On May 20th, Xu Jun, Senior Vice President of Zero Run Automotive, recently talked in an interview about the darkest moments experienced by Zero Run Automotive two years ago, the implementation of cost reduction and efficiency improvement strategies, and the current situation of internal competition in the automotive industry. Xu Jun said that two years ago, Zero Run was indeed on the brink of extinction. When he saw that there were still more than 10000 orders for Zero Run cars, he felt that the company had great development. But when I came in, I realized it wasn't like that. There is a lot of moisture in the 10000 orders, and based on some management issues in the past, many people have hoarded a lot of fake documents, resulting in poor order feasibility.
Xu Jun also said, "When I came here, the trend immediately started to decline. In the past, battery prices had been rising. If you made cars and obtained batteries and chips to make cars, you could make money. But when I took over, things had changed. It can be said that the storm was about to come and the wind was blowing, and batteries were gradually preparing to lower their prices. The first problem I faced was to get more real orders in a short period of time and digest our inventory. At that time, there were not many opportunities for me to think about long-term things and solve the problem of self rescue first
Xu Jun revealed that he brought Huawei's DSTE strategic model to Zero Run. After "structural cost reduction," it became a strategy for the company, which was a foundation for their future victories. Up to now, all the work of Zero Run Automobile is also focused on reducing costs and increasing efficiency. Xu Jun also talked about the dealer model, stating that the biggest common problem in the automotive industry now is that selling new energy vehicles does not make money, and inventory, personnel, and rent are the three major obstacles for the entire dealer. Therefore, Zero Run Motors breaks the traditional car inventory model by matching inventory with orders before shipping.
When it comes to the topic of internal competition in the automotive industry, Xu Jun believes that there are still many things in the industry that can be rolled up. For example, in terms of marketing system, every link on each chain can be labeled with numbers and then recombined. The mystical things that I couldn't see clearly or explain clearly in the past can all be digitally rephrased today, which brings the benefits of being more precise and efficient, that is, what I call increasing efficiency and reducing costs
