The Significance of Specimen of Guanzhi Auto's "Breaker"

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We believe that Qoros Automotive has emerged as one of the epoch-making landmarks: “Observation Model” not only gives another brand-new path to the development of self-owned brands, but also dares to break the implementation of the twenty- The joint venture has more bold innovations in the past years. In addition to property ownership in China, Qoros Automotive is more like a new international company that gathers global resources and global perspectives.

The Western car companies and some media that have been pessimistic about the active development of Chinese domestic car brands have been even more apprehensive about the rise of companies like Qoros.

During the four-year long period, the Chery Quantum Project, which had been repeatedly ups and downs during the past two years, was officially launched on November 28th. The brand was officially launched and its strategic plan was broken down. A new company unveiling ceremony was held. The direct omission of the two major shareholders in the name of the company announced that a complete vehicle joint venture with a unique style officially landed. The first product entered the Western European market directly in 2013 (the main target market of Kwong Auto is locked in Europe and China). With a groundbreaking attitude.

Earlier this year, Fiat-Chrysler chief Malcolm had publicly stated at the annual seminar on the management of the automobile industry in the United States that the future overseas market export plans set by Chinese car companies will be local to European and American car companies including Fiat and Chrysler. And its overseas markets pose a huge threat. For current China's weakness in vehicle export capacity, this theory of Malchoney can only be regarded as vested interests over prevention of newcomers. Especially in the context of the fact that the Chinese market is currently divided by foreign capital, and the self-owned brand is weak and too slow to behave in the shaping of the brand and the improvement of the quality of the brand, Malchoney appears to be overly pessimistic.

Of course, considering the history of the automobile industry in countries such as Japan and South Korea, Western car bosses represented by Malchoney have no reason not to guard against the rising Chinese auto industry. As noted by Ni Kaiming, president of VW (China), although the main energy of Chinese auto makers is still concentrated in the domestic market, the pace of overseas expansion will soon follow. Therefore, the current public opinion in the West, such as "China's overseas offensive of the car will be increasingly strong," is even more widespread.

After seeking to expand overseas markets and breaking through its own brand ceiling, it will gradually become the main target of China’s own brands. Therefore, the continuous emergence of business model innovation and concept change will likely push Chinese independent brands to the global market faster, even in Western Europe. And mature markets like North America.

We believe that Qoros Automotive has emerged as one of the epoch-making landmarks: “Observation Model” not only gives another brand-new path to the development of self-owned brands, but also dares to break the implementation of the twenty- The joint venture has more bold innovations in the past years.

As a joint venture company jointly funded by Chery Automobile and Israel Group (US Quantum Parent Company), Guanzhi Motors broke the convention established by Chinese and foreign auto companies jointly established by two Chinese auto companies (including technology, production technology and operation management, etc.) Both sides are also dominated by foreign parties. They also break the management and operation model in which both Chinese and foreign companies are assigned to senior executives to manage their operations. In addition to chairman and general manager Guo Qian, who is the representative of Chery, he is also the deputy director of the foreign representative. Volker Steinwascher is also an executive outside the Israeli group’s separate venture for this auto venture. In addition, it is worth mentioning that other members of the management team of Qoros Automotive have come from elites in related fields in the world, and the responsible persons of the product management department, automobile assembly department, manufacturing department, quality department, and sales department have Senior executives who have served well-known companies such as Volvo, Saab, Jaguar Land Rover, BMW and General Motors, such as Gert Hildebrand, the design director, have the title of MINI Design Director, Halo, and the Executive Director of Automotive Engineering, Mai Yifan (Peter). Matkin) is the former chief engineer of the Jaguar Land Rover Group's vehicle project. It is difficult for such talents to stand out. In addition, the product engineering development of Qoros Automotive is sponsored by Magnustel, an independent automotive R&D organization. The achievements of the latter in the field have also injected a lot of energy into the concept.

Since the disillusionment of Rui Qi and Wei Lin, Chery’s mid-to-high-end strategy has been criticized by the industry. The governance structure of state-owned enterprises has made Chery’s internal structure more and more bloated, the passion is cooling down, and the efficiency of decision-making is low. In particular, the failure of the Ruiqi G5 and G6, which was born out of the product platform prepared by Qoros Automotive, proves that the company's skill in upgrading the brand and the experience of operating high-end products are still lacking. As a result, many people in the industry are concerned about why Kwok Chi Motors is able to find its way to success.

In our view, the key here lies in whether or not Qoros Automotive can maintain its independence of operation and management as well as the international nature of product design and engineering development. From the continuous emphasis of Guo Qian and Yin Tongyue and the management’s layout, Chery’s management model will not be directly and indirectly grafted into Guanzhi Auto, and its product design will not mimic the existing models on the market. Instead, the combination of elegance, quality, and fun makes the brand position its own personality. Magna Steyr's leading project development also ensures the stability and pioneering of platform technology. It should be said that in addition to property ownership in China, Qoros Automotive is more like a new international company that integrates global resources and global perspectives.

Of course, having the above-mentioned corporate characteristics is not enough to determine the ultimate success rate of the car. This also involves whether the brand culture and product performance take into account the consumers of Europe, the United States and China market at the same time; whether the sales network is paved and the construction of the marketing system is sufficient to support the domestic and foreign strategic layout; whether the investment can be long-term Resolutely safeguard such cooperation framework and promote the complete implementation of such strategic plans; and whether it can avoid or dissolve various kinds of international trade protectionism that have occurred such as tariff barriers, anti-dumping and intellectual property disputes, and how to deal with the Chinese market brands. The trend of intense competition and so on are all issues that Guanzhi Automotive must face and solve in the next two to three years or even longer.

But in any case, for automakers that are encountering brand ceilings and have no breakthrough in overseas exports, local auto companies that have limited status in the joint ventures, have lost awareness of innovation, and lack the ability to acquire overseas brands are not enough. Qoros car will at least be a new model worth learning.

As we have stated in the article, the innovation of the business model and the change of ideas will accelerate the pace of overseas expansion of Chinese automobiles. Chery or observance may be the earliest practitioner.

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