December 23, 2024

alert! China's auto industry’s “autonomy” mania


After nearly 20 years of "lonely period", China's auto brands have suddenly made a concerted effort in the first half of this year.

Geely Automobile announced that it will spend more than 30 billion yuan to build two production bases; FAW announced its "2009 million brand cars of its own brand" initiative; SAIC set a target of investing 10 billion yuan in its own brand for the "11th Five-Year Plan"; there is a car industry Leading figures of independent brands remarked: “Chinese cars cannot survive without madness.” So what are the eager performances of car companies?

The Outline of the National Medium- and Long-Term Scientific and Technological Development Plan (2006-2020) released by the State Council on February 9 this year clearly stated that the proportion of China’s total research and development input in GDP will increase year by year, reaching 2% by 2010. It will reach 2.5% by 2020. Among them, the most direct approach is: "Give full play to the government's guiding role in investment, and increase the government's ability to invest in the allocation of science and technology resources throughout the country through various financial inputs such as direct financial input and tax incentives."

True gold and silver are in front of the eyes. What companies need to do is to come up with good projects. However, its own brand has its growth cycle. In the words of Li Dongsheng, Chairman and President of TCL Corporation, “The establishment of independent innovation capability requires long-term strategic planning and long-term sustained investment. It requires the inspection and cultivation of large-scale market sales, especially the test and promotion of international market competition, and cannot be used for immediate benefits. ."

Judging from the laws of the auto industry itself, taking Toyota and Hyundai as examples, they spent nearly 30 years to master the independent research and development process and optimize them. "The Far Eastern Economic Review" believes that Chinese car companies fully grasp product R&D skills and participate in the mature market competition cycle for 10 to 15 years. Even considering existing investments, shortening the cycle to three years or even one year is "too irritating."

The success of national independent projects can produce positive demonstration effects. However, if such projects are initially characterized as "can only be successful without failure," coupled with the temptation of various policy preferences, the idea of ​​companies "take shortcuts" is also easy to breed.

American scholars once pointed out that China’s economic development implies an attitude of quick success and instant benefit. This is reflected not only in market performance, such as the impetuosity of businesses and consumers, but also the more important question: How should policy be guided?

Part I: The national team is eager to play

When the automotive industry experienced unprecedented independent innovation climax, FAW and Dongfeng did not stand on the cusp of the storm.

Although the three major groups of the national team seemed awkward in action, their large bodies finally escalated under the golden arrow of the Central Government, and they rushed to the main battlefield of independent innovation.

There are two voices within FAW: One thinks that FAW has the ability to do its own brand, and can no longer be lonely; one thinks that FAW is not thick enough. Now only the technology of Golf, Crown and Mazda 6 is used to put on its own brand.

A FAW Group official said: "We have different views on FAW's own brand, but the boss is forced by the SASAC and the National Development and Reform Commission to come up with something. The funds for the revitalization of the Northeast are on the side, and FAW also wants to win."

Zhang Jiejie, general manager of FAW Car Co., acknowledged: “Our C301 did borrow some of the core technologies of the Ma 6 platform.” At FAW, we can see the characteristics of the crown on the Hongqi HQ3 and find traces of golf on the Hongqi small car.

However, unlike private enterprises, the national team such as FAW must pay more attention to external evaluation so as not to affect the image of the government.

Regarding the accusations that FAW's autonomy is simply plagiarism, Ge Shuwen, General Manager of FAW Car Sales Co., retorted: “Now we are divided into two camps in independent R&D. One is the original and innovative type, starting from scratch; the other is doing at the high end. Integrated innovation. We feel that there is no need to be autonomous and independent, and it is entirely possible to integrate resources."

Now, FAW hopes to get the country's financial support, in particular to stop funding for the brain drain. In addition, the C301 development fund is greater than the old Hongqi and needs further replenishment. A FAW cadre said: "Although we have difficulties, there are also some urgency in the way, but after all, still come up with the product, which is better than not much of the Dongfeng strong."

Nowadays, independent innovation is loud in the car industry, and the national team hopes to get development funds. But when it came to the Dongfeng speech, the time and conditions left for him did not seem to exist. Since the main assets have already been invested in the full-scale joint venture with Nissan, it seems to the outside world that the power of Dongfeng has been thrown into the joint ventures on the east coast. Besides electric vehicles, it does not belong to its own independent research and development force.

According to Dongfeng, the independent brands can't just look at passenger cars. Dongfeng has the largest contribution to the autonomy of commercial vehicles. Dong Feng’s deputy secretary of the Party Committee Fan Zhong said at a recent meeting: “The biggest achievement of the Chinese auto industry's 50-year history of development is the establishment of a complete industrial system for commercial vehicles and a competitive independent research and development system. , has nurtured a group of domestic brands with strong influence, represented by Dongfeng and Liberation."

However, experts from the National Development and Reform Commission are not satisfied with Dongfeng’s claim: “The contribution of passenger vehicles to the industry’s profits and the extent of technological advancement are unmatched by commercial vehicles. Dongfeng can only talk about past burdens that are heavier than others, but It does not mean that the responsibility for the independent brand of passenger cars has not been developed."

In fact, apart from losing objective reasons for historical opportunities, Dongfeng has its own problems. Although Dongfeng began to increase its sales revenue in China from last year, the capital chain still cannot support the cost of independent research and development. It is also unrealistic to rely on foreign capital like FAW, and Shen Longgang has lost one year. Other joint ventures are still in the early stages of development. Dongfeng Nissan passenger car has the highest profit contribution; followed by Dongfeng Honda, but the two joint ventures did not transfer technology to Dongfeng's own brands.

Dongfeng obviously does not want to be criticized by others in this matter. Fan Zhong said: "In this round of independent development, if the joint venture company is excluded from independent innovation, it is inconsistent with China's reform and opening up." The latest news from the relevant state ministries and commissions said that Dongfeng is making autonomy in Xiangfan. The brand's SUV looks like a Hummer. This is probably the most advanced dish in Dongfeng's own initiative.

Part II: Second-line substitutes

The second-tier self-owned brand auto companies now seem to imply a kind of "great leap forward" fanaticism.

In recent days, the market continued to hear about Chery Automobile. On one side is the new car V5 listed, while overall sales performance in one fell swoop into the top three; the other side is the A520 and Cowin and other full range of models to reduce prices, in May also had 20 days of production. In response, the reporter received an explanation from Chery's dealers that price cuts and production stoppages are all preparing for the new models to be launched. The price reduction is to clean up the inventory of the old cars. The stop production is to adjust the production line.

Chery’s sales target announced this year is 281,000 vehicles, but it actually targets 300,000 vehicles, which is almost double the sales volume of last year. As a result, the pressure on the dealer doubled. According to the reporter's understanding of the market, some dealers have made quite a few remarks about Chery’s hard-pressing efforts since the beginning of this year.

As impressive as the sales target is the speed with which Chery has pushed new cars this year. As early as the beginning of the year, Chery proposed that six new vehicles such as A5, V5, A18, S21, S22, and S12 be launched this year. This speed is not only a great test for Chery's supporting supply capacity, but also makes dealers a bit overwhelmed. Some dealers revealed that due to excessive pressure, Chery estimates it is difficult to complete the plan for the launch of six new cars this year, and the timing of the launch of some models such as the S21 may be postponed until next year.

Geely Automobile is rapidly expanding in another way. Recently, it is reported that Geely has signed an agreement with the Jinan City Government to invest in the construction of a car manufacturing base in Jinan Hi-tech Zone. Not long ago, Geely announced that it will spend 18.8 billion yuan to build an automobile industrial city with a production scale of 1 million vehicles in the Cixi Economic Development Zone on the banks of the Hangzhou Bay. In October and November last year, Geely just signed a contract with the Lanzhou and Xiangtan municipal governments to invest in the construction of automobile production bases in the two places.

Geely's rapid pace of expansion can not help but doubt people's true intentions. Geely used the auto project enclosure to spread its wilderness, resulting in Geely's top management being obliged to refute it. “Every inch of industrial land that Geely gets through the project will be used for automobile production and supporting projects.”

However, it is undeniable that Geely has benefited from the government’s policy orientation of encouraging the development of independent automobile brands and the extreme desire of local governments for automotive projects. For example, in the Jinan project, it was reported that Geely not only received support from the local government in terms of infrastructure construction and related cost reductions, but also hoped to use the local syndicated bank loan assistance.

It is worth noting that Chery, Geely, and Brilliance have reported further financing. Chery plans to launch a listing plan, Geely is preparing to issue convertible bonds in Singapore, and Brilliance is preparing to introduce new shareholders. Under the opportunity of the state to encourage the development of self-owned brands, these enterprises have also gained new impetus.

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