Autonomous CVT Project Difficulties for China's Automobile Industry
A few days ago, 12 Chinese OEMs invested in the establishment of China DF Investment Co., Ltd. (hereinafter referred to as “ZFâ€) and established a Borg Warner Double Clutch Transmission System Co., Ltd. with BorgWarner. According to report, the mass production of continuously variable transmissions (CVTs) with high-tech auto technologies with independent intellectual property rights in China and the world has been repeatedly stricken for several years. That was the original Luoyang Sanming in the “eight years of grinding a swordâ€, and now Luoyang United Transmission Co., Ltd. (hereinafter referred to as "Luoyang United").
As early as December 2005, at the time when CVT industrialization was struggling, its founder Liu Yajun wrote to Premier Wen Jiabao, reflecting the difficulties that companies faced in the process of independent innovation and the rejuvenation of the national automobile industry. In April 2006, the project was approved by the National Development and Reform Commission and received 4.5 million yuan of state-directed support funds. However, in the end, most of the investment and bank loans promised by the company were frustrated.
"Because of the need to introduce foreign production lines, the amount of investment is huge, and the return period of funds is long." Zhou Yunfeng lamented. "Actually, we received a lot of orders. After the mass production was announced, there was still a blockage in funding." According to him , The procurement of equipment from abroad belongs to special equipment, and special tools such as knives, forks, etc., need to be redesigned and processed abroad. This is a major project.
"In a joint venture with BorgWarner, Chinese companies will take on more of the assembly business. Through this cooperation, it is necessary to reduce product costs. However, it is impossible to acquire core technologies." Zhou Yunfeng said to the large-scale joint venture incident. "Developing the automobile industry must have its own core components, and mass production of self-owned brand transmissions is also conducive to driving down the high selling prices of foreign manufacturers. The number of tens of millions of cars in China is about to be realized, but the profit target is due to the price of imported transmissions. Expensive is far from being achieved."
[Analysis Review]
To use an image metaphor, if the engine is the heart of the car, then the transmission is the major artery of the car. No matter how good the engine performance is, there is no good transmission matching, and the car's power system cannot run well. By the same token, the Chinese automobile manufacturing industry, which has been immersed in the development of sub-health for a long time due to the "lack of heart," will need to support the innovation and manufacture of auto parts supply systems with strong strengths if it wants to move from a big automobile manufacturing country to an automobile power.
1. The lack of a sound technological innovation transformation system restricts the development of Chinese auto parts and components
Due to historical reasons, Chinese auto companies, especially the spare parts industry, have always faced many difficulties such as the scattered distribution of scientific and technological talents, insufficient funds for scientific research, weak conversion of new product markets, and weak protection of intellectual property rights. The combination of these factors led to the lack of a complete system for the transformation of technological innovation for the continued development of the entire industry, which in turn led to small achievements in the domestic CV research and development field, such as Luoyang United, but due to lack of funds, the product could not be listed for a long time. In stark contrast to this, 12 local OEMs have been organized to jointly produce clutches with BorgWarner. Some people think that the BorgWarner Joint Venture Project is a disguised procurement transmission platform jointly established by China. The 12 local host plants have become direct users of BorgWarner and cannot help Chinese companies develop transmission technology. On the other hand, the potential market space for local R&D companies has been squeezed.
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2. Establishing and perfecting the supporting relationship between Chinese domestic spare parts and the main engine plant is a top priority
Looking back at the investment history of multinational corporations such as Toyota, Honda and Hyundai in China, one of their common features is that “the troops and horses do not move, and food and grass go firstâ€. That is, before the main engine plant is in production, its own core parts manufacturers have completed the layout in China. When the OEMs enter China, they can achieve a so-called "high localization rate." Many people believe that the development of China's parts and components companies must be driven by strong self-owned OEMs. However, at present, it appears that the OEMs themselves are facing increasing pressure from the competitive pressure to adopt multinational companies' products and technologies. This is not a good thing for the up-and-coming domestic parts and components companies (but there are also opinions that a joint venture between BorgWarner and 12 OEMs can help drive the technology and development of the second and third-tier supporting companies under the OEM's. There is a gradual process of infiltration.)
As the industry chain is getting longer and longer, and related companies in the chain are demanding more and more close cooperation, Chinese domestic auto companies want to make a difference in the world. Without a strong zero-sum supporting system, local companies can hardly succeed. Today, foreign capitals are fully in control of CVT, AMT, DCT and other technologies in China. This is caused by the lack of local leading companies in related fields and the incompleteness of China's supporting systems.
3. The CVT dystocia incident reflects the basic industry of China's materials and machinery design and processing
“Because of the need to introduce foreign production lines, the amount of investment is huge...†Zhou Yunfeng lamented that equipment purchased from abroad belongs to special equipment, and special tools such as knives and forks are required to be redesigned and processed abroad. This is a major project. This also reflects the paradox that the domestic auto industry faces in high-end manufacturing—that is, China is still in a weak position in basic industries such as materials and special equipment processing, design and production. This has become a fatal factor that restricts the in-depth development of the Chinese auto parts industry. weakness. The auto industry in Germany has strong confidence. One of the important reasons is that the country has global leading strength in numerical control machine tools, precision machining and manufacturing, and the Chinese spare parts industry wants to be strong and vigorously develop its advanced basic materials and machinery and equipment design. Manufacturing capacity has become a priority.
China is already a big country for automobile production, but it is still not a strong country for automobile production. All this must ultimately be resolved by the Chinese themselves.
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