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Wang Da, general manager of Beijing Automotive Industry Co., Ltd.: to build new Beiqi for three years

February 05, 2023

Fighting from the current largest auto group in China to Beijing Automotive Industry Holding Co., Ltd. (hereinafter referred to as "Beiqi Holdings"), Wang Da chose a challenging road for himself.

"I like the more active work spirit, there are conditions to be, there is no condition to create conditions." This belief is enough to explain why he should choose the post of general manager of Beijing Automotive Holdings.

When he first entered Beijing Auto Holdings, all his work was to investigate and investigate the various automotive companies under Beijing Automotive Holdings. After that, he boldly proposed to make a fundamental change to Beijing Automotive within three years.

All the way through the thorns

In March of this year, Beijing Auto Holding Co., Ltd. recruited Wang Datong, who has an international background, through its global recruitment. At the same time, some senior management positions were adjusted. The reason why this is so is that today's Beijing Auto has reached a critical historical turning point and it needs a new revolution.

Xu Heyi, chairman of BAIC, repeatedly emphasized at the company's internal meeting that the situation facing Beijing Automotive was severe. Although it is in the first camp of the domestic auto group, but in the "Eleventh Five-Year" development plan for the automotive industry, it has established "one or two companies with an annual output of more than 2 million units and exports more than 10%, with international competitiveness." Under the background of large-scale automobile production enterprises (groups), if Beijing Autos cannot stand up, it will be possible to become a flesh for others, and the final fate will be reorganized and annexed by other auto groups.

Although the situation is urgent, Wang Datong has his own clear understanding.

He told the "First Financial Daily", Beijing Automotive's strategic plan is after 8 to 10 years of hard work, will be built into a Beijing automobile core competitiveness, international competitiveness of multinational automotive groups.

“From the status quo, frankly speaking, the gap is still relatively large. Our time is tight and we have many tasks.” As one of the leaders, he naturally feels pressure.

"Now is the best time in the history of Beijing Automotive. It faces major opportunities for development," he said.

"From the perspective of the internal environment, in the first half of this year, in the group building and establishment

According to him, in the first half of this year, the sales volume of Beijing autos increased by 30%, which was 11% higher than the national industry average; the market share of products increased by nearly 1 percentage point; while the sales volume increased, the profits also increased significantly, which increased by about yoy. 26%.

However, judging from the external environment, "the competition in the market has never been so intense." He told reporters that the current Chinese market has more than 130 product platforms, and the degree of competition has exceeded the United States. Many domestic companies have also taken the lead in independent innovation.

"So although the situation is excellent, the mission of Beijing Automotive is very difficult."

Open-ended independent innovation

How to keep up with the pace of independent innovation of other auto companies, Wang Da has his own set of ideas.

"According to the characteristics of Beijing Auto, Beijing Auto's independent innovation must take a differentiated path. Open internationalization is the main aspect of the differentiated road." As a technology-based international talent, he talked about the interest here.

For self-owned brands, BAIC Holdings shall control three aspects: the intellectual property rights of the products, the brand, and the overall management and management authority (ie, what vehicles are designed, where they are produced, and where they sell). In addition, it is entirely possible to use an open approach.

"We must make full use of the strength of the entire group to solve the production capacity issues, product issues, channel issues, and resource issues. Of course, joint ventures are also our resources and we can use joint ventures to serve our own brands," said Wang Da.

Twenty years of experience of multinational corporations has allowed Wang Da to maintain an open vision to consider any issues at any time. He said that this is some experience and help that he can bring to Beijing Auto. He told reporters that not long ago, he had been officially appointed as Dean of the Beijing Automotive Research Institute to strengthen the management of independent research and development, and speed up the pace.

“The ultimate success of self-owned brands is reflected in the market, and the market demands products that are inexpensive, so we need to reduce costs as much as possible, including the cost of research and development, manufacturing costs, etc. Therefore, we do not pursue much investment, but Pursue the most effective way to achieve our goal."

He is very confident that, using what he calls the road to differentiation, investment in research and development can be one-tenth that of US and Japan companies and one-third of domestic automobile companies.

However, despite the fact that it is possible to increase investment and reduce expenditure, Wang Da thinks that Beijing Motors has a lot of difficulties in its own R&D. In his words, “difficulties are as big as a mountain.”

He explained that strengthening independent R&D is one of the strategic moves of Beijing Automotive. “At present, our goals and road maps are already very clear. The goal is that passenger vehicles enter the first camp of domestic self-owned brands, and new types of off-road vehicles and cars are to go to market in 2010. We have also formulated a product strategy, namely commercial Cars are the first; off-road vehicles are the basis; passenger cars are the most important; four passenger car platforms and two off-road vehicle platforms must be built. Such routes are already clear.”

"To achieve such a goal, the first task is to strengthen the construction of the R&D team." According to Wang Dachi, the R&D personnel of the Beijing Automotive Research Institute currently plans to quadruple the number by the end of the year.

"We will set up an off-road vehicle engineering institute and passenger vehicle engineering institute within the Beijing Automotive Research Institute to strengthen the integration of professional forces."

Explore multiple possibilities

In the process of the group's reform, independent research and development as well as a series of work at Beijing Auto, it seems that everything is possible.

Although Wang Datong, who is a hard worker, did not like to talk about some uncertain events, he also disclosed these "possibility" to reporters.

The first is the conglomeration of Beijing Auto. In general, the connotation and extension are two ideas for the development of the enterprise. Connotation is the road through its own accumulation, internal power improvement, and gradual development; extension is through external integration, mergers and acquisitions, to achieve leapfrog development.

"As Beijing Automotive, the development of connotation is an initiative in our own research and development and the establishment of a modern enterprise system. Extensive development is what we are actively exploring."

According to Wang Dachang, the cooperation between Beiqi Foton and Daimler is an important measure for the development of Beijing's autos. "The cooperation between the two sides has made new breakthroughs, and this kind of cooperation will provide a new business model. This new business model has certain reference value for the Chinese auto industry to internationalize," he said.

“The trend of mergers and reorganizations of Chinese autos is inevitable. Beijing Auto is also actively exploring and always putting this work ahead, as an important way for the development of the company.” He told reporters, “This is more effective than in-depth development. Especially for large companies."

General Wang Da introduced that there are two kinds of verticality and horizontality in the development of extension. Verticality is the cooperation of the industrial chain. For example, in terms of engine, it can increase the differentiation of the company's products; the level of the vehicle is the aspect of the vehicle, which can expand the width of the product and the scale of the company. "We are exploring these two methods. This is a win-win process. We will not give up if we have a win-win opportunity. In the next three years, there will be results."

At present, the listing plan of Beijing Auto is proceeding in a smooth and orderly manner. Wang Da told reporters.

Although the recent downturn in the capital market may have a certain impact on the company's listing, according to Wang Da-chien, listing is an important opportunity for Beijing Automotive Group Development and the establishment of a modern enterprise system. “And the current market situation has not affected Beijing. The listing process of the car has been basically determined.



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