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Editor's Note: The transformation of domestic commercial vehicle companies into sedans is one of the "Chinese characteristics" of China's auto industry. After Jianghuai successfully won the Development and Reform Commission's car license list, Great Wall, Changfeng, Shuanghuan, and many other companies eager to list cars are still waiting in line with the country's permission. In this issue we walked into these companies to see what they think of the license for cars.
First, the Great Wall Wei Jianjun: JAC can be approved, we can also approve
Reporter: Wei Zong, we have seen a number of cars on the Great Wall coming on the market. There is a very sensitive issue. The issue of car licenses is that JAC has just been approved. The Great Wall is also very worried. What do you think about this issue?
Wei Jianjun: JAC can approve and we can also approve it. The industrial policy of the car is to see that only cars have this qualification, and the country is strongly advocating independent innovation to support the development of China's own brands. I think we have a good opportunity to catch up. And I believe the country will support us.
Reporter: You said that the Great Wall has the qualifications for a car. How do you explain this?
Wei Jianjun: Because there are three main requirements for making a car in industrial policy: one is the sales revenue requirement, another is your technical investment, the investment in research and development, and three, there is a profit requirement, how much you want to make for three consecutive years, yours The scale of the product, how much your R&D investment, and detailed requirements. From the present we look far beyond these requirements. JAC was also approved because it met the requirements of this national industrial policy. We haven’t approved yet because we haven’t completely reported the material.
Second, the Great Wall dedicated to cars has reached 28 billion
Reporter: When it comes to cars, there are many stories about domestic private enterprises doing cars. Lifan, for instance, used to talk about a story about their bosses. They had designed a design company abroad when they designed Lifan 520. Later, they discovered that foreign design. The company’s design has not yet been more appealing to Chinese consumers than the design of their own company’s own designers.
This raises the question of how to make use of global resources to build brands. How does the Great Wall view this issue?
Wei Jianjun: Our principle of doing things is appropriate. We have also chosen foreign designs, as well as our own designs. China's automobile design is also rapidly developing. Design methods and new design methods are also applied very quickly. I think it is appropriate. It does not mean that I designed it myself. I can't say that the foreign design is not good. Most of the cars are still designed abroad. This one model, especially the exterior design, we will choose several design companies to come out of the program, so I think I think it should be a review after the program, the review I think is also very critical, is not you can choose a more representative of the consumer A car suitable for the market.
Reporter: How much are we investing in cars? Can you tell us about it?
Wei Jianjun: We have invested 600 million in research and development, which is R&D facilities. There are already 28 billion yuan devoted to cars. One is investment in production facilities, and the other is input in product design and development and component development.
Reporter: A small number of figures is a great challenge to the financing chain of our entire company.
Wei Jianjun: The Great Wall seeks profitable market development. Some companies have a large amount of sales, but the profits are very unsatisfactory. I think that doing business should be rational, because it seems that they are engaged in public welfare companies, so that companies will not have the potential for development.
Third, the Great Wall’s 2006 profits and taxes 700 million fully meet the requirements of the national car policy
Reporter: Can you disclose the circumstances of the Great Wall, such as 2006 profits and taxes?
Wei Jianjun: In 2006, we were a net profit of over 700 million yuan. This is a public figure. Our annual revenue is increasing. With the increase in the size of companies and the number of sales, we have a very obvious operation every year. There is no pressure on the investment.
We have a very good financing platform. If we need funds, we will soon be able to re-raise in Hong Kong. After years of operation, the Great Wall’s credibility in the bank is also 3A+, which means that we can get funds at any time in the bank. Businesses are benign and quality is relatively high. The more demanding the commercial vehicle is, the more difficult it is. And there are many SUVs like commercial cars are cars. Why cars are different? There is nothing different. They should all be the same.
Reporter: What are some major areas of national policy that need to be limited?
Wei Jianjun: The state policy stipulates this, but it is not forbidden for you to do it. You have reached a certain level. You have a certain technical and financial foundation that allows you to do it.
Fourth, Changfeng Li Jianxin: 08 can get a car permit. Independent companies and joint ventures should treat each other equally and justify!
Reporter: Does Changfeng produce cars in 2008?
Li Jianxin: I am sure to do it! But as some corporate cars come out and molds have arrived, but there are no catalogues, they cannot sell cars, and I will not do such things. There are two concepts when the product is put into the market this year and the market is next year. The market environment changes rapidly.
Reporter: Are you sure you can get a car license in 2008?
Li Jianxin: I think it should be possible. Why is it reasonable to say? Competing, being open, fair, fair, and transparent, what you say doesn't match, the threshold is so high, you can't reach it, and it is OK to reach you.
Reporter: You said that if you don't get out of the car but don't have catalogs, then what's the progress of Changfeng’s car program?
Li Jianxin: Changfeng has already carried out joint development of the engine project with Bird, and the development of the car project is preparing to start.
(Li Jianxin seems a little excited.) I think that the current government has no legal basis for the approval system for autos. At present, the government is implementing a double standard for self-owned brands and foreign brands in the problem of vehicle building. “International brands make vehicles casually, and independent brands do not. There is no such reason. In the issue of “registration permitâ€, relevant departments should be independent and joint venture enterprises. Treat them equally."
Reporter: What are the plans for Changfeng in the next three to five years?
Li Jianxin: Our products will send 13 new products in the next five years, with an average of two launches each year. There are four that are to be completed this year and next year. Six are being done and three have not yet started. This must be fast. So the issue of the license must keep up.
V. Double Ring: Licensing Policy to Adapt to the Development Trend of Automobile Industry
Reporter: You just said that the double-ring car program, here, the government has a license for a car, what do you think?
He Zeguo: The state has a system of licenses, but now the country is also facing a policy that needs to be adjusted and it is necessary to continuously adapt to the issues of the development trend of China's auto industry.
China’s automobile policy is lagging behind. China's market-for-technology policy has failed. Therefore, the state should now maintain it from the perspective of legislation and should ensure the safety of the Chinese automobile industry. It is also because the automotive industry is a special industry with a long industrial chain. It is related to the perfection of the industrial chain in China, the outbreak of the benefits of the industrial chain, and also the issue of the employment rate in China. Technical lessons should be learned. In addition to making cars, the threshold for this thing should be high, but for an automobile factory that has been engaged in SUVs for 19 years, in particular, we have now acquired and integrated Red Star Automobile Manufacturing Factory. An automobile factory in Hebei Province, a car factory separated from Beiqi in the 1970s, has its special historical background. The past red star bread has also had its place in history, but it has not kept pace with industrialization. It fell. Now Shuanghuan Automobile's integration of it has revived its brand, including the new Red Stars we are now using, including the small aristocratic products we inject, all of which are complementary and integrated in our superior resources. Our new car development provides a good hardware and software.
Postscript:
Concerned by overcapacity, the state raised the threshold for new car companies that applied for the application and set three standards: sales revenue, R&D investment, and profit income.
However, there are still many uncertainties that seem to make these queuing companies uneasy. “Why can anyone approve and we can't approve?†In the interview, the reporter found that such remarks often hang on the doors of these private car executives.