Liuzhou wants to build a large base for the automotive industry

Yesterday, Liuzhou held a 2006 investment promotion conference for auto parts industry. At the meeting, two cooperation projects with a total value of 1.2 billion yuan were signed, but the ones that were most deeply reserved for the participants were related experts and industry experts who discussed the status and prospects of the auto industry.

Two big industrial parks fly together

Yesterday morning, leaders of the four teams of Liuzhou City and related departments gathered at Liujiang Xinxing Industrial Park to participate in the ceremony for the foundation of Liuchai Power's new plant and the celebration of the establishment of the industrial park.

In February 2005, four investors including Guangdong Jiye Investment Co., Ltd. and Liuzhou Industrial Holdings Co., Ltd. restructured and restructured Liuchai Power Co., Ltd., and acquired part of Liufa’s productive capital. The company has 600 acres of land in the Emerging Industrial Park, with an investment of 1.185 billion yuan. It will build a production base with an annual output of 200,000 diesel engines in 2007.

The reason why Liuchai chooses to start a new venture in the Emerging Industrial Park is because the park is positioned to develop the auto parts industry, and it also provides services such as logistics, transportation, finance, insurance, information services, and business services.

Since the start of construction in 2004, the emerging industrial park has now introduced 97 resettlement companies with an annual output value of more than 5 billion yuan, of which 45 are auto parts companies, forming a certain scale of industrial aggregation.

Together with Yanghe Industrial Park, Liuzhou has formed two large-scale auto parts production bases. Such a large-scale development of the auto parts industry is mainly due to the continuous rise of the auto industry's performance in the city, laying the foundation for Liuzhou to build a “automobile city”.

The automotive industry must achieve three breakthroughs

At the investment promotion conference, Li Meichang, deputy director of the Liuzhou Economic Commission, talked about the development goals of the auto industry.

Li Mei said that since the launch of the first “Liujiang” brand automobile in 1969, Liuzhou has owned well-known automobile brands such as “Wuling”, “Chevrolet” SPARK, “Dongfeng Dilong” and “Dongfeng Fashion”. More than 200 auto parts companies such as engine, body, and chassis. At present, the total assets of the entire automotive industry is 17.5 billion yuan, employing 35,000 people.

During the “Eleventh Five-Year Plan” period, in order to create a regional automobile manufacturing base for the Pan-Pearl River Delta and ASEAN, Liuzhou proposed the “Two Extensions” development concept: First, rely on vehicle companies to drive the development of supporting enterprises; Second, support for the special Automotive enterprise development. One of the most critical is to integrate existing resources, with an OEM as the core, to develop upstream parts and components industries and downstream logistics, maintenance, second-hand car transaction leasing, finance, security, intermediary and a series of service industries.

Last year, the production and sales volume of Liuzhou Automobile reached 400,000 units, and it is expected to exceed 500,000 units this year. Li Mei said that by 2010, Liuzhou Automobile will achieve three breakthroughs: the production and sales volume will exceed 900,000 units, the total output value will exceed 80 billion yuan, and the proportion of exports to the entire industry will exceed 6%.

In order to achieve this goal, the autonomous regions and Liuzhou municipal governments will spend 50 million yuan each year from the finance to support enterprise R&D, technological transformation and product export.

Liu Shizhou, director of the advisory committee of Liuzhou City, said that Liuzhou is trying to obtain auto export bases from ASEAN, the Middle East, and North Africa to the relevant state agencies. Therefore, the most important thing now is to solve the problem of "industrialization" of automobiles. Apart from the construction of financial, credit, and security service systems, we must also work hard in many aspects. The first is the support of talents. The Department of Automotive Engineering of Guangxi University of Technology is currently working on this aspect; Liuzhou is currently negotiating with universities abroad to discuss cooperation matters. Through distance learning, the city is training a group of talents with considerable capabilities in automotive design, research, and development. The second is to establish a socialized automobile research and development structure, in which a socialized car design company will be an indispensable content. The third is to establish a professional management department for the automobile in the government, such as the "Automobile Office."

The parts industry is promising

Relying on vehicle companies to drive the development of supporting enterprises is one of the ideas for “extending two ends” in Liuzhou City.

At the promotion meeting, Armando, deputy general manager of SAIC-GM-Wuling, stated the reasons for the development of the local industrial chain. OEMs are pursuing the same maximization of profits as all companies, and one means to maximize profits is to reduce costs. There are many ways to reduce costs, including technological transformation and reducing energy consumption. The most important one is to save logistics costs. If there is a complete component manufacturing company in the local area, the entire vehicle factory can purchase it nearby, which will greatly reduce the cost of logistics and the cost will naturally be reduced.

Moreover, relying on local parts and components supporting the entire plant is also a win-win model. Although SAIC-GM-Wuling has been delisted from other Wuling Group-affiliated companies since its joint venture in 2002, its core components still rely on Wuling Liuji. This year, SAIC-GM-Wuling is expected to produce and sell more than 450,000 units, and its sales revenue will reach 15 billion yuan. Together with Wuling Group's total sales revenue, it is expected to exceed 21 billion yuan.

In 2006, under the strong driving force of SAIC-GM-Wuling, “Two Wuling” achieved the “two first in the country”: SAIC-GM-Wuling replaced Chang’an to become the No.1 performance in the mini vehicle industry, and Liuzhou Wuling Liuji became the gasoline engine for vehicles. The industry first. The engine produced by Wuling Liuji is the supplier of Dongfeng Liuzhou, in addition to SAIC-GM-Wuling.

Li Mei said that according to the scale of the 900,000 vehicle fleet, the amount of parts and components needed will be around 40 billion yuan, which will undoubtedly create a good opportunity for auto parts companies. Moreover, with Liuzhou as the center, within a radius of 800 kilometers, in addition to local vehicle companies, there are also Guangzhou Honda, Hainan Mazda, Hunan Cheetah and other vehicle companies. If the scale of the component companies is large enough, they can With Liuzhou as the core, supporting vehicle manufacturers in these regions.

It is precisely relying on auto OEMs that the automotive industry chain in Liuzhou and even Guangxi has begun to gradually improve, and has attracted many well-known domestic and foreign companies into the Guilin, the world's top 500 list of well-known auto parts companies - Siemens, Lear, Visteon Fugiya, it was in such a case that it came to Guangxi.

It is not enough for the automaker to develop the parts and components industry, and it is necessary to have a platform for the development of parts and components companies. The Yanghe Industrial Zone and the Emerging Industrial Park were created in this context.

Liuzhou Automobile Industry is good

Zhang Shulin, head of the Automotive Expert Group of the National Development and Reform Commission, also came to Liu to participate in this investment promotion conference and brought many macro information about the development of the automotive industry to participants.

Zhang Shulin said that at present, the annual automobile production in China is about 5 million vehicles, and the total vehicle ownership in the country is more than 30 million, which shows that we have entered the ranks of major countries in automobile production and consumption. By 2010, the annual automobile production in China will exceed 9 million vehicles, the vehicle ownership will exceed 55 million vehicles, and the number of vehicles for thousands will reach 40 vehicles.

Zhang Shulin believes that the automotive industry has begun to show signs of overcapacity, the product structure is not reasonable, the group's competitive advantage is not obvious, technology is relatively backward, independent research and development capabilities are weak, relying too much on the introduction of products and technologies. When there is a sign of excess production capacity, it should find ways to open up the international market. Liuzhou has a relatively large advantage in this respect. Close to the ASEAN countries, these regions are precisely in the main growth period of automobile consumption. There should be a large article on exports. In order to enter the international market, we must require our auto companies to have a world-class product development platform. Parts companies must also have a large matching advantage, such as the engine, transmission and other important components, in particular to grasp the core technology.

Zhang Shulin also disclosed that the "Eleventh Five-Year Plan" of the "automobile planning" structural adjustment objectives - "energy saving, environmental protection, safety" will be the country's main requirements for the direction of the automotive industry during this period. One of them is “When the vehicle ownership doubles, fuel consumption does not increase by more than 50%” and “by 2010, the fuel consumption of new cars should be reduced by 25%.” He said that it is clear that this will be followed by a series of related regulations, such as encouraging small-displacement cars, imposing restrictions on engines, and developing diesel-powered passenger cars. This is a good news for the automotive industry in Liuzhou City. First, SAIC-GM-Wuling’s mini-vehicle is just under the encouragement of the state. Second, there is a basis for the production of diesel engines in Liuzhou. If it is possible to carry out some further technological transformations, There will be a considerable market for diesel engines used in cars.