announced the strong recovery of the industry as a whole. In the competition of the competition, China FAW, one of the major domestic automobile groups, how is 2016 doing? What is the outlook for 2017?
On January 17, China FAW held the 12th (expansion) meeting of the 13th Party Committee of the Group Company, summing up the work in 2016 and arranging the 2017 task. At the same time as the end of the "13th Five-Year Plan", the "starting gun" of the new year's enterprise started.
 Steady and promising, handing over high-quality answering 2016 is not only the first year of the 13th Five-Year Plan victory, but also the tough year for promoting structural reform. In this year, China FAW implemented the five major development concepts and the “five major tasks†of economic work as the main line, and promoted the process of strictly administering the party to govern the party, leading and accelerating the process of enterprise reform and development, and achieving double improvement in management quality and efficiency. Brought a brighter answer that is more connotative, more energetic, and healthier.
The word "stable" is at the forefront, and it has effectively played a leading role in the steady growth of the central government. In 2016, FAW produced 3.175 million vehicles, completing an annual plan of 106.4%, an increase of 12.3%; cumulative terminal sales of 3.148 million vehicles, an increase of 11% year-on-year, exceeding the annual sales target; total operating income increased by 9%; profit The total amount exceeds the targets issued by the State-owned Assets Supervision and Administration Commission of the State Council, and its profitability ranks in the forefront of the domestic automobile industry.
Leading the word “Chuangâ€, it is driven by innovation around the market and user needs. By highlighting market orientation and strengthening user awareness, FAW's R&D advantage is accelerating its transformation into a competitive advantage in the market. FAW Liberation aimed at the market segment and accurately placed adaptive products. The annual sales increased by 54.3% year-on-year. The liberation heavy truck won the annual sales champion. As the strategic model of FAW's independent SUV, the Xenia R7 was listed in only 20 days, and the sales exceeded in a single month. 8,000 units.
Breakthrough in the word “effect†to release the vitality of the business with quality and efficiency. Focusing on the five tasks of “three to one, one reduction and one supplement†throughout the year, the management level has continued to improve. The vehicle inventory is controlled at 428,000, at a reasonable level; the asset-liability ratio is 45.5%, which is in the industry's excellent level; the capacity utilization rate has increased by 8 percentage points year-on-year; the cost has been optimized, and the procurement has reduced the cost by 6 billion yuan. "down 8.4% year-on-year.
The word “Excellent†is used to accelerate the pace of enterprise transformation and upgrading in structural adjustment. Promote the adjustment of the business structure, realize the operation of independent commercial vehicles, independent passenger vehicles, and red flag brands; optimize the product structure, and accelerate the launch of products such as Pentium X40, Hongqi H7 replacement, and Hongqi H5 to meet market demand in 2017; improve the market structure, The country has deepened the northern market, expanded the southern market, entered the 4th, 5th and 6th line markets, seized the opportunity of “One Belt and One Road†and accelerated the expansion of overseas markets. Strict investment management and control, the annual investment reduction of 3.1 billion yuan, the disposal of inefficient and invalid assets of 3.7 billion yuan.
Behind the results, the confidence of FAW people to maintain their strength and overcome difficulties is increasing.
Beyond the figures, changes in the old state-owned enterprises that have climbed the slopes and are advancing with the times are taking place.
Pursue the “gold content†behind growth and transform to quality and profitable enterprises
In 2016, China FAW’s “13th Five-Year Plan†was officially released. Facing the new normal of China's economy and facing new changes in the automobile industry, China FAW will "achieve high-quality growth under the guidance of the five development concepts and build quality-effective enterprises" as the core pursuit of the "13th Five-Year Plan" period.
Xu Ping, chairman and party secretary of China First Automobile Group Co., Ltd., proposed at the Ninth Committee of the 13th CPC Central Committee (expansion) that only the pursuit of quality and efficiency can make the company sustainable. He asked all units to balance the speed and quality, scale and efficiency, and the relationship between the company and the society, leading and promoting the development of the company with better quality, more vitality and better efficiency.
One point of deployment, nine points to implement. In 2016, China FAW, guided by the "Guiding Opinions of the Central Committee of the Communist Party of China and the State Council on Comprehensively Deepening the Reform of State-Owned Enterprises", combined with the actual situation of enterprises, determined the guiding ideology, basic principles, main objectives and major measures of the deepening reform of FAW, and issued the "China's first The Auto Group Corporation has comprehensively deepened the reform work program and completed the top-level design of FAW's deepening enterprise reform. Focusing on the reform goals of “equal rights and responsibilities, stimulating vitality, and market orientationâ€, the 26 key tasks of enterprise reform in 2016 are proposed, which specifically involves adjusting and optimizing the operational mechanism of the headquarters decision-making conference, comprehensively establishing and improving the corporate governance structure of subsidiaries, and stratifying Authorization focuses on rationalizing the parent-subsidiary management relationship, disposing of inefficient and ineffective assets, and divesting corporate social functions. By the end of 2016, 26 key tasks had been completed. The efficiency of decision-making at the top level of FAW has been continuously improved, the autonomy of subsidiaries has been enlarged, the main business has become more concentrated, and management has become more lean. The awareness of FAW’s dare to dare to do so and to be more vigorous has been further enhanced.
In addition, FAW has also carried out the theme of “Qualification and Cost Reduction, Post Exhibition Style†in the whole staff. Organize party and government work groups at all levels to closely combine the actual situation of their own units, and find bottlenecks that restrict cost optimization, cost control, turn losses, improve quality and increase efficiency, and carry out project research and development from product development, manufacturing to marketing. Bringing in effect, fully mobilizing the enthusiasm for grassroots excellence and innovation, there have been a lot of vivid practices to improve innovation. In the theme practice activities throughout the year, the participation rate of grassroots party branches reached 100%, the participation rate of the team reached 100%, the improvement and improvement of more than 180,000 items, and the creation value of more than 50 million yuan, which strongly supported the realization of the company's annual business objectives. .
In FAW Forging Co., Ltd., a batch of new and bright forgings continued to flow down the production line. The busy scene of high-yield and dry-drying for more than 300 days conveyed the good news of this independent accessory company turning around. It is understood that the party members of the company have set up 330 projects throughout the year, creating a value of 30.545 million yuan.
In FAW Jilin Automobile Co., Ltd., the early release of Xenia R7 created a number of firsts in the birth of the company's products: the first mass production time was three months ahead of schedule, and the first mass production reached the initial profit target. The first comprehensive benchmarking of car quality standards and beyond... In the numerous "first" breakthroughs, the former "zombie enterprise" is now born again.
“Thinking what the user thinksâ€, transforming to a user-centered independent innovation as the eldest son of China's automobile industry, FAW has a rich accumulation of more than 60 years in manufacturing technology, and created two famous brands: “liberation†and “red flagâ€. However, along with the drastic changes in market demand and competition pattern, the market reaction rate of the old state-owned enterprises is slow, and the problems of unsettled products and services are becoming more prominent. How to truly transform FAW's technological research and development advantages into market competitive advantages? In 2016, with the supply-side structural reform as the starting point, FAW accelerated the establishment of an independent innovation system centered on the market and user needs. The customer consciousness of “thinking what users think†became the conscious pursuit of FAW people from the top down.
In order to promote the coordinated management of FAW's autonomous system and improve the resource integration capability and decision-making efficiency, FAW has reorganized the management system of the autonomous system since 2015, and established three major business units: autonomous passenger vehicles, self-owned commercial vehicles and Hongqi brands. And clear the special responsible person to coordinate the research and development, manufacturing, marketing and other aspects of the branches and brands under the jurisdiction of the division. In 2016, Hongqi Branch of China First Automobile Co., Ltd. was formally established as an independent business entity to conduct full value chain management of “Red Flagâ€. At this point, the management relationship of FAW's autonomous system has clearly landed, and the mechanism of coordinated operations such as R&D, business unit, and sales has gradually formed, and the overall vitality of the independent system to the market has been continuously improved. At the same time, with the full play of the functions of the Group's product planning project department, FAW's own brand long-term product planning and product project management module functions have been strengthened, and FAW's independent system product planning has entered a benign track.
With the upgrading of the consumer concept, the quality needs of consumers have fully entered the level of perceived experience. According to JD Power's report, perceived quality accounts for at least 30% of the customer's purchase factors. To this end, FAW has put forward the quality concept of “customer first, quality first†in the “13th Five-Year†quality development plan, and has implemented the “three major projectsâ€: product enhancement, reliability enhancement and refined improvement. ". In the development of new models, FAW has included the perceived quality evaluation as a prescribed action in the birth process of the product, and carried out four professional perceptual quality evaluations on competing vehicles, model cars, prototype cars, and tooling vehicles, and improved the static and dynamic perceptual quality evaluation standards. To fully meet customers' perceptions of new products such as viewing, listening, touching and sniffing.
FAW Technology Center is the main position for FAW's independent product research and development. In recent years, while insisting on in-depth independent development, the technology center has continuously improved the commodity power of the whole vehicle and helped FAW's independent products to win the market. In 2016, the liberation of J6 heavy-duty trucks in the market is based on the upgrade and expansion of the original performance of the products, which makes them have the six pillars of “fuel saving, reliability, service, power, comfort and safetyâ€. The advantage is to successfully surpass the competitors and achieve explosive growth. In addition, the technology center focuses on transforming research and development concepts and continuously strengthens the market and customer awareness of R&D personnel. Through the organization of 140 "big discussions" at the party branch level and 59 "marketing" activities for R&D personnel throughout the year, the company has enhanced its product development and docking market capabilities and promoted positive interaction between technology, products and markets.
 Do not forget the initial heart, look for the direction of innovation in the era of change, the competition in the automotive industry is a protracted marathon. With the emergence of new technologies, new industries, new formats, and new models, the competition in the automotive market will be even more cruel. Standing at the intersection of the past and the future, the branch of tradition and innovation, China FAW, determined to become a "hundred-year-old shop", needs to re-issue the question of going through time and space: Where does FAW come from and where to go?
At the 12th (expansion) meeting of the 13th FAW Party Committee held not long ago, Xu Ping cut through the history of FAW's entrepreneurship and led the FAW people to return to the original point and recognize their position:
Do not forget the initial heart, high quality to fulfill the "three major responsibilities." The fundamental attribute of FAW is the state-owned enterprise under the leadership of the party. Upholding the party's leadership and strengthening party building are the consistent traditions and advantages of FAW since its establishment. FAW should give full play to the core and political core functions of the party organization, put the direction, manage the overall situation, and implement the insurance, fully demonstrating the value of FAW in the "three major responsibilities" of excellence.
Do not forget the initial heart, and strive to be the vanguard of the automotive industry. In 1953, the party and the state named China FAW with “firstâ€, and “first†became the spiritual appeal and cultural gene of China FAW. China's FAW, which is at a turning point in development, must maintain its enthusiasm for "competing first" in its bones, and persist in its struggle for a long time.
Do not forget the initial heart, establish a "Made in China" benchmark. In the development of more than 60 years, FAW has two gold-plated signs of liberation and red flag, and its brand value has always ranked first in independent commercial vehicles and self-owned cars. Today, with the rapid rise of independent brands, FAW needs to transform the brand value into production and sales scale, market position and premium capacity as soon as possible, making “FAW Manufacturing†a shining business card of “Made in Chinaâ€.
Do not forget the initial heart, build the industry's leading core competitiveness. In 1958, in the case of a poor and white, FAW people manually knocked out the first limousine in China in less than 100 days. It includes original innovation and integrated innovation, and can also be regarded as the earliest innovation in China. In the face of the ever-changing auto industry, FAW must accelerate innovation and drive innovation, and lead the industry with independent innovation.
Don't forget your heart and create a vibrant modern business. Deepening reform is a clear requirement of the Party Central Committee and the State Council, and it is also the need of FAW to move into the future. FAW must firmly grasp the main line of reform, change the pursuit of new, new and medium-sized progress, and make breakthroughs in the middle, and use the ideas of reform, the measures of reform, and the responsibility of reform to create a dynamic and more efficient atmosphere for FAW. A stronger future for core competitiveness.
The struggler measures the time with his footsteps. 2017 is an important year for the implementation of the 13th Five-Year Plan and a deepening year for supply-side structural reforms. In the face of more intense market competition, China FAW will aim at the sales target of 3.3 million vehicles for the whole year and set off its sleeves to refuel. On the new journey, we will not forget the initial intention and strive to move forward.
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