The car giant started by marrying the daughter of the king

The global economy in 1993 was not particularly optimistic overall.

In particular, the economy in Europe is weak, and car sales are declining.

In Japan, economic bubbles are bursting one after another, and domestic sales are declining.

However, automakers such as Toyota, Honda, and Nissan have performed very well in overseas markets.

The economy in the United States is doing quite well, but the development of Japanese automakers has put a lot of pressure on General Motors, Ford, and Chrysler.

Having emerged from the crisis of the 1980s, Ford and GM seem to be heading into a new crisis.

This will naturally have an impact on the BMW Group.

"President Jiang, this year our sales in the European market have barely managed to avoid a decline."

"Achieving growth will likely be somewhat challenging."

Chen Chenxing, a frequent flyer, has traveled for work even more times this year than in previous years.

However, sometimes, the success or failure of sales is not only related to individual efforts, but also closely related to the development trend of the entire industry.

In the Chinese automotive market of later generations, between 2005 and 2015, any decent car sold very well.

This has little to do with the sales staff's efforts.

The situation for BMW Group in Europe is similar.

Despite Chen Chenxing's hard work, sales did not increase.

"Nothing lasts forever. Our sales in Europe have been growing rapidly for many years. It's normal for things to plateau for a while now."

"As we continue to launch new models, this situation should gradually change."

Jiang Hui wasn't particularly worried.

Although the performance in the European market was not particularly good, BMW Group's overall sales still achieved growth.

Even if the growth rate has weakened, with only single-digit increases.

But it was still very difficult.

After all, the BMW Group has already produced over 200 million vehicles.

Even if it's a 5% increase, that's still an increase of 10 vehicles.

"That's true, but our performance in the African and Middle Eastern markets has been relatively stable."

"In the American market, although General Motors' overall sales are declining, the sales of our specific models are relatively stable."

"The situation should improve after the new SUV model is launched next year."

Chen Chenxing breathed a sigh of relief.

If Jiang Hui understands the current situation, then things will be easier.

Otherwise, he would be under a lot of pressure.

"The domestic auto market should soon usher in a period of explosive growth."

"We can pay appropriate attention to this information."

"Relevant marketing resources can be appropriately tilted towards domestic markets."

Because the comprehensive reforms were carried out several years ahead of schedule, China's economic level is now much higher than it was at the same time.

The automotive market also has the opportunity to reap a wave of benefits.

There are many car manufacturers in China now, but BMW Group is definitely the leader.

With the emergence of more joint ventures, Jiang Hui also hopes that BMW Group can continue to maintain its dominant position.

We cannot allow joint ventures to steal our market share.

"The launch of new Mercedes-Benz products in Beijing this year will have a certain impact on the sales of our Mercedes-Benz E-Class sedan."

"This will likely have some impact on the sales of the Hongqi A6."

"At the same time, Changan Ford will also officially put its first product into production this year."

"The Beijing Hyundai will also officially start production soon."

"The market competition will indeed become more intense in the future."

Unbeknownst to him, Chen Chenxing discovered that the world's major automotive giants had already begun to establish a presence in China.

This situation is not good news for the BMW Group.

Of course, this means that everyone is optimistic about the Chinese market.

When the market takes off in the future, it will certainly be good news for the BMW Group.

"The models produced by those joint ventures are generally not the most advanced products in the world."

"In the short term, our product competitiveness is still not an issue."

"We must make full use of this advantage and seize this opportunity."

Jiang Hui gave Chen Chenxing a gentle reminder.

We can't just focus on overseas markets for export earnings every day; we also need to pay attention to the domestic market.

What if someone raids our house?

……

"Old Zhao, more than half a year has passed in the blink of an eye."

"Although our sales have increased year-on-year, the growth rate is relatively limited."

Geng Weidong looked at the report in his hand, his expression not very pleasant.

He had become accustomed to the rapid growth of Hongqi BMW over the past few years, and now that the pace has slowed down, he is certainly not satisfied.

"Mr. Geng, we have launched new products almost every year in the past few years, so our sales have increased rapidly."

"This year is a window of opportunity for our products; new SUV models will be launched next year."

"Therefore, it is probably quite difficult to significantly increase overall sales."

Zhao Guangming had naturally analyzed and confirmed this problem long ago.

When Geng Weidong asked him about it, he easily explained it clearly.

However, although his explanation was quite reasonable, it did not mean that Geng Weidong would accept it.

"Even without new models, we still need to expand the market for our products."

"Both the Hongqi A4 and Hongqi A6 are excellent products, and they should perform even better in overseas markets."

Upon hearing Geng Weidong's words, Zhao Guangming immediately added an explanation, saying, "In the overseas market, we previously relied mainly on our cooperation with Volkswagen."

"However, the European car market has performed poorly this year, with overall sales not only failing to increase but actually declining."

"Under these circumstances, it's already a very good result that our export sales volume has remained unchanged."

With the same sales volume, the results will naturally differ under different comparison conditions.

For example, if everyone else is declining, and you manage not to, that's a good achievement.

However, if everyone else is growing, and your growth rate is the lowest, that's a bad result.

Both Geng Weidong and Zhao Guangming certainly understand this principle.

"Sigh, I understand the reasoning you're making."

"But you are also aware of the current state of the automotive industry."

"There are more and more domestic competitors, and the good days are coming to an end soon."

"We must find various ways to enhance our influence."

Geng Weidong naturally also noticed the various joint ventures established in recent years.

These are all competitors for Hongqi and BMW.

In particular, many of the products invested in by the various joint ventures are passenger cars.

It will compete with the Hongqi A4 or Hongqi A6 to some extent.

"I'll find an opportunity to talk to BMW Group and see how we can work together to increase the sales of Hongqi BMW."

"In the first half of the year, their group launched a website called Zhujiang Online, and I saw some advertisements on it."

"If we could advertise Hongqi BMW over there, it might be quite effective." It has to be said that Zhao Guangming has a good eye for talent.

They've even started paying attention to internet advertising.

This is something that many people haven't noticed yet.

"Okay, go and talk to them."

"Anyway, I support anything that benefits the sales of Hongqi BMW."

Geng Weidong did not dwell on the details.

With so many companies under FAW Group, he has a lot to deal with every day.

……

"Old Wang, your Santana sales have dropped by 12% in the first seven months of this year compared to last year."

"The entire market is growing, but Santana sales are declining."

"How is this going?"

At the Shanghai Automotive Group, Yu Jin summoned Wang Huiliang to his office and questioned him in a rather stern tone.

For Shanghai-based automotive groups, apart from the year-on-year increase in sales at Shanghai General Motors, performance in other areas has been unsatisfactory.

Yu Jin, the person in charge, was naturally a little anxious.

"Mr. Yu, the Santana has been introduced for many years."

"Over the years, by promoting localization, our costs have continued to decrease, and our selling prices have also been continuously reduced."

"However, due to the outdated nature of the products, their competitiveness is indeed declining."

"That's why sales have declined to some extent."

"Of course, many competing models have emerged in the market in the past two years, which has led to a decline in Santana sales."

Wang Huiliang quickly offered an explanation.

Although he knew Yu Jin definitely didn't want to hear his explanations.

What they want is a solution.

"Shanghai Volkswagen was one of the first joint venture car companies in China. We cannot afford to be overtaken by the latecomers."

"We need to take this opportunity to get the Volkswagen Group to introduce more models, otherwise how can we maintain our competitiveness?"

Clearly, this is Yu Jin's real purpose.

His biggest concern is getting Volkswagen to introduce more advanced products to the Chinese market.

This is also a fundamental solution to the decline in Volkswagen sales in Shanghai.

"We have raised this topic with Volkswagen many times."

"However, the European market as a whole is not doing well, and Volkswagen is being cautious about new investments."

Upon hearing Wang Huiliang's words, Yu Jin immediately replied, "It is precisely because the European market is not doing so well that we need to introduce new models in order to enhance the competitiveness of the joint venture."

"I heard that Volkswagen is developing a mid-size SUV, which should be officially launched next year."

"Could we consider simultaneously introducing this SUV model to Volkswagen in Shanghai for production?"

Yu Jin directly expressed his thoughts.

In his view, the key to maintaining competitiveness lies in simultaneously introducing Volkswagen's most advanced global products.

Otherwise, facing increasing competition, the pressure on Shanghai Volkswagen will definitely increase.

Santana sales may decline further in the future.

After all, whether it's Geely Automobile, Hongqi BMW, Great Wall Motors, or Changan Automobile, they are all constantly launching new products.

Furthermore, these products are highly competitive.

The situation in China's automotive industry is completely different from that of the same period in history, thanks to Nanshan Engine and Nanshan Transmission solving the problems of engines and transmissions.

They can already put some pressure on the joint venture now, rather than waiting until after 2020.

I've also heard about this SUV.

"It is said that Volkswagen has high expectations for it."

"If development goes smoothly, Audi will also have similar products in the future."

"And there may be other SUVs that are slightly larger and slightly smaller than this one that will be launched in the future."

"I will communicate further with Volkswagen and urge them to take action as soon as possible."

What could Wang Huiliang possibly say?

All we can do is keep trying.

However, with a little effort, it's not entirely hopeless.

After all, for Volkswagen, bringing SUV production to Shanghai Volkswagen is not a bad thing.

……

"Mr. Chen, since its launch a month ago, the Mercedes-Benz E-Class sedan has become the best-selling sedan in its class in China."

At the Capital Automobile Group, Lü Jianqiang could finally walk into Chen Qi's office with his head held high.

Although his achievement was based on many prerequisites.

But at least he didn't lie.

"It seems that our choice to partner with Mercedes and introduce luxury models was the right one."

"With more and more wealthy people in China, the demand for luxury cars is also constantly increasing."

"In your future marketing efforts, your company must ensure that consumers fully understand the historical significance of the Mercedes brand and that everyone knows that the world's first car was produced by Mercedes."

Chen Qi now has high expectations for Mercedes-Benz.

Luxury cars have a large profit margin.

The profit from selling one car is equivalent to that of ten BJ212s produced by the Capital Automobile Manufacturing Plant.

So even if a product sells less than 1000 units per month, it is still a very good result.

Not to mention that sales are likely to improve in the future.

"Yes, our sales team has already made targeted preparations in this regard."

"Next, we will launch various marketing activities in China, and we will also invite some media to visit and exchange ideas with Mercedes headquarters."

"To allow everyone to fully appreciate the brand's rich history and heritage."

Inviting media to visit and exchange ideas at headquarters is a common tactic used by foreign automotive giants to sway public relations efforts with various media outlets.

Although everyone knows the purpose of this plan, no media outlet would choose to reject it.

Especially in 1993, going abroad, especially to a developed country like Germany, was incredibly attractive.

To put it bluntly, many media outlets would probably fight tooth and nail for this opportunity to go abroad for research.

And if you go along to their headquarters, you'll get plenty of good food, drinks, and gifts along the way, so you'll definitely have to say nice things to them afterwards.

This can be considered a form of advertorial advertising.

Advertising fees are the costs of various forms of food, drink, and entertainment.

"Starting with the media is a good approach."

"Many consumers have very little knowledge about cars, and the media has a great influence."

"However, you should pay attention to see which media outlets have the greatest influence."

"Don't end up not inviting the people you should have invited, but inviting the people you shouldn't have."

"Then we'll offend them, and who knows what kind of people will come after us."

Having held a high position for many years, Chen Qi has a fairly thorough understanding of human nature.

So I specifically reminded them.

Lu Jianqiang naturally kept this in mind. (End of Chapter)