Research On Management Model Of FAW-VW's Passenger Car Dealers

From the beginning of 21 st century, cars have stepped into Chinese families as consumer staple. Over the past ten years China's market has achieved rocketing development, up to 2015 the total sales volume of passenger vehicles in China amounts to nearly 20, 000, 000. The change of consuming model from government to common families calls for higher and higher requirement for purchasing experience and service that the car manufacturers provides. As a result the 4S shop model come to the leading position in China's car sales industry. 4S shop is a four-in-one cored Automobile franchise model,including Sale, Spare Part, Service and Survey.FAW-Volkswagen Automotive Co. LTD. founded in 1991, is a joint-venture automobile company between FAW group and Volkswagen AG. Since its foundation it is always the benchmarking enterprise of the automobile companies in China and occupies the leading position of both sales and production. FAW-Volkswagen sells and produces cars of VW and Audi brands and the volume of sales of 2015 reached about 1, 650, 000. FAW-VW aims at becoming the best joint venture Automobile Company in China and attaches great importance to the construction of terminal distribution channels to improve its brand image.The 4S shops of VW and Audi are famous for the strict admittance standard, high construction requirement and operations management. By the end of 2015FAW-Volkswagen has 800 4S shops for VW brand and 400 4S shops for Audi brand in China.This article proceeds with the analysis of the current situation of FAW-VW passenger car dealers and finds out a series of management problems: Single distribution channels,high Investment cost, unable to adapt to the fickle regional market, these can lead dealers to quite from distribution channels and being in debt. Unreasonable investors structure,unbalanced sales and unbalanced investors development are not conducive to the distribution channels growth of FAW-VW, Excessive concentration of investors may bring risks to dealer management. Dealer employees sometimes can't know how to work correctly because of multiple leaders in dealer management. Single motivate mechanism reduces positivity. All above problems bring down the fighting capacity of dealers in the terminal market and damage the partnership between FAW-VW and dealers. Finaly, FAW-VW can't achievesales target.Using relevant theory this article optimizes the access and exit mechanism and builds the management model of FAW-VW's passenger car dealers. First, the choice criteria and exit mechanism of FAW-VW passenger car dealers: as the first-class brand in the industry,the selection of FAW-VW passenger car dealers has a scientific network lay-out thinking,open and fair recruit process and strict choice criteria for investors. Additionally, for the dealers with poor business performance there is rigorous exit mechanism. By the means of the strict choice criteria and exit mechanism the network dealers of FAW-VW brand consist of high qualified investors in the industry. Second, The dealer management model of FAW-VW. After having the excellent dealer team, the dealer management team of FAW-VW needs the wisdom to find out how to manage them so that they can exploit the brand advantage to the full in order to win more customers and realize manufacturer supply.This article introduces the structuring idea, principle, elements and model design of dealer management of FAW-VW. The programming management ensures the dealer team higher competitiveness under the same goal. At the last, the supporting measurements of dealer management model of FAW-Volkswagen. FAW-VW provides very high supporting from the high level leaders, innovative coaching system and the dealer risk controlling to ensure the management model.FAW-VW, as the mature and excellent automobile company, has advanced experience of both construction and management of dealer channel. The study of dealer management model of FAW-VWcan be used as a direction and reference for dealer management in China's passenger car industry.