Jia Xinguang: The exit mechanism of auto companies is still not perfect


Recently, the Ministry of Industry and Information Technology issued a special announcement to publicize 48 car companies. If the company still fails to pass the relevant examination on October 31, 2015, it will be suspended from the production qualification of auto products.

The Ministry of Industry and Information Technology has pointed out that there are more than 1,300 vehicle production enterprises in China, of which 171 are automotive vehicle companies, 120 motorcycles, 900 special-purpose vehicles, 135 tricycles and 135 low-speed trucks. Among them, a group of companies have been suspended or semi-discontinued for many years and their survival is very difficult. 48 countries account for about 4% of the 1300. Obviously, this is a very small adjustment and does not affect the overall situation. People in the industry generally believe that these enterprises have already been marginalized. Exiting or not has little impact on the auto industry. In 2006, the National Development and Reform Commission once cleaned up an entire vehicle company's production list and cancelled the production qualifications of more than 120 companies, but it had little impact on the industry's development pattern. Therefore, some people think that "will accelerate the survival of the fittest of the automotive companies" will be difficult to appear.

Even if we count 171 automobile companies, the number of automobile enterprises in China is also the highest in the world. According to the market share of 40% of the independent brands, the average output is only 47,000. According to the state of competition in the international automotive industry, it is difficult for auto companies that annually produce and sell 2 million vehicles to survive. The promotion of platform technology has increased the reasonable size of the auto group to 5 million to 6 million vehicles. According to the scale of the domestic market, there are 2-3 competitive automobile groups that are already very good, and most of the 171 companies should merge and reorganize. According to the Ministry of Industry and Information Technology, "As the exit mechanism of China's auto industry is not perfect, these 'zero-yield' enterprises can neither be eliminated, nor do they have the necessary production conditions, can not be normal production, product quality is difficult to guarantee, and some even rely on reselling product certification to maintain Survival has seriously affected the normal production and operation order of the industry. Therefore, the establishment of a management mechanism in which there is survival and survival of the fittest has become a very urgent task for the automotive industry." With the new round of capacity expansion and product prices of multinational companies in China. Extending downwards, the situation faced by domestic auto makers is extremely severe. As an urgent task, the auto industry should carry out strong and strong alliances to form a world-class competitive big auto group, instead of rescuing companies that have already been half-lived or even dying.

The emergence of 1300 auto companies is a world record created by Chinese-style administrative examination and approval. The core of China's auto industry policy is to strengthen administrative management. The key method is to approve. Although the administrative threshold for approval is getting higher and higher, the industrial development situation is getting more and more Severely, the share of automakers’ own brand cars has gradually shrunk. The reason is that there are only approvals, no supervision, and disorderly production and market order. Therefore, in order to establish a sound exit mechanism, it is necessary to reform the auto industry approval system, establish a universal product type certification system, increase industry barriers through strict safety, environmental protection, and quality assurance regulations, and increase the scale and cost of entry through enterprise competition. Technology, brand threshold. Should accelerate competition in asset optimization through market competition and achieve survival of the fittest.

According to the relevant laws, enterprises must be deregistered and announced before they are completely out of the market. According to the provisions of the "Regulations on Enterprise Registration Procedures," and other provisions, companies must clear up their debts and debts before they apply for cancellation, and do a good job of tax clearance, etc. The entire process is relatively long. If the “death” company does not write off, it will affect the work of taxation, statistics, etc., and it may also lead criminals to incite fraud. Therefore, such enterprises must “sell out”. However, a considerable number of companies are reluctant to apply on the initiative because the cancellation procedures are too cumbersome. This shows that strengthening the supervision of enterprises is not only the task of the auto industry, but that the delisting of enterprises is not only the cancellation of auto production qualifications.

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