After Jia Jianxu was promoted to president of SAIC, Tao Hailong took over the position of general manager of SAIC Volkswagen.
Like Jia Jianxu, Tao Hailong also comes from parts companies, and was previously the general manager of Huayu Automobile and the general manager of Shanghai Automotive Transmission Co., Ltd.
The difference is that Tao Hailong has worked in the quality assurance department and manufacturing department of SAIC Volkswagen for a long time, and served as the executive director and deputy general manager of the quality assurance department of SAIC Passenger Car Branch.
To a certain extent, Tao Hailong can be regarded as returning to SAIC Volkswagen. However, considering SAIC's expectations for Tao Hailong, it is possible that the work experience of its parts company is the key reason why Tao Hailong is favored.
SAIC Motor pointed out that in the new stage of joint venture and cooperation in technology co-creation, Tao Hailong will return to SAIC Volkswagen again, and will further promote the integration and win-win situation of all parties, and lead the company to accelerate the construction of a new automotive industry ecological chain through the upstream and downstream; Deeply promote technological innovation, accelerate the transformation and upgrading of new energy of the Audi brand and the Volkswagen brand; Efficiently and agilely respond to market challenges and promote high-quality and sustainable development of enterprises.
Among them, the "new stage of joint venture cooperation for technology co-creation" is the stage that SAIC Volkswagen and the majority of joint venture car companies are currently in. At a time when the automotive industry is facing electrification and intelligent transformation, joint venture car companies such as SAIC Volkswagen are facing unprecedented pressure. So, can Tao Hailong lead SAIC Volkswagen to embark on a broad road in the industry transformation period?
Why did SAIC Volkswagen pick leaders with parts background?
Judging from the recent general managers of SAIC Volkswagen, both Chen Xianzhang and Jia Jianxu have previously worked in parts companies. Although Zhang Hailiang is an exception, the experience of the head of the procurement department and the production procurement section of the pre-supply department is also destined to be familiar with parts companies.
Tao Hailong, the new general manager of SAIC Volkswagen, has served as the general manager of Shanghai Automotive Transmission Co., Ltd. and the general manager of Huayu Automobile.
Tao Hailong is also clear about the supply chain! So why does SAIC Volkswagen still pick a leader with a parts background as the general manager? Some reasons may be learned from the development history of SAIC Volkswagen.
As one of the earliest joint ventures in China, SAIC Volkswagen has celebrated its 40th anniversary, during which it has left too many legends in the Chinese market and has been regarded as a benchmark for joint venture car companies. When it comes to the success of SAIC Volkswagen and even Volkswagen in the Chinese market, localization is always an unavoidable word.
When Santana was first introduced, the CKD assembly method was adopted, and the localization rate was infinitely close to zero, which was not in line with the original intention of the mainland at that time to "change technology from the market", and it was also not conducive to the long-term development of Volkswagen. When the localization rate of the Santana ordinary model reaches 93%, it not only means that the cost of this car is lower, but also represents that SAIC Volkswagen has its own set of localized supply chain.
In this way, SAIC Volkswagen has been thriving for 40 years, and there is even a view that Volkswagen's success in China, one of the core reasons for SAIC Volkswagen's success in China is "localization".
The supply chain is strongly related to localization, which is a parts company, and SAIC Volkswagen's selection of the general manager with a background in a parts company may have its historical factors. It is worth mentioning that in the so-called "new stage of joint venture cooperation of technology co-creation", localized supply chain plays a vital role for joint venture car companies like SAIC Volkswagen.
During the transition period, SAIC Volkswagen wants to do more localization
Electrification and intelligence are surging, and most of the joint venture car companies are facing great pressure. Although SAIC Volkswagen is the most outstanding joint venture in electrification in China, with nearly 60,000 new energy vehicles sold in the first half of the year, a significant increase of 80.4% year-on-year, the pressure is still not ordinary.
According to the official website, SAIC Volkswagen currently has a total layout of ID.4X, ID.6X and ID.3 three pure electric models, retail data shows that in the first half of 2024, ID.3 sales will be 37,400 units, ID.4 X will be 1.26 units, and ID.6 X will be 1,252 units. Among them, the ID.3, which has the highest sales, is also a representative of "price for volume". To a certain extent, SAIC Volkswagen has not yet had a popular new energy model.
At present, SAIC Volkswagen is accelerating the transformation of electrification and deploying more new energy vehicles, and in the process, SAIC Volkswagen has successfully opened a new stage of joint venture cooperation from "technology introduction" to "technology co-creation" between China and Germany.
On June 27, 2024, Volkswagen and SAIC Motor signed a number of technical cooperation agreements on SAIC Volkswagen's new product projects, including the development of three plug-in hybrid models and two pure electric models in China, which are expected to be launched to the market from 2026 and beyond 2030. Prior to this, SAIC and Audi also signed a cooperation agreement to jointly launch a pure electric model.
This also shows that SAIC Volkswagen is taking a path of "independent development" of new energy models. In this process, the role of the local new energy supply chain cannot be ignored, just like Lei Jun once pointed out that the reason for Xiaomi's fast car manufacturing includes China's complete new energy industry chain. Coincidentally, Jia Jianxu and Tao Hailong happen to be representatives who have witnessed the rise of independent new energy supply chains.
Jia Jianxu has led Yanfeng Motors to transform from a company focusing on the production and manufacturing of traditional interior parts to an intelligent manufacturing company focusing on smart production, technology research and development, and providing digital cockpit solutions. Tao Hailong led Huayu Automobile to steadily promote the digital extension of manufacturing to digital management, when serving as the general manager of Shanghai Automotive Transmission Co., Ltd., Tao Hailong also mentioned that the automotive transmission has gone through the process of cooperation and independent innovation, and the new energy products have market-leading three-in-one pure electric system, longitudinal and transverse hybrid system, parallel shaft planetary system high-speed reducer, single and double motor electric drive controller and other assembly-level, system-level, subsystem-level full-type spectrum drive transmission products.
An anonymous automotive industry expert once told the editor of "Caiquan Society & Dao Ge Says Che" that if joint venture car companies want to catch up in new energy vehicles, they need not only technological breakthroughs, but also a complete set of industrial chain matching. The two general managers of SAIC Volkswagen are from parts companies, which may also mean that SAIC Volkswagen has recognized this.
In the "new stage of joint venture and cooperation of technology co-creation", can Tao Hailong give full play to his experience advantages and lead SAIC Volkswagen to rise in the field of new energy? We are looking forward to seeing the new era of "Tokuhara Lang".