Dong Yang: Independent brand cars need to be developed without exception

Dong Yang, executive deputy chairman of the China Association of Automobile Manufacturers, said that all automakers in China can try to help China's auto industry.

With the explosive growth of the Chinese auto market in 2009, China’s status as a “car giant” has been established. However, this is clearly not the ultimate goal of the development of the Chinese auto industry. For automakers in China, this may be China. The automotive industry is another starting point for the journey to becoming a “car powerhouse.”

However, it is not that simple to realize the transition from a "car big country" to a "car powerhouse." Therefore, during an exclusive interview with “Time Auto”, Dong Yang, executive vice president of the China Association of Automobile Manufacturers, said that all automakers in China should try their way to the development of the Chinese auto industry. His words contain more or less the meaning of "regardless of the white cat black cat, catching mice is a good cat".

Dong Yang told the journal that Geely’s acquisition of Volvo as an independent brand in China is not only a corporate business activity, but also related to the development of the Chinese automobile industry. He believes that the successful acquisition of Volvo by Chinese companies will enable China to have world-renowned companies and brands that are internationally competitive; it will be able to enter the international high-end car market at one stroke and gain a certain share; at the same time, it will be able to grasp some of the automotive core technologies and new technologies. For China to transform from a large automobile country to a powerful automobile country, it has a certain significance.

Dong Yang believes that from the perspective of the world's automobile development history, cross-border mergers and acquisitions have succeeded and failed. Not long ago, Tengzhong's acquisition of Hummer was an unsuccessful case. At present, Chinese auto companies have only just begun “going out” and have not had much successful experience. How to make the purchase of well-known international car brands develop healthily and for my own use is a severe test for Chinese auto companies including Geely. “At the moment, Geely has successfully acquired Volvo. It is only the first step in the Wanli Long March. How to maintain Volvo's high-end brand value and product quality, how to increase Volvo’s share in the Chinese automobile market, and how to adapt European culture’s Volvo to Chinese culture and how By acquiring Volvo and improving the technological level of the Chinese automotive industry, these arduous tasks need to go through arduous efforts and be implemented step by step."

"If you do well in the future, acquisitions will play a big role; if you don't do well in the future, the role of acquisitions will be small. But right now, we can't blindly exaggerate the role of acquisitions, but we can't be short-sighted. It is believed that the acquisition is the only way for the development of Chinese auto companies, and praises Geely’s bravery and criticizes the inaction of other companies. Chinese auto companies have their own development strategies, and each company has its own particularities.” Dong Yang We believe that we must proceed from a long-term perspective and take a reasonable view of the acquisition. It is still not easy to draw conclusions about the prospects for the acquisition of Volvo by Geely.

"The merger and reorganization of domestic car companies is also the same. I am convinced that no company will not make any effort after mergers, just look like. I think that their mergers and reorganizations are to integrate resources with sincerity. But mergers and reorganizations. The subsequent effect requires a certain amount of time and a process.” To this end, Dong Yang made an image metaphor. "The role of corporate mergers and reorganizations is not the same as the stock price, and it is impossible to move with the wind."

As for joint ventures and cooperation with foreign companies, Dong Yang also has his own views. "I support all things that are beneficial to the development of China's auto industry. I am also treating Jianghuai and Zhengdao in the case of cooperation on new energy vehicles." However, Dong Yang is still cautious about this matter, as the executive vice president of the Automobile Industry Association. President, he only believes in facts and does not believe rumors. The development of both parties also depends on the follow-up performance. "Of course, this incident does not rule out the possibility of speculation."

In Dong Yang's view, in 2010, as China's macroeconomic recovery turned better, the impact of the international financial crisis was gradually weakening. In the post-financial crisis period, China's auto industry will place a prominent position on accelerating the transformation of economic development methods and improving the quality and efficiency of economic growth. Transformation and upgrading will become an inevitable choice for industrial development. "At this stage, China's automobile industry needs to make progress and further progress. It should continue to work steadfastly and without impetuosity. It should also lay a good foundation for work. It should not lose the fruits of labor in the past or do basic work. Head to do more advanced things."

For the Chinese automobile industry, the Chinese automobile market showed an explosive growth in 2009 and became the world's largest new car market for the first time. At present, China's status as a "car big country" has been established, but this is not the ultimate goal of the development of China's auto industry, but it should be another new starting point for the journey to "car power."

However, the primary task for achieving the transformation from the "automobile power" to the "automobile powerhouse" is to accelerate the transformation and upgrading of the automotive industry. On the one hand, the state encourages and supports the transformation and upgrading of the automobile industry through macroeconomic regulation and policy support and other measures. On the other hand, under the guidance of national policies, enterprises actively implement the organizational structure, product structure, technical structure, and market structure. The transformation and upgrade strategy will comprehensively and effectively enhance the international competitiveness of the automobile industry.

Regarding national policies, Dong Yang believes that there are several aspects to consider. For the market's stimulus policy, it should be gradually faded out in the post-crisis era. He believes that some measures taken by the country currently have two functions. One is to stimulate the market; the other is to adjust the structure. “Such as encouraging the promotion of low-emission, energy-saving and emission-reduction vehicles. This situation is more favorable to Chinese brands. Although domestic models in these models are not dominant, this shows that in the traditional engine sector, China’s own brands There is still a gap between cars and foreign brands, and we still need to continue our efforts. Knowing shame and brave, the gap can further promote our own brand to continue our efforts."

In fact, from the perspective of government policies, the state should also give more guidance and support to energy-saving and emission reduction. Dong Yang told reporters that at present, the United States, the European Union, Japan and other major automobile production and consumption countries and regions have also given more tax tilt and support for energy-saving emission reduction, especially carbon reduction models. He believes that the current international system of taxation is changing. It is no longer a matter of simple collection of property taxes in the past. Therefore, half of European automobile taxes and fees will be linked to carbon emissions. The United States and Japan are also moving in this direction. However, guiding the society to develop in the direction of energy conservation and emission reduction has just begun in China. And these are beneficial to the self-owned brand, especially for those enterprises that produce small-displacement energy-saving emission reduction models. "So I think from this perspective, the state's support for independent brands will not be weakened."

In view of the high proportion of wages of foreign auto workers in labor costs and the low proportion of Chinese workers’ wages in labor costs, Dong Yang has his own views. "Although we will encounter certain setbacks on the road to development, it will also require us to go through obstacles and work hard." Dong Yang told reporters that at present, the wages of Chinese auto industry workers are low, and all localities should increase, but It should be improved in an orderly manner under the guidance of the relevant government departments. "I believe that our trade union organization will do this well." But from the other hand, low wages are also a major advantage of China. Dong Yang believes that at present, the car companies all over the world have set their sights on China for two reasons. “One is that China’s market is huge. Second, China’s labor force is cheap. Compared with China, some Western politicians now prefer India, but they think that India’s environment is too bad. Therefore, we must fully understand the Chinese and Western markets. Differences, make full use of this difference in the development of independent brand cars, rather than eliminate all the advantages."