Relationship of Dealer & Manufacturer

　　Dealers and manufacturers: brothers with different specialties

　　Moderator: now we will start the last discussion today. The subject of this discussion is the re-positioning of relationship between manufacturers and dealers in the channel change. Let us welcome, Deputy Director of Beijing Motor Corporation Dong Haiyang, Infiniti (China) General Manager Lv Zhengyu, head of Guangzhou Toyota After sales Division, Lei Weifeng, Chairman of Dongchuangjianguo dealer group, Huang Jianguo, Beijing Xianglongborui Auto Service (Group) Co., Ltd. Chief Engineer Weijun Jiang, general manager of Chongqing Baishida and Chairman of Henan Zhongzhi Auto Trade Group, Lu Yifeng.

　　Zhong Shi: Many of the variables form the relationship between OEMs and dealers, just like the changing water. Representatives of manufacturers, today there are two, BAIC and Infiniti.

　　Firstly, we need describe the positioning of the companies. Beijing Automotive is like a person with bare feet. Infiniti is a luxury car, though not just started in China; their official effort has not begun for a very long time. I think it can be said wearing socks. Then Guangzhou Toyota we feel a bit like with boots on. Therefore, they may have different attitude to handle the relationship with dealers. First, let us welcome Mr. Dong

　　Dong Haiyang: Thank you, Mr. Zhong Shi, thank you moderator! In my opinion, the dealers are customers of manufacturers. Why not we change the rule for once, let us first listen to the he dealer groups’ ideas.

　　Zhong Shi: General Wei is from Beijing, and now also in charge of management. As a dealer, in mature joint venture, how do you think the relationship of the three partials?

　　Wei Junqiang: First, I will give you an introduction about our Xianglonguorui, it is an original Beijing auto repair company, established more than sixty years ago, and then merged with Huaxiang second-hand car market.

　　My experience in 4S stores proved that the 15 years of service is impossible. Every year new models will have changes. Within the quality guarantee period, the service is always the best. But later, more distributors and agents are needed to engage in this kind of service for long term. Our company has two, covering from the very beginning to the end when the cars scrapped, including new car service, repair, maintenance, as well as the used car trade, car testing, car insurance, car disintegrated, special maintenance. Meanwhile, professional insurance repair is also incorporated. We have as many as 34 shops, which covers imported cars, domestic cars, and high-end brands. Just like marriage, our relationship with manufacturers should be always sweet.

　　Huang Jianguo: first I want to thank SOHU. During the short history of 80 year, in our company, dealer has always done their best. Why do I say so? Skimpily speaking, if you can earn money, then you can gain development. At the beginning, many store just disappeared so soon. Actually, at the start, dealers should be pride of being a part of Jianguo auto group. The reason for survive is positioning. Development is the primary task.

　　Developing relationship between OEMs and dealers

　　Dong Haiyang: First, manufacturers and dealers are just as intimate as brothers, though with different specialties. They should each performs its own functions.

　　Second, no matter manufacturers or distributors, should concern about the customer interests. In fact, we do not care about your listing or something or formation of group. What we really care about is whether change through the capital cost, brand and the after-sales service quality will be more beneficial to the users. Strong retail brand and high service quality, quality of service for new cars can cause a win-win situation.

　　Lv Zhengyu: We Infiniti was established in China this year. We still need plenty of time to learn experience and lessons from predecessors. In fact, when I attended the seminar this time, two are our distributors. In the first phase, we naturally have a market with relatively completed regulations and laws. We are growing with young consumers in China. We hope to find some mid-level brands. Right now we can be called a daughter of a humble family.

　　Lin Shaojun: Chongqing Baishida is a local distributor Group, who currently has 12 brands. Compared to large dealers, we are relatively a small dealer group. As things are changing right now, brand building is really of great significant. On one hand, manufacturers will more focus on the strong distributors with better staff, management and so on. But they will also take restrictions into consideration. Now dealers are growing stronger and expecting equality between OEMs. As a dealer, I am very much looking forward to recognition of manufacturers to enhance dealer profitability.

　　I very much agree that the close relationship between manufacturers and dealers will lead to dealers’ profit. I think it is quite easy for manufacturers to take our profits and the relationship between our sales volume and market demand. For dealers, it is a basic premise.

　　Zhong Shi: The last one representative of manufacturers is Guangzhou Toyota. I am quite embarrassed to mention more challenging problems. Guangzhou Honda Automobile entered into China quite early, and they basically have done very well in this aspect. Faced with new circumstances, now how Honda will improve its relation with dealers?

　　Lei Weifeng: We believe the formation of groups is the trend of dealers’ development. Currently, most manufacturers have not formed groups.

　　The formation of dealer groups realizes large-scale development. Automobile distribution industry has been improved. So we hold an opinion that if you want customer satisfaction, you need to first satisfy dealers, which can be said a bridge among manufacturers. The relationship between dealers and manufacturers is supply and cooperation. We have been stick to the principle customers come first and then followed by dealers while manufacturers the last.

　　In the planning, Guangzhou Toyota will consider two factors, the fulfillment of our targets and the profits of network. We will also continue to develop our relationship with dealers as well as the development of channels. Generally speaking, we believe that it is a must to achieve both the interests of manufacturers and dealers.

　　Zhong Shi: We have two representatives from the dealers, one lady and one gentleman.

　　Wei Xiaojing: with the distributors become bigger and stronger, and continually expansion of the network to provide customers with better service as well as increasing inventory, the Listing is the general trend. But what the manufacturers are worried about may be in the future whether we will ignore all aspects of such as management and customer service after the listing.

　　If the dealers use the funds to do the local brand marketing and strengthen internal management as well as improve customer satisfaction, it will lead to a win-win situation. If the capitals are put into other industries, the manufacturers will worry whether the auto industry will be weakened. Manufacturers will very welcome if dealers put the financial capitals into this industry.

　　Lu Yifeng: within five years, the relationship between manufacturers and dealers will not have big improvement, which will remain just like landlord and employee. With the entry of capitals, as the market is getting more mature, after five years, things will be changed. Everyone is talking about new capitals. And capitals should be put into operation rather than the opposite. I do not know if I have made it clear enough. To sum up, both manufacturers and dealers should give fully support.

　　I said in an interview that day, there are so many things left to be done just in the auto industry. There is no need to get involved in real estate and finance. There are three industries that real man should get in, real estate, finance and automobile.

　　The third, what should the dealers do? They should provide better services for our customers and build their brands strong. However, we can just think about it, presently, through the whole auto industry, from the manufacturers to dealers, what are things going on? This is worth deep thoughts. I believe there should be s a set of standard services and suitable price to satisfy customers.

　　Dong Haiyang: I think if you know about Beijing auto shares, your will change your point of view.

　　Zhong Shi: Thank you for all of you guests, thank you!

　　(Translator: Yalong/Jessie)

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