Automobile Industry “New Deal”: No More Approval of Specific Investment Projects


National Development and Reform Commission Officials Reveal Automobile Industry “New Deal” [Editor's note] 2004 China Auto Parts Business Forum co-sponsored by China Federation of Automobile Manufacturers, Shenzhen Municipal Bureau of Trade and Industry and Shenzhen Enterprise Federation, May 28-29 in Shenzhen Wuzhou The hotel was held with representatives of auto experts and Chinese and foreign auto manufacturers from all over the country gathered to discuss the trends and trends in the restructuring of China’s auto industry and the strategic alliance between Chinese and foreign companies, multinational vehicles and parts and components, and auto parts manufacturers at home and abroad. The cooperation prospects, reviewing the changes in the global automakers' collaborative relationship, and the development opportunities of the Shenzhen auto parts industry have been extensively discussed and exchanged. Experts generally believe that the Chinese auto industry can only become stronger by strengthening the R&D and manufacturing capabilities of the parts and components industry through cooperation. Shenzhen should take full advantage of its industrial base and advantages in automotive electronics and actively take over the wave of global auto parts industry transfer. Experts said that China’s automobile industry has gone through a 50-year history and finally entered a period of rapid development. However, the gap between China's auto industry and foreign advanced auto industry is still relatively clear. Next year is the first year after China's accession to the WTO and the reduction of tariffs and the opening of import quotas. How to face the competition in the global auto market and raise the level of China's auto industry has become a very urgent and important issue. The development of auto parts in China now faces many issues that need to be considered and studied. As soon as possible, we must strengthen our capacity for independent development, have a truly independent brand, upgrade the manufacturing of spare parts, integrate into the international procurement system, establish a new type of sales network system, and participate in international competition. This is the only way for the healthy development of the auto industry. Some experts pointed out that Shenzhen's electronic information industry has developed rapidly, transportation and logistics have developed, and a number of strong auto parts manufacturers have emerged. Shenzhen should seize the good opportunities of the global automobile and parts industry transfer, use the advantages of being close to Guangzhou, and accelerate the development of the auto parts industry and the construction of the industrial base to promote the upgrading of the entire industrial economy. Here, we have selected some experts’ views and hoped to provide some reference for the employees of the Shenzhen parts industry. The new national automobile industry policy was introduced at the end of this month. At the 2004 China Auto Parts Business Forum, the Director of the Ministry of Industry and Transportation of the National Development and Reform Commission, Li Gang, revealed that the new policy includes the diversification of investment subjects. Private enterprises invest in the national treatment of the auto industry; support independent brand R&D; strengthen the establishment of self-produced automobile brand sales system and other contents. The birth of this new government is bound to have a profound impact on the automotive industry. Li Gang stated that the new policy has removed parts that are inconsistent with the WTO rules and the commitments made by China’s accession to the WTO, and has stipulated correspondingly the management of the entire vehicle situation. The key amendments will include changes in investment management methods, and investment entities will tend to diversify. "The state will encourage diversified investment. As long as the access standards are met, the government can examine the environmental protection and technological advancement of automobiles from the standpoint of public interests, and will no longer approve specific automotive investment projects." Industry access is equal to him. Said that the new policy will solve three major problems, first of all, industry access will be "same treatment", such as the original "non-discrimination" of private enterprises will be restored to its national treatment. "It's impossible to completely release, but it is impossible to control it as if it were dead. It will take a balance between opening and management." The approval system in the past 10 years will transition to a variety of management systems such as the examination and approval system, the approval system, and the filing system. Coexist. “In addition to vehicle projects and cross-product types of production, such as big passengers shifting to the production of cars, which require State Council approval, they should mainly promote the approval system and filing system.” Policy support for independent research and development Li Gang revealed that independent research and development and independent brand issues This is the place that most needs to be revised in 1994. “The policy has a high degree of intent in this respect. The policy needs to shift from the protection of the production field to the support of independent research and development.” Li Gang revealed that it is necessary to establish a self-produced automobile brand sales system, that is, to resolve how to maintain Chinese auto companies under the WTO rules. The issue of autonomy over existing marketing networks. “Having a long-established and relatively complete sales service system is the largest capital of Chinese auto companies. Therefore, multinational auto companies have comprehensively strengthened their control over the Chinese auto industry, and in particular, they have continuously strengthened their dominance over sales and service networks. Today, it is necessary for Chinese-funded enterprises to continue to maintain their autonomy in the sales and service network. The Chinese auto industry must not take the old roads of “there are no products and there are no brands” in Brazil's auto industry.” He introduced that the new policy has also returned to China. The national automobile industry is inclined to guide its own research and development in policy. He said that the new policy also includes the following: control of imports of auto parts after the opening of import quotas, especially restricting the production of SKD, which is now very popular; requiring parts and components distributors to obtain licenses from manufacturers; changing the sales network of domestic cars. The policy of selling domestic cars can only be restricted; excessive development of car manufacturers can be prevented; domestic enterprises must still occupy large shares in joint ventures in terms of equity ratio; it may be deleted that domestic auto enterprises with self-owned products must achieve domestic car sales in 2010. More than 50% of the total amount of relevant regulations. Related links Automotive parts procurement is facing challenges. "Now, auto parts procurement faces four major challenges: First, suppliers can develop products synchronously with vehicle companies, which can shorten the product development cycle and speed up the listing of new products; the second is Choosing a good supplier can increase the competitiveness of OEMs. Third, the operating costs in the operation of supply chains are large. 80% of products need to be purchased. This requires establishing a good supply chain, reducing costs, and achieving a win-win situation. Procurement Department stakeholders said at the Automotive Development Forum. “In the face of the current domestic automobile industry's integration into the challenges of economic globalization and the increasingly competitive market environment, we deeply feel that if we lack a good supply chain as a support, if our procurement and supply system cannot catch up with the pace of modernization as soon as possible, It is difficult to continue to develop in the fierce market competition, and examples of successful or unsuccessful companies at home and abroad fully prove that procurement, as the most important part of today’s business operations, plays a significant role in cost control and improving the competitiveness of product markets. The role of the procurement system and the concept of procurement management has been highly valued by domestic and foreign companies, and Dongfeng will therefore build a standardized, centrally competitive, standardized procurement system and procurement method that is in line with international standards, and will continue to upgrade Dongfeng Automobile. The overall level of the supply chain and procurement management level, to achieve a win-win situation in the market competition between Dongfeng Motor and the majority of suppliers.

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