FAW VOLKSWAGEN Must Reinforce Car Distributors and Realize Sincere Treatment

FAW VOLKSWAGEN: Our Car Distributors and We must Realize Sincere Treatment with Each Other and Sharing of Weal or Woe

China Auto Show 2010

China Auto Show 2010

Reporter: The auto market conference specially emphasized to reinforce your distributors. How will you do? What do you think of the relations between your auto distributors and you? And how do you realize the win-win goal between you two?

Edward Chen: I think we shall formulate an operation principle together with our distributors.

FAW VOLKSWAGEN is imperfect in some aspects, such as our resource allocation. Only a clear and public resource allocation system can fully arouse the enthusiasm of our distributors. We are not afraid of little products but of unfairness.

Therefore, my suggestion is whether we ask the distributors, to some extent, to have one way to appraise our management methods, whether the way is made public, and whether it is clear and fair. Two years ago, I was opposed when I suggest that our planning personnel be appraised by the distributors. If it is said WTO brings us a lot of concrete advantages, in my opinion, the advantages lie in that it makes our management reformation more marketized. In the hand-in-hand course, I stressed to reinforce the application of information technology by information technology, so as to strengthen our working efficiency and the transparency of our management. Meanwhile, when we lay emphasis on the distributors’ “quaternity”, we are deeply aware that the inner system of FAW VOLKSWAGEN is not that of quaternity, e.g. such aspects as distribution and service don’t conform to quaternity, and spare parts management and distribution are always divorced from such a system. In the hand-in-hand course, I hope, we can more often improve our work, and really reach to advance side by side with the distributors, under the distributors’ supervision and direction and the pressure of market.

How we realize the win-win objective? I think we shall realize the sincere treatment with each other just like liver and gallbladder. When I talk about it, the distributors, because of their knowledge of FAW VOLKSWAGEN, say that we shall be sincere to each other if we realize the sincere treatment with each other. FAW VOLKSWAGEN probably was the hometown of cholecystopathy, and some members had picked off their gallbladder, so it is no wonder when they said that FAW VOLKSWAGEN and its distributors were difficult to coordinate to each other, just like liver and gallbladder. In the new market economy, I think, members of FAW VOLKSWAGEN have healthy gallbladders, either physiological ones or ones in our mind after China’s entry into WTO, so FAW VOLKSWAGEN and its distributors can surely realize the sincere treatment with each other, the sharing of weal and woe and the long-term confidence. FAW VOLKSWAGEN has attached importance to the value of credit and trustworthiness, and to principle of good faith and of business on moral.

Meanwhile, FAW VOLKSWAGEN should do well in product, quality and cost. It is said that one of the “Four Wheels” is distribution, which shall be closely connected with them. The planning, quality and cost, however, are within FAW VOLKSWAGEN, so we must well do the inner work of FAW VOLKSWAGEN.

Reporter: It is said that FAW VOLKSWAGEN will recommend a series of new products. Would you please introduce the product strategy of FAW VOLKSWAGEN this year?

Edward Chen: FAW VOLKSWAGEN Must Reinforce Distributors and Realize Sincere Treatment

At present, we are designing the modified model of Audi A6, the new generation of Jetta products, the next generation of Hongqi products and that of trucks, etc., on which we have elaborated in corresponding occasions to different extents. As I have said, to refrain from the restlessness of products, in practice, is to do that of psychology. When any enterprise is approaching maturation, it does not excessively come to full stop, but pays more attention to develop, prepare for and produce new generations. In order to realize the win-win objective, we shall unite not only the distributors, but also the whole society.

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