The boom in the auto market cannot cover the weakness of the Chinese auto industry. Joint ventures are blooming all over the streets. The streets are full of specious "made in China" cars, and the lifeline of our auto industry is still in the hands of foreign auto giants. This can not be said to be helpless.
The confusion of domestic brands
"Spark's listing date has been set at the beginning of December. It is not clear which day it is," said a person from SAIC-GM-Wuling Motors. At the recently held Guangxi Investment and Trade Fair, the difficult-to-produce Chevrolet Spark finally released its products. For the listing of Spark, people will inevitably compare it with Chery QQ, but Wuling people do not want to talk about this, "We will not do any comparison between Spark and Chery QQ."
The similar appearance and configuration of Chery QQ and Chevrolet Spark have caused widespread concern in the industry. For this reason, Shanghai General Motors Corp. has said that it will investigate Chery Automobile Co.'s responsibility for its intellectual property infringement. Although GM and Chery didn't have a court of law, the rumors that Delphi, who had made a lot of noises in recent days, and a group of European and American spare parts manufacturers stopped supplying them to Chery, were taken as a footnote to the matter. Although both Delphi Automotive Systems China Investment Co., Ltd. and Chery have denied it, this does not rule out doubts about the matter. Delphi's predecessor was General Motors' parts and components group, and it was not separated from General Motors until the 1980s. By the time Delphi was listed on the New York Stock Exchange in 1999, 80% of its turnover had come from General Motors. This proportion has declined in recent years, but it is still as high as 65%. For Delphi, General Motors is a food and clothing parent. Compared with Chery and GM, everyone knows what Delphi will do.
Chery has encountered more trouble than this. As early as two years ago, the German public took a lawsuit against Chery on grounds of infringement. This matter was eventually solved by the mediation of SAIC. Recently, Chery’s engine for the Cowin’s sedan was again in friction with BMW. It is said that Japanese and South Korean manufacturers are also investigating whether Chery's future models are suspected of infringement.
For domestic brand Geely, which is quite a lot of news, Japan’s Toyota is more competitive. In August of this year, Toyota sued Geely for trademark infringement. Toyota said that Geely's US-Japan automobile used a logo similar to the Toyota Graphic Trademark, which constitutes a trademark infringement, and claims a compensation of 14.07 million yuan to Geely. What Toyota believes to be infringing with the U.S. and Japan logos is its engine. Toyota said that it has never provided an engine to Geely. The exact model of the engine produced by Tianjin Toyota Motor Co., Ltd. used by the US and Japan Automobiles is "8A". There is no such thing as "Toyota 8A" or "TOY-OTA8A" declared by Geely. The engines, "Toyota" and "TOY? OTA" are registered trademarks of Toyota. Geely used the above two registered trademarks without authorization, in violation of the "Trademark Law."
Chery and Geely are troublesome and Beverly is marginalized. After the joint venture between Dongfeng and the logo Citroen in 2002, the well-known Fukang brand in the country gradually faded from people's attention, replacing it with the foreign brand logo and Citroen. Corresponding to this is a message, Vizi to replace the existing car mark, use Toyota's bull flag.
The value chain held in the hands of others
Behind the confusion of domestic auto brands is the paralysis of our entire automotive value chain. From research and development to procurement, to vehicle assembly, and even sales and after-sales service, the initiative is in the hands of people, and it is easier said than done to establish their own brand. People may still remember that when the domestic BMW was unveiled shortly before, the German's high-spirited attitude contrasted sharply with Brilliance's dominating status. Although Brilliance holds more than 40% of the equity, the so-called domestic BMW, the real domestic only basically only four tires only, technology, brands, including parts are brought over by BMW, Brilliance, of course, only qualified to be a foil Now.
From the aspect of R&D, most domestic car companies can only be regarded as the assembling factories of the world's giants in China. The right to use models and technologies is controlled by the foreign party. Whether or not a new car can be launched, what type of car it will launch, and when it will be pushed depend on the will of the foreign party. Moreover, each time the vehicle model is upgraded, it must rely on foreign technology. The so-called independent research and development is mostly based on the provision of mature models on the basis of the foreign side, and it will be adjusted and modified in accordance with the characteristics of the Chinese market.
The procurement of parts and components is a key issue for the Sino-foreign joint ventures to confront each other. For example, the public once tried to allow Shanghai Volkswagen and FAW-Volkswagen to reduce the number of localized parts purchases on the grounds of excessive costs. The Chinese people of Shanghai Volkswagen and FAW-Volkswagen strongly oppose this. Some Chinese sources have stated that the so-called global procurement of the public is just an excuse to earn more profits. The excess profits that the public gets from the purchased parts and components are the fundamental reason why they strongly advocate global procurement. It is reported that the profits from the sale of imported parts and components to China account for more than 30% of the annual profits of Volkswagen (China) Investment Co., Ltd.
“We are not narrowly opposed to global procurement of parts and components. If we do well, we can also sell globally. The problem is that this supply network is woven by people from their own interests, and our parts and components cannot develop, and we can only enter people. The net.†People from the Guangzhou Automobile Industry Association commented. He told reporters that at present the main components that can be fully domesticated are plastic parts, frame frames and other low-value components. We can't do any key components such as control systems, electronic systems, and the EFI system for engines. An analysis of 60 auto parts products shows that 33 kinds of parts that do well in China only account for 20% of the vehicle manufacturing cost, while 5 kinds of high-tech parts that are currently starting or even blank in China are To account for 15% of the vehicle manufacturing cost. What's more, some manufacturers use KD (imported spare parts) to produce cars in order to seize the market. Data from the Customs show that in 2002, China imported about 98,000 pieces of car assembly cars, an increase of 40.87%; in 2003 only from January to July has reached about 96,000, an increase of 85.21%.
The problem does not stop there. According to reports, during the assembly of the vehicle, the purchase, installation, commissioning and maintenance of key production equipment and the training of the production line workers are all opportunities for the foreign party to make money. The same is true in organizing sales and establishing maintenance service networks. "People eat from the fish head to the fish tail and give you a few soups. Why can't the car price always come? This is also the reason on the one hand." Xu Xiang of China Southern Securities told reporters.
Where is the problem? High profits make people only earn money
"We can all succeed in carrying people's spacecraft. I don't believe that several models can't be built. I can't say that technology is not right. I also admit that technology is not enough, but our automobile industry has been engaged for 50 years, and joint ventures have been doing so for so long. He still will not make cars, it is not a question of whether or not, but rather want to question.†An analyst who did not want to be named told reporters. In his view, the key to the problem lies in the current high level of domestic auto industry profit margins and huge market space, many auto companies are excited, only to rush to grab the land, earn cash, but do not want to do big investment, high risk And wait for a long time to be effective in independent production and development work. "Directly taking people's products for production, small investment, low risk, and economic benefits come quickly. Even if people eat fish themselves, then there are still a lot of oil in the soup. Why should they make themselves so tired? â€
There are not a few people who hold this opinion. Former FAW Group Chairman and General Manager Yan Zhaojie once said that although this issue is a phased issue in the development of China’s auto industry, it would be dangerous if it is not taken care of. In particular, some large companies can receive state support in terms of project approval and funding. At the same time, because the company's reputation is relatively large, it is relatively easy to find well-known foreign companies for cooperation, and once they have tasted the sweetness, they are unwilling to go the hard way. Ignoring self-development, or even knowing that we should engage in development, we do not want to do it because we are doing too hard. According to statistics, the current domestic auto companies spend less than US$800 million each year on technology development, which is less than 1% of the total annual sales volume. This ratio of internationally renowned automobile manufacturers is more than 3%. In terms of absolute value, GM, Ford, Volkswagen and other giants spend more on technology development each year than Shanghai Volkswagen's annual sales.
Large companies have embarked on a joint venture, but it is the company that Chery and Geely were forced to develop independently. In 2002, Chery’s car sales exceeded 50,000 units. With a single product, it succeeded in being among the top eight in the domestic car industry. Since this year, Chery and Geely have both cut prices and launched price cuts and turned the market. "People and Chery and Geely have shown that Chery and Geely have become potential competitors in their minds. If Chery and Geely don't have anything, they will not bother to bother." Someone reminded reporters.
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