Chapter 498: AMC's Grand Strategy
AMC Automotive Headquarters, Chairman's Office.
Chen Geng and Jack Welch chatted very happily, listening to the bursts of laughter coming from inside, Jack Welch's secretary in the secretary room outside the door was really curious: What are the big bosses and bosses talking about, chatting so happily?
Chen Geng and Jack Welch didn't actually talk about anything specific, they just talked about some general things, such as their feelings about the little devil......
"Boss, after digesting and absorbing the management style and management philosophy of Dongying Toyota, in terms of single product quality and reliability, our AMC has surpassed Ford and GM, and we can proudly claim that we are the most reliable among American car brands," Speaking of this, Jack Welch's tone was full of pride: "I have to admit that Dongying Hello is indeed very good at quality management, and our product quality complaints last month hit a new low." โ
Although Jack Welch had a bit of disdain in his tone when mentioning Dongying, he also had to admire Dongying's unique ability in quality control and management.
"Dongying people do have a good set of quality control," Chen Geng nodded approvingly: "But I read an analysis report, it seems that the expansion of Japanese cars in the American market is not satisfactory?"
At the beginning of the year, Toyota, Honda and Nissan, the three Japanese car brands, were ambitious to shout out the slogan of expanding sales by 30% this year, but now half a year has passed, according to the data released by relevant agencies, although due to the impact of the oil crisis, Toyota, Honda and Nissan sales have indeed increased compared with the same period last year, but it is far less than 30% This exaggerated ratio, compared with the same period last year, Toyota has the largest increase, about 13.5%, Honda also has 8.28%, Nissan is the worst, not only did not rise, but fell slightly by 0.17%.
After analyzing the top 10 brands in the U.S. auto market in the first half of this year, the core reason why the sales growth of Japanese auto brands is not as expected at the beginning of the year is the rise of local American auto brands such as AMC, Chrysler and Ford, especially AMC and Chrysler, whose launch of a series of new models that meet the new needs of the market performed exceptionally well in the first half of this year, preempting the "booking" by Toyota, Honda and Nissan This is the fundamental reason for the unfavorable sales growth of Japanese car brands.
Thanks to this sales situation, the executives of Japanese auto brands who were ambitious and shouted slogans at the beginning of the year have not seen them shouting slogans in recent months, and they have been much more low-key, and as the boss of the local American car brand, General Motors Group is the only American auto manufacturer whose sales have fallen year-on-year.
"These Oriental dwarfs lack reverence for the American market, who do they think they are?" Jack Welch pouted, disdainful, like the vast majority of the media, Jack Welch also believes that only those who are very economically average Americans, blacks and other minorities will choose cheap Japanese cars, for the real core class of the United States: the American middle class, wide and comfortable American cars will always be their first choice. After a pause, he said: "Given that the market and users have regained trust in the quality of our products, boss, I think it's time to expand the company's production capacity." โ
"Oh?" Chen Geng raised his eyebrows: "Tell me what you think." โ
In fact, in Chen Geng's view, after completing product quality control and re-establishing American consumers' confidence in AMC cars, it is indeed time to expand production capacity, but he wants to hear what Jack Welch thinks.
Jack Welch had obviously thought deeply about this question, but also, if it wasn't the result of careful consideration, how could he have said this to his boss? I divide the company's development goals into two stages: 5-year short-term goals and 15-year long-term goals, within five years, I hope to increase the production capacity of 300,000 on the basis of the existing production capacity, and let AMC Group enter the automobile production capacity million group around 1986;
Fifteen years later, around 1996, my goal was to build AMC into a global automotive brand with production bases in North America, South America, Europe, and Asia, with a total global production capacity of 2 million vehicles, and to become one of the world's top three automobile manufacturers. โ
Jack Welch looks ambitious and confident.
This is the first time that Jack Welch has explained his blueprint to Chen Geng, before that, no matter how fanciful Chen Geng said to him, he Jack Welch is actually more of a "fire captain" to AMC, and now, after completing the job of "fire captain", Jack Welch is no longer willing to be only a "fire captain".
Chen Geng smiled.
He felt that the most intelligent and proud digger he had done in his life was to dig up Jack Welch, and after digging this guy, AMC's daily operations hardly had to worry about himself. Although he appointed him as the chairman and CEO of AMC, he gave himself considerable respect to the boss in the company's development strategy, and grasped the balance between his own power boundary and respect for the boss quite well.
Chen Geng likes such smart people.
Since Jack Welch knows his own proportions very well, Chen Geng naturally gives him enough respect: unless necessary, he rarely comes to the AMC headquarters, in order to help Jack Welch establish authority, the reason why he rushed over today was brought up by Jack Welch, and now it seems that today's meeting is actually Jack Welch explaining his goals to himself in this informal way.
This is very good, Chen Geng doesn't think there is anything wrong with Jack Welch's approach, no matter how ambitious his goal is, he also needs the support of his boss, and it is actually the most appropriate way to communicate with himself in this informal way.
He smiled and nodded: "You are very confident in the prospects of the global economy in the next 20 years?"
If he is not highly optimistic about the global economic situation in the next 20 years, how dare he set a goal of achieving a total global production capacity of 2 million vehicles in 15 years?
"Yes. Jack Welch nodded.
Chen Geng didn't ask him what the reason for the global economy to improve in the next 20 years was, and whether anyone else knew better than him about the development trend of the global economy in the next 20 or even 30 years, he just nodded: "This overall goal is no problem, I only put forward a few requirements." โ
Jack Welch was a little surprised.
Even in his own opinion, the goal he set is more radical, radical means to achieve such a goal, in the next fifteen years AMC Group will borrow heavily to achieve its own leapfrog development, large debt means that the company's debt ratio has increased significantly, and with the habits of the Chinese, they actually dislike this high debt ratio very much, for the boss will agree with his radical goal, he is actually ready to repeatedly and the boss tug-of-war, but let Jack ยท Welch wanted to break his head, but he didn't expect the boss to be so happy, and he agreed without asking what the basis for setting this goal was, it was really ......
For a while, Jack Welch didn't know whether he should feel or how. He nodded: "You say." โ
"In the future, AMC will occupy a certain market share in Europe," Chen Geng said, "I hope that in 15 years, AMC will become the top five car brands in Europe in terms of market share." โ
"This ......"
Jack Welch frowned, to tell the truth, the boss's request is a bit difficult, you know, Europeans' car habits are completely different from those in the United States, the popular big cars in the United States, the size of the car should be large, and the displacement of the engine should also be large, whether it is the engine or the body, or the interior space, in a word: big, that's right.
As for Europe, the mainstream is the Fiat 500, Volkswagen Beetle and other hatchbacks with a body length of less than 4 meters.
Although AMC is the only car brand specializing in small cars among the four major domestic car brands in the United States, AMC has never explored the European market, but it ......
His eyes rolled: "boss, you are the president of our AMC Automotive Engineering R&D Institute, as long as you do your job well...... European market, no problem!"
Chen Geng smiled: "OK, deal." โ
Speaking of which, I have to talk about a car consumption habit in Europe: manual transmission, in countless media publicity, it is said that Europeans like manual transmission, why do they like manual transmission, because manual transmission is more fun to drive, Europeans are people who like to drive - bullshit!
Look at another kind of motor vehicle sold in Europe: the sales of motorcycles, what is the hottest motorcycle sold in Europe? It is not a straddle motorcycle with gears, but a lightweight continuously variable pedal motorcycle that is easy to ride, and it is also a means of transportation.
One word: expensive!
Speaking of which, it's not about money?
For the same car, the automatic transmission model is more expensive than the manual transmission model, so the Europeans chose the cheap manual transmission;
Also motorcycles, continuously variable scooters with a small displacement are cheaper than straddle scooters with a large displacement with gears, so the Europeans opted for continuously variable pedals.
Such a simple logic was blown by the media as "Europeans like manual transmissions that are fun to drive, so manual transmissions are more popular in Europe", Chen Geng actually admired.
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