"According to the current supply of Bosch, Delphi, and other companies' EFI systems to the Chinese market, after the full implementation of State 3 this year, it will most likely be unable to meet the needs of domestic internal combustion engine companies." A company executive told reporters recently.
It is reported that in November 2007, Dongfeng Corporation and Bosch Diesel Systems Co., Ltd. signed a long-term strategic cooperation framework agreement. Weichai also signed a similar strategic agreement with Bosch. This information will undoubtedly add a bit of nervousness to the original internal combustion engine industry that was concerned about the shortage of EFI systems.
For engine companies that have not signed a strategic agreement, will the supply of EFI systems meet demand in 2008? Will these multinational component companies, which hold core technologies, take this situation to further strengthen their monopoly position?
In the interview, the reporter learned that there are not a few companies that hold such concerns.
Distorted price increase
Due to the monopoly of multinational parts companies and the formation of the seller's market for EFI systems, there is little room for engine companies to negotiate with multinational parts companies.
An industry veteran recalls that in 2001, at the time, China could not independently produce mechanical pumps. Therefore, a mechanical pump sold by Bosch to domestic engine companies required a price of 15,000 yuan. However, when domestic companies launched and mass produced corresponding products, their prices eventually dropped to 2,000 yuan. It is evident that foreign companies earn high profits.
EFI systems are now likely to reproduce the situation of mechanical pumps that year. The person in charge of Guangxi Yuchai Machinery Co., Ltd. reluctantly stated that foreign-funded enterprises had sold EFI systems to Chinese companies at a relatively high price, but because they were in a monopoly position, domestic enterprises could only allow them to “smash†them.
“At present, we do not worry that multinational companies will take the opportunity to raise prices after the full implementation of State 3.†The responsible person stated that Yuchai has signed a contract with the supplier, so this phenomenon cannot happen. “But what we are worried about is that after the country implements State 3, multinational corporations will use the EFI system to meet demand, and at normal prices, the demand of internal combustion engine companies cannot be guaranteed. However, if companies are willing to increase prices, they can mention the goods.â€
The responsible person of Deutz FAW (Dalian) Diesel Engine Co., Ltd. has the same concern. He told reporters that since these multinational companies are internationally renowned companies, it is not possible to take the opportunity to raise prices, and companies such as Bosch, Delphi, and Denso have a competitive relationship, and it is impossible for a single company to raise prices unilaterally. Therefore, it is more likely that an increase in the price of goods can be mentioned.
Take precautions
Concerned, various engine companies have adopted different coping strategies.
The reporter learned from Yuchai Co., Ltd. that Yuchai currently has 30,000 sets of Bosch's high pressure common rail fuel injection system in order to meet its own needs.
"We have been using the high-voltage common rail system of Japan Denso," said Chen Jianping, deputy manager of the marketing department of China National Heavy Duty Truck Group Power System (Hangzhou) Marketing Center. If the supply of high pressure common rail system is not enough, how will it meet the established target of heavy truck in 2008? Ding Guichun, general manager of China National Heavy Duty Truck Group Power System (Hangzhou) Marketing Center, told reporters: “We do not worry about this issue at all. From country 2, we have mastered all technologies including cylinders, oil pumps, and nozzles. We have accumulated our own R&D strength.At present, our high-voltage common rail system is only temporarily adopted because we already have our own national 3 technology route. Once the time is ripe, we can't rule out using our own core fuel developed by us. Injection system."
It is understood that CNHTC Chongqing Fuel Injection System Co., Ltd. has mastered core technologies including single pump and pump nozzles. “And there are already some engine companies that are using them. Therefore, we are not afraid of foreign capital monopolies, and they cannot monopolize them. We insist on independent innovation from the beginning to the end, in order not to be controlled by others in key technologies,†said Ding Guichun.
Weichai's approach is also a response. Ma Shuliang, deputy general manager of Weichai Power Truck Power Sales Co., Ltd., said that as a long-term cooperative partner of Weichai, Bosch has started cooperation with the National 2 engine, and Weichai has signed a strategic cooperation agreement with Bosch very early on. It is understood that currently, Bosch has promised to supply Weichai with about 100,000 high-pressure common rail systems. "Bosch only selected two domestic companies for in-depth cooperation in the country's 3 projects. Among the heavy-duty diesel engine companies, we are the only one." Therefore, Weichai is not worried about the country's hot sales in 2008 and its core components will be controlled.
According to the person in charge of Deutz FAW, the domestic high-pressure common rail system has been tested on Dachai's machines. In 2008, the prototype of the domestic high-pressure common rail system will be mass-produced, and the test status is relatively stable. "Even in 2 to 3 years, the high-pressure common rail system is still dominated by foreign products, but the constant maturity and stability of the domestic EFI system technology will exert greater pressure on these multinational companies and force them to lower prices."
Service
During the interview, when a reporter asked some companies why they had not signed a strategic cooperation agreement with Bosch, Delphi, and Denso Corporation on the EFI system, the response of an engine company executive surprised the reporter: After the sale of the EFI system With regard to service issues, we have not been able to negotiate with a multinational corporation. How can we sign a cooperation agreement?
The reporter learned that upgrading from the original mechanical oil pump to the electronic fuel injection system is a huge challenge for the after-sales service of the engine. Not only does the engine company need to invest heavily, but more importantly, the cooperation and collaboration of multinational corporations. After the full switch to the national 3 engine, after-sales service will become a new source of monopoly profits for multinational companies.
A person in charge of a domestic diesel engine production company also complained to reporters that in the process of cooperation with multinational corporations, multinational corporations will additionally charge various nominal fees while selling products, such as requesting product development fees, production license fees, and curing. Fees, product requirements must be sent to him for matching, but also charge a fee. What is even more important is that there are also many restrictions on after-sales service. For example, it is necessary to purchase a fault diagnosis instrument from it, the price of accessories is too high, and the user cannot afford it. And if there is a problem after the sale, most of the responsibility will be pushed to domestic companies. “Therefore, although Dongfeng, Weichai and Bosch have signed strategic cooperation agreements, there are still many problems. Maybe the agreements they sign only involve the supply of high-pressure common rail systems, but after-sales service and some service costs must continue to be negotiated. ."
Ma Shuliang, deputy general manager of Weichai Power Truck Power Sales Co., verified the statement from the side. He said that Weichai does not worry about supply issues, and the biggest concern is that the services of the ECU3's electronic fuel supply system are constrained.
It is understood that because the electronically controlled fueling system technology has not been fully mastered in the country, the maintenance of its core components has been controlled by foreign companies. Once the user's national 3 engine fails, it may be necessary to pay more inspection costs, and the maintenance cost is inevitable. It will be much more expensive than the State 2 engine; at the same time, the replacement parts will remain at a high price level; the cost of inspection and repair tools will increase significantly compared with the State 2 engine. This will become another monopoly of foreign-funded parts and components companies.
Against profiteering
At present, the products of EFI systems, Chinese-funded enterprises and joint ventures are not yet mature, which has led to the formation of a monopoly by foreign investment in this area. What impact will this have on the safety of the internal combustion engine industry?
Dong Yang, Secretary General of the China Association of Automobile Manufacturers, stated that the actual effect of the implementation of the National 3 Standard was that the fuel supply system of the diesel engine was switched from the original oil pump nozzle industry to the high pressure common rail system or single pump and some other systems. Caused some problems in the automotive industry." The main reason is to shift to the supply of foreign-funded enterprises. This actually leads to another problem, namely the issue of industrial safety. There are many reasons for this problem, but the lack of preparation for the auto industry is the main reason. Therefore, in the future, the auto industry should pay attention to independent innovation work and do a good job in vehicle research and development, key component development, and so on. Of course, we also hope that all government departments will strengthen coordination and create conditions for the development of the automotive industry.
From another point of view, after the product upgrade, it is normal for this group of suppliers to switch to another group of suppliers if they do not consider nationality. “Our objection is to take this opportunity to raise prices, profiteering and even intentionally not supplying goods that are unfavorable to the development of the industry. If foreign companies earn normal profits at normal prices, the association does not disagree.â€
“If you are opposed to the reasons why the foreign party becomes the protagonist in the competition, it is not fair under the market economy to meet the market rules. As a joint venture in China, there is a cooperative relationship between multinational companies and domestic engine companies. We should support all things that are law-abiding, cooperative, and beneficial to the industry, and oppose its unlawful, uncooperative, unfavorable behavior toward the industry," Dong Yang said.
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