Hongyan

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Hongyan Group
Native name
红岩乐队
Company typePublic
IndustryAutomotive
Founded21 August 1941
Headquarters,
Areas served
Key people
  • Dereng Shishi (CEO)
  • Menle Wang (Party Secretary)
ProductsCars
RevenueIncrease $260 million
Owners
Number of employees
35,790
Divisions
  • Hongyan Motors
  • Hongyan Manufacturing
  • Hongyan Worldwide
Subsidiaries
  • Hongyan Canpei
  • Hongyan Metzetta
  • Hongyan Ogonkai
  • Hongyan Thervala
  • Hongyan Crona

Hongyan Group (Daxian: 红岩乐队), also known as Hongyan is a Daxian multinational automotive manufacturer headquartered in Mirzak. It was originally known as the Daxian Car and Automata Manufactory or DACAM for short. DACAM was created by the Daxian government in the waning years of the Qian dynasty to centralize control over the manufacturing of civilian motor vehicles during the Second Great War; by government mandate civilian cars were to be made of the cheapest materials possible to benefit the arms industry. DACAM was responsible for the design of the Standard People's Compact Vehicle, the first mass commercialized car on Daxian roads. Infamously known as the Cardboard Car, it nonetheless was built in the millions and was for the majority of Daxians, their first encounter with an affordable personal vehicle. Despite the high sales of cars, the company was deeply in the red due to its use by government officials as a means to engage in corruption and as a piggy bank. In 1972 the government of Min Bib Doda underwent a program of privatizations to divest the State from some of its unprofitable holdings; DACAM was one of the first on the government's chopping block. The company was bought by a group of private investors for a steeply slashed price and the company was renamed to Hongyan.

With private capital on hand, Hongyan's new owners repurposed Hongyan's factories and design boards away from the ultra cheap successors of the People's Bean and began producing cars for city use more in line with international comfort standards. The company's first success came in 1993 with the Sanmei four door car; variants and further iterations of which continue to be produced by Hongyan. Since the 1990's Hongyan has been in fierce competition over the Daxian market with fellow carmaker Yuanwei, a company with significant foreign and government support. In recent years Yuanwei has been notoriously outperforming Hongyan in the domestic Daxian market, gaining market share at its rivals expense. Hongyan has pursued a strategy of geographical diversification, strongly investing in emerging markets such as Huoxia and Ogonkai and crucially reaching a deal to supply the Zanoma Regional Administration in Varshan with all its civilian vehicles. In 2017 Diaoyu bought a 45% stake in Hongyan but the current management and board were mostly maintained intact.

History

As the Second Great War progressed, the Imperial government ramped up the national war effort by strongly centralizing production of all war materiel. To expedite the supply of materials for the production of combat vehicles, production of civilian vehicles was reduced to a minimum and the quality of materials available to do so became extremely limited. To oversee the operation of the sector at this barebones level, the Qian government created the Daxian Car and Automata Manufactory, also known as DACAM. The DACAM constituted itself into a state monopoly on the manufacture and commercialization of civilian vehicles, said vehicles were made of poor quality materials or substitutions and lacked in comfort levels seen in other countries. Yet its monopoly allowed it to remain relatively profitable for a time regardless of the low levels of customer satisfaction, there simply was no alternative in the market. The decline in the reputability and moral fiber of DACAM's government administrators took a heavy toll on the company's fortunes which began to founder in the 1970's and 1980's despite its total market dominion. Several scandals broke out that involved malicious accounting practices and inflated contracts with suppliers. DACAM's leadership was purged several times but as issues persisted and the company went deep in the red, President Min Bib Doda singled it out for the first tranche of privatizations. An independent investor and Doda confidante named Wei Hongyang approached the government to acquire the failing DACAM, his connections to the president guaranteed a small price tag of cents on the Lire for what was still a national company. Using several loans from state banks, Hongyan set about radically reorganizing the company and maximizing its yet powerful national monopoly to turn it into a modern carmaker.

Hongyan made a several attempts at introducing a family sedan that did not work out as intended. In 1993 Hongyan presented the Sanmei four door sedan with the marketing campaign slogan of "One in every home, one for every family". The Sanmei's superior creature comforts and affordable price saw it quickly gain traction with the public.

Divisions

After going over into private hands, Hongyan streamlined, merged and abolished many redundant departments and divisions. Hongyan Motors became the main division in charge of the company's assembly lines and factories. Hongyan Advanced Systems consolidated all of the various design bureaus and research facilities developing new technologies. Hongyan Worldwide is in charge of all Hongyan subsidiaries and dealerships outside of Daxia and regulates their interaction with the other two divisions.

  • Hongyan Motors - Operates the Hongyan Manufactoria producing the company's array of vehicles
  • Hongyan Advanced Systems - In charge of design and research of new materials and technologies
  • Hongyan Worldwide - Oversees the Hongyan subsidiaries around the world and ensures they follow all central standards of quality

Products

Marketing