[Two Meetings Focus] Implementing the Spirit of "Planning" to Realize a Better and Faster Development of Parts Industry

On January 14 this year, the State Council executive meeting discussed and passed the "Auto Industry Adjustment and Revitalization Plan" (abbreviated as "Planning"). With the severe impact of the current world economic crisis and major changes in the international and domestic economic situation, the issuance of the "Plan" will undoubtedly have profound practical significance and far-reaching strategic significance for the rapid and sound development of the Chinese auto industry. As an automaker, I applauded the "planning" in a timely manner.

Objective understanding of the status quo and industrial adjustment

2008 is the 30th anniversary of China’s reform and opening up. In the past 30 years, China’s auto industry has achieved rapid development on the basis of its original weakness, and has achieved glorious achievements in the world. In the beginning of reform and opening up in 1978, China’s automobile production was less than 150,000 vehicles. By 2007, it had already achieved the “Eleventh Five-Year” development target of 8.5 million automobile industry in three years in advance, reaching 8.8 million vehicles, becoming second only to The world’s second largest automobile manufacturing country in the United States. If it is not the outbreak of the international financial crisis, the output of Chinese cars in 2008 will surely exceed 10 million.

As an important component of the Chinese automobile industry, the parts and components industry has achieved rapid development in the past 30 years. Whether it is a key component assembly industry such as an engine or a transmission, or a variety of market support and accessories industries, this is not the same as before, and it occupies a large proportion in the entire system of the Chinese automobile industry. Some automobile parts and components companies have become prominent enterprises that enjoy great reputation in the automotive industry in China and even in the world, and represent the advanced level of China's auto parts industry.

China has become a major automobile manufacturing country, but it is not yet a car manufacturing country. Whether in China or in the world automotive market, our products are not enough to compete with foreign brands. Take China's sedan market as an example. Really speaking, selling well, almost all of them are joint venture foreign brands. With mini cars, domestic brands are mostly between 30,000 and 40,000 yuan, while similar products of joint venture brands are expected to sell 10,000 yuan more; the same is a heavy-duty truck with a capacity of 15 tons, but domestic cars are just over 100,000 and over two dozen. Million, Europe and the United States will have millions of dollars. The price gap actually reflects the product's comprehensive gap in terms of technology, quality, performance and brand.

We should admit that compared with the world advanced level, there is still a clear gap in China's auto industry. The same is true of China's auto parts industry. Over the years, China has emerged a number of leading companies in the industry in terms of scale, technology, products, brands, etc., which play a leading role in the development of China's auto parts industry, and are increasingly receiving an international automotive market. s concern. However, on the whole, the gap is very clear. From the number alone, I am afraid that no country in the world can compare with China. According to statistics, in 2008 there were more than 10,000 spare parts enterprises in China, and the scale of the enterprises was generally too small. The problem of poor industry concentration has not been solved for many years. In Europe and the United States, there are not many companies that have annual sales of more than 10 billion U.S. dollars, but in China, there were only 6 companies that reached 1 billion U.S. dollars in 2008, and only 50 companies that can reach 50 million U.S. dollars. More than 10,000 automobile parts and components companies are scattered throughout the country and they are in their own hands. This is followed by backward technology, single products, and weak competitiveness. Among more than 10,000 companies, more than 70% are privately-owned enterprises, a considerable part of which are unbranded, have no leading products, and are backward in equipment technology and have no ability to innovate. In some places, more than 100,000 yuan and tens of thousands of yuan will be able to operate a factory. There are hundreds of parts and components companies in a county, and even hundreds of companies in a province are producing the same product, and are engaged in the production of large road goods and the external processing of low value-added products. The backward equipment and processes, low production efficiency, large waste of resources, and environmental pollution, and sometimes vicious competition, mutual price reduction, and intellectual property infringement, all hinder the development of the parts and components industry as a whole.

At the same time, overseas parts and components companies have begun to set foot in the Chinese market, invest in factories, acquire and control Chinese local companies, making the competition in the domestic parts and components market more complex and more severe.

"Planning" clearly proposes two major adjustments and developments in response to the current situation and problems. The "planning" mentioned that the "support for auto parts companies to expand their scale through mergers and acquisitions" has been widely concerned by parts and components companies as well as the industry.

Adjustment is to be market-oriented, based on the existing parts and components companies, through mergers and reorganization to form a group of large and super-large parts and components enterprise groups to enhance their ability to participate in the international market competitiveness and risk resistance. At the same time, we can leverage on the technological advantages of key enterprises and leading companies, drive technological advancement of the entire industry, upgrade the industry level, and eliminate backward production capacity through mergers and reorganizations. The purpose of the adjustment is to promote better and faster development and upgrade China's auto parts industry to a new level.

Adjustment is a tedious and complicated project. It is related to the fate and destiny of various auto parts companies and the interests of various localities and departments. It will inevitably encounter various resistances and problems. The status quo of the industry formed over a long period of time cannot be completely changed by overnight efforts. It is hoped that the relevant departments and industry organizations in the country can have unified plans and guide enterprises to actively and steadily upgrade the industrial structure and product structure.

Industrial Rejuvenation Depends on Independent Innovation

After the reform and opening up, China's auto industry has experienced the longest, largest and most extensive technology introduction and joint venture cooperation in history, whether it is a complete vehicle or an automotive component. It is still in progress today. Technology introduction and joint venture cooperation have played a very important role in promoting the rapid development of China's auto industry and parts and components industry.

However, such cooperation cannot fundamentally change the backwardness of Chinese enterprises. It is by no means an unselfish aid of “internationalism” for foreign companies to come to China. The products introduced by domestic enterprises are not always the most advanced in foreign countries; we have established joint ventures with foreign companies, and the core technology and management rights have been firmly controlled by foreign parties, and a large amount of money has gone abroad. The Chinese are only giving Foreign bosses work! At the same time, foreign capital has also intensified the penetration, holding, and acquisition of leading Chinese companies. This behavior is intensifying. The automobile industry and the entire equipment manufacturing industry are the foundation of national economic construction and security. If they are controlled by foreigners, who can we count on if the international situation shows signs of trouble? Even in day-to-day trade, foreign parties are always on the card. Our neck. A Chinese automobile factory purchased automatic transmissions from foreign manufacturers. Later, it was discovered that the price it sold to us was 10 times that of China.

We often say that there is no savior in the world and that everything depends on ourselves. If you want to be unrestrained, you must first realize the revitalization of the industry. What does the industry rely on to rely on independent innovation? The party and the country have always been very concerned about independent innovation. Leaders such as Hu Jintao and Wen Jiabao have made important directives on independent innovation work on many occasions and have clearly defined the dominant position of enterprises in independent innovation. Each of our parts and components companies and every entrepreneur should stand on the heights of the interests of the nation and the nation and shoulder the sacred historical responsibility. With the spirit of contending for the time being, we must constantly aim at the world advanced level and increase independent innovation. The efforts to speed up the pace of independent innovation, as soon as possible to achieve new breakthroughs in core technologies and key technologies, develop and develop more and more advanced new products, to make new contributions to the overall rejuvenation of China's auto industry.

Practice has proved that key enterprises in the industry are the main force of independent innovation. The state shall further give full play to the innovative advantages of key enterprises and give them key support and support on issues such as policies, funds, and projects. The relevant government departments shall also provide necessary guidance and guidance for the company's innovation activities, formulate unified plans, determine key directions, and give play to The role of industry organizations, take the road of innovation in the integration of production, study and research. At the same time, domestic companies should be encouraged to cooperate with foreign advanced companies and research institutions to create innovations, but the autonomy must be in our own hands.

While strengthening independent innovation, we must attach great importance to infringement of intellectual property rights and the production of counterfeit and fake sales, and crack down on it. In some places and in some markets, such illegal acts are still very rampant, causing major losses to property owners and consumers. Regrettably, this kind of wrongful act has actually received the tacit approval of some local authorities. A new product from the beginning of R & D to investment in the market, often requires a huge investment of human and financial resources, if it is not punished by unscrupulous vendors to steal, it will greatly hurt the enthusiasm of independent innovation of property rights companies.

The urgency and importance of technological progress

According to the "planning," the central government will allocate 10 billion yuan in special funds over the next three years to focus on supporting the technological innovation, technological innovation, and the development of new energy vehicles and parts. This shows that the state attaches great importance to the technological progress of parts and components companies.

Technological transformation is one of the important ways for enterprises to optimize and upgrade their product structure through the application of new technologies, new processes, new materials, and new equipment. Technological transformation is conducive to improving the technological level of enterprises, shortening the production cycle, and improving production efficiency.

In the past 30 years of reform and opening up, China’s auto parts and components industry has experienced rapid technological progress. However, on the whole, the gap is still not small, and there are still many problems. In addition to the scattered and chaotic aspects mentioned earlier, the backwardness of corporate technology, processes and equipment is still prevalent. In some enterprises, especially many private enterprises, it is very grave to satisfy the low-level manufacturing and low-level quality, and only pay attention to making money now, and they are unwilling to invest in technical reform. Some enterprise production equipment and manufacturing processes even stay in the sixties and seventies. The wholly backward parts and components industry obviously cannot support the growing demand for new technologies in the automotive industry. Tang Yuxiang, deputy to the National People's Congress and chairman of Yutong, once expressed "deep regret" that the new vehicle product could not be used in China. At the same time, backward technologies and backward products have also prevented companies from gaining a firm foothold in the increasingly fierce market competition. This world-wide financial crisis has caused many such companies to fall quickly.

In the course of many years of development, Fast has attached great importance to technological advances in the enterprise. Since 2000, it has invested more than 2 billion yuan and has continued to carry out large-scale technological transformation so that the production capacity of heavy-duty transmissions will be 8,000 units per annum. Jumped to 500,000 units. The company has introduced a large number of world-class manufacturing equipment, which not only ensures the high quality of the products and the high efficiency of production, but also fosters a domestic first-class technology R&D team, and ensures that new products that meet the market demand are successively launched for the future of the company. Development laid a new foundation.

In order to revive the auto industry, the technological progress of the parts and components industry becomes increasingly urgent and prominent. The country's emphasis is policy-oriented, and technological progress still depends on the company itself. Whether it is a leading company in the industry or a large number of supporting and accessories companies, we should understand the importance and urgency of technological progress from the strategic height of the entire automotive industry development and the long-term goals of the survival and development of enterprises, accelerate the pace of technological progress, and realize as soon as possible. The quality of the industry's technology has improved and leapfrogged.

How to use 10 billion yuan of funds is a concern for the entire automotive industry. In my opinion, first, the parts and components industry is the foundation of the automotive industry, and we should increase our inclination to this foundation. Second, we should give priority support to the key enterprises and advantageous enterprises in the industry in order to give full play to their backbone leadership and demonstration role. .

Product quality test corporate responsibility

The reason why some products of Chinese enterprises cannot compete with foreign advanced technology companies is an important issue that is quality. On a construction site in a country, a variety of brands of trucks are used there. The European and American cars still ran for 10 years, and our brand's car was eliminated and scrapped after 2 years of running.

Improving product quality is also a complex and comprehensive project that runs through all aspects of corporate management activities. Whether it is design, manufacturing, testing, testing, or procurement, supply, sales, and service, which part of the problem occurs, it will affect the quality of the product. I have always believed that the key to this is people, the attitude of people, and the responsibility of people.

I have visited factories in Germany and Japan many times, and their employees' rigorous attitude toward product quality makes me feel harsh or even redundant. However, it was precisely such harshness and redundancy that created the high quality and high level of their products. Comparing with many of our domestic enterprises, there is still another situation. I call it the "negative 28" phenomenon. That is, we often use only 20% of the energy and time to complete a project or a product's 80% of the workload and results, then we think we're done and we stop. Little do they know that the remaining 20% ​​of the work content is the key issue and core that really needs to be solved with 80% energy. There are many good projects and good products that have been terminated by this "negative 28" phenomenon. There is also a phenomenon that I call the "almost" phenomenon. The phrase often spoken in our language is called "nearly". It is also similar. It is similar, and the difference is a lot. Many of our companies have built first-rate factories, purchased first-rate equipment, and why they cannot make first-rate products? They are burdened with this kind of "almost" ideological and customary behavior.

In order to solve the "almost" problem, Fast has for many years insisted on carrying out "a little more serious" activity among all employees. I said to my employees that compared with foreign advanced companies, we have a lot worse and we don't have much difference. What is the difference? A little bit worse, it is the meticulous attitude and responsibility for work and quality. If our work can be done on the basis of the original ones, the quality problems that should not arise can be blocked and the quality of products improved. We must seize the fundamentals of people. As long as people's problems are solved, other problems will be solved.

Since the birth of the automobile industry, any major development will inevitably be reflected in and depend on the improvement of the parts and components industry. Without advanced parts and components, no advanced vehicle design concept can be realized. In a sense, the level of parts and components industry determines the overall level of development of the automotive industry. To revitalize the national automobile industry, we must first realize the revitalization of the parts and components industry.

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