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The achievements and strategic characteristics of the development of the German automotive industry are most prominent and typical throughout Europe. In a certain sense, to explore the German car development strategy is to explore the European car development strategy. Germany is one of the birthplaces of the world's cars and the fourth largest car producer in the world. According to the statistics of the European Automobile Industry Association, in 2007, the global production of German auto companies totaled 12.1 million, accounting for 16.9% of the world's total automobile production. Its sales accounted for 47% of the sales of Western European cars. 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 auto industry declines, the European auto industry's dominant position in the world will also be lost. Therefore, I believe that the development strategy of German cars dominates the European car development strategy and also represents the European car development strategy. Faced with this global financial crisis and economic recession, the German auto industry's every move not only affects Europe but also the world. At the same time, the crisis will also test the correctness and adaptability of the German automobile development strategy. Below I summarize its strategic characteristics from seven aspects.
Strategic characteristics 1
Outstanding position of pillar industry
The German automotive industry has created 744,000 jobs for Germany; the automotive industry has achieved an added value of about one-fifth of Germany's gross domestic product.
The United States is the country on the wheels of cars, and Germany is the country that makes cars. Building a world-class car has almost become the spiritual pursuit of the Germans. While bringing great material wealth to Germany, the car has also become the main carrier of German technological strength. Exquisite first-class cars become German business cards. The figures as of the end of 2007 can reflect the importance of the German automotive industry in its national economy. The German automotive industry has created 744,000 jobs for Germany, accounting for 1/7 of the German industrial position; one quarter of Germany’s domestic tax revenue comes from the automotive industry; the automotive industry is built around the development, manufacturing, sales and use of automobiles. The added value accounts for about one-fifth of Germany's GDP; the investment in science and technology innovation from the automotive industry accounts for one-third of all industrial technology investment in Germany, which has led to technological development in other areas of Germany. These figures show that the automotive industry is Germany's veritable pillar industry, which has created the most employment, tax and technological innovations for Germany.
Strategic characteristics 2
Outstanding technology leadership strategy
Whether it is Mercedes-Benz, BMW, or the mass-producer of ordinary passenger cars, they always pursue technological leadership as the strategic basis for enterprise development.
Adhering to technological leadership is the core of the German automotive industry's development strategy. In the world, Germany's information technology is not in a leading position, but in terms of automotive technology, Germany has long been a leader. The huge contrast between these two aspects makes me sometimes confused. According to the classic strategic research results, in the market competition, if enterprises can achieve and maintain technological leadership in the market, it means finding an important way to maintain competitiveness. The German automotive industry is a typical example of this strategy. Whether it is Mercedes-Benz, BMW, or a general-purpose passenger car that produces high-end luxury cars, it always pursues technological leadership as the strategic basis for enterprise development.
The technological leadership of German cars is reflected in many aspects. First, in terms of environmental protection, in 2005, Germany's per capita motor mileage and road freight volume increased by 48% and 138% respectively compared with 1990. The total amount of vehicle exhaust emissions in this year was compared with 1990. The level is basically the same. One liter and one drop reflects the tremendous progress of German automotive environmental protection technology. Second, in terms of vehicle safety, the incidence of road traffic accidents in Germany has been kept at a low level and has been decreasing year by year. This has a lot to do with the high penetration rate of active safety technology in German cars. Many safety technologies have become common vehicle standards in 1981. In 2007, the assembly rate of German automotive ESP reached 46%, and in China it was only 7%. Third, in terms of quality, the German automotive industry has always placed quality control at the forefront, and its products have been leading the quality ranking for many years. For example, in the passenger car field, although China is a big passenger car manufacturing country, Germany is a country with core competitiveness in this field, and the German passenger car has the longest service life. Fourth, in terms of new energy, electric vehicles, hybrid power, etc., Volkswagen Brazil has a large number of flexible biofuel vehicles on the market earlier, and machinery and equipment for producing biofuels are also under construction. BMW's hydrogen-fueled vehicles have been tested and put into production. Fifth, in terms of equipment manufacturing, Germany has made it even ahead of the development of the automobile industry. As we all know, the German automotive equipment manufacturing industry, as well as the equipment manufacturing industry in other industries, are world-leading.
Emphasis on technology research and development and product reserves is an important reason for the German automotive industry to maintain its technological leadership. German auto companies always regard technology research and development, product reserve and planning as the top priority for the company's sustainable development. The development of the entire German automotive industry has always been systematically thought and planned.
Maintaining a technological lead and a corporate manager of a German car is also a relationship for engineers. The knowledge structure of the managers and management teams of enterprises is also an important part of the core competitiveness of the German automotive industry. Most German companies adhere to the "engineering first" corporate culture. Most of the business leaders are managers with professional knowledge, both first-class engineers and first-class managers. For example, Porsche founder Ferdinand Porsche is a car designer; Wendeng, the current chairman of the Volkswagen Group, has been responsible for research and development for many years. With a large number of managers who integrate engineering technology and management technology, it is an important contribution of German automotive companies' human resources work to the leading technology of German cars.
German auto companies attach importance to strengthening investment in technology research and development. The number of R&D personnel in German cars is huge. Even in the economic downturn in recent years, the proportion of high-tech talents in the automotive industry is still growing. These researchers are mainly concentrated in the research and development field. At present, the proportion of R&D personnel in German auto companies is about 11%, and the annual R&D expenses of enterprises are many. According to a 2006 statistics, Germany's annual investment in automotive R&D exceeds 16 billion euros, and these investments create more than 3,600 patents per year.
Strategic characteristics 3
Outstanding professional features
The advantage of specialization is that it can make better use of the benefits and provide better service to the target customer base than the competition.
Significantly different from the “three big†of American autos, the major German auto companies have significant professional development characteristics. Mercedes-Benz and BMW concentrate on producing high-end luxury passenger cars; Volkswagen concentrates on producing all kinds of ordinary passenger cars; other European companies such as Ferrari, Porsche, MINI, etc. are concentrated in a particularly small market segment, focusing on a specific narrow target market. Provide products and services. The same is true in the commercial vehicle sector. Germany's famous commercial vehicle brands Mercedes-Benz and Sweden's Volvo, France's Renault, etc., are basically separated from the passenger car business in production and operation, and also enjoy the benefits of highly specialized.
Strategically, this is a typical target agglomeration strategy. The advantage is that it can better utilize the professional benefits and provide better service to the target customer base than the competition. Such as Mercedes-Benz, BMW, they have always focused on the development of the field of high-class luxury cars. Such companies may not be large-scale group companies, but they are definitely highly competitive companies. Its strengths and characteristics lie in professionalism.
Volkswagen's core competitiveness is still in the ordinary model market, not in the luxury luxury car market. Although Volkswagen has also developed some luxury cars, SUVs and other models, it still insists on positioning as a general passenger car manufacturer. In fact, this is still its core competitiveness. Of course, Volkswagen has once deviated from its own tradition and expects to have a greater role in high-end luxury cars and segmented personality markets. However, contrary to expectations, the results are not significant, the investment is large, and the burden is also great.
The same is true of the famous European commercial vehicle brands Mercedes-Benz, Volvo and Renault. I have visited Mercedes-Benz. Although both commercial vehicles and passenger cars belong to the same company, they have their own corporate culture, operating models and corporate philosophy. In order to focus on the development of the commercial vehicle sector, Volvo also sold the car segment, and this professional development strategy proved to be effective. In contrast, when Ford acquired the Volvo car at its strongest profit, it did not benefit much.
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