Research On The Powertrain Development Strategy Of China FAW Group Hong Qi

The global automotive industry experienced a tale of two extremes in 2019 and the industry becomes increasingly polarized.On the one hand,the big carmakers like GM and Ford Motor Company have been laying off workers,meanwhile,Chrysler and Peugeot Citroen have merged;on the other hand,as the new force,Tesla accelerated production with an annual sales volume of nearly 400,000 cars,increasing by 50%compared with the previous year.While at the domestic market,foreign enterprises invest a large sum of money in promoting electric cars,meanwhile,it is hard for self-owned brands to achieve their targeted goals.Since Karl Benz invented the first modern automobile in 1885,the automobile industry has never undergone so rapid technological changes as it has today and it involves many industries such as energy,transportation,communication and computer technology.Powertrain is the "heart" of the automobile and China FAW Group Corporation Hong Qi powertrain?referred to as Hong Qi powertrain?has a history of nearly 70 years.However,owing to the complex environment in the 21^st century,the business is facing many problems such as the difficult options in the numerous ways of developing new cars,unskillful staff,and the inadequate management system etc.In order to make itself bigger and stronger,Hong Qi powertrain is in urgent need to develop suitable development strategy and follow the market change and related rules and regulationsAutomotive powertrain can be divided into four parts,respectively traditional powertrain?traditional internal combustion engine as power output?,hybrid powertrain?traditional powertrain with motor as power output?and pure electric powertrain?battery-stored electricity as power output?and other forms of powertrain?such as hydrogen,natural gas,etc?.This paper analyzes the first three types of powertrain.Combining European and Chinese policies,this paper analyzes the development of Hong Qi powertrain by using PEST analysis method,SWOT analysis method and other strategic management knowledge and makes a reasonable development strategy for Hong Qi powertrain.First,the paper introduces the research background,the research significance,the research methods and the research content on the powertrain development strategy.This chapter is the theoretical basis of this paper which plays a leading role in the whole paper and also sets the tone for the formulation of the development strategy.And then describes the current situation of Hong Qi powertrain,then objectively evaluates the existing development strategy,and then finds out the existing problems in the process of analysis and evaluation,and finally analyzes the causes of the problems.And then the paper describes the competitive environment,environmental changes inside and outside FAW Hong Qi powertrain business.Competitive environment evaluates through Michael Porter's Five Forces Model the effect the five existing competitive forces have on FAW Hong Qi powertrain business.The external environment objectively describes the current situation of FAW Hong Qi powertrain through PEST analysis of policy,economy,society and technique.The internal environment uses SWOT analysis in order to better grasp the good chances of the market and give full play to its advantages,paving the way for the selection of development strategies in the subsequent chapters.Last the paper describes Hong Qi powertrain development strategic planning objectives,development strategy choice,how to implement the chosen strategy and how to effectively provide safeguard for strategy implementation.Only by putting the overall planning into systematic rigorous,pragmatic action can the development strategy be maximized.Through the analysis of internal and external environment,it can be concluded that Hong Qi powertrain internal strengths are stronger than weaknesses,external opportunities stronger than threats.Therefore,we should formulate the"advantage-opportunity"development strategy and use the advantages of Hong Qi brand to promote the superiority and reliability of this self-owned brand.The research,the development and the manufacture of the powertrain can be accelerated through taking advantage of the joint venture and the cooperative research with Volkswagen which has much experience in research and development production.If FAW,the state-owned enterprise,follow this strategy,it will become"the world first-class mobile travel company".