What should be done in the “post-joint venture era†of the Chinese auto industry? After more than 10 years of cooperation with French PSA, Nissan, Honda, and Kia Korea, Dongfeng Motor Company announced the implementation of the "grand autonomy" strategy in 2011. The five-year goal is to realize the annual sales of its own brand of 3 million vehicles; then, In the past two years, it has ushered in a new high tide of joint ventures and cooperation, and has successively handed over international giants such as Volvo and Renault.
Is the "great autonomy era"? Or "a new joint venture era"? Whether Dongfeng Motor Company is able to “get a way out†in the joint venture and autonomy confrontation is a test of the “post-joint venture era†and is also a common expectation for large-scale state-owned auto companies.
"New joint venture": technical content and right to speak are key words
In January this year, Dongfeng Motor Company established a strategic alliance with the Swedish well-known auto company Volvo Group. The two parties will jointly establish a new Dongfeng Commercial Vehicle Co., Ltd., Dongfeng Holdings 55% and Volvo 45%, not only the Chinese have mastered the capital structure. The initiative, and the joint venture will use the "Dongfeng" commercial vehicle brand.
Prior to this, Dongfeng Company had made a series of "combination punches" in joint ventures and cooperation: in September last year, it acquired 70% of Swedish T Engineering Technology Co., Ltd. and settled in Sweden as the first overseas R&D base; in October, it cooperated with the German Getlak Group. Signed a contract and invested 120 million euros to build a new factory with an annual output of 250,000 double-clutch gearboxes in Wuhan; in November, it will cooperate with German Smith Group and jointly invest 600 million yuan to establish the Dongfeng Smith semi-trailer plant with 50% each. Shares.
In addition, the joint venture project between Dongfeng and Renault of France has also passed environmental approval in May this year. Dongfeng has completed the restructuring of Sanjiang Renault and achieved the purpose of joint venture cooperation with Renault. It is expected that this year will be officially signed.
The reporter learned from the investigation that Dongfeng Motor Company had established Shenlong Automobile Co., Ltd. in a joint venture with the French Peugeot Citroën Group (PSA) since the early 1990s. After China joined the World Trade Organization in 2001, the pace of overseas cooperation has accelerated. In June 2003, Japan and Japan Nissan Co., Ltd. cooperated to establish Dongfeng Motor Co., Ltd., which is one of the largest and most extensive joint venture projects in China's auto industry so far. In July of the same year, it established Dongfeng Honda Automobile Co., Ltd. together with Japan's Honda Company.
However, Dongfeng Motor Co., which has developed rapidly in joint ventures and cooperation, is also facing the common problem of the Chinese auto industry: the right to speak is down. Although foreign major auto companies have established joint ventures in China, the cars produced and sold in China are almost all foreign brands, and the core technologies of design and production are still firmly in the hands of foreign companies. China’s independent development capability remains Weaker.
When a reporter asked about the new round of joint ventures and cooperation, and how different from the “old-time joint ventures†of the previous decade, Zhu Fushou, general manager of Dongfeng Motor Company, said that “technical content†and “speech right†became the key words. The company T, which Dongfeng bought in Sweden, is a world-class R&D team with electronic control. It embodies the cooperation policy based on me and enables Dongfeng to enter the international advanced level in the commercialization of electronic control of the entire vehicle and powertrain. A joint venture between Dongfeng and Glattc will also acquire the world's leading automatic transmission technology.
The “speech right†is also a core consideration. Dongfeng Corporation emphasized the dominant position of the Dongfeng brand in joint ventures and cooperation. After two years of negotiations with Volvo, Dongfeng has obtained a controlling stake in joint ventures and joint ventures, and used the Dongfeng trademark in the joint venture company. The joint venture company's chairman and general manager will be appointed by Dongfeng; Dongfeng and Glatt's joint development. Automatic transmission, the general manager of the joint venture company is also appointed by Dongfeng.
The early policy on the introduction of automobile brands in China is that the ratio of foreign capital to stocks cannot exceed 50%. Therefore, the average joint venture company chooses a 50:50 ratio. With the launch of a new round of “joint ventureâ€, whether or not it can take the initiative in the negotiations, Mastering the “right to speak†will be a full-scale new test for Chinese auto companies.
"Autonomous Joint Venture": Innovations on the Shoulders of Giants
On March 20, 2012, the Dongfeng Nissan “Qichen†brand's first new car, the Qichen D50, was off the assembly line at Dongfeng Nissan’s Zhengzhou production base. It took only one and a half years. This brand is mainly developed by China and has independent property rights. It has exceeded 100,000 units and has become one of the fastest-growing models in the joint venture's own brands.
Qi Chen is Dongfeng's first joint venture independent brand. Ren Yong, deputy general manager of Dongfeng Nissan Passenger Vehicles, told reporters that Dongfeng cooperated with Nissan and Japan had always dominated technology and brand. Initially, when Dongfeng company wanted to cooperate with Nissan, Japan was not interested. Later, Dongfeng's Aeolus brand awareness was raised. Nissan in turn asked for equity and a full-fledged joint venture. Otherwise, its parts would not be used by us, and it was technically controlled by others. Dongfeng had only compromised.
From the earliest introduction of technology and assembly of automobiles to the rapid absorption, digestion, and learning during the joint venture process, Dongfeng Nissan has the ability to create its own brand. Ren Yong said that "joint autonomy" is an innovation that stands on the shoulders of giants.
Looking back at the history of joint ventures and cooperation in China's auto companies, it can be seen that the selection of joint ventures is a historical necessity, and the joint venture model has also helped the development of the domestic automotive industry, but the joint venture has grown the Chinese auto industry, but it has not become stronger. Chinese auto industry. Many experts suggested that Chinese auto companies should introduce new technologies through joint ventures and digest and absorb them to pave the way for innovation.
In 2011, Dongfeng Motor Corporation proposed the "grand autonomy" strategy, which will use the self-owned brand of the joint venture company and the independent brand that holds the Dongfeng trademark as the content of promoting independent business. At present, Dongfeng Nissan, Dongfeng Honda, and Dongfeng Honda under Dongfeng have all arranged their own brand development plans. According to reports, Dongfeng will also produce Aeolus in the Shenlong factory, which will be the first time that domestic auto companies will produce their own brands in joint ventures.
Ren Yong told reporters that the Qichen brand has not only improved China’s right to speak but also played a major role in the overall development of the automobile industry chain. Many domestic component manufacturers have accumulated more growth and development through the development of the Qi Chen brand. The experience of these suppliers has become more and more stable, and they have entered Nissan's global supplier system. For example, Changzhou Xingyu Lights Co., Ltd., after cooperating with Qichen, has also become a supplier of headlights for NISSAN brand.
In fact, in recent years, the joint venture has been surging, and the debate over whether the joint venture has been independent or whether it is "new bottled old wine" is fierce. In this regard, Ren Yong said that Qichen’s popularity stems from meeting the objective needs of the market, and hopes that the general public can view joint venture autonomy with a more tolerant attitude and define their own brands in a broad sense rather than narrowly defined.
"Great Autonomy": The "Last Golden Cycle" That Cannot Be Missed
In December 2011, Dongfeng Motor Corporation released a “grand autonomy†plan called the “Dry†D300. The goal is to achieve an overall sales volume of 3 million independent brands by 2016, among which 1 million Dongfeng brand commercial vehicles and Dongfeng brand. There are 1 million passenger cars and 1 million Other independent brands (including commercial vehicles and passenger cars).
According to Lei Ping, Minister of Operation and Management of Dongfeng Motor Company, the "autonomous" passenger vehicle business will be launched simultaneously on three fronts: First, the Dongfeng brand's autonomous passenger vehicle business, and second, the joint venture's own brand passenger vehicle business. The third is the Greater China brand passenger vehicle business with Dongfeng Yulon as the main body. On December 14, 2010, Dongfeng Yulon Motor Co., Ltd. was established. It is the first approved new-build automobile project after both sides of the Taiwan Straits signed ECFA.
At present, Dongfeng Motor Company has made remarkable achievements in independent innovation. Dongfeng Warrior is the first third-generation high-mobility off-road vehicle of our army and won the first prize of the 2008 National Science and Technology Progress Award. In the field of new energy vehicles, Dongfeng Motor Co., Ltd. has developed the country's first pure electric car and has more than 130 patents. The key technology for energy-saving and emission reduction in hybrid city buses also won the second prize of the National Science and Technology Progress Award.
On March 28, 2012, Dongfeng Fengshen A60, Dongfeng's own brand new mid-to-advanced strategic model, was launched. Nearly 1,500 designers participated in the development, including the overseas experts introduced by the “Thousand Talents Program†and numerous vehicle designs, noise control, and bodywork. In the field of development, the elites at home and abroad have assembled the world's top suppliers such as the first-class CVT manufacturer Japan JATCO and the top auto parts supplier Germany BOSCH.
China's auto industry is currently in a very fiercely competitive market environment. In particular, the pattern in which foreign brands compete with their own brands on the same stage and compete with each other will not change in the short term. According to Zhu Fushou, in the next decade, China’s development is still in a period of strategic opportunities. For the automotive industry, it can also be regarded as the “last golden cycle†and is a crucial period for the development and expansion of independent brands and entering the international market. He believes that independent brands will be eliminated in this cycle if they do not take appropriate measures.
Although Dongfeng’s “autonomy†program has been fully launched, people are looking forward to the higher social responsibility of state-owned auto companies in the development of the national auto industry. For example, new energy vehicles are considered to be the commanding heights for next-step auto companies. Although Dongfeng Motor Company started early and won a lot of awards, actual technology and product maturity have still not caught up with the pace of international auto giants. Therefore, experts believe that in the period of new strategic opportunities, state-owned auto companies should look to the long-term perspective and devote more efforts to the research, development, and application of self-owned brands, especially new energy vehicles, instead of focusing on short-term benefits. In the expansion of mature product capacity.
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