Take The Road Of Independence And Create An International Brand -- Chery From Its Disadvantages

Yin Tongyao tells how Chery, with its increasingly rich wings, learns how to survive and survive in adversity.

In May 2008 10, when Chery was founded in Wuhu, a small inland city in China, no one took it seriously. (May)

It is hard for several young people to build cars.

It takes a lot of trouble to find an engine and find a buyer; self digesting, using its own engine, it is easy to drum up the vehicle, but can not get the "quasi birth certificate" (on the national auto industry directory), and is not allowed to sell......

Yin Tongyao, general manager of Chery, said: "ten years of entrepreneurship, ten years of wall collision.

We hit the wall and we went in another direction.

Then hit the wall, then change the direction, then go. "

In this way, today's Chery is very impressive. In 2007, Chery's passenger car sales volume was 381 thousand, and the sales revenue reached 2 billion 860 million yuan (20 billion yuan), ranking the top 4 among the domestic passenger cars (the other 3 strong were joint venture brands).

Chery is one of the most independent auto brands in China, which own production and manufacturing technology including engine, gearbox, chassis and other core components.

It has also been the first largest exporter of passenger cars in China for 5 years in a row (119 thousand vehicles in 2007, 30% of total sales in that year, 132% higher than that in 2006), and Chery's Rui Hu, Dong Fang Zi, A5 and other models have entered the streets and lanes of 70 countries.

Chery has also built 7 assembly plants in 6 countries including Russia, Ukraine, Iran, Egypt, Indonesia and Uruguay.

Over the past two years, Chery has stepped up its pace of globalization, signed joint ventures with us quantum companies, plans to produce 150 thousand cars per year, and is discussing cooperation with North American and European companies. Chery's joint ventures are moving in the same direction - overseas markets.

Yin Tongyao, general manager of Chery company, interviewed by McKinsey director Gao Xu at the company headquarters in Wuhu, Anhui, revealed the hardship of his pioneering work, expounded his views on independent brand and joint venture OEM production, and discussed the challenges facing the implementation of globalization strategy and the vision of Chery.

尹同耀教育背景 1984年畢業于合肥工業大學（原安徽工學院）汽車制造專業 工作經歷 奇瑞汽車有限公司 ·黨委書記、董事長兼首席執行官（2004年2月至今） ·執行副總經理（1996年11月~2004年2月） 一汽-大眾汽車有限公司 ·總裝車間主任兼物流科科長（1991年10月~1996年11月） ·前期工作準備， 赴德國、美國學習（1989年10月~1991年10月） 中國第一汽車集團公司紅旗轎車廠 ·工藝員（1984年7月~1989年10月） 其他情況 ·中國汽車工業協會副會長（2007年） ·獲“CCTV2005中國經濟年度人物”榮譽稱號和自主創新獎（2005年） ·獲“全國勞動模范” （2005年） ·獲中華全國總工會“全國五一勞動獎章” （2004年） 麥肯錫季刊（以下簡稱《季刊》）：恭喜奇瑞十周歲。

Ten years of entrepreneurial ups and downs, what are the feelings of unforgettable?

Yin Tongyao: no matter what he did, he was driven by "luck". He had gone through unlucky luck and made Chery.

Chery was born without policy support; there was no money; no technology; no talent; no production base (at that time, it required an annual production of one hundred and fifty thousand scale, no background of car building, what scale?)

In addition, it was born in such a big city of Wuhu, Anhui, and so many young people do.

In any case, Chery will not succeed.

Therefore, when it falls to the ground, no one can see it. No one holds hope.

If we are allowed to do it again, it is still such a "nothing" condition that we are afraid to do it again.

"Quarterly": helpless and hopeless, why bother to "go to Liangshan"?

Yin Tongyao: at that time, the leader of Wuhu city was confident to do it and promised to give us support.

This is Chery's "lucky".

In this way, "let's go to the top."

As for how to do it, we do not have a clear idea.

The idea at that time was simple, and it was possible to buy a second-hand production line and use second-hand technology from others.

Later found that second-hand production line can not buy, second-hand technology can not buy.

Invest $about 20000000 to buy a second-hand engine line from a foreign company.

At that time, we believed foreigners, and found a foreign technology engineering company to help install and debug. When we wanted to debug, we could post Chery cards.

That company half done, desperately asked for money, we did not add it, it went on the butt.

Leaving behind a pile of dead things.

We had to do it by ourselves.

The engine was made, and no one bought it.

Finally, I can only sell myself.

You have to build your own car.

We talked to a European company and wanted to buy a company's mold and vehicle technology.

The result does not conform to its strategy, it does not sell.

It is the same result to seek another American company.

Once again, Chery was forced to develop its own vehicle technology.

We were looking for smaller companies in Europe and Taiwan to make vehicle design and work hard.

It was difficult, and the first car was produced.

However, the car produced is not up to directory 1.

This is a "black child" and can not be sold.

We also tried to find a way to catalogue.

Finally, through all aspects of coordination and SAIC's help, we hung up under SAIC to get the "birth certificate".

This is another big fortune of Chery.

After obtaining the certificate, it is just in time to catch up with the climax of China's auto market.

Cars can not be sold without being sold out.

The market accepted Chery, which is another big fortune of Chery, which has completed our first pot of gold.

Quarterly magazine: when the climax of China's auto market comes into being, what is the basis of Chery's global expansion?

Yin Tongyao: our move towards overseas markets was initially unconsciously and passively, and the global strategy at that time was not systematic.

Now it seems that the system can be divided into 4 parts: technical cooperation with overseas enterprises, vehicle export, overseas plant assembly, capital cooperation and so on.

Technology cooperation started with designing its own engine.

In collaboration with AVL, the first batch of engines was developed.

This development has brought Chery's technical team and related parts suppliers to the front of our domestic counterparts in the field of engine.

Later, we collaborated with Italy design company to design the vehicle.

In order to save design fees, we do not want to leave all the design to others. We propose joint design.

Whatever we do, we all do it ourselves.

In this round, Chery employees have improved their capabilities.

Disadvantages have made Chery.

The past technical cooperation is the main role of foreign design companies.

Now I play the leading role.

Through technical cooperation, Chery's autonomous engine, gearbox and vehicle technology have been brought up.

When we become a climate, the State encourages innovation, and we catch up with that again. This is another big fortune for Chery.

"Quarterly": where does Chery's global strategy start?

What are your expectations?

Yin Tongyao: at first, we were unaware and passive.

It is not that we consciously do the third world first, then do the second world, and finally do the first world.

We weren't so smart. We were staring at the domestic market.

Chery first exported cars to others.

In 2001, a car dealer in Syria saw our first car in Beijing and hoped to import it.

We had no sense of internationalization at that time, or even refused to sell it.

That year, it bought 10 cars, second years, and more than 100 cars. In third years, it entered more than 1000 vehicles.

Since then, the people of Iran have also arrived, and other countries have also come.

That's the way it exports from the Middle East.

Other markets are like this. Buyers are coming.

Until 2005, after the national macroeconomic regulation and control in 2004, we set up a small group, specializing in export.

Quarterly magazine: what is the layout of overseas factories?

Yin Tongyao: also passive, hit.

It's all about finding somebody else.

We didn't think too much.

Later on, these people are very consistent with our abilities.

This gives us a little time to practise kungfu.

In order to gradually pition to a more competitive market.

When we set up factories overseas, we first crossed the river by feeling the stones and ran quickly.

We go to many places, try small investments, do well and invest more.

Overseas operation is not only a quantitative calculation, but also a problem of growth.

In order to take root in a market, there is a need for nurturing stage ahead.

I don't expect a country to give me much weight.

But when the roots were tied up, it could help me infiltrate the neighboring countries.

Quarterly magazine: Chery exports to nearly 70 countries and set up factories in 6 countries. How to assess the risks of overseas operations and how to manage the growing complexity?

Yin Tongyao: we also assess, but sometimes it is not necessarily scientific.

For example, to Iran, because the western car dealers do not go, only China.

European and American manufacturers do not go in at all. This creates business opportunities for us.

For example, according to risk analysis, for some manufacturers, the political risk in Iran may be very high, but the market risk there is very small.

In some countries, the western countries simply do not go.

The local market is not big, but we did a good job.

Quarterly magazine: is there any time when global talent training is not keeping pace with Chery's global development?

Yin Tongyao: we have always been unable to keep up with the needs. Talent is a big bottleneck for us.

On the one hand, we invite foreigners from outside, invite overseas returnees, and invite some people in China.

On the other hand, we should train ourselves and make bold use of young people.

It may not be easy at the beginning, but they are growing very fast.

The use of young people is also a "driving force".

When people come to this environment, you will become masters and mature as soon as possible.

We are very careful when we begin to use it.

Managers are sent to overseas to take turns, every three years or even shorter rounds.

We have a comprehensive system of inspecting cadres, depending on his leadership, sense of responsibility, innovative thinking and communication skills, and we should ask his subordinates to evaluate them.

The most important thing is data indicators - creating benefits for the company.

Quarterly: is Chery's overseas operations management team hiring locals?

Or are they all sent from China?

Yin Tongyao: he usually sends 1~2 himself, others employ locals.

The people who sent were not very adapted to the living environment of the overseas factories, so we hired a lot of locals.

Like in Russia, we employ about more than 70 locals, executives and workers.

Many people are better than we think.

The general manager, sales director, service director and chief financial officer of Chery Russia are all Russians.

Quarterly Bulletin: exhaust emissions, global warming has become an important social and environmental concern. How can Chery cope with global expansion?

Yin Tongyao: Chery has invested more and more in technology research and development, and the absolute value of R & D expenses has increased rapidly.

In terms of carbon dioxide reduction, new engines, new gearboxes, new electrical controls, hybrid power and new energy alternative fuels, we have done a lot of research and development, and achieved some leaps and bounds.

For example, we are now developing according to the latest European emission requirements, and there are many new energy alternatives.

In the process of technology development, we have considered all the corresponding technologies and emission requirements according to when to enter Europe and the United States.

Many of our products have been commercialized or commercialized.

Like the engine, at home, at present, we only need Europe 3 or Europe 4, all products of Chery can do this.

If we want to enter Europe and the United States, the United States will use the emission standard of California, and Europe now requires 5 of Europe's emission standards. We are all preparing for it.

Quarterly magazine: in the past year, the West has paid special attention to manufacturing in China, focusing on the quality problems made in China. How does Chery respond to quality challenges?

Yin Tongyao: we noticed that because it is made in China, others may question more.

Therefore, technically, we must be careful and be fully prepared.

We should have done too much in design, testing and service preparation (overdesign, Overtest, overservice) because people are too skeptical.

Even when people wear colored glasses to see us, it is difficult to pick faults. Then we are ready.

So, including the recent OEM production with foreign parties, the foreign side has asked us a lot of technical requirements, and we have agreed.

The demand for Chery is high, Chery can do it, indicating water.