“It’s never about the money”
With 2013 drawing to an end, Volkswagen China was greeted with a twist in its fortunes. The twist is not only an unprecedented crisis, but also a fork in the road to its next height. It is called DSG.
6 months after Heizmann apologized for the incident, on Nov. 25, 2013, Volkswagen announced formally that it would start what would be the biggest recall in China, covering 640,309 automobiles with problematic seven-speed direct shift gearbox (DSG).
A few days later, at the Guangzhou Auto Show, when asked by reporters whether the switch from synthetic oil to mineral oil represented a step backwards in technology, he answered, “Mineral oil is a very good option. It can prevent the problem. The reason that Volkswagen is staging such a massive recall is that we want to be responsible to consumers, not because we want to switch to a cheaper type of oil. It’s never about the money.”
In the wake of widespread doubt and controversy, and spurred by the DSG incident, Volkswagen China has exhibited a marked change to the public. At the Volkswagen China Media Night 2013 in the Guangzhou Auto Show, Volkswagen announced its “people-oriented” China Strategy along with all of its brands and joint ventures, a perfect illustration of the change.
The “people-oriented” strategy is supported by 3 pillars – clients, employees and society. Volkswagen China, joint ventures, dealerships and suppliers together employ approximately 500,000 people, who will be provided with first-rate training and will contribute to the research and development and production of high-quality automobiles.
For clients and society, what is more noteworthy, apart from producing better products and committing to public welfare, is the company’s plan to launch environmentally-friendly models in China. In the next 3 years, Volkswagen will roll out a series of low-emission models, each 20% more efficient in burning fuels than the last.
“Volkswagen Group’s strategic pillars are not limited to sales volume and profit margin. What is more important is clients’ satisfaction and us continuing to be ‘best employer’.” This should be seen as a more explicit explanation of his “it’s never about the money” statement.
At the end of the interview, Heizmann attributed Volkswagen’s success in the Chinese market to 3 factors. Firstly, as the company entered China 30 years ago, it has had sufficient time to get to know the country, laying a solid foundation for its development there. Secondly, Volkswagen has found strong Chinese partners for cooperation. Lastly, the company has good products and localized production. 10 years from now, perhaps its “people-oriented” approach would have become the 4th factor for its success in China.
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