A company's three major technological transformation projects were completed and put into production at the same time. It is a rare scene in the history of industrial technological upgrading in Hunan Province! Changfeng Group, the leading company in the province's automotive industry, has recently been so glamorized. Recently, in the Group’s Yongzhou Parts Supporting Industrial Park of Cheetah Auto, Chairman Li Jianxin happily led the “VIP guests†to successively open “Changfeng Plastic Products Companyâ€, “Changfeng Sofa Company†and “Changfeng Automobile Parts Companyâ€. Red satin on the body. At this point, Changfeng Group has reached seven auto parts companies that are controlled or controlled, and key components such as body, axles, and seats can be “self-sufficientâ€.
Changfeng Group, which is known as the "king of the country's light-footed off-road vehicle," has been making auto parts when it is in full production.
"Universal" and "Toyota" Mode
According to reason, under the background of global economic integration, the automobile industry has long been the internationalization of the domestic market and the internalization of the international market. Vehicle manufacturers can fully purchase the most cost-effective parts and components on a global scale, and there is no need to start their own. Changfeng Group, on the other hand, has its entire vehicle and parts together. Li Jianxin believes this is not a “small and complete†but a strategic decision made by the company after careful consideration.
Li Jianxin believes that the global procurement of parts and components is like a double-edged sword for vehicle manufacturers. Although it can squash the intermediate manufacturing process and reduce the company’s equipment investment, sometimes distant water cannot solve the thirst, but it also has to be Considering logistics costs; as long as tariff barriers exist, they have to bear the manufacturing costs of paying customs duties. Manufacture of some key parts by itself can provide guarantees for the scale and volume of the whole vehicle, and it can help improve the quality of the entire vehicle; it can also enable component companies and entire vehicle companies to follow-up technical changes, which will help speed up the entire vehicle. Upgrade and upgrade.
It is understood that the global automotive companies currently take two completely different approaches in terms of parts and components support: One type of company, represented by General Motors Corporation of the United States, invests in the construction of separate parts and components companies to overcome the outsourcing of spare parts. The drawbacks of the company are that the company’s own independent parts and components support system is the most complete among the global vehicle manufacturing companies; the other company, represented by the Toyota Motor Corporation of Japan, spreads the supporting production of parts and components to minimize the total vehicle companies. Inventory, reduce logistics costs.
Just like on both sides of a coin, there are positive and negative lives. The "bigger and fuller" universal model not only requires a large amount of capital for the entire vehicle company, but also causes some parts and components suppliers to fail to reach the economic scale, making the production costs of some components higher than the external procurement. In the end, General Motors still separates parts and components to reduce costs. Although the Toyota model is beneficial to control the production cost of the entire vehicle manufacturer, in a car's value chain, it is unable to control the production cost of the cooperating supporting manufacturers, which makes the entire vehicle. The benefits of the company are sometimes affected.
Changfeng explores the "third way"
“Market shaping enterprises!†Changfeng Group is exploring the “third way†of component production: key components are manufactured by themselves, and others are all spread out; even if they manufacture some key components, they do not “make the world†and only inject a small amount themselves. Funds are used as "leverages". Both eyes are outward, inciting large amounts of foreign capital and private capital. The rapid growth momentum of the Group and the booming of China's automotive industry have attracted the attention of many parts and components manufacturers and local private capitals in Southeast Asia, some countries in Africa, and Hong Kong and Taiwan. By adopting this “small-increase†approach, the Group has successively built seven auto parts companies in Yongzhou, Huizhou, and Hengyang, including automotive interior parts, rubber products, plastic products, electrical wiring harnesses, sofas, and axles. The group investment only accounts for 35% of the total investment of these companies.
Liu Chunsheng, head of the strategic development department of Changfeng Group, believes that the new model for the development of parts and components industry abandons the drawbacks of self-produced components and entire diffusion production of vehicle manufacturers. Don't take too much investment risk.
The Changfeng Group has repeatedly weighed on what parts it produces and where it is produced. The Group’s now self-sufficient parts and components are either crucial to improving the quality of the entire vehicle or stabilizing the performance of the entire vehicle or reducing the cost of the entire vehicle. For example, sofas purchased from the past accounted for 10% of the production cost in the entire vehicle, which is almost equivalent to the price of the engine. Nowadays, prices for sofas for self-use have fallen by 30% in one fell swoop.
As for Changfeng, it is necessary to distribute parts and components bases in four places in Huizhou, Yongzhou, Hengyang, and Changsha. According to Liu Chunsheng, these four parts and components bases are located in two vehicle bases in Yongzhou and Changsha, and the expressways are within two hours of each other. Reasonably, the parts and components companies can provide “kanban supply†for the entire vehicle company—substituting the vehicle for the warehouse and directly sending the parts to the production line to reduce the warehousing costs and logistics costs of the entire vehicle company. With the self-made parts and components companies successively put into production, the cost of Changfeng Cheetah parts has been reduced by 5% to 30% compared with the past, and the competitiveness has been greatly enhanced. Despite the fierce competition in the off-road vehicle market this year, the company still sold 18,000 cars in the first 8 months, and it was far ahead in the same category in the country.
From "Global Sourcing" to "Global Export"
Turning over the Changfeng Group's industrial development plan, self-made key parts and components are not just self-sufficient. In addition to the development of the spare parts industry in the province driven by the whole vehicle, in the strategic conception, the parts and components industry will become another wheel for the development of the enterprise, supporting itself, its domestic counterparts, and even the global automotive manufacturers, from the "global Purchasing "to global exports".
In some people's eyes, it seems that only the production of a complete vehicle is to make a car. In fact, in the developed countries of the automotive industry, auto parts have become an important part of the automotive industry, and the output value created by auto parts can not be underestimated. According to reports, the value of a car component has accounted for 70%, not to mention consumers in the car after the purchase and use of a large number of parts in the future. Five of the world’s largest auto parts companies, including Delphi, Visteon, Germany’s Bosch, Japan’s Stone Bridge, and Michelin in France, have annual sales of more than US$10 billion.
With the world's major car manufacturers entering the Chinese market, the global auto parts manufacturing center will surely gradually shift to China. In fact, China’s auto parts “cakes†are gradually becoming larger in recent years. In the first 7 months of this year, 4,328 component manufacturers across the country achieved a total industrial added value of 35.5 billion yuan, a year-on-year increase of 27.51%.
Changfeng Group's parts and components industry has been leaping together with Cheetah SUVs in recent years. In addition to meeting its own needs, the axle has been supplied to Liu Wei; electrical wiring harnesses have been provided for Mazda; sofas and wiring harnesses have also been exported to the United States and Japan. Parts companies have begun to harvest heavy fruits, such as the sofa company has net profit of more than 40 million yuan since it was put into operation in 1999. The annual production of 150,000 axles and axles has just started production at the beginning of this year, and it has earned over RMB13 million in just a few months.
According to the concept of Changfeng Industrial Development, around two vehicle bases, within a few years, Yongzhou, Hengyang, Changsha will be accompanied by a series of parts and components manufacturing enterprises. According to recent news, three parts companies in Yongzhou have just started production. The group has invested nearly US$100 million in aluminum wheels, air conditioners, glass lifters, and hose seals with companies from the Philippines, Taiwan, and Hong Kong. Component projects will break ground.
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