New Trends In Car Company Management: Ten - Hut!

Bertel Schmitt
by Bertel Schmitt

As if it’s not enough that Chinese buyers shy away from Japanese cars due to disputes over some rocks in the East China sea, Japanese cars find themselves under attack from a surprising foe: Chinese cars. Chinese cars were the big winner of the anti-Japanese row, and now The Nikkei [sub] has a downright frightening report from the inside of one of the most successful Chinese automakers, Great Wall:

“Great Wall Motor Co. has recently emerged as a stellar local automaker. At its head office in Baoding, Hebei Province, about two hours from Beijing, workers in navy-blue uniforms have taken to heart the company’s slogan: “Catch up with Japanese and South Korean rivals.”

The company’s regimented approach to production is modeled on China’s People’s Liberation Army, which has a base in Baoding. At the plant, workers must walk in single file when they move from place to place in groups of more than three.

It also imposes strict cost controls. For example, the elevators at its 16-story headquarters only stop on the eighth, 13th and 16th floors; employees on other floors must take the stairs. And lighting in the stairwells and the main entrance is switched off to save electricity.”

Great Wall has become famous for quality cars at reasonable prices. It sold 380,000 in January-October, up 35 percent, while China’s auto market as a whole was flat. The odd part: The military-style company is privately owned. At the same time, government-owned carmakers in China affect a more urbane and relaxed pose, which they pick up from their foreign joint venture partners.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Th009 Th009 on Nov 26, 2012

    Only production was flat, market was actually up by 5.32%. Still, 35% is a solid increase, but the total numbers are still very small.

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    • Th009 Th009 on Nov 26, 2012

      @Bertel Schmitt Signing up for remedial reading lessons now ...

  • Oldyak Oldyak on Nov 26, 2012

    I couldn`t imagine 3 UAW workers marching in line other than to the beer store or the ballot box..HOW ABOUT THE BEER FIRST ..THEN THE BALLOT BOX

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    • Ronnie Schreiber Ronnie Schreiber on Nov 26, 2012

      @icemilkcoffee With about 7% of US private sector workers being members of labor unions, I doubt they're the bulwark against corporate excesses. Smart employers treat their workers well. As for the 8 hour work day and 5 day work week, that was the gift of Henry Ford, not labor unions. When Ford realized that going to an 8 hour shift and not making employees work a half day on Saturday meant he could now run his factories 24/7/365, he went to a 40 hour 5 day workweek. Ford also started a company health clinic in 1913. I know that it's popular in some quarters to regard business and profit as evil, but I've yet to see evidence that members of labor unions are any more saintly than the folks in management. Which do you think a labor union president would prefer, a safe machine operated by one employee, or an unsafe machine that needed two people to operate (and pay union dues)?

  • Dolorean Dolorean on Nov 26, 2012

    "It also imposes strict cost controls. For example, the elevators at its 16-story headquarters only stop on the eighth, 13th and 16th floors; employees on other floors must take the stairs. And lighting in the stairwells and the main entrance is switched off to save electricity.” Add chaining the exit doors so no one can go on break for a quick smoke and you got an awesome recipe for a fire disaster.

    • Blowfish Blowfish on Nov 26, 2012

      chains are on exit doors, but smoking are allowed inside( ? ) I was told smoking was a way to get breaks or more time off during work, so everybody needed to have the bad habit then. those were the days u work u get 36 and dont work u still get 36. thats why during those days the production of food & everything else was so far behind as no incentives to produce more, then they introduce to allow worker to keep a small plot out of the communal field, suddenly the production went up. also for female the ideal matrimonial partner are butchers, truck drivers, one guarantee food on the table another is logistic also get goods from afar. middle kingdom is a real eye opener for most occidental folks.

  • 95_SC 95_SC on Nov 27, 2012

    If I buy a great wall pickup can I have one of those chrome SKS rifles in the picture to hang on the gun rack?

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