The red flag that used to be a banner of the Chinese auto industry has in recent years tasted the desperation of being forced to stop production. After many years of silence, a chance to let it fly again has come.
Recently, the “2012 Catalogue of Selected Vehicles for Official Vehicles of the Party and Government Organs†(hereinafter referred to as the “Catalogueâ€) published by the Ministry of Industry and Information Technology has attracted people's attention. Although the Red Flag has not been selected in this list, it is rumored that the Red Flag will be designated as a provincial and ministerial level leader. Cadres use cars. This is the "opportunity."
According to speculations by the outside world, Gao Kaifu, a spokesman for FAW Group, said: "The introduction of the "Catalogue" is a good thing for China's own brands. The demonstration effect of the official market will promote the sales of independent brands and expand brand influence. As for the red flag you said, it will become a provincial and ministerial official car. I haven't heard of it so far."
According to sources, the first mid-to-high-end car to be launched by Hongqi will be officially launched in April this year, code-named C131, and its production scale is expected to reach 30,000 next year.
In FAW, with the support of its own brand policy, Hongqi has begun a full-system rejuvenation. FAW learns from its previous experience of using Toyota Crown to build a new Hongqi. This time, it is a collection of global resources to build a full range of models, from ordinary cars to guests. With the car, the red flag series has been fully planned. The point that has not changed at all is that the position of the Hongqi is still high-end.
Hongqi leveraging on procurement "resurrection"
On October 20, 2009, with a gold-orange liberation J6 driving off the production line, the 10 millionth car was born in Changchun FAW, and China has since entered the ranks of a million-million-class car-producing country. Although China has become the world's largest automobile production and marketing country, the development of self-owned brand passenger vehicles has caused many car people to feel sad. The disadvantaged status of self-owned brands of passenger cars, including the Hongqi, is still a real issue that the Chinese auto industry has to face squarely.
The return of the red flag will replace Audi's rumors as a provincial-level leader’s vehicle. It is heavily political in nature and it is possible to get rid of the reality that the sign meaning is greater than the actual meaning. It is the key to truly allowing the market to accept the red flag, and the market position of the red flag. Still confusing.
An information source who declined to be named revealed in an interview with the reporter of “Daily Economic Newsâ€: “FAW reinvents the Red Flag brand to go to the government procurement market. Many models are tailor-made for it. It will be designated as the provincial and ministerial special-purpose vehicle for cadres, and the guests will receive the designated car. Now it is only waiting for the relevant models to be listed."
Earlier, Xu Jianyi, chairman of FAW Group, said in an interview with the media that around 2012, FAW Hongqi will launch a variety of models, mainly used for official cars, limousines, reception cars and other daily-use vehicles.
As the “original ancestor model†of China’s own-brand cars, Hongqi has been China's senior leadership vehicle since its inception in 1958, once representing the highest level of manufacturing in the Chinese automotive industry. However, due to high fuel consumption and relatively backward technology, the “national car†that was produced for 23 years was discontinued in 1981.
In the 1990s, FAW tried to revive the "Red Flag" through cooperation with joint ventures such as Audi and Toyota. Due to the incompatibility of "integration between China and the West" and the excessively high prices, the prosperity of the Red Flag soon followed the stoppage of production. In 2009, FAW Car restarted the Red Flag brand and sold it with Pentium.
It is understood that in order to build a high-quality red flag sedan, FAW plans to invest 1.786 billion yuan. An insider of FAW told the “Daily Economic News†reporter: “The red flag is of great significance not only to FAW but also to the Chinese. It has always been called by the Chinese people as the “national car†of China and it enters the government procurement market. As a high-level cadre car, inspection vehicle, and country car, it can play a large role in demonstration, so that more government agencies, institutions purchase their own brand models."
“The red flag revived by the government procurement market, I think it is a correct path, the red flag's historical status and its halo on the head decided that it must go this way.†Senior automotive analyst Zhong Shi said.
Join forces to create "new red flag"
In a 2004 brand value survey, Hongqi sedan topped the domestic car industry with a value of 5.456 billion yuan. Today, Hongqi's once huge brand equity has almost nothing left. In order to return to the throne of the “first brother†in the auto industry, the Hongqi must come up with competitive models, because other domestic companies such as SAIC, Dongfeng, Beiqi, Guangzhou Automobile, etc. are also eyeing this position.
According to news from FAW, in order to create a high-quality, high-level red flag sedan, FAW has now introduced a brand-new R&D approach: outsourcing development, and is working with Magna Steyr to jointly develop the Hongqi brand. Key design of high-end car body and chassis, FAW Group Technology Center and R & D personnel of FAW Car are involved in the development, and it is agreed that the intellectual property ownership will be assigned to FAW. However, the person did not disclose the research and development process of the powertrain.
According to public information, Magna Steyr, headquartered in Austria, is the largest wholly-owned subsidiary of Magna International (the world's fifth-largest auto parts supplier) and a leading independent brand of automotive engineering services. The vehicle manufacturing company mainly provides engineering services, parts and components, systems, modules, and vehicle development services. It also has partnerships with Mercedes-Benz, BMW, and Chrysler vehicle manufacturers in the world.
The cooperation between the two parties means that FAW’s autonomous route has undergone a major transformation and began to rely more on its own strength and cooperation with international professional auto development companies instead of relying solely on the technology import of joint venture partners. It is reported that after the resumption of production, the Red Flag sedan has a total of L and H platforms. The orientation of the high-end route has not changed.
Before this, FAW Red Flag's R&D has been on the way to joint ventures to purchase technology, but this road is full of thorns. In the 90s of last century, FAW once introduced the Audi 100 model technology and used it to create "Little Red Flag" products. However, as the joint-brand mid- to high-end cars have taken over the Chinese market one after another, the “little red flag†with high prices and insufficient competitiveness has finally lost ground.
Subsequently, FAW purchased the Majesta model platform from Toyota and developed the HQ3 model. When the HQ3 needed 2.5L engine to improve the competitiveness of the product, Toyota turned its face because the Toyota Crown 2.5L model also equipped this engine. Of course Toyota. He will not give birth to others from his bowl, so HQ3 also ended in failure.
In this regard, an industry expert analyzed that FAW's change of the technical route through the acquisition of more technical autonomy, thus no longer subject to control, is a good thing for FAW and is also a reference for other independent brands.
The first high-end model was off the assembly line in April. It is reported that Hongqi’s re-launch of the first mid- to high-class car will officially go offline in April this year, code-named C131, and the scale of production is expected to reach 30,000 next year.
"The red flag is to take the high-end route." Xu Jianyi once said. FAW insiders also explained: "The first car based on the high-end, is to establish a high-end brand image of the red flag, this is the red flag's blood lineage, but also the current general trend."
As we all know, for the Chery, Geely and other independent brands to open the market are low-end models, "This will cause high-end breakout difficulties," said Xin Xuexin deputy general manager of automotive marketing solutions, Xuehong said. In her view, China has become a major automobile country, but it is not a powerful country. It is because there is no high-end self-owned brand. Chery is a good example and has always wanted to enter the high-end market. However, the dream has not been "came into reality."
Lang Xuehong added, "The red flag has not been tried out of low-end positioning. Before it entered the taxi market, it failed to do so. This not only undermined the brand image of the product, but also did not significantly increase sales."
Su Hui, chairman of the China Automobile Dealers Association’s tangible market branch, said that if Hongqi’s rebirth is to succeed, it must produce quality products and launch “high-end†models rather than just “advanced†vehicles with large bodywork and luxurious interiors. Whether it is the appearance of the car or the technology, it must reflect the “soul†of the red flag, because this car represents the “soul†of the Chinese auto industry.
After the Red Flag models have entered the market one after another, entering the “Catalogue†or directly entering the provincial and ministerial-level driving range, or even becoming a national leader’s special car, may all be achieved step by step, and this should be the biggest dream of 2012 FAW Big Brother.
· Related Links Official Car Purchase Development History ◠Before 2003, Procurement by Oneself Before 2003, there was no legal text for official car purchase. As long as the budget approval is passed, the purchaser can purchase the model in mind according to the budget. A simple summary is that if you have money to buy anything, buy it.
â— Centralized Procurement after 2003 In 2003, the "Government Procurement Law" was formally promulgated and implemented, and the procurement of official vehicles was also placed in the ranks of centralized procurement. The government will include procurement projects of a large scale into the centralized procurement catalogue, and the procurement activities will be carried out by the government procurement center. Official vehicles mostly use open tendering. The purchaser needs to declare the purchase budget and purchase plan to the financial department, and after obtaining the approval, he must entrust the government procurement center to purchase.
â— In 2007, the supply of agreements was rolled out nationwide. In order to further improve the procurement efficiency of official vehicles, the auto agreement supply came into being. It means that all provinces (districts) passed the unified bidding, determined the brand, price, deadline, service conditions, etc. It is fixed in the form of an agreement, and then the relevant contents are shared by the procurement units in the province (region) through the form of documents. The supply of automobile agreements is basically implemented at the central level and at the provincial (district) level.
Due to the significant increase in procurement efficiency, this procurement form has spread across the country since 2007.
Recently, the “2012 Catalogue of Selected Vehicles for Official Vehicles of the Party and Government Organs†(hereinafter referred to as the “Catalogueâ€) published by the Ministry of Industry and Information Technology has attracted people's attention. Although the Red Flag has not been selected in this list, it is rumored that the Red Flag will be designated as a provincial and ministerial level leader. Cadres use cars. This is the "opportunity."
According to speculations by the outside world, Gao Kaifu, a spokesman for FAW Group, said: "The introduction of the "Catalogue" is a good thing for China's own brands. The demonstration effect of the official market will promote the sales of independent brands and expand brand influence. As for the red flag you said, it will become a provincial and ministerial official car. I haven't heard of it so far."
According to sources, the first mid-to-high-end car to be launched by Hongqi will be officially launched in April this year, code-named C131, and its production scale is expected to reach 30,000 next year.
In FAW, with the support of its own brand policy, Hongqi has begun a full-system rejuvenation. FAW learns from its previous experience of using Toyota Crown to build a new Hongqi. This time, it is a collection of global resources to build a full range of models, from ordinary cars to guests. With the car, the red flag series has been fully planned. The point that has not changed at all is that the position of the Hongqi is still high-end.
Hongqi leveraging on procurement "resurrection"
On October 20, 2009, with a gold-orange liberation J6 driving off the production line, the 10 millionth car was born in Changchun FAW, and China has since entered the ranks of a million-million-class car-producing country. Although China has become the world's largest automobile production and marketing country, the development of self-owned brand passenger vehicles has caused many car people to feel sad. The disadvantaged status of self-owned brands of passenger cars, including the Hongqi, is still a real issue that the Chinese auto industry has to face squarely.
The return of the red flag will replace Audi's rumors as a provincial-level leader’s vehicle. It is heavily political in nature and it is possible to get rid of the reality that the sign meaning is greater than the actual meaning. It is the key to truly allowing the market to accept the red flag, and the market position of the red flag. Still confusing.
An information source who declined to be named revealed in an interview with the reporter of “Daily Economic Newsâ€: “FAW reinvents the Red Flag brand to go to the government procurement market. Many models are tailor-made for it. It will be designated as the provincial and ministerial special-purpose vehicle for cadres, and the guests will receive the designated car. Now it is only waiting for the relevant models to be listed."
Earlier, Xu Jianyi, chairman of FAW Group, said in an interview with the media that around 2012, FAW Hongqi will launch a variety of models, mainly used for official cars, limousines, reception cars and other daily-use vehicles.
As the “original ancestor model†of China’s own-brand cars, Hongqi has been China's senior leadership vehicle since its inception in 1958, once representing the highest level of manufacturing in the Chinese automotive industry. However, due to high fuel consumption and relatively backward technology, the “national car†that was produced for 23 years was discontinued in 1981.
In the 1990s, FAW tried to revive the "Red Flag" through cooperation with joint ventures such as Audi and Toyota. Due to the incompatibility of "integration between China and the West" and the excessively high prices, the prosperity of the Red Flag soon followed the stoppage of production. In 2009, FAW Car restarted the Red Flag brand and sold it with Pentium.
It is understood that in order to build a high-quality red flag sedan, FAW plans to invest 1.786 billion yuan. An insider of FAW told the “Daily Economic News†reporter: “The red flag is of great significance not only to FAW but also to the Chinese. It has always been called by the Chinese people as the “national car†of China and it enters the government procurement market. As a high-level cadre car, inspection vehicle, and country car, it can play a large role in demonstration, so that more government agencies, institutions purchase their own brand models."
“The red flag revived by the government procurement market, I think it is a correct path, the red flag's historical status and its halo on the head decided that it must go this way.†Senior automotive analyst Zhong Shi said.
Join forces to create "new red flag"
In a 2004 brand value survey, Hongqi sedan topped the domestic car industry with a value of 5.456 billion yuan. Today, Hongqi's once huge brand equity has almost nothing left. In order to return to the throne of the “first brother†in the auto industry, the Hongqi must come up with competitive models, because other domestic companies such as SAIC, Dongfeng, Beiqi, Guangzhou Automobile, etc. are also eyeing this position.
According to news from FAW, in order to create a high-quality, high-level red flag sedan, FAW has now introduced a brand-new R&D approach: outsourcing development, and is working with Magna Steyr to jointly develop the Hongqi brand. Key design of high-end car body and chassis, FAW Group Technology Center and R & D personnel of FAW Car are involved in the development, and it is agreed that the intellectual property ownership will be assigned to FAW. However, the person did not disclose the research and development process of the powertrain.
According to public information, Magna Steyr, headquartered in Austria, is the largest wholly-owned subsidiary of Magna International (the world's fifth-largest auto parts supplier) and a leading independent brand of automotive engineering services. The vehicle manufacturing company mainly provides engineering services, parts and components, systems, modules, and vehicle development services. It also has partnerships with Mercedes-Benz, BMW, and Chrysler vehicle manufacturers in the world.
The cooperation between the two parties means that FAW’s autonomous route has undergone a major transformation and began to rely more on its own strength and cooperation with international professional auto development companies instead of relying solely on the technology import of joint venture partners. It is reported that after the resumption of production, the Red Flag sedan has a total of L and H platforms. The orientation of the high-end route has not changed.
Before this, FAW Red Flag's R&D has been on the way to joint ventures to purchase technology, but this road is full of thorns. In the 90s of last century, FAW once introduced the Audi 100 model technology and used it to create "Little Red Flag" products. However, as the joint-brand mid- to high-end cars have taken over the Chinese market one after another, the “little red flag†with high prices and insufficient competitiveness has finally lost ground.
Subsequently, FAW purchased the Majesta model platform from Toyota and developed the HQ3 model. When the HQ3 needed 2.5L engine to improve the competitiveness of the product, Toyota turned its face because the Toyota Crown 2.5L model also equipped this engine. Of course Toyota. He will not give birth to others from his bowl, so HQ3 also ended in failure.
In this regard, an industry expert analyzed that FAW's change of the technical route through the acquisition of more technical autonomy, thus no longer subject to control, is a good thing for FAW and is also a reference for other independent brands.
The first high-end model was off the assembly line in April. It is reported that Hongqi’s re-launch of the first mid- to high-class car will officially go offline in April this year, code-named C131, and the scale of production is expected to reach 30,000 next year.
"The red flag is to take the high-end route." Xu Jianyi once said. FAW insiders also explained: "The first car based on the high-end, is to establish a high-end brand image of the red flag, this is the red flag's blood lineage, but also the current general trend."
As we all know, for the Chery, Geely and other independent brands to open the market are low-end models, "This will cause high-end breakout difficulties," said Xin Xuexin deputy general manager of automotive marketing solutions, Xuehong said. In her view, China has become a major automobile country, but it is not a powerful country. It is because there is no high-end self-owned brand. Chery is a good example and has always wanted to enter the high-end market. However, the dream has not been "came into reality."
Lang Xuehong added, "The red flag has not been tried out of low-end positioning. Before it entered the taxi market, it failed to do so. This not only undermined the brand image of the product, but also did not significantly increase sales."
Su Hui, chairman of the China Automobile Dealers Association’s tangible market branch, said that if Hongqi’s rebirth is to succeed, it must produce quality products and launch “high-end†models rather than just “advanced†vehicles with large bodywork and luxurious interiors. Whether it is the appearance of the car or the technology, it must reflect the “soul†of the red flag, because this car represents the “soul†of the Chinese auto industry.
After the Red Flag models have entered the market one after another, entering the “Catalogue†or directly entering the provincial and ministerial-level driving range, or even becoming a national leader’s special car, may all be achieved step by step, and this should be the biggest dream of 2012 FAW Big Brother.
· Related Links Official Car Purchase Development History ◠Before 2003, Procurement by Oneself Before 2003, there was no legal text for official car purchase. As long as the budget approval is passed, the purchaser can purchase the model in mind according to the budget. A simple summary is that if you have money to buy anything, buy it.
â— Centralized Procurement after 2003 In 2003, the "Government Procurement Law" was formally promulgated and implemented, and the procurement of official vehicles was also placed in the ranks of centralized procurement. The government will include procurement projects of a large scale into the centralized procurement catalogue, and the procurement activities will be carried out by the government procurement center. Official vehicles mostly use open tendering. The purchaser needs to declare the purchase budget and purchase plan to the financial department, and after obtaining the approval, he must entrust the government procurement center to purchase.
â— In 2007, the supply of agreements was rolled out nationwide. In order to further improve the procurement efficiency of official vehicles, the auto agreement supply came into being. It means that all provinces (districts) passed the unified bidding, determined the brand, price, deadline, service conditions, etc. It is fixed in the form of an agreement, and then the relevant contents are shared by the procurement units in the province (region) through the form of documents. The supply of automobile agreements is basically implemented at the central level and at the provincial (district) level.
Due to the significant increase in procurement efficiency, this procurement form has spread across the country since 2007.
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