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Diplomarbeit DIPLOMARBEIT Herr < Matthias Heine Market preparation of Volkswagen Group China for San Bao (Admin- istrative stipulation of customer right protection for household au- tomotive products in China) Mittweida, 2013 Fakultät Wirtschaftswissenschaften DIPLOMARBEIT Vorbereitung der Volkswagen Group China Vertriebsnetze auf die Einfüh- rung einer landesweiten Verbraucher- schutzrichtlinie für privatgenutzte Au- tomobile in China (San Bao) Autor: Herr Matthias Heine Studiengang: Wirtschaftsingenieurwesen Seminargruppe: WI09w2 Erstprüfer: Herr Prof. Dr. rer. oec. Serge Velesco Zweitprüfer: Herr Dipl.-Wirtschaftsing. (FH) Sebastian Bachmann Einreichung: Beijing, 23.August 2013 Verteidigung/Bewertung: Mittweida, 2013 Faculty Economic Sciences DIPLOM THESIS Market preparation of Volkswagen Group China for San Bao (Administra- tive stipulation of customer right pro- tection for household automotive products in China) Author: Mr. Matthias Heine Course of studies: Industrial Engineering and Management Seminar group: WI09w2 First examiner: Mr. Prof. Dr. rer. oec. Serge Velesco Second examiner: Mr. Dipl.-Wirtschaftsing. (FH) Sebastian Bachmann Submission: Beijing, 23 August 2013 Defense/ Evaluation: Mittweida, 2013 Bibliografische Beschreibung Heine, Matthias: Thema der Graduierungsarbeit: „Vorbereitung der Volkswagen Group China Vertriebs- netze auf die Einführung einer landesweiten Verbraucherschutzrichtlinie für privatge- nutzte Automobile in China (San Bao)“ Jahr der Einreichung: 2013 Seitenzahl Verzeichnisse: 19 Seitenzahl des Inhalts: 53 Seitenzahl der Anhänge: 62 Mittweida, Hochschule Mittweida, Fakultät Wirtschaftswissenschaften, Diplomarbeit, 2013 Bibliographical information Heine, Matthias: Thesis topic: “Market preparation of Volkswagen Group China for San Bao (Administra- tive stipulation of customer right protection for household automotive products in China)” Year of submission: 2013 Number of pages for directories: 19 Number of pages for content: 53 Number of pages for appendices: 62 Mittweida, University of Applied Sciences Mittweida, Faculty of Economic Sciences, Diplom thesis, 2013 Preamble This thesis was written for the Industrial Engineering and Management graduation (Dipl.- Wirtschaftsing. (FH)) at the University of Applied Sciences Mittweida, Germany. The intent of the thesis is to describe the market preparation of Volkswagen Group China for San Bao, an new administrative stipulation for customer right protection for automotive products in People’s Republic of China. Throughout the thesis the content of the San Bao Stipulation as well as the implemented measures and necessary actions for market readi- ness of Volkswagen Group China will be exposed and analyzed. The thesis has been developed during an internship at Volkswagen (China) Investment Company Co., Ltd., Aftersales and Parts department in Beijing from March to August 2013. During this period, I was involved into the market preparation process and support- ed the San Bao project steering. The thesis is based on public released scientific literature, press articles, market research reports as well as unpublished internal company documents of Volkswagen Group China. It has deliberately been decided not to describe strategies of Volkswagen Group China which are subject to confidentiality and professional secrecy. Business figures of Volkswagen Group China are generally confidential those mentioned originate from public sources. In the events where public sources were not available, the figures have not been further specified. Acknowledgement I would like to thank my examiner Professor Dr. rer. oec. Serge Velesco, for his outstand- ing cooperation and support as well as the possibility to conduct this thesis in English lan- guage. Special thanks go to my supervisors, Mr. Sebastian Bachmann and Mr. Ronny Klausch from Volkswagen Group China, for being of great- and essential help during the develop- ment of this thesis as well as providing me with a collaborative work atmosphere. For his support with expert knowledge concerning logistics, I want to thank Mr. Joerg Hempel from Volkswagen Group China. For help with translation and interpretation of the Chinese legal clauses I am thanking Mr. Gong, Xiaofeng from Volkswagen Group China. I also thank my family and friends as well as the Volkswagen Group China Aftersales and Parts team and the intern clique of Volkswagen Group China for providing me with moral and spiritual support Content I Content Content ................................................................................................................ I Table of Figures ................................................................................................. IV List of Abbreviations ..........................................................................................V 1 Introduction .......................................................................................... 1 1.1 Problem statement ................................................................................. 1 1.2 Chapter overview ................................................................................... 2 2 Automobile background and specifics .............................................. 3 2.1 China automobile market specifics ......................................................... 3 2.1.1 Market figures 2012 ......................................................................................... 3 2.1.2 Trade barriers and state interference............................................................... 4 2.1.3 Purchasing and driving behavior ..................................................................... 4 2.1.4 Road conditions and fuel quality ...................................................................... 5 2.2 China Automobile Aftersales specifics ................................................... 6 2.3 Volkswagen Group Entities in China ...................................................... 8 2.3.1 Volkswagen Group China (VGC) ..................................................................... 8 2.3.2 Volkswagen Group China Import Company (VGIC) ......................................... 9 2.3.3 Shanghai Volkswagen Automotive Co. Ltd. (SVW)........................................ 10 2.3.4 FAW-Volkswagen Automotive Co. Ltd (FAW-VW) ......................................... 11 2.3.5 China specifics of Volkswagen Group ........................................................... 13 3 Stipulated content of San Bao .......................................................... 14 3.1 Brief introduction of San Bao ................................................................ 14 3.2 Overview of San Bao framework .......................................................... 15 3.3 San Bao validity periods and 3R clauses ............................................. 16 3.4 Vehicle buy-back clauses ..................................................................... 18 II Content 3.5 San Bao Certificate and vehicle handover ........................................... 19 3.6 Requirements for wear and tear parts .................................................. 20 3.7 Requirements for vehicle repair history documentation ....................... 20 3.8 Requirements for courtesy car or transportation compensation ........... 21 3.9 Statutory exceptions ............................................................................ 21 4 Volkswagen Group China market preparation for San Bao ........... 23 4.1 Market preparation process ................................................................. 23 4.2 Aftersales IT Systems .......................................................................... 24 4.2.1 Retail level ..................................................................................................... 24 4.2.1.1 Status quo and required action for market readiness................................................... 24 4.2.1.2 Demands for vehicle repair history documentation ...................................................... 26 4.2.1.3 San Bao Status as an additional vehicle attribute ........................................................ 27 4.2.1.4 San Bao Repair Time tracking ...................................................................................... 28 4.2.1.5 Pick-up notice feature as proposal ............................................................................... 29 4.2.1.6 San Bao Repair Quantity tracking ................................................................................ 29 4.2.1.7 Early warning function as additional required feature .................................................. 30 4.2.2 Wholesale level - Status quo and required action for market readiness ......... 31 4.3 Spare parts logistics ............................................................................. 32 4.3.1 Spare parts logistics – Status quo and required action for market readiness .. 32 4.3.2 Stock increments ........................................................................................... 34 4.3.3 San Bao car-down order type......................................................................... 34 4.3.4 Cross supply within the distribution network ................................................... 35 4.4 Aftersales processes ............................................................................ 36 4.4.1 Service Core Process in the Authorized Services Centers ............................. 36 4.4.1.1 Service Core Process – Status quo and required action for market readiness ........... 36 4.4.1.2
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