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Pang Qinghua¡ªthe Person Who Cultivates Multimillionaires

Source: China Cars Network Author£ºadmin Hits£º9976 Time£º2010/10/19 9:55:18
¡¡¡¡ Editor's note:  Recently, on ranking at 181st of China Top 500 Enterprises and 63rd of China Top 500 Service Enterprises, Power Group specially convened Hebei medium talkfest. After the conference, Hebei General Manager of China Cars Network Wang Xuhui specially wrote the article. Now, we reprint the article for readers (the article has abridged).
Automobile Trade Empire springs up
On September 4th of 2010, China Entrepreneur Association and China Association of Enterprises together released the newest ranking of 2010 Top 500 Enterprises in China. Power Group is continuously among China Top 500 Enterprises for six years and the ranking presents rising state all the time. This year, the ranking has elevated to 181st from 238th of last year with rise of 57 ranks. And the ranking has elevated to 63rd from 77th in China Top 500 Service Enterprises.
On September 7th, we got Mr. Pang‘s warm reception in Beijing Zhongji Subaru mansion. There were too much about what we want to know-- about the past and future of Power Group. It was just on the time of Power Group’s coming into the market, so the topics were endless. In the talking, I thought about the butterfly effect many times—any word or any action delivered by Mr. Pang and Power Group in the industry would have huge impact on the whole car sales industry in China and even on many car brands home and abroad. Honor and development is the theme of Power Group nowadays. There was too much passion and aspiration inside the empire enterprise to be waiting for practice. When these prospects were achieved one by one in some day, the industry would be brand-new.
The listing schedule is one more concerned topic in industry for Power Group. As per the listing declaratory rules, it is difficult for us to probe into too detailed contents in this stage. Secretary of Board of Directors Mr. WangYin disclosed that Power Group would endeavor to gain the approval of CSRC for listing by the end of this year as per the work plan of listing office. But the final listing time in fact depends on many factors, so it cannot be decided for the time being. In line with the current plan of the Group, listing will be finished before first half of the next year. 
Mr. Pang introduced that the listing application of Power Group was reported to CSRC in May, 2008. Power Group is the only one in China’s car circulation industry at present, and Mr. Pang is the bravest person. As a private enterprise, listing of Power Group has experience innumerable trials and hardships and is still painstakingly waiting till now. Mr. Pang said that,” time is not problem for us, the most important is that we have won more precious time to make us have enough time to know enough about listing. Listing is more one kind of social responsibility. After listing, we will make best use of social capital and source to do well in things of our own industry. I firmly believe that marching World's Top 500 Enterprises and more enterprise blueprints will be achieved with the assurance of listing.”
Crazy time, crazy industry, crazy core competitiveness
Power Group is always very humble; thus today’s Power Group, China’s largest car distributors, seems to show up suddenly in Heibei. But in fact, Power Group is striving all the time without one day’s relax and people of Power Group consider it a kind of undertaking from beginning to end. Mr. Pang said that,” Now that history chooses us, we should be duty-bound to carry on with the burden.”¡¡
About status quo of industry, Mr. Pang summarized it as crazy time, crazy industry and crazy person. The word “crazy” here means miracle. Under severe situation of global financial crisis in 2009, only GDP in China continues the increase speed; only China’s car increment was up to 46% last year. It is one and the only one in the world, so it is a crazy time. In industry, the whole auto industry is violently expanding this year, such as FAW-Volkswagen is building the second factory, its third factory has already been signed in Guangzhou when the second one has not begun to built; the number of its original specialty store networks is 200 and dealers’ network has always been restricted, but now the planned number is adjusted to 800. SAIC and Buick has adjusted to thousands, which is several-fold increase. So it is a crazy industry. What is more, one will not stand in car industry if he is not crazy enough. As for Power Group, whether on production and business, there are 210 official 4S stores authorized by the manufactures from the beginning of pioneering stage to the end of last year; while the number of opening 4S store is up to 250 this year, which is the total of past ten years. It is difficult to describe this hyper-normal development except “crazy”.
Without doubt, what is behind on the sufficient crazy is bound to be strong core competitiveness. Only accumulation of each steadfast step can build glories of miracle. On the business performance of Power Group, the operation revenue of the year before last and last year is respectively RMB24 billion yuan and RMB35.5 billion yuan; it has been up to RMB35 billion yuan till now of this year—only more than half year’s time. Accounting on the schedule, it can break through RMB50 billion yuan this year, which increases 30%~40% than last year. On the profit, the profit rate is continuously rising these years. In general, the larger the sale, the lower the profit rate is. But it is just the reverse in Power Group-- the larger the sale, the higher the profit rate is, which exactly illustrates that operating management ability of Power Group is quite strong.   ¡¡¡¡
Getting to the bottom of the back framework, we find that Power Group has divided all subordinate varieties into several platforms: the first is import car platform represented by Subaru, the second is commercial vehicle platform depending on development of Jidong mode, the third is micro vehicle platform serving for villages represented by “car to the countryside”, the fourth is passenger car platform with means of unified purchase and separate sales, district buy-out and variety buy-out. The four platforms has various of forms and different from each other, which are pioneering work of Power Group and its way of management. ¡¡
 Concretely speaking, the cooperation between Power Group and Subaru China can be called industry model. The nationwide district agency accounts for 70% of the total amount, which is a high monopolistic variety. As a very successful model, one of the largest characteristics of Subaru is containing more Chinese elements. The Power Group plays better role in aspects of nationwide rescue center, nationwide training, service family, club, scooters and etc., all of which has made much for safeguard system of Subaru. So to speak, Subaru has already owned very strong competitiveness at present. 
On commercial vehicle, Power Group originally created Jidong mode, whose core is to help users gain loan and in turn help banks take over principal and interest. The mode takes advantages of GPS high-tech means for protection and the sixth grade risk prevention system has set up new model for car consumption and credit mode in China. Power Group and Bank of China Head Office has been cooperating for 11 years till this year, the fact demonstrates that the original choice of Power Group is absolutely right. Consumption credit risk is huge; but Bank of China has chosen to cooperate with Power Group while given up cooperation with others, thus it is visible to see Power Group’s core competitiveness from the point. Car Consumption credit is good deed beneficial to state and citizen. Users realize today’s dreams for cars by use of tomorrow’s money. Power Group is a brand of big noise in truck consumption credit.
Micro vehicle board has been set up in consideration of risk-proof, which just fell upon the state policy of car to the countryside. SGMW alone was sold nearly 100 thousand last year, continuing to hold the first post in nationwide sales. Moreover, brands of Chang'an, Songhuajiang, Chang’he, Fawjlqx and Gonow all do very well. The most concerned problem of car to the countryside policy is car after-sales repair. Power Group has set up maintenance points in all counties and set full in counties with enough number of cars.
On passenger car, the measures of Power Group are different from others. Power Group has formed one unified thought up and down to gain greater profit through unified purchase and separate sales, district buy-out and variety buy-out, which is one means commonly used in Power Group in terms of different varieties and districts. This means is done on conditions of manufactures’ approval and mutual consent. Last year, Power Group bought out Kreisler 300C and Sebring, which has been a much-told story in industry; and bought out Caravan this year. Chery, Hyundai and KIA have ever been bought out. All of these are examples of Power Group’ building industry myth.
Dignity is used to write prestige
The news that reported more about Power Group in industry was that BJC joined hands with Power Group for joint venture with Subaru. Kinds of details were described vividly. But on referring to the topic with Mr. Pang, he was instantly serious from being amiable.
“The identity of Power Group is a dealer and Power Group is impossible to change its own identity. If I were the manufacture, then I would be in opposite side with other manufactures. How can manufactures support you after being the rivals? From the aspect of industry itself, I will not change, for I have already made great achievements till now. If I gave up the commanding lead in industry to do others, then the loss outweighs the gain. In fact, I really want to closely associate with manufactures, but I will never buy into 25% like what said on the report. It is possible that I will buy into 1%, 2% and even 5% for close association, and I hope so. Our company will not have any change before listing. We reported to CSRC that seeking financing by listing is for expanding car specialty stores while not for expanding others.”
This is Mr. Pang, strict, broad-minded, unabashed and decisive and bold in action. He has too many concepts on the future of Power Group, but he will never allow anyone to twist original meanings of some words for expanding Group’s news effects. Maybe Power Group did not frequently contact with medium in the past, which just proves that Mr. Pang’s adequate respect and trust for medium. Recently, a piece of news about artificial cars really made Mr. Pang and the whole Group feel extremely wronged.
For meeting the clients’ increasingly demand for maintenance support, Power Group has set up maintenance stations in early time, which provide standard maintenance service as per the manufactures’ requirements. And Power Group also pushes forward “service family of Power Group” for users to have meals, sing, play chess, stay fit, have online, pedicure and etc. while waiting for maintenance, and car washing is free. At present, there are more than 100 service families listed in Power Group. And they are still being expanded. In addition, fee charging is open. As per the manufactures’ requirements, the price list is put on the wall. Staff should first give quotation to customers and then begin to maintain cars after customers agree with the price and sign. If important issues occur in maintenance, staff will positively organize to help customers coordinate with manufactures to claim indemnity and change. Power Group has never relaxed in service. The Group set up supervision board in all companies, on which there is complaints hotline for customers’ supervision. If the service is not satisfactory, customers can call Power Group for complaints in this phone number. Power Group specially set up Honest Office responsible for solving problems of customers’ complaints. All complaints will be told to General Manager or Vice General Manager or superior leaders and will be given higher attention.
The so-called artificial cars event has already approached the end in face of manufacture’s identify and user’s own overload problem. The medium are always righteous and have given Power Group enough trust and understanding. On this, Mr. Pang was thankful and said,” Power Group has developed from the county and we have experienced innumerable trials and hardships from bottommost company to industry bellwether. I always say that we should further thank government and medium for their great support besides my own efforts and the Group’s efforts. Without your support, we would not have today’s achievements. Here, I also hope each friend of medium can care for our company more and as always in future to make it develop faster. Now someone said that Power Group may be the largest dealer all over the world if entering World’ Top 500 Enterprises. I said that I don’t know for not looking up references and I dare not say it. But Power Group will not shamed Hebei folks and we are keep trying.
The sincere words of Mr. Pang affect the whole meeting place and his sincerity further moved each present medium person.  
Plan in Hand, win the future
With today’s scale, Power Group only takes up 2.6% shares of this industry in China, which explains the complexity of auto industry of China. In face of numerous and complicated auto industry, Mr. Pang already has plan of the second half year in hand.   ¡¡
“In the second half year, Power Group will first set up the second Subaru Store in provincial capital—Shijiazhuang, meanwhile can get many new brands, including Land Rover and Aston Martin. On passenger vehicles, I think that we should have greater promotion. On commercial vehicle section, our emphasis is to do well in lease. Power Group has approved nonfinancial institution leasing company in Commerce Department. In area of truck, lease will gradually take the place of consumption credit in future. If there are quality problems after lease, the car can be taken back and users can get another new car. Then the unpleasant phenomenon for quality problems will be avoided. Lease will improve speed, increase share and be liked by customers for its short purchase time. Bank approval for consumption credit takes one month, while lease can be done at once. First auditing before the car arrives, if the auditing passes, and then you can drive away it after car arrives and the license plate is fit on. ” On micro vehicle section, we increase many varieties. Recently, Tongjia of Shanxi Automobile and DFM mini auto will join in our company. What need to explain is that Power Group will make itself a nationwide group, so some varieties may not be achieved in Hebei.
Mr. Pang has mentioned idea of car cultural park long before, which has been constructed preliminarily in Tangshan and Zhangjiakou of Hebei till now, but they are not the real “car cultural park” in original plan. Mr. Pang disclosed that the real “car cultural park” will be first completed in Shanxi Datong, covering an area of 1,050 Mu. 50 meters landmark building of Power Group will be founded in center of car cultural park, about 60 outlets will be set up in the park, and other facilities will contain each industry chain and cultural facilities relevant with the whole auto industry. ¡¡¡¡
The conceptual scheme of car cultural park is highly recognized by personages of all circles, and foretells the beautiful future of car cultural park project. Mr. Pang disclosed that the plan will preliminarily set up 20 car cultural parks in China£¬including large and mid-scale cities of Tianjin, Shenyang, Beijing, Qingdao and etc. As provincial capital of Hebei, Shijiazhuang without doubt is among them.
We believe that the birth of car cultural park of Power Group certainly will establish new car cultural marketing mode in auto industry.
The person who cultivates multimillionaires
Forethoughtfulness and reinventing development seem to be the substitute word for successful persons long ago. Mr. Pang always smiles shyly when referring to the honoring word, but the advantages of a successful leader have already unfolded ideally in the strategic disposition of enterprise.
As everyone knows that Power Group was a state-owned enterprise coming out from Luan County of Tangshan, whose predecessor could trace back to electromechanical equipment company of Commodities Bureau in Luan County in 1998. Men in county town at that time did not think of undertakings, a family and a few acres seemingly were the lifelong responsibility and mission. However, the establishment of a company certainly needed employees, which meant that many men needed to get away from inherent responsibility and mission. That no one looked after the land brought about dissatisfaction of many families. Mr. Pang, a brotherly leader, was the talking object of people. In face of people’s doubt and question, Mr. Pang carried fertilizers and rushed about on land of each family without words. He worried about others’ urgent things. All of these were an earthy leader’s wholehearted dedication to understanding and sympathizing with subordinate.
Zhongji Subaru is a brand of big noise. While accident no one was reluctant to see happened when Japan Company verified in China. Japanese representative ran over and injured foot on negligence of Chinese driver. In all the Chinese leaders who see them off, Mr. Pang took the lead to anxiously get off the shoes and socks of Japanese representative to check up the condition of the injury, and knelt on the ground to massage bruise for Japanese representative. All people present were stunned, and Japanese representatives were also moved by the behaving. This is the persistence of a sincere leader’s laying down status.
As a starting-to-be international brand of Power Group, Aston Martin has gained utmost attention of Mr. Pang. At the same time, Mr. Pang, who has already had great reputation in auto industry of international famous brands, has received manufacture’s reception in distinguished guest grade. ONE77, world’s top-grade luxurious roadster, opened heart for Mr. Pang. Test driving on road- this is the luxury treatment that any other manufacture cannot get. Meanwhile, this is a brand’s supreme approval and respect to an agent. More than ten years’ effort and hardships, sincere pay and rewards—this is the glory a leader deserves.
There are so many stories about Mr. Pang, but it is difficult to speak one by one. Uncountable models, from pieces of trifles to social responsibility, demonstrate the endless love in the depth of his heart.
Power Group unceasingly takes in persons with lofty ideals from beginning of building till now. But what is different in Power Group from other enterprises is that the turnover rate is surprisingly low. It seems that each person of Power Group has built firm Power soul. Departure is a disdainful behavior and despised by all people. The reason of all these depends more on the leader’s character charm besides reasonable system of remuneration, cultivation, transfer and promotion of a Group.  ¡¡
This is the real wisdom of Power Group. Each person of Power Group firmly believes that his own Group has simple dreams and miracle of drops will take place at his own side. At night, people of Power Group tuck children into bed and believe that they will be fed and clothed and will not be worried about burden of life. Inspiration and ides can be realized in work. All of these just derive from utmost trust and fidelity to the leader. 
A well-known saying of Mr. Pang is spreading inside Power Group, which is “I hope that there will be ten billionaires, one hundred multimillionaires and one thousand millionaires in our Group”. Mr. Pang is always thinking like this these years and he did it, and also excessively finished it.