The achievements and strategic characteristics of the development of the German automobile industry are the most prominent and typical in Europe. In a certain sense, discussing the German automobile development strategy is discussing the European automobile development strategy. Germany is not only one of the birthplaces of the world's automobiles, but also the fourth largest automobile producer in the world. According to statistics from the European Automobile Manufacturers Association, in 2007, the global production of German automobile companies reached 12.1 million vehicles, accounting for 16.9% of the world's total automobile production.
Its sales account for 47% of Western European car sales. In the new EU countries where automobile consumption is increasing, German-made cars dominate with a market share of more than 44%. If the German automobile industry declines, the European automobile industry's dominant position in the world will also be lost. Therefore, I believe that the German automobile development strategy dominates the European automobile development strategy and also represents the European automobile development strategy. In the face of this global financial crisis and economic recession, every move of the German automobile industry affects not only Europe, but also the world. At the same time, the crisis will also test the correctness and adaptability of Germany's automobile development strategy. Below I summarize its strategic characteristics from seven aspects.
Strategic Feature 1
Prominent status of pillar industries: the German automobile industry has created 744,000 jobs for Germany; the added value achieved by the automobile industry accounts for approximately 1% of Germany’s GDP /5.
The United States is a country on wheels, and Germany is a country that manufactures cars. Building world-class cars has almost become the spiritual pursuit of the Germans. While automobiles have brought huge material wealth to Germany, they have also become the main carrier of Germany's technological strength. Exquisite and first-class cars have become Germany's business card. The figures as of the end of 2007 can reflect the important position of the German automobile industry in its national economy. The German automobile industry has created 744,000 jobs in Germany, accounting for 1/7 of Germany's industrial jobs; 1/4 of Germany's domestic tax revenue comes from the automobile industry; around automobile development, manufacturing, sales and use, the automobile industry has achieved The added value accounts for about 1/5 of Germany's GDP; the technological innovation investment from the automobile industry accounts for 1/3 of the total investment in all industrial science and technology in Germany, and thus drives the technological development of other fields in Germany. These figures highlight that the automobile industry is a veritable pillar industry in Germany. It creates the most employment, tax revenue and technological innovation for Germany.
Strategic Feature 2
Prominent technological leadership strategy: Whether it is Mercedes-Benz, BMW, or Volkswagen, which produces ordinary passenger cars, they have always regarded the pursuit of technological leadership as the strategic basis for corporate development.
Adhering to technological leadership is the core of the development strategy of the German automobile industry. Worldwide, Germany does not lead in information technology, but in automotive technology, Germany has long been a leader. The huge contrast between these two aspects puzzles me sometimes. According to classic strategic research results, in market competition, if an enterprise can achieve and maintain technological leadership in the market, it means that it has found an important way to maintain competitiveness. The German automobile industry is a typical representative of this strategy. Whether it is Mercedes-Benz and BMW, which produce high-end luxury cars, or Volkswagen, which produces ordinary passenger cars, the pursuit of technological leadership has always been the strategic basis for corporate development.
The technological leadership of German automobiles is reflected in many aspects. First, in terms of environmental protection, in 2005, Germany's per capita vehicle kilometers traveled and highway freight volume increased by 48% and 138% respectively compared with 1990. However, the total vehicle exhaust emissions this year were the same as those in 1990. The level is basically the same. Each rise and fall reflects the huge progress of German automobile environmental protection technology. Secondly, in terms of automobile safety, the incidence rate of road traffic accidents in Germany has remained at a low level and is decreasing year by year. This has a lot to do with the extremely high penetration rate of active safety technology in German automobiles. Many safety technologies have become common automotive standards in 1981. In 2007, the assembly rate of ESP in German automobiles reached 46%, while in my country it was only 7%. Third, in terms of quality, the German automobile industry has always given top priority to quality control, and its products have been leading the quality rankings for many years. For example, in the field of passenger cars, although China is a major passenger car manufacturing country, Germany is the country with core competitiveness in this field, and German buses also have the longest service life.
Fourth, in terms of new energy, electric vehicles, hybrid power, etc., Volkswagen Brazil has launched a large number of flexible biofuel vehicles on the market earlier, and the machinery and equipment for producing biofuels are also under construction. BMW's hydrogen fuel-powered cars have passed the trial stage and are put into production. Fifth, in terms of equipment manufacturing industry, Germany has kept pace with or even advanced the development of the automobile industry. As we all know, Germany's automotive equipment manufacturing industry, as well as the equipment manufacturing industry in other industries, is world-leading.
The emphasis on technology research and development and product reserves is an important reason why the German automobile industry maintains its technological leadership. German automobile companies have always regarded technology research and development, product reserves and planning as the top priority for the company's sustainable development. The development of the entire German automobile industry has always been based on systematic thinking and planning.
Maintaining technological leadership is also related to the fact that most of the managers of German automobile companies are engineers. The knowledge structure of enterprise managers and management teams is also an important part of the core competitiveness of the German automobile industry. Most German companies adhere to the corporate culture of "engineering first". Most of the company leaders are managers with professional knowledge, who are both first-class engineers and first-class managers. For example, Porsche founder Ferdinand Porsche was a car designer; Winterkorn, the current chairman of the board of directors of Volkswagen Group, has been responsible for research and development work for many years. Having a large number of managers who integrate engineering technology and management technology is an important contribution of the human resources work of German automobile companies to maintaining the technological leadership of German automobiles.
German automobile companies attach great importance to strengthening investment in technology research and development. The number of German automobile R&D personnel is huge. Even during the economic downturn in recent years, the proportion of its high-tech talents in the automobile industry is still growing. These scientific researchers are mainly concentrated in the R&D field. At present, the proportion of R&D personnel in German automobile companies is about 11%, and companies spend a lot of money on R&D every year. Statistics from 2006 show that Germany invests more than 16 billion euros in automobile research and development every year, and these investments create more than 3,600 patents every year.
Strategic Feature 3
Outstanding Specialization Features: The advantage of specialization is that it can better utilize efficiency and provide better services to target customer groups than competitors.
Obviously different from the "Big Three" American automobile companies, the major German automobile companies have significant professional development characteristics. Mercedes-Benz and BMW focus on the production of high-end luxury passenger cars; Volkswagen focuses on the production of various ordinary passenger cars; other European companies such as Ferrari, Porsche, MINI, etc. focus on particularly narrow market segments and focus on a specific and narrow target market. Provide products and services. The same is true in the field of commercial vehicles. Germany's famous commercial vehicle brands Mercedes-Benz, Sweden's Volvo, and France's Renault are basically separated from the passenger car business in terms of production and operation, and they also enjoy the benefits of high specialization.
Strategically, this is a typical target aggregation strategy. The advantage is that it can better utilize the benefits of specialization and provide better services to target customer groups than competitors. For example, Mercedes-Benz and BMW have always focused on the development of high-end luxury cars. This type of company may not be a large-scale group company, but it is definitely a very competitive company. Its advantage and feature lies in its professionalism.
Volkswagen’s core competitiveness is still in the ordinary car market, not in the luxury high-end car market. Although Volkswagen has also developed some luxury cars, SUVs and other models, it still insists on being ordinary passenger cars. The positioning of manufacturing enterprises. In fact, this is still its core competitiveness. Of course, Volkswagen has also deviated from its tradition for a time, hoping to make greater achievements in the high-end luxury sedan and segmented personality markets. But it backfired, the results were not great, the investment was huge, and the burden was huge.
The same is true for famous European commercial vehicle brands such as Mercedes-Benz, Volvo, and Renault. I once visited Mercedes-Benz. Although its commercial vehicles and passenger vehicles belong to the same company, they have their own corporate culture, operating model and corporate philosophy. In order to focus on the development of commercial vehicles, Volvo also sold its sedan segment. This specialized development strategy has proven to be effective. In contrast, although Ford acquired Volvo Cars when its profits were at its strongest, it did not benefit much.
Strategic Feature 4
The monopolistic competition structure is prominent: Mercedes-Benz, BMW and Audi compete with each other and promote each other, becoming a classic case of the competitive development of the world's automobile industry.
The structure of the German automobile market not only reflects the monopolistic competition structure as a whole, but also reflects the characteristics of monopolistic competition in major market segments. The most prominent performance is the German high-end luxury car market, a German The country has three world-famous brands - Mercedes-Benz, BMW and Audi. They compete with and promote each other, becoming a classic case of competitive development in the world's automobile industry. In such a small market space as Germany, the three major luxury brands can survive, develop and become world-class, proving that the monopolistic competition structure can form an internationally competitive automobile industry.
Strategic Feature 5
Auto parts and other related industries have a prominent supporting role: Germany’s first-class auto parts suppliers have never been vassals of the OEMs, but independent suppliers. Parts supplier.
The long-term maintenance of international competitiveness of the automobile industry cannot be separated from the support of related industries. This is especially true for the development of the European, especially German automobile industry. Germany has world-class auto parts suppliers such as Bosch and ZF, which has played a good supporting role in maintaining the world's technological leadership in power, transmission systems and matching. In 2008, Bosch's operating revenue ranked first among the world's top 500 auto parts companies for four consecutive years. In addition, Germany's world-leading technologies in major equipment fields such as laser welding, CNC machine tools, and paint spraying cannot be underestimated. Its contribution to establishing and consolidating global competitiveness in its automotive industry cannot be underestimated.
It is worth pondering that Germany’s top auto parts suppliers have never been vassals of German automakers, but independent parts suppliers, which is different from the United States. These professional, first-class world-class parts companies have monopolistic competitiveness. Its monopoly position in the market is not a monopoly reflected in the organizational structure, but a monopoly on technology, a true monopoly. In their negotiations with Mercedes-Benz, BMW and other vehicle companies, their strength in the technical field cannot be underestimated.
Many unique small and medium-sized auto parts companies and related institutions also play a role that cannot be ignored in supporting the global leadership of German automobiles. The global competitiveness of German automobiles is highlighted in complete vehicles, but its foundation lies in small and medium-sized auto parts companies. Small and medium-sized auto parts companies are the solid foundation for German automobile development.
Strategic Feature 6
Outstanding international capabilities: German automakers also have huge overseas production capacity, with automakers and suppliers located in 23 countries and regions around the world.
The internationalization capabilities of German automobiles are first-rate. There are traces of German automobile wheels almost everywhere in the world. In the world's automobile competition landscape, German automobiles have always been an advocate of technology, a leader in quality, and a setter of development direction. So far, Germany's leading position in the automotive world remains relatively stable. Although the Japanese automobile industry has experienced strong growth in recent years, in terms of overall strength and influence, I think it still ranks lower than German automobiles. After the shock of the global financial crisis, it is unclear who is higher and who is lower. However, senior figures in the Japanese automotive industry still believe that German cars have strong adaptability and stability.
Data from the Federation of the German Automobile Industry show that in 2007, Germany produced nearly 6.2 million automobiles, 75% of which were exported abroad. In 2007, except for the decline in exports of German cars in Africa and Oceania, sales in other regions of the world increased. Western Europe is still the main region for German automobile exports, while Eastern Europe and Asia are becoming more and more important in German automobile exports. China and Russia are gradually becoming important sales markets for German-made cars. German automobile manufacturers also have huge overseas production capacity. German automobile manufacturers and suppliers are located in 23 countries and regions around the world.
Strategic Feature 7
Outstanding government concern and support: German Chancellor Merkel attaches great importance to the automobile industry and actively safeguards the interests of the German automobile industry in international affairs. The German government's influence and concern on the automobile industry is much greater than that of the United States. This is mainly manifested in the following aspects.
The first is to formulate local product standards and form technical barriers to exclude foreign competitors. Germany's advanced and strict automobile standards and regulations have long served as non-trade barriers, greatly affecting the entry and development of automobile companies in other countries. At present, it is still very difficult for Japanese cars to enter the German car market. In addition to factors such as consumption habits, national sentiments, and product quality, technical barriers are probably the most important.
The second is to guide technological progress, adjust industrial structure, and improve the international competitiveness of products. The German government attaches great importance to guiding the technological progress of the automobile industry, adjusting the industrial structure, and improving the international competitiveness of products. Since the 1980s, the German government has attached great importance to improving the emission performance of automobiles, formulating strict emission regulations to promote the advancement of automobile technology. The German government has personally promoted the sales of clean-emission cars in Europe. The German government also promotes the structural adjustment of the automobile industry by controlling investment in vehicle models, reducing the investment costs of each model series, increasing the added value of the automobile industry, enhancing flexibility, and improving product quality. A series of policies of the German government have had an important impact on the structural adjustment of the German automobile industry.
Third, the government is fully committed to serving the automobile industry and enterprises. Former German Chancellor Schroeder is considered the automotive prime minister. During Schroeder's tenure, he would participate in activities of German automobile companies in China, especially Volkswagen. He also often said that German cars are the best cars in the world, and the German automobile manufacturing industry is the industry that can provide the best products in related fields in the world. For this to continue, we all need to improve and contribute with all our might. In a sense, Schroeder is also the spokesperson for the brand image of German automobile companies.
Fourth, in the face of any economic risks, the German government will always immediately think of the automobile industry and provide timely help when the automobile industry is in crisis. This is also different from the United States. In the 1930s, the number of cars in the United States reached 17.5 million, while Germany only had 170,000 cars, with an annual output of nearly 60,000 cars. In order to vigorously develop the automobile industry, Germany announced that it would reduce and cancel the automobile consumption tax that has plagued automobile development, significantly reducing the cost of car purchases for German people, and government fiscal revenue has also increased due to the increase in automobile consumption.
In 1934, the German government issued various policies to encourage and promote the development of economical cars, and actively strengthened the construction of highway networks. In 1955, German automobile production ranked second in the world, second only to the United States. In the early 1970s, as the world oil crisis exacerbated the economic recession, the U.S. automobile industry faced serious challenges, with production falling by 20%. However, the German government promptly adopted a series of short-term adjustment measures to reduce investment in the automobile industry and retain The follow-up strength of its automobile industry development.