The 2013 (fifteenth) Shanghai International Auto Show was held at Shanghai New International Expo Center from April 20th to April 29th, 2013. In the auto show, the reporter interviewed Li Dakai, chairman and party secretary, researcher and senior engineer of Shaanxi Fast Drive Group. The following is the details of the interview.
Moderator: User Hello everyone! On the morning of the Shanghai Auto Show Media Day, a magnitude 7.0 earthquake struck Ya'an, Sichuan, China. Before officially starting our exclusive program, Phoenix Motors specially added “The Auto People’s Heart is Ya'an and prays for Ya'an peopleâ€, whether you personally represent yourself or represent yourself. The company, please send your best wishes. Today, we came to the scene where we interviewed Chairman of the Shaanxi Fast Transmission Group Co., Ltd., party secretary, researcher and senior engineer Li Dakai. Hello!
Li Dakai: Hello. Thank you very much. I can be interviewed here today. Before the interview, first of all, let me express my cordial sympathy to the Ya'an earthquake that occurred at 8:02 yesterday morning on behalf of all staff of the Fast Group. We are now participating in this exhibition. We are organizing employees to donate money in the headquarters of Xi’an. We express our condolences and condolences to our relatives who died in the Ya’an earthquake.
Moderator: Thank you, President Li. First of all, I would like to ask the first question. The 10 new products that Fast has participated in at the Shanghai Auto Show include ATE transmissions, lightweight transmissions, DS series passenger car transmissions, series-parallel retarders, and S-transmissions developed with standard European and American standards. In many fields, can you introduce us to these new products and use those models?
Li Dakai: You mentioned a lot of these products. Generally speaking, we mainly focus on commercial vehicles. The concept of commercial vehicles includes trucks, medium and heavy trucks, light trucks, buses, special vehicles, and mining vehicles. Our products are both safe and environmentally friendly, such as retarder, fuel-saving, light weight, multi-grade, and S-transmission developed with standard European and American standards, etc. This time we have launched more than a dozen new models. Products, we believe will certainly make a positive contribution to our country's commercial vehicles, and lay a good foundation for our fast development in the future.
Moderator: From this exhibition and your company's introduction, I paid special attention to Fast's S transmission and learned that its various performance indicators have been comparable to those of developed countries such as Europe, America and Japan, and some products are even better than their products. What is the clear strategic goal and positioning of the S-transmission and what is the biggest competitive advantage?
Li Dakai: Before introducing this, first of all I remembered when in 2010 when General Secretary Hu Jintao visited our company, General Secretary Hu Jintao told me that now you must speed up the upgrading of the industrial structure and accelerate the development of new products. Because we can no longer introduce advanced technology from abroad as much as in the 1980s and 1990s. Because foreign multinational companies are not so happy with the rapid development of China. Therefore, our country can no longer carry out an extensive management. We must speed up the research and development of new products in terms of safety, fuel economy, and advancement. So far I still remember the words of the general secretary.
In recent years, we have accelerated our technological progress in accordance with our own requirements and in accordance with the requirements of the country. The most important of these is to mark the advanced products of multinational corporations. It cannot be satisfied with the use of our products in China. It can be welcomed in the country and can occupy 70% to 80% of the market share. We must take a long-term view. We want to go global and to the world. In order to achieve this grand goal, we must have a product. This product is the first product to be consistent with European and American standards. It is easy to say and the standards are the same. However, due to the traditional concept of our people, the strength of our technical equipment, and the technical level of our personnel, we should say that most of our automotive products still have a considerable gap with foreign countries.
If we really want to go to the world, we must eliminate this gap. Just now, you also asked that when our product quality level is consistent with that of foreign countries, if we have the huge market of China as a support, we can achieve large-scale production. That is, we can rely not only on low labor force. Cost, and relying on our own huge market, relying on the quality of the product's performance, can go to the world, you can carry out strong competition. This is where our strength lies. There are products that are at the same level as multinational companies, and we have huge domestic markets to support our large-scale production. Therefore, we will not only maintain our domestic advantages in the future, but also we must have the same strength and strength to move toward the world and multinational corporations to compete on the same stage.
Moderator: In 2012, influenced by the state's macro-control, China’s heavy-duty truck industry suffered an unprecedented severe challenge. It is understood that your company has also received some impact. Overcapacity is a serious problem faced by China's heavy-duty truck industry. Adjustments have only just begun. Difficulties and challenges will still follow. Facing this situation, we do not know how Fast plans its own future development.
Li Dakai: Capacity We should frankly admit that at present, China's heavy trucks include medium-heavy and light-duty trucks, and they now have relatively large excess capacity. This is not really a good thing. It is an indisputable fact that excess production capacity has caused some waste, including manpower, material resources, financial resources, repeated construction, and so on. However, on the other hand, there is a good aspect of overcapacity, that is, it can cause fierce competition. It can enable these competitors to speed up their technological progress, improve their own management, and try to do everything possible to reduce costs, in the fierce competition. win.
The same is true for Fast. We candidly see that the overcapacity is a serious threat to us, but we also see that we can only speed up product development, accelerate the improvement of product quality and performance, accelerate market development, and strengthen basic management, so that we can win the competition.
Fast should say that during this decade-long rapid development, it has accumulated a lot of competitive advantages. Including our national-level automotive transmission engineering research institute, we have introduced advanced testing equipment from all over the world, including Europe and the United States. We have a well-trained staff, a very strong R&D team, and we also have a good working mother base. Seven production bases, charter Xianyang, Xi'an and other places, the base is very sophisticated. In addition, the product line has formed a very complete subdivision, from small to large, from the fourth to 24th gear, in addition to our AT transmission and AMT electronically controlled mechanical transmission. Waiting for these products, these equipments, and these technical strengths will enable us to have confidence that Fast can still take the lead in this kind of excess production competition.
Moderator: Fast has put forward the goals of the “Twelfth Five-Year Plan†and achieved sales of more than 2 million units of domestic assembly, sales revenue of more than 20 billion, and net asset appreciation rate of more than 10%, ranking among the Top 500 Chinese Enterprises. And built Fast as a well-known company with global competitiveness. At present, under the unfavorable situation of deep adjustments in domestic and foreign markets, does Fast achieve the goal of ensuring the smooth realization of corporate goals?
Li Dakai: It should be said that there is still such a possibility. It should be admitted that when we formulate the "Twelfth Five-Year Plan" target, it is in 2010, which is the year of the "Eleventh Five-Year Plan". That year was a major development of the Chinese automobile industry. The heavy-duty trucks also achieved rapid development in that year, so we put forward the “Twelfth Five-Year Plan†target, which seemed very easy to achieve at that time. However, as China's industrial structure, including the automobile industry, has been adjusting in these two years, the situation is rather grim, including the overcapacity you just mentioned, etc. But I think this adjustment is necessary. If I don't adjust, I often give an example. Just like a marathon, an athlete who runs 30 kilometers and 50 kilometers has no problem with training. However, if he is well trained, he will not rest for one or two hundred kilometers. It's tired. The same is true of our industrial front. In the rapid development, including our country including our industry, we have accumulated a lot of problems, such as our automotive industry, and now the top priority, one, the issue of fuel economy, although our country is a Energy major countries are also energy-deficient countries. More than half of our oil imports depend on imports. Therefore, in terms of adjustment, we must significantly reduce the fuel economy of automobiles. In addition, during the 30 years since the rapid development of reform and opening up in our country, the contradictions between urban and rural areas, the differences between the eastern and western regions, the difference between rich and poor, advanced manufacturing, and backward environmental protection industries must be changed or supervised during the adjustment. Otherwise, we will not be able to ignore the existence of these contradictions. We will only rush forward and the consequences will be very serious in the future.
At the same time, I also realized that after undergoing this adjustment, China will again enter a fast-growing track. There is no doubt about this. I am also full of confidence in this. Because, China is still a developing country. Our Midwest is still very backward. Although the eastern part of the country includes many mountainous regions in the eastern part of the country, we take Jiangsu. For our most advanced provinces, northern Jiangsu is still very poor and backward. This is our weakness and at the same time it is our advantage in China. It is because of these backwardness that we have to invest a lot of human, material and financial resources to make changes. Including his infrastructure, including his education, transportation, and housing, this is a huge market space. This is a market basis for the future development of our country. So I think that after this period of rapid adjustment, we in China will enter a rapid development channel two or three years later.
Returning to your previous question, the goal of Fast will follow China's take-off and once again enter the take-off. this is one. In addition, we are not only relying on the development of China's economy to stimulate our development. Fast is now also expanding into new areas and developing new products. In this case, through the development of China, we have promoted our development. In the second place, Fast relied on its own efforts to develop new products. Through the two-pronged approach, we are confident that we can complete the “Twelfth Five-Year Planâ€.
Moderator: At present, China has become a big stage for global car competition. The world’s top 100 auto parts companies have already started business in China by more than 70%, and more than 1,200 foreign-funded enterprises are engaged in spare parts production. What measures has Fast taken? Is there any new measure in international cooperation? What other results have been achieved?
Li Dakai: As the rapid development of China, the economic growth, the growing market scale, and the increasing demand of the people, the countries of the world have attached great importance to the Chinese market. As you just asked me, more than 1,200 companies have entered China, in the transmission The industry is no exception. The world’s top, second, and third multinational companies have entered China. I personally think that this is completely normal. This is something you can't avoid because with the development of the transportation industry and with the development of communications, the earth has now become a global village. Like the past, it has become impossible to do so. . Like the Internet of Things, the Internet. So we must deal with this issue correctly. First of all, we must have confidence in ourselves. We must rely on our own products, rely on our own understanding of China's national conditions, rely on our perfect sales service network, we want to strengthen in this segment of our traditional domestic market.
I analyze, we still have advantages. Our S-transmission is completely against the European and American standards, that is to say, the quality of our products is similar to theirs, but as we understand China's national conditions, we know what products the Chinese market needs most. In this regard, this is our advantage. In addition, due to our good control, since China is still a developing country, our costs are relatively low. In this case, it should be said that our company still has advantages. In fact, 15 or 6 years before our industry, the world’s top multinational corporations have already established wholly-owned factories in China. After more than 10 years of development, we have grown from a few thousand units to several hundred thousand units. At the highest level, we achieved 900,000 units, while the number of wholly foreign-owned companies in China is still only a few thousand units. This shows that as long as we have confidence, as long as we pay close attention to the quality of our products, as long as we rely on our confidence in the company and the product, I think we will remain in the market competition in the future to maintain a relative advantage. This is the first. Secondly, for us, we cannot just be satisfied with the Chinese market. We have to go to all the countries and regions in the world that need our products to come and go without being incorruptible. Only in this way can we enable Fast to develop continue. We still have confidence in this.
Moderator: Okay, thank you, President Li for our exclusive interview today.
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