GWMOTOR needs a major transformation

Author | Zhou Zhiyu

Among the top leaders of automotive companies, GWMOTOR Chairman Wei Jianjun has always been very low-key. He rarely appears in public, focusing most of his energy on production and technological innovation. In the past, product launches and deliveries were also presided over by relevant brand leaders, with very few appearances by him at car events.

On March 10th, Wei Jianjun made a rare appearance at the delivery ceremony of the Tank 700 Hi4-T limited edition, presenting the new car keys to representatives of the owners. On the eve of the Tank 700 Hi4-T's launch, after attending a routine product quality review meeting, he even posted on his social media circle, highly praising this car and giving a thumbs up to the relevant team.

Over the past forty years, this straightforward and outspoken giant in the automotive industry, whenever breaking his silence and appearing in public, has always been accompanied by major changes at GWMOTOR. This was the case with the launch of the GWMOTOR Haval H6 in 2011 and the delayed launch of the Haval H8 in 2014. Wei Jianjun's sudden appearances after these two periods of silence were related to the scaling and high-end transformation of GWMOTOR.

Today is no exception. Wei Jianjun's breaking of silence and support for the Tank 700 Hi4-T is crucial for GWMOTOR to win the battle of transitioning to new energy.

Wei Jianjun sees the new energy and intelligent track as China's automotive brands surpassing the past, with only one chance to do so, but GWMOTOR's performance over the past three years has been unsatisfactory.

The high growth brought by Ora's new energy has not further spread to other categories; GWMOTOR's overall sales still rely on large SUVs, failing to demonstrate the potential of "One GWMOTOR"; over the past three years, GWMOTOR has not only failed to meet its previous assessment targets, but its pace of transitioning to new energy lags behind other domestic brands.

If GWMOTOR continues to maintain stable sales without making greater changes, it will eventually fall into mediocrity and may even become a fleeting wave in the new energy era.

Wei Jianjun, who has always been full of a sense of crisis, is not content with this. He wants to lead GWMOTOR out of its "comfort zone".

Insiders close to Wei Jianjun revealed that internally, he reflects on GWMOTOR being too comfortable in its niche markets, always being "content with a little wealth". Changes are needed to help consumers understand GWMOTOR's technological concepts and to further improve its distribution channels.

Those familiar with GWMOTOR stated that under Wei Jianjun's leadership, GWMOTOR has been addressing various past issues.

Since 2023, the outside world has clearly felt the changes at GWMOTOR. The product lineup has been further enriched, with 10 new energy vehicles launched in 2023 alone, and the new energy sales network is being rapidly expanded. Looking at the whole year, GWMOTOR's sales of vehicles priced above 200,000 RMB reached 225,800 units, accounting for 18.34% of total sales, an increase of 3 percentage points from the same period last year; in the third-quarter financial report, the gap between GWMOTOR's net profit and non-net profit has further narrowed, indicating that the financial indicators of its main business are improving To win the battle of new energy vehicles, in addition to focusing on technology and products as before, the transformation of the marketing end is the key focus. Actions such as signing a contract with Douyin at the end of last year and launching multi-dimensional strategic cooperation in intelligent, digital, and internet precision marketing models indicate that GWMOTOR's marketing will undergo greater changes in the future. This has also led to changes in the organizational structure of GWMOTOR.

At the end of last year, GWMOTOR adjusted the middle office department from the previous 5 to 7. The purpose is to further optimize and integrate resources, improve efficiency, and avoid centralization of power. Wei Jianjun has higher expectations for organizational efficiency in order to further strengthen and win the battle of new energy vehicles. Of course, this also poses higher requirements for management personnel in functional departments.

This organizational adjustment has also brought personnel changes within GWMOTOR. It is also understood by Wall Street News that in the past 4 months, 3 deputy general managers have left GWMOTOR. However, in the entire automotive industry, compared with 20 car companies and over 50 executives changing positions during the same period, the personnel movement at GWMOTOR seems to be a normal phenomenon.

Wei Jianjun's strong leadership and GWMOTOR's strict management system always keep GWMOTOR in controversy. Just like the reforms brought by Wei Jianjun's voice after two previous silences, Wei Jianjun is always labeled as having a "one-man show".

However, Wei Jianjun's "one-man show" more often reflects his persistence in strategic layout. Mu Feng, the president of GWMOTOR, once told Wall Street News that it was Wei Jianjun's insistence that since 2016, GWMOTOR has been continuously deepening its vertical system layout, laying the foundation for GWMOTOR's scale and business performance growth; the head of Tank brand R&D also stated that if it weren't for Wei Jianjun's persistence, Tank would still be lying comfortably in the "off-road circle" and would not dare to broaden its business model and compete head-on with Toyota Prado.

In order to survive in today's fiercely competitive automotive market and aim higher, GWMOTOR must break the inertia of the past. This also means there will be setbacks and intense friction.

In February of this year, GWMOTOR announced the assessment targets for the stock incentive plan for the next three years. From 2024 to 2026, the assessment targets are not less than 1.9 million units, 2.16 million units, and 2.49 million units respectively, with net profits not less than 7.2 billion yuan, 8.5 billion yuan, and 10 billion yuan respectively.

If this goal can be successfully achieved, GWMOTOR will not only be able to establish a firm position in the domestic market but also further sprint towards the top ten global automotive groups. Towards this vision, Wei Jianjun, who is already in his sixties, will continue to lead GWMOTOR forward amidst controversies