Shiyan was once a city of pride. It was home to the Dongfeng Commercial Vehicle Base, known as "the first in the country and top three globally." Its per capita income and consumption levels were among the best in Hubei Province, and its overall urban strength ranked 22nd nationally. However, the city faced a tough period when the headquarters of Dongfeng moved out, leading to a sharp decline in GDP and triggering public concern over the so-called "destroyed urban capital" theory.
Despite these challenges, Shiyan is now experiencing a revival. In 2004, after the relocation of Dongfeng’s headquarters, the city suffered a major setback, with the output value of Dongfeng in Shiyan dropping by over 100 billion yuan. Companies like Dongfeng Guangtai and Dongjie Air Conditioning also followed suit, further deepening the crisis.
But things began to change. With the support of high-level officials, key enterprises such as Double Star and Wanxiang Group started investing in Shiyan, marking a turning point. Double Star's acquisition of Dongfeng Tire became a landmark event in China's state-owned enterprise reform. At the same time, Wanxiang Group partnered with Shiyan Tongda Group to develop high-tech automotive parts, setting the stage for a new era in the industry.
A Wenzhou Industrial Park focused on auto parts production emerged, with plans to accommodate 30 small and medium-sized enterprises and attract 1.2 billion yuan in investment. Industry leaders like Wang Hai and Lu Guanqiu saw great potential in Shiyan, citing its strategic location and strong industrial base. With a radius of 500 kilometers, Shiyan sits at the crossroads of Chongqing, Xi’an, and Wuhan, making it an ideal hub for distribution and manufacturing.
Recent developments show promising signs. Century Cosco is set to launch 1,000 new mixer truck production lines this year, while Fina Corporation aims to reach 2 billion yuan in output from vehicle nanomaterials. Dongfeng Zhongke is filling gaps in the premium passenger car market, and Dongfeng Junan is breaking new ground in minivan production. Shiyan has also seen a surge in high-tech enterprises, with 62 new industrial companies and 21 high-tech firms added last year.
Despite some setbacks, such as the failed attempt by Luoyang Tractor Factory to enter the market, Shiyan has taken bold steps, including land consolidation projects that expanded urban space by 20 square kilometers. The city is now attracting global attention, with its "car city" status becoming more solid than ever.
The phrase "out of the sky" refers to the sudden rise of the automobile industry in Shiyan, driven by the massive presence of Dongfeng. The local industry, often called "long underground," has grown significantly around Dongfeng, with over 100 supporting companies in areas like auto parts, assembly, and research. Despite the departure of Dongfeng’s headquarters, the city continues to thrive, focusing on developing low-speed trucks, mid-to-high-end trucks, and modified vehicles.
Shiyan’s leadership has adopted a strategy of "holding the sky off and making it long underground," emphasizing cooperation with Dongfeng and strengthening local industries. The city has successfully attracted major projects like the ZD30 engine and medium-sized passenger vehicle, and launched the Tianlong heavy-duty series. With a growing number of auto parts manufacturers and a robust supply chain, Shiyan is well-positioned to maintain its status as a leading automotive hub.
In 2007, the city reached a turning point, with automobile output values rising sharply. Local and city-wide growth rates hit 55% and 20%, respectively, signaling a bright future. As the city continues to invest in innovation and technology, Shiyan is not just rebuilding itself—it is forging a new path as a modern automobile city.
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