The Chinese market is the most important market for the Volkswagen Group and a vital market for determining our position in the future of competition and development. We continue to be optimistic about the Chinese auto market and invest in it.
The Volkswagen Group is under tremendous competitive pressure in the Chinese auto market. Part of the pressure is from Chinese auto companies, which have demonstrated strong capabilities and courage in the competition.
Yesterday (June 7), in a hotel in Beijing's East Third Ring Road, Germany's Volkswagen Group CEO and management board chairman Matthias Müller, accepted an interview with China Economic Net reporter. This is also the first time he has been interviewed by a Chinese reporter for nearly nine months.
Mullen thanked the reporter for coming to meet him and communicate. He specifically mentioned that, unfortunately, the Beijing Auto Show two months ago, I was unable to attend because of other important matters, and missed the opportunity to meet with reporters. When I came to Beijing this time, I specifically requested: I must arrange for me to meet with media friends.
He said that he is very happy to visit China this time. Yesterday, I went to SAIC and SAIC Volkswagen; today I am going to Beijing and will visit Changchun to visit FAW and FAW-Volkswagen tomorrow. The next time is the weekend of June 12, I will come to China again, accompanying Prime Minister Merkel to visit China.
The Chinese market determines the future competitiveness and development of the Volkswagen Group. "I want to emphasize that the Chinese market is the most important market for the Volkswagen Group and a vital market that determines our position in the future competition and development." Lun said.
Talking about the importance of the Chinese auto market to the Volkswagen Group, the China Economic Net reporter asked Mr. Mullen about the importance of the Chinese market. Then, you must have noticed that the Chinese auto market has experienced a relatively slow growth some time ago. In the past year, Volkswagen’s joint venture in China also experienced negative growth. In this context, there are no signs of shrinking investment in the two major joint ventures of the Volkswagen Group. Why? How does Mr. Mullen view the future direction of the Chinese auto market?
Mullen replied that based on comprehensive judgment, we believe that although the growth of China's auto market is slowing, it still maintains a growth trend. To this end, we need to adapt our production capacity to the further development of the Chinese automotive market.
Based on this judgment: the capacity of the new plant we built will be fully utilized in the future. At the same time, the new plant is also built to maintain our flexibility in the market and to fully cope with the possible changes in the Chinese auto market.
Mullen stressed that we continue to be optimistic about the Chinese auto market and invest in it. This year, the Volkswagen Group plans to invest 4 billion euros in China. Of course, we are under tremendous competitive pressure in the Chinese auto market. These pressures are not only from our traditional international competing partners such as Germany, the United States, and Japan. The other part of the pressure comes from Chinese auto companies, which are showing in the competition. A strong ability and courage. To this end, we are developing a new plan, the Volkswagen Group 2025 strategy.
He introduced that an important part of the "Volkswagen Group 2025 Strategy" is that we hope that our 12 brands will become stronger through "decentralization" measures. At the same time, we hope that we can have more decision-making power and autonomy in the regional and local management, so that our employees and managers can better understand the huge market including the Chinese auto market, understand their customers, provide Better products and services.
Dean: To go to the future, we need to understand history, but we must also clarify that the current China Economic Net reporter continues to ask, the success of the public in the Chinese market, the generations of the Volkswagen Group leaders make unremitting efforts, such as Dr. Hahn, Mr. Piech and the text Professor Deen et al. Now sitting on this seat is Mr. Mullen. So, have you summed up how the predecessor worked with the Chinese government in the Chinese market and dealt with partners, including dealing with suppliers and dealers, what is their most successful practice? How do you carry forward or have better ideas?
Mullen replied, first of all, the old leaders you mentioned just now, I am full of respect for them. Not only did they make the Volkswagen Group a success in the Chinese market, but they also turned the Volkswagen Group into a respectable company all over the world. For me, inheriting their good traditions and accomplishing their unsuccessful tasks is a big burden and a challenge. However, I am very happy to accept this burden. There is a saying in Germany: "Towards the future, we need to understand history and we must be clear about the present." As an employee who has worked in the Volkswagen Group for more than 40 years, I think I still have some knowledge of the history and current situation of Volkswagen. Based on the understanding of history and the present, I hope that our eyes will focus more on the future. We will work together to find a new direction and a new development path for the future of Volkswagen through the "Volkswagen Group 2025 Strategy". Specifically, on the one hand, we must continue to maintain and expand the traditional and very strong technical capabilities of Volkswagen in the past; on the other hand, we must eliminate some of the negative effects of this technology-only.
“In addition, all business success does not depend on the CEO alone. Similarly, our current work is not something that I can handle alone. Fortunately, I have a very good team, especially at the group level. A very good team. The former leaders have laid a very solid foundation for the development of Volkswagen. On such a solid foundation, we have the confidence to create a better future," Mullen said.
An episode: During the interview, Mr. Mullen felt a little exhausted and was asked: "Is there a few more wrinkles on the face?" Mullen answered with the uniqueness of the Germans: "Today, my face is wrinkled because I only slept for three hours last night. Last night, it rained heavily in Beijing. My flight arrived at three in the morning, and the wrinkles on my face were because Less sleep."
Some Volkswagen staff revealed that many flights were forced to cancel due to the thunderstorm in Beijing. Although some people in the same industry persuaded, Mullen insisted not to go back to the hotel to rest, even if he was sleeping, he would wait on his special plane... Finally, the special plane waited for the opportunity, and Mullen took a break after sitting in Beijing and sat in front of the Chinese reporter. This "small thing" seems to transmit Mullen's persistence and perseverance. I wonder if this trait as a head will bring more opportunities to the Volkswagen Group.
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