The Defect of Independent Brands Affects the Reform of the National Interests of the Automotive Industry
Any change is painful, but long pain is worse than short pain. This is an ironclad development rule.
“We have a joint venture with a multinational company for 20 years. Twenty years have passed. All the joint venture plants have not developed a Chinese brand, but more than 90% of the markets have been let go. The market is changing technology and what kind of technology is being exchanged. Practice is the sole criterion for testing truth. We should encourage the development of cars with independent brands."
On November 8th, Zhejiang Taizhou International Convention and Exhibition Center and China (Zhejiang) High-Level Forum on Independent Brands of Auto Brands evoked an excitement, and a call for China to develop its own brand vigorously pushed the forum atmosphere to the highest point.
"Initially, what was the purpose of the market-for-technology exchange? Our Chinese foreign side has given up the market, absorbed and exchanged technology through joint ventures, and finally developed advanced things that China has its own brand, but now there is a lot of pressure." Mr. Jin Luzhong, a researcher at the China Science and Technology Promotion and Development Research Center of the Ministry of Science and Technology and an old expert who has long paid attention to the automotive industry, frankly told the Cien reporter, “The situation must change because it is a change that affects the national interest.â€
"Market for Technology"
According to statistics, in 2004, China produced 5.04 million vehicles, the growth rate in the first four years of the 15th was 25%, and the growth value of the automobile industry had reached more than 250 billion yuan, of which private car ownership had reached 55%, per thousand. The number of people owned is 24, and the average international standard is 103. Our country has already entered the world's major producers of cars and consumer countries.
However, like the two sides of the coin, the direct entry of foreign companies on the one hand greatly promotes the Chinese automobile industry, which is technologically congenitally deficient, and on the other, it forces domestic manufacturers to a new predicament.
"In exchange for technology, only the right to use does not have ownership, and it does not include technology in product development. It is only manufacturing and processing. Therefore, in 20 years of joint venture, all joint ventures have not developed a Chinese brand, which is not surprising." China’s auto industry has made considerable progress, but Jin Luzhong expressed concern about this, “such as the certification and appraisal of enterprise product quality, the design and commissioning of factories, the selection of collaborative support, and the cost of product modification and design. The quantity and value of imported spare parts, the selection and value of imported equipment, etc., are all left by the foreign side."
More importantly, although the joint venture has taken violence, the bulk has been taken away by the foreign party.
“According to the report of the United States Gao Sheng Company, the German Volkswagen’s global production in 2003 was 5 million. In China, North and South China Volkswagen added up to 700,000 units, accounting for 14% of global production, but 80% of German Volkswagen’s profits went to China. President of GM once joked that China has got GDP, and we have Germany's profits. Although it is sharp, it is very profound.†Kim Hung-chung said.
The automotive industry is a pillar industry that can drive many related industries, steel electronics, etc., and it has become the locomotive driving the development of today's society. However, the joint venture automobile industry can hardly play this role.
“The most typical Beijing-Hyundai joint venture, the first step to throw away all the original ones of the Beijing auto factory. The original factory equipment is not reserved, and it is imported from South Korea. It is possible that some of our original equipment is backward, but it is also possible. No one can use it. One Sonata, the wheels that China has put on. The rest are imported from South Korea. How can our auto industry drive other industries? Today I asked Geely's chairman, Comrade Li Shufu, who is auspicious for you. What proportion of automotive spare parts is provided by our national enterprises? He said that 80% of our products are provided by national industries, and only 20% are imported. This is the difference. The first drawback of China’s auto industry is its own industry, but It is difficult for the joint venture automobile industry to function as an independent industry," said Jin Liaozhong.
The "Eleventh Five-Year"
According to Zhang Shulin, executive vice chairman and secretary-general of the China Association of Automobile Manufacturers, the development of the “Eleventh Five-Year Vehicle Development Plan†by the State will provide an opportunity to solve the problem of China’s own brand.
"The National Development and Reform Commission plans to finalize the "plan" by the end of this year or early next year, and will issue a principled plan for the entire industry." Zhang Shulin called this "three major issues: the ability to enhance independent research and development and independent innovation of enterprises." , vigorously develop its own brand; actively develop energy-saving and new energy products; speed up the adjustment of product structure and organizational structure.
Zhang Shulin stated that during the 11th Five-Year Plan period, the state finance and relevant state departments may have to spend relatively large sums of effort to support the development of automakers. It is not ruled out that the state must allocate some funds to these companies to support development. Large-scale automobile enterprise groups, through the development of the 11th five-year plan, must have independent product research and development capabilities and vehicle development capabilities with independent intellectual property rights. The focus is on platform development, including the vehicle's engine.
"A backbone enterprise, at the very least, must have the ability to match the body and power chassis." He said.
“Why is our car now proposing to develop autonomously? Should we develop our own brand? Not to say that we did not expect it before. In the past, the goal of industrial policy has always been to promote self-development and independent development. It is not now that we have started to raise the basics of our past. The conditions are so bad that we have to go through the process of introducing technology and digesting and absorbing."
In this regard, Jin Lvzhong also expressed the same view: Our automotive industry is the heading of the entire national economy, and began to achieve positive results. In the past, multinational companies occupied the auto industry and controlled joint ventures. Foreign brands occupied 90% of the car market. In the above, as of August of this year, self-owned brands have already accounted for over 21% of the national market. Innovations called for by China have initially achieved positive results. If Deng Xiaoping puts forward science and technology as primary productive forces as a milestone in the national development strategy, I think that the independent innovation proposed by the new Party Central Committee and the State Council should become the national strategy and the second milestone. It also clearly shows that it is time for the market-for-technical policy to be determined to change.
“But the time for reform should not be too long, otherwise the problem will become more and more serious. This should be learned from Geely and Chery.†Kim Hung-chung told reporters.
Zhejiang Business First
“We are poor, but there is ambition, we are very weak, but there is a strong spirit.†This is the most elegant dialogue of Li Shufu, chairman of Geely Group, in this forum. In fact, this is also the most authentic of China’s own-brand auto manufacturers. Survival portrayal.
“The automobile industry is an industry that our country strongly encourages to develop, and in particular, the development of independent brands has received great attention from the country’s people of insight. Under the encouragement of the policy of reform and opening up, Taizhou’s manufacturing industry dominated by the private economy was acquired. The rapid growth and development, especially the automotive industry has become Taizhou's largest leading industry, has attracted widespread attention from the automotive community at home and abroad, Taizhou has come out of a way relying on the development of independent brands." Taizhou Deputy City Chang Yuan Mao Rong said.
Now, Taizhou is already one of the most concentrated auto parts production bases in China. Yuhuan County, Taizhou is also known as the "Chinese auto parts manufacturing base." And with the continuous rise of private car companies such as Geely, Gio, Puma, and Zhongneng, and the continuous improvement of the auto parts industry chain, the auto industry is becoming the loudest brand in "Taizhou Manufacturing." By 2004, the city had five complete vehicle manufacturing companies, boasting nearly 3,000 automobile and motorcycle and parts production companies, and completed industrial output value of more than 31 billion yuan.
In fact, not only Taizhou, Zhejiang, but also the entire road to development based on independent brands, because "Zhejiang's parts can be assembled together to assemble half a car."
According to the rules of Zhejiang Province, by 2010, the Zhejiang automobile industry will form two to three large companies and large groups with sales revenues of more than 30 billion yuan, and about 10 “small giants†with specialized production advantages. Implement brand strategy and cultivate a group of well-known brands that have great influence in foreign markets.
However, Yuan Maorong also admitted that while striving to cultivate and develop its own brand cars, it also faces the dual pressure of international and domestic brand cars.
In response, Zhang Ruimin, director of the Taizhou Economic Committee, also told reporters that after more than 20 years of development, China's auto industry has become a major part of the world, and development and growth are becoming an attractive phenomenon. However, if this leading role is to develop and grow healthily, we must strive for objective laws and take the path of independent and assured development.
China Sankei Shimbun Reporter Li Hanqiao Zhejiang Taizhou Report
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