German Volkswagen finally understands: Bringing key components to Chinese production


Wei Zhibo, vice president of VW, is in charge of 54 factories around the world and flies in the air almost every day. But by contrast, embarking on a special plane to China can always make him happy. Although deep down, he is also worried that China’s “boss” status that has lasted for 20 years is threatened. But who can deny that the public cannot “change from time to time”? Who dares to say that after the change, the public will not be able to maintain the position of the "boss"? Therefore, Wei Zhibo, who was seen on the foundation laying ceremony of the Volkswagen FAW platform parts on July 14th, was quite optimistic. He gave a glance to the audience. “Thanks to FAW leadership led by Yan Yanfeng and thanks to the leadership of Jilin Province. “I hope that the factory will begin construction smoothly, everything is safe, and everything will be fulfilled” at the end of the line and the end of the speech. It makes people think that he still knows Chinese culture. People have always said that the price of Volkswagen's products is high. Some people also said that the public's ability to adapt to the changes in the Chinese market is not enough. For example, the certification of parts and components is always carried out in Germany. The public has been in China for 20 years. How has it never established its own parts and components supporting system? For such questions, the public did not make a positive answer. What do you say? In fact, the essence of the problem is the two words "profit." Who will take the initiative to sell profits when they are enjoying the scenery, and say "half the money in my wallet?" If you do not want to do this, people who understand German culture and German personalities will know that they will not say some polite language, so the impression is that the Germans go straight and make money to earn a bright and clear advantage. Some practices make people feel a bit Not very acceptable. But now the situation is obviously different. German Volkswagen has met with a strong competitor in China, and GM, Ford and other multinational companies are not good. If we stick to the original principle, then the public's share of the Chinese market may no longer be 50% to 40%, and then to 32%. If you change initiatively or become helpless, you must be sure that there must be changes, and that your efforts should be large enough. Reducing production costs is the biggest breakthrough, and the transfer of more and more parts development and certification functions from Germany to China is the only way to go. The joint investment with FAW to build parts and components in Changchun is a key step for the public. Although Volkswagen and SAIC and FAW have already had transmission cooperation projects in Shanghai before, it is only a single component after all. The Volkswagen FAW Platform Parts Factory will produce all key components of the vehicle body, including the front axle and sub-frame assembly for the car, the rear axle assembly, the suspension system including the automobile, the steering system, and the braking system. According to Wei Zhibo, the parts factory will be one of the only parts factories in the world that uses the most advanced production technology in the world. After completion in 2005, it is expected to reach 400,000 sets of supporting capacity. At present, the plan is mainly to supply Kaidi, New Bora and another new model. The total investment of the project is 1.42 billion yuan. VW and FAW hold 60% and 40% respectively. At the same time, Volkswagen also announced that it will invest in FAW to build a new engine plant in Dalian. There are various indications that the public, who has always been the only vehicle in China, has finally come to understand that the road to spare parts to China has nowhere to come. It should be said that this is a gratifying move. However, some people worry that the market is not enough time for the public? On the groundbreaking stage, looking at the crackling firecrackers, Wei Zhibo and Yan Yanfeng's eyes were filled with hope... (He Beishi)

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