Shen Hui took charge of the new media for the first time: restoring a real Volvo

August 2, 2010 is a day destined to be included in the history of Chinese cars. On this day, Geely formally put Volvo in the bag and staged a legend of “snaking the elephant”.

Shen Hui, who has dealt with European and American companies for many years, was taken over by Li Shufu and played a central role in the acquisition of Volvo by Geely. He was eventually named the head of Volvo China by Li Shufu and Volvo CEO Jacob Pochin. " - Senior Vice President of Volvo Cars, Chairman of China. Volvo China is not a simple legal agency, but an all-round, full-featured management organization that leads the future sales, R&D and manufacturing of Volvo Cars in China.

Some time ago, Shen Hui was mainly busy in Europe for negotiations and delivery. Now his energy has been transferred from the world to China. Shen Hui said that the successful implementation of 100 days after the delivery indicates that Geely's acquisition of Volvo has achieved a smooth transition. A Chinese hard battle is about to start.

Only 13-year-old Geely has the ability to manage the 83-year-old "European giant" marriage? Information about Volvo's sharp price cuts frequently hit the newspapers. Does Li Shufu once again offer a price weapon? What is the concept of Volvo China and what is the biggest difference with Volvo sales company? After the localization of Volvo or today's Volvo? In the process of localization of Volvo, Changan Ford’s on behalf of trade unions ended prematurely? Faced with this series of concerns, doubts and confusion, recently, the chairman of Volvo China, Shen Hui, faced the media for the first time after taking up the new position and accepted an exclusive exclusive interview with NetEase. After a candid pass, a real Volvo gradually surfaced. .

Chairman of Volvo Car China and Shen Hui, Global Senior Vice President

Exclusive Aspects: 1: Volvo Global President and CEO promises to come to China at least once every 2 months

II: Volvo is a luxury brand, resolutely not fighting price war

III: The so-called "divergence" between Li Shufu and Volvo management is only an internal discussion.

IV: Volvo has now achieved a smooth transition

V: OEM agreement between Volvo and Changan Ford will still perform normally

VI: Volvo needs a lot of top talent, enough to detonate a "personnel earthquake" in the Chinese auto circle.

Volvo double headquarters concept is a misreading

Netease Auto: Volvo Cars officially established an office in Beijing in 1994 and officially established a Chinese sales company in Shanghai in 2008. In this Volvo China's new organizational restructuring, we see a new term - Volvo Car China. What is the concept of Volvo Car China? What are his main functions?

Shen Hui: Volvo China is mainly a management structure and a Chinese management team. In the future, Volvo China will have several subsidiaries in the legal structure. Apart from the current sales companies, there will be R&D companies, manufacturing companies, etc. in the future, but they will all be vested in this management structure of Volvo China.

This management structure covers many functions, such as sales, manufacturing, research and development, procurement, and other functional departments will have. In addition, support departments such as personnel, legal affairs, and public relations are also gradually improving. In the future, the sales department will mainly manage the sales companies, and the manufacturing department will connect the manufacturing companies. This means that Volvo China is currently a full-scale, full-featured management organization for Volvo in China. The former Volvo sales company still focuses on sales.

At present, the main management personnel are basically in place. This management team is now mainly responsible for me.

Netease Auto: Volvo's new president and chief executive, Stephen Jacobs, has proposed to build a parallel model of Swedish and Chinese headquarters. What is the relationship between Volvo Car China and Volvo Swedish headquarters?

Shen Hui: I think that paralleling the headquarters is a misunderstanding of the outside world. In fact, we do not have the concept of a dual headquarters internally. Volvo's global headquarters is in Gothenburg, Sweden. The global R&D headquarters is also in Gothenburg. Volvo China is headquartered in Shanghai. In addition, Volvo has its own regional headquarters in North America, Germany, and Spain. North America also has a design center. Only compared to the Chinese headquarters, the North American headquarters and the German headquarters mainly focus on sales and services.

China is Volvo's most important market. We currently consider China as the second domestic market and have more functions. However, our global headquarters is still in Gothenburg, and Shanghai is just the headquarters of China.

100 days delivery for Volvo achieves a smooth transition

Netease Automobile: It has been more than four months since the completion of the settlement on August 2. In the M&A industry, everyone has a consensus that 100 days after delivery is a key node. Do you think that Geely's merger and acquisition of Volvo will achieve a smooth transition?

Shen Hui: Yes, 100 days after the delivery is indeed one of the most important nodes of a M&A project. Before the delivery, we had to deal more with Ford. For Volvo, we can only learn from some limited meetings and information. We don't often meet. After the delivery, Volvo really belonged to Geely Holding Group.

Geely Acquires Volvo Delivery Site

New shareholders form a new management team, which brings a new set of styles of work, job requirements, and work processes. In a situation where the trust relationship between them has not yet been established, many aspects need to be run in, and even the new management team itself needs to run in. For example, we changed the CEO. After the new CEO took office, how to make his subordinates stable and trust the new boss, these things happened in 100 days.

This 100 days is handled well, and usually it will be relatively smooth afterwards; otherwise, it will leave a lot of sequelae, and it will easily happen to other things. At present, all aspects of this stage are relatively smooth. The acquisition of Volvo by Geely Holding Group can be said to achieve a smooth transition. Some time ago, I spent most of my time mainly in Europe, including negotiation, delivery, or 100 days after delivery. Now my energy has been transferred from the global to China, because China is the most important part of future development.

Netease Automobile: What happened in these 100 days?

Shen Hui: For example, we replaced the new CEO and formed a board that can be said to be the most international company in China. At the same time, as a subsidiary of Zhejiang Geely Holdings Co., Ltd., there are some requirements for the consolidation of financial statements. In addition, Volvo used to be a subsidiary of Ford and was executed as Ford internal management process. At present, Volvo has become an independent company. Correspondingly, it also has its own workflow, authorization, etc. These are the key tasks in our 100 days.

Of course, the most important thing is the mutual trust and cooperation between management teams, managers and subordinates. We have also sent some people here to live in Gothenburg. Some of them are quite experienced. Now they have been integrated into the local team, including myself and I often go to the headquarters and serve as senior vice president of the world.

Netease Auto: The integration between Volvo's high-level companies in Gothenburg in Europe is still good, right?

Shen Hui: Yes, quite good, because I basically spend half of my time in Sweden, so I know more about the situation. We still have about six colleagues who have passed from Geely.

Netease Automobile: But how have we heard that Chairman Li Shufu has "divergence" with Volvo management?

Shen Hui: Actually, there is no "divergence". It is just a normal discussion conducted internally at the beginning of the establishment of a new company to formulate a correct strategy and direction. It is still far from being up to the board of directors. There must be one, two, three, four, five, or even ten opinions during the discussion, including the number of plants to be built, where to build, what products to introduce into China, and what products not to introduce into China. These are normal internal exchanges. The decision is based on the company's governance structure. The final decision is for the board to study, discuss, and vote.

Volvo is currently an independent company. The highest management structure in the world is the board of directors. Li Shufu is the chairman of the world. His work is mainly to grasp Volvo's global future strategy and long-term development. At the same time, the members of the board of directors were hired on behalf of Geely Holding Group. They are the think tanks of Chairman Li Shufu, helping him to locate how to develop globally.

Below the board of directors is CEO, Stephen Jacobs, who is responsible for Volvo's global daily operations and leads the entire global management team to implement strategies according to the requirements of the board of directors. I report to Jacobs and are mainly responsible for the operation of the Chinese market. Many Volvo decisions are made under such a process. It can be said that if we all understand this governance framework, it will be relatively easy to understand which messages are likely to be correct and which may be purely speculative, and there is no such thing as "divergence."

I have also noticed that some media now basically regard the decision of Chairman Volvo as a member of the Volvo subsidiary as his strategy, and even some individual media or individuals have described the individual price reduction promotions of Volvo dealers as It was the first strategy after Chairman Li Shufu entered the Volvo. This is completely wrong. Volvo is a luxury car brand from Europe. This is the brand positioning we have always insisted on. We will not fight the price war and we will not win the market through price cuts.

NetEase Car: What was the main purpose of Mr. Jacob's visit to China last time?

Shen Hui: He mainly met with Geely's senior executives and met with Chairman Li Shufu. At the same time, he shared some of his strategic thinking and management concepts with the newly established management team in China. Because the Chinese market is very important, Jacob promised to come to China at least once in February. At the same time, we also understand the dealer network because dealers are our partners and need to develop together.

China's new strategy is about to report to the board Chang An Ford OEM agreement unchanged

Netease Automobile: You have repeatedly mentioned the core strategic position of the Chinese market. I heard that Volvo China's new strategy will soon be announced. I do not know if I can disclose one or two?

Shen Hui: Volvo China's new strategy is still in development. Afterwards, we also need to submit it to the global management committee for discussion. After the agreement of the Global Strategic Management Committee, the global CEO will come forward to report with the board of directors jointly with me, and the board of directors will eventually approve it. The localization strategy also requires the approval of the Chinese government, and we will be able to announce it to the public. Without the approval of the global board of directors and the final approval of the Chinese government, everything cannot be determined.

Chairman of Volvo Car China and Shen Hui, Global Senior Vice President

However, it is certain that Volvo’s localized strategic direction has been approved by our first board of directors, which means that we must be localized in China, but where we set up a plant, it is still a matter of internal discussion within our company. Confidential, it is not easy to speak outside. In addition, the actual establishment address has not actually been approved by the central government.

In addition, the Chinese market is vast, with an area as large as Europe. In our China strategy, we hope that we can meet the needs of our customers in all regions and sub-markets, and try to have our products in all market segments. Of course, we do not want to make our product planning complicated, that is to say, both focus and priority.

Netease Automobile: What is the current progress?

Shen Hui: We plan to introduce and report on our strategic framework and business objectives to Volvo Global Board members in December this year and in February next year. We hope to get their approval. Because this strategy is so important to Volvo as a whole, it is not a board or a sentence or two that can be said. This month's board of directors will report part of it. At the same time, the next board of directors will update and report on some strategic progress reported by the board of directors. We will make certain adjustments as the market changes and develops.

Netease Automobile: Regarding Volvo's localization, it is reported that under the coordination of the parent company Ford, the agreement of Changan Ford OEM Volvo will be completely terminated in 2013.

Shen Hui: No. Our cooperation with Changan Ford is quite pleasant. The original cooperation will be carried out according to the agreement between the two parties before. There will be no change.

Netease Auto: Localization can indeed reduce costs, but how can Volvo China achieve localization of Volvo or today's Volvo?

Shen Hui: This point you mentioned is also one of our major considerations. The quality of localized products will certainly not be worse than that of European originals. Volvo maintains the same production and quality standards globally, and there is no compromise on this point. . This is our commitment. We are also realizing this promise with practical actions.

Like our Chinese team, you also know that Mr. Lars Danielson is the Vice President of Industrial Systems at Volvo Car China. Industrial systems are not only manufactured but also include aspects such as procurement and quality control. He was previously the general manager of Volvo's plant in Gothenburg, the world's largest factory. In his 30-year career, Volvo, Opel and GM are all well-known figures. He is our guarantee of quality in China.

In addition, the head of our quality department will also be in place on January 1. It is the vice president responsible for Volvo's global manufacturing and production quality. He will be transferred to China as the vice president of quality for Volvo China; One of them is also a supplier quality expert from the headquarters. The future of Volvo is no matter how it develops in China. The world is a brand, a quality standard and a technical system. The quality after localization is not only our internal manufacturing quality, but also the quality of suppliers. We must not only keep the same standards as Europe, but even strive to surpass the original European manufacturing standards. This is our unyielding goal. There will be any back or change.

Netease Automobile: There are opinions that Volvo's current product line is relatively single?

Shen Hui: I don't think so. If we look at our competitors, they actually sell one or two cars. I think Volvo’s current shortboard is the Volvo brand concept. In the current immature automotive consumer culture, “safe, low-key, high-grade” is not the mainstream, but happy that China is more and more. Consumers have begun to recognize this value concept. At the same time, we must put our products in production in China. The design and research and development of products are more in line with the demands of Chinese consumers on cars. This is a feature of China. Therefore, localization is also an area that we must further strengthen.

Netease Automobile: We know that Volvo will set up an R&D center in China. Will the R&D center's future positioning be mainly for the Chinese market with some more local design or research and development?

Shen Hui: Yes, our R&D center is a very important part of Volvo's global R&D center. This R&D center will be closer to the Chinese market and at the same time deliver more opinions from Chinese consumers to the global product R&D department.

Netease Auto: At present, Mercedes-Benz has launched A-Class vehicles in China. According to our understanding, Volvo also plans to launch an entry-level model that competes with golf. At the same time, the Volvo brand is undergoing a rejuvenation process. Can you disclose this situation?

Shen Hui: Yes, you look at our latest products, XC60, S60 these are more popular with young consumers. We are also aware of competitors' small cars because Europe has relatively high requirements for environmental protection and energy conservation. Luxury cars have also entered the small car market. Of course, the concept of the Chinese people is a bit different. They often think that big is luxury, but Europeans are even more advanced. They think that big is not equal to luxury, and small is not equal to not high.

We are also developing similar small cars, but it does not mean that we compete with golf because golf is a popular brand. We are not a market with us. We just say that the size of new products is similar to the size of golf, but it does not mean that golf is related to golf. Competition because golf is still popular.

Geely and Volvo have two brothers who share a "dad"

Netease Automobile: Recently, Geely and Volvo entered into a comprehensive cooperation agreement. At the same time, the two sides also established a dialogue mechanism. What are the original intentions of these initiatives?

Shen Hui: Since Geely's acquisition of Volvo, we have been pursuing a principle: "Geely is Geely, Volvo is Volvo". This sentence says that the whole should be "Geely cars are Geely cars, Volvo cars are Volvo cars." Both parties have a "dad" - Zhejiang Geely Holding Group Co., Ltd. Although the two companies operate independently, they use our China’s words to claim their own profits and losses, but since there is a single “dad,” everyone naturally can discuss how to find synergies. Discuss how to do a good job for both parties on the premise of not harming the interest of any party. The dialogue committee is a division of Hong Kong-listed Geely Automobile and Volvo that seeks possible cooperation projects.

Because I come from Fiat, I'm very clear about Fiat's internal structure. This is also the case with Fiat. Its group company is called Fiat. Its car company is called Fiat Auto. It is a popular brand. Its luxury cars are Ferrari and Maserati. Ferrari Masala is the same department. Fiat has a history of more than 100 years. This model has been operating smoothly. I also learned a lot in it. I think that Volvo can use this kind of model. Zhejiang Geely Holding Group is the “old dad” and the following two brothers have done a good job together.

Netease Automobile: Has it reached some specific cooperation intentions?

Shen Hui: Specifics are still being discussed. Any cooperation will be carried out on the basis of the legal framework and taking into account the immediate commercial interests.

Thousands of talent gaps have almost triggered a "personnel earthquake" in the Chinese automotive industry.

Netease Auto: Volvo’s past operations in the Chinese market were Volvo China Sales. With the establishment and strategic upgrade of Volvo China, do you expect the Volvo to face the talent gap? What are the main areas of focus?

Shen Hui: Great, thousands. Volvo Group China is a full-featured company, which means that we all need talents in manufacturing, research and development, procurement, marketing, sales, personnel, and finance.

Netease Auto: As early as this March, Geely website has hung up a “New Geely, Nationalization, and Big Stage” talent recruitment invitation. Has Volvo's talent pool plan been launched since then?

Shen Hui: Actually, the purpose was still different. Because at that time our merger and acquisition project was not completed, the talent demand was mainly to complete the transaction, such as negotiation, financing, intellectual property, and delivery. Now we need to have a large number of people who are in short supply in Volvo's development.

Netease Auto: Volvo Recruitment is now a "sensitive topic," and you are tantamount to detonating a "personnel earthquake" in the Chinese auto circle. They even heard that Hu Maoyuan, chairman of SAIC, once wrote a letter to the leadership of the Shanghai Municipal Committee to reflect the situation of the Geely Volvo project. However, recruiting and attracting talent is the first step. How to retain talent is the key.

Shen Hui: Of course we will not blindly or illegally dig people. This is not our style. We hope to encourage normal flow of talent through formal channels.

We only provide a large platform, and this platform is a historic opportunity. For the first time, Chinese auto companies have their own luxury car brands. Moreover, Volvo's development in China is not through joint ventures. Everyone is doing a good job in this matter. For example, the technicians are exposed to the real core technology, the most advanced manufacturing capabilities, and there are opportunities for him to apply to China’s automobile R&D and manufacturing without any restrictions at all. There are not many joint ventures within the company. All kinds of restrictions. So our strategy is to develop long-term together and grow with us.

Li Shufu is a very forward-looking person

Netease Automobile: What attracted you to join Geely?

Shen Hui: Actually, I have known Chairman Li Shufu for some time. When I came across this project, he always wanted me to join. Because I grew up in China, studying in the United States, and working in the United States. Later, when I was at BorgWarner, although it was a company in the United States, it had two business units in five business departments whose headquarters were in Germany, so I spent a lot of time in Europe. Later, Fiat was also a European company. Geely's acquisition of Volvo is also faced with two types of people, one is a European company and the other is a U.S. company. So he hopes to find a Chinese person who understands China, and at the same time he has had many dealings with European and American people in the automotive industry. So he talked to me several times.

In fact, for me, the first time the chairman talked to me, I wanted to come, but the problem was that the Fiat Fiat project in his hands was not able to take off, so I told the chairman at the time and I took this seriously. Things to do as soon as possible come over. Later, just two days before Ford announced that Geely was the exclusive candidate, I came to Geely and always led the project.

Netease Auto: When was Li Shufu's first time looking for you?

Shen Hui: Last year was August and September.

Netease Automobile: What kind of person do you think Chairman Li Shufu is?

Shen Hui: I think he is a very active and forward-looking person. People who have not been in contact with him all the time, and people who do not understand the ins and outs of his entire train of thought do not necessarily understand this point.

At the same time, he particularly does not shy away from difficulties and challenges some people who find it difficult to do. But as long as she thinks the strategy is correct, she must implement it.

When I started to merge the Volvo project two years ago, I thought that all people felt that it was impossible. Some people also made fun of him, but he was unwavering. According to his own ideas, he wanted to find someone to help, how to implement it, and what to look for. The consultant company, in fact, he has already planned, and most people can't do it. This is where he attracts many of us to join him.