'Strategic transformation'-- one of the most profound innovations for Chinese automobile companies

• Source: Global Times
• [18:38 December 22 2010]
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Geely Strategic Transformation Results Seminar, held by the Society of Automotive Engineers of China inaugurated on Monday at the 8th China International Automobile Exhibition in Guangdong Province.

Strategic transformation has been the turning point of the most profound innovation for Chinese automobile companies in recent years. Many of which survive out of intensified competition, develop from weak to strong; upgrade the industry smoothly and achieve sustainable development for implementing strategic transformation. Miao Yu, secretary of the Party Committee and vice minister in the State Ministry of Information and Industry, states: "Strategic decision-making determines the direction of them. Chinese automobile companies should take the scientific outlook on development in decision-making. Only by making wise strategic decisions can they keep an upper hand in development. I think the core or root of transformation rests in creativeness, brand-building and international cooperation." 　　

Geely initiated its strategic transformation in May, 2007, when it learnt from experience that it was tough to survive in the automobile industry with price wars. Therefore, Geely changed its strategies completely by "manufacturing the safest, the most environmentally-friendly and energy-saving cars". Advanced technology, high quality and excellent service have since become the core of Geely's development strategy and strategic transformation in a new historical period. To realize the strategic transformation, Geely took a leading role in transforming strategy from "price advantage" to "technology leadership" since May, 2007. Although Haoqing, Merrie and Uliou still took a large amount of market share, Geely terminated the production of "the third child type" because of quality deficiency and switched into a new brand phase in product research, production and sales. Three newly-built models --Gleagle, Emgrand, Englon-- thus came into being. They have established a R&D system which embraces 5 technology platforms and 15 product platforms and which can derive 42 products. Besides, Geely has carried out several well-targeted transformations and renovations in areas such as talents training, management process, technology development, product development and planning; several supporting systems, marketing network and after-sales service, guiding the whole fundamental work onto the track, which will be well adapted to the new situation. The series of successful moves in strategic transformation equipped Geely to handle the financial crisis calmly and to demonstrate a healthy, fast and sustainable developing favorable momentum. All laid a solid foundation for a successful transformation and upgrade.