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Fujian Daimler Automotive Co., Ltd(Fujian Daimler) said at the beginning of December that Mercedes Benz MUV Sprinter would be launched in Guangzhou. Sprinter is the third Mercedes Benz model introduced by Fujian Daimler within four years after its foundation.
In Fujian Daimler’s plan, the company expects to expand the product line of Mercedes Benz’ multi-purpose vehicles(MPV) through Fujian Daimler Research and Development Center. The products developed in China still belong to Mercedes Benz. Rene Reif, general manager of Fujian Daimler, said: “Right now Fujian Daimler has no plan of establishing any new brands. We will stick to the Mercedes Benz brand.”
Accelerated Localization of Products R&D
It is very rare for a MPV-specialized joint venture to have a research and development center. Rene Reif said: “Fujian Daimler will invest 500 million yuan (USD 78.6 million) in launching the technological research and development center in the first half of 2012. In the global strategy of Mercedes Benz MPV, the research and development center in China will play an important role.
According to Rene Reif, the research and development center is equipped with many devices from Europe. Now the company is recruiting and training technicians for the center and some of them have already begun their work.
“We will work with local suppliers for our products launched in local market. In this way we can develop products more suitable for the Chinese market. Mercedes Benz has a grand global strategy for its MPVs. We hope that our research and development center in China could contribute to this strategy,” said Rene Reif.
However, Rene Reif denied that Fujian Daimler would spend any time or money in developing new self-owned brands. He said: “We will use the Mercedes Benz brand. The Chinese market has multiple kinds of demands. Right now we have no plan to establish a new brand.”
Thomas Greipel, sales and marketing director of Fujian Daimler, said that it is necessary to build a research and development center in Fujian Daimler based on the global thinking and the various demands of China. “We must present the Chinese market with products suitable for them as soon as possible,” he said.
Greipel said: “Our marketing department will launch an investigation into the market to know our status quo and the demand of customers, such as the expectation for products of customers in important markets. We will conduct deep research into our target customers and give the feedback to the research and development department, helping them create better products.”
Schmiter Erine, market director of Fujian Daimler, said that the company had definite plan about promoting the government purchasing by providing competitive products that meet their demands. “Such a research and development center gives us stronger power of development as well as the ability to make products that meet their demands.”
Toyota as the Target
Fujian Daimler announced the schedule of launching the Sprinter as well as its price. The Sprinter with “land commercial cabin” is priced between 418 thousand and 448 thousand yuan(USD 65.7 thousand and 70.4 thousand). Compared with its rivalry model Coaster from Toyota, the Sprinter is not priced at a high level. With a reasonable and acceptable price, Fujian Daimler aims at grabbing a bigger market share.
When reviewing the status of Coaster, Rene Reif said: “The early bird catches the worm. The Coaster is positioned so well in China because it is the first MPV that entered China.”
Reif thought that the Sprinter has a high safety configuration and excellent performance among the same kinds of products. Safety is the DNA for Mercedes Benz and is tailor made for the Chinese market.
“As a latecomer, we have our own advantages. Capitalizing on the latest technology, we can produce safe and comfortable vehicles,” Reif said. He believed that the MPV segment market is developing at a fast pace, attracting more and more competitors. Vaneo and Vito, which were launched at that moment, placed Fujian Daimler in an advantageous position.
Meanwhile, Fujian Daimler is expanding its distribution channels at a faster pace. Thomas Greipel said that Fujian Daimler’s growth is exciting and has already doubled its number of distributors. In the future it will extend its distribution units to the second- and third-tier cities of China.
Greipel also held an optimistic opinion towards the growth of auto market in 2012. “Vaneo saw a 30% increase compared with 2010 in 2011. I hope we can produce and sell 40 thousand Vaneo units as soon as possible.”