Although Qiaozhi Automobile, which has been questioned since its establishment, has handed in a good product transcript with two cars, the market test paper still cannot give a satisfactory answer. "Calling is not a seat" is the objective situation facing the car at present. People can successfully squeeze a sweat for this new model of Chinese automobile manufacturing. Now the most important thing is that it takes time. When it comes to time, one of the most lingering questions is how much patience is there for shareholders? In this regard, the Israeli group that has been behind the scenes for seven years has been the first to give a statement. The main negotiator of the joint venture project, NirGilad, Chairman and CEO of Israel Group, accepted the "First Financial Daily" in Shanghai. Interview. Straight Line Wire Drawing Machine straight wire drawing machine,straighting wire drawing machine,African wire drawing machine Dovin limited , https://www.dovinmachine.com
First Financial Daily: After seven years of operation, there are currently two models on display in the car. These two models have been widely praised by foreign media during the Geneva International Motor Show. However, in the Chinese market, although both cars have been recognized by the industry, sales are still not ideal. As the main person in charge of the Guanzhi shareholders, how many points do you give to the current performance of Qoros? How many points did the current leadership team of Guanzhi, Chairman and CEO Guo Qian, Vice Chairman Shi Qingren and Design Director He Gete play?
NirGilad: In fact, people in real life often tend to underestimate two things, one is the success that has been achieved. For example, the quality of an international standard that a small company can achieve when it first tries to build a car. The second is to start a new brand from scratch, and to face the challenges of brand awareness, consumer interest and trust, and to drive sales. Each of these factors should not be underestimated. We have seen a very encouraging sign: there are already two excellent products in the store of Guanzhi Auto Dealers. With the continuous expansion of the sales network and the step-by-step marketing activities, we can see more and more. The car is on the road. All members of the Qoros Auto Executive team will continue to make the most of the company's development.
Daily: In terms of technology, production processes and operations management, China's auto joint ventures are still dominated by foreign parties, with senior executives both Chinese and foreign. Qoros Auto broke the conventions in these areas. Guo Qian, Chairman and CEO of Qoros Auto, is the only representative of Chery to the joint venture company, while the foreign representative Shi Qingren is an external talent of the Israeli group to establish a joint venture. What was the consideration for setting up such a joint venture structure and adopting such a Chinese and foreign team management model? Is it the idea of ​​the Israeli group to create a new car brand? For the Israeli side, you have not been involved in the automotive industry before. What are your control over this company?
NirGilad: At the moment, our entire business model is designed to create a new world: the Chinese automotive industry has finally created a local brand that can compete with foreign brands. As you pointed out, the idea of ​​creating a new brand originally came from an Israeli group rather than an experienced automotive executive. The joint venture model and management model are very stable: one of the two fundamental goals – the manufacture of Chinese cars of international quality – has been successfully achieved. Another fundamental goal - to build a brand new from scratch, to win trust, to win the market - has also started.
Daily: In today's highly competitive market, a new car company is bound to face many challenges. Qoros has recently launched its second phase of marketing; R&D, human resources and plant construction are constantly increasing costs, and given the current efficiency, there is still a long way to go to achieve profitability. Is the cost currently exceeding shareholder expectations? Please talk about the current financial situation of Qoros. Now there are various speculations about the financial situation of Qoros Auto. Can you provide detailed data such as investment capital, liabilities and losses?
NirGilad: First of all, I want to point out that the investment in the automotive industry is long-term. Right now, the joint venture company has invested $2.5 billion. For mature automakers who want to achieve the same results, the $2.5 billion investment is only a small amount. Secondly, we must understand that the company is taking a lean and efficient operation route. Of course, there is no profit yet, and substantial investment is needed, but we are not surprised that it is all in our expectations and plans. Now, it is time to see the results. The dealer network of Qoros Auto is expanding, and the product line is also enriched. Consumers' awareness of the car brand is also increasing, and more and more products are already on the road.
Daily: I talked to a lot of people who are considering buying a car. They all accept the products of Qoros Auto, but they don’t know much about the company. The most common question they ask is: "How long can this company last? If it goes bankrupt, how can I repair the car?" As a shareholder, do you have anything to say to these potential customers? How long do you expect Qoros to achieve profitability? What year do you think Guanzhi can achieve break-even?
NirGilad: First of all, take a look at the achievements of Qoros Motors until now: We have not only won awards in China, but also won world-renowned awards that have envied many mature brands: Europe's safest and smallest EuroNCAP 2013 Home Car Award; Red Dot Design Award; Guanzhi Yiyun Internet Service Platform won the “Emerging Market Best Car Information Product and Service Award†in the North American TelematicsUpdate Awards. These are not accidents, but because the company has implemented a series of specific plans to create anewpremium (the highest quality in its class). This is the history of the creation of Guanzhi Automobile as a new brand. We don't set a specific date to achieve profitability, but it takes time to start a new brand from scratch. We know this very well. We have prepared for the long-term and will fully invest in it. We are confident that we will build a car into a successful brand.
Daily: Although everyone in the car is rich, it does not mean that they will form a strong team. The success of an automotive company depends to a large extent on the competitiveness of its corporate structure and system. As a shareholder, how do you ensure the competitiveness of the company's structure and system?
NirGilad: If you know the achievements of Qoros Auto, for example, our ability in design and R&D is unquestionable, then you will agree that despite the large amount of capital invested, we are making mature car manufacturing that achieves the same results. For business, these inputs are only a small amount. Therefore, there is no reason to doubt the ability of the Qoros car team to achieve sales, because so far, the company has fulfilled all the promises it has made. In the future we just need more time and patience.
Daily: The establishment of the brand is not a day's work. Taking into account the history of other car companies, Qoros may need more product accumulation to achieve market success. In other words, the shareholders of Qoros Motors must be prepared to face further losses. As a shareholder, are you willing to tolerate how long the company continues to lose money?
NirGilad: What we have to do is a long-term plan – anyone who wants to get a return soon when entering the mass-produced automotive industry is unrealistic. We agree with the business plan of Qoros Auto, and we have also seen the achievements of Qoros Auto, so we expect it to achieve further success in the future.
Daily: Although most consumers are gradually getting to know Qoros Auto, their foreign investors are still covered with a mysterious veil. What business is the Israeli group operating? What is its future investment strategy? Does the Israel Group have an advantage in the development or operation of the new energy value chain? If so, can the advantages of the Israeli group in this field support the development and operation of Qoros? The Israeli group wants to see what the car can bring to it?
NirGilad: The Israel Group is a global industrial holding company involved in key industries that provide basic needs for a fast-growing global market, including chemicals, energy, transportation and automotive. ILCO Group includes Israel Chemicals, ICPower, OilRefineries Ltd., Qoros Auto, ZIM Integrated Shipping Services, TowerJazz and ICGreen Energy. The company was founded in 1968 and listed on the Tel Aviv Stock Exchange in 1982. The company's market capitalization is currently ranked in the top ten of the Tel Aviv Stock Exchange.
According to information provided by the Israel Group to the “First Financial Dailyâ€, the Israel Group’s consolidated sales revenue for the fiscal year 2013 was $11 billion. As of August 31, 2014, the shareholding of the Israel Group's shareholders was: 53% shareholder holding entity; 29% public shareholding; 18% held by Leumi Bank.
The Israeli group is involved in five major sectors. In the chemical industry, holding a 52% stake in Israel Chemicals, the latter's 2013 sales revenue of 6.3 billion US dollars; energy sector, holding 100% stake in ICPower Global Power Generation Company, the sector's sales revenue in 2013 was 873 million US dollars; in the automotive field, Holding a 50% stake in Qoros Auto, which is not yet profitable; the company is involved in the shipping sector, holding a 32% stake in Starship, with a sales income of US$3.7 billion in 2013; a semiconductor segment holding a 30% stake in TowerJazz and 2013 sales revenue $505 million.