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New car builders in the auto industry have officially entered the final kilometer competition before the product lands, but in addition to the financing scale and business model competition, more new car manufacturers will die on the product. "Products landing listed investors will know about the future." Said a senior high-rise building companies. This situation is also happening. “There is a huge number of new companies in the financing industry that are making cars because of the quality of the production vehicles. This has resulted in frequent product bounces. Under the pressure of capital, we have to speed up the rectification of products. However, the final sales volume and quality control results are as follows: The meeting will be clear.†An official responsible for China’s international spare parts industry revealed to the reporter of the Economic Observer.
In fact, it has been a while since the new vehicle builders got together to enter the auto industry. Whether it is Internet companies such as LeTV, Weilai, Xiaopeng, Singular, etc., or Weima, Aiqiyiwei, which has traditional car companies accumulated, the wave of new car makers has been spreading. These new carmakers bring a lot of new ideas and models. They want to become the subversive and innovators in car companies. But among many companies, only a few companies focus on how to build a car. On a basic point, how to avoid many problems such as Tesla's product development, manufacturing and manufacturing.
At present, in the key vehicle manufacturing sector, the new vehicle builders have two attitudes towards selecting a factory or building a factory. Li Bin, founder of Weilai Automobile, was the representative person who first supported the OEM model. He believes that start-up companies do not start manufacturing from scratch rather than existing car companies, and domestic auto manufacturing overcapacity, sharing of production capacity can increase investment efficiency, but also can ease the company's financial pressure to invest in new factories. The tit-for-tat view of this is the founder of Huima Automobiles, Shen Hui. He believes that the only way to achieve profitability is to mass-produce production. Compared to the OEM model, setting up a factory on its own is more beneficial to controlling products. Ai Chi Yi Wei co-founder and CEO Gu Feng also said to insist on building their own cars, "The car is too complicated, if you do not own a car, it may produce a variety of problems." "A lot of new car manufacturers to OEM The beautification of the model is the reason for seizing market opportunities, but the fact is that it is too innovative and subversive, but it loses the respect for vehicle repair. In particular, Internet-based car makers are more likely to play marketing tricks and new business models. We must continue to raise funds before we can survive.†An industry insider who has long paid attention to the new forces of car repair pointed out sharply.
There may still be controversies about the choice of OEM mode and self-built factory. However, in 2018, it is a crucial year for the production of new vehicles to land vehicles. After large-scale production, it comes from the test of the R And stress will show different pressures under different modes. For many new car manufacturers, this is indeed a test of life and death.
The OEM model is experiencing problems
The wave of new vehicle manufacturers is surging. Especially after the Internet crosses the border, many new carmakers are trying to replicate the development model of mobile phones and make OEM vehicles a shortcut. Weilai Motors was one of the earliest new car manufacturers in the industry to propose OEM routes. At that time, Wei Lai, who was temporarily unqualified, chose Jianghuai Automobile OEM after examining five car companies at home and abroad. The Internet car maker Xiaopeng Motors chose Haima Motors as its foundry, and Singularity Motors also announced that the models that will be listed in 2018 will also be manufactured by traditional car companies.
“In the simplest terms, some companies are emulating and replicating mobile phone OEMs – an efficient development model that can be adopted in the mobile phone industry. It can also avoid manufacturing thresholds. Another part of the company is to save time by bypassing self-built factories. In order to seize the market and capital opportunities." The analysts said.
Some analysts believe that car companies that choose to build OEM models can launch mass-produced models and market them two years or more earlier than the automakers’ factories. This will increase brand recognition and attract financing. It is a huge advantage. "In the process of OEM cooperation, we can also have the initiative, and the new car companies will also have a lot of flexibility in terms of production capacity." An insider who chooses the OEM model expresses this view.
However, things did not develop as expected. Most of the newly-built car companies lack the experience of building cars and the accumulation of industrial chains. They do not have a complete understanding of large-scale production models. This has led to difficulties in the actual construction process. Shi Jianhua, deputy secretary-general of the China Association of Automobile Manufacturers, carefully observed and expressed his views on the OEM model. “The new automobile company does not have a strong brand and sufficient production experience. It is obviously unable to control the entire automobile factory for its OEM production of the entire process of the car."
In response, Shen Hui, the founder of Weima Automobile, which insists on building its own factory, said that “theory of OEM is very simple, R&D, craftsmanship, and marketing channels are in my hands, and the middle of things is done by OEMs. In actual operation, a variety of problems will arise. The final product is handed over to your user with your LOGO. The problem is always on your head. I do not trust it."
In fact, whether it is the OEM model or the self-built factory model, the challenges faced by the new car companies are not small, but the mentality behind each of them is another key to the impact of car manufacturing. The more realistic problem is that the current average level of China's auto manufacturing still does not reach a very high level. Some traditional auto companies themselves lack the manufacturing experience of electric vehicles, while new auto manufacturers generally focus their products on new energy fields. People are concerned that there may be some problems with the OEM model and it cannot be fully recognized by consumers.
For the Internet car makers, its fresh ideas, Internet thinking, and the application of IT technology could have become a rare advantage in the car repair process. However, under the OEM mode, places where advantages could have been formed became Weaknesses. At present, new-build companies are no longer completely opposed to the OEM model and self-built factories. Before this, Weilai, the company that chose the OEM model, is setting up its own factory. For example, Xiaopeng and Dianjiao have all indicated that the foundry is just an expedient measure for the transition. In the end, it is still necessary to build factories.
On the industry chain
In fact, no matter whether it is choosing a model for OEM or a self-built factory, the new forces of R&D cannot skip the link of industrial chain shaping and quality control. As a technology-intensive industry, the automotive industry will encounter a series of problems such as cost control, yield, and supply chain management when it enters mass production.
The automobile industry chain is complex, and the first challenge faced by the new vehicle builders is the problem of matching demand. “From a supply chain perspective, parts suppliers will think that these new-build companies are relatively small and it is difficult to provide them with cost-sharing. In addition, some new-build companies will definitely be eliminated in the future, and parts suppliers will Its investment will also face the risk of wandering," Wang Binggang, head of the National New Energy Vehicle Innovation Engineering Project Team, analyzed in an interview with the Economic Observer.
However, the ability of new-build companies to integrate the industry chain is often due to lack of experience leading to "stuck" situations. “Even if it is a mature traditional manufacturer of automobiles, it needs to cooperate or learn on a large number of suppliers for large parts suppliers. Many times it is even a car supplier with hands-on suppliers. The new vehicle manufacturers have insufficient experience and potential risks. All need to cooperate with large, mature and technologically-resourced suppliers to reduce various risks. However, many new-build companies lack the awe-inspiring and learning attitude to make vehicles.†A traditional car company is responsible for the supply chain. Management related person analysis.
Someone once counted a sum of money. R&D in the early stage of R&D has invested at least Rmb1.4bn, developed molds from 500 million to 600 million yuan, built a supply chain of 2 billion yuan, and built plants of 3.5 billion yuan. The initial investment was basically 7 billion yuan. The start of mass production requires an auxiliary equipment of 600 million yuan, and annual research and development of at least 400 million yuan. These inputs are inseparable from the supply chain of the manufacturer. Different from the handset OEM model respected by the internet builder, the quality of the manufacturer is not only determined by the design, but also related to the production capacity of the assembly line, the quality control capability, and the material processing capability. As a vehicle, the consistency and reliability of its products are the most basic and critical.
At present, the number of new cars entering the market has entered the countdown. Whether it is the choice of the OEM model or the self-built factory, the new vehicle manufacturers need to face a series of problems such as the control of scaled product quality and ramp-up of production capacity. In this regard, traditional car makers are also eyeing. The general manager of SAIC Passenger Vehicles Wang Xiaoqiu said: “From the beginning of the delivery of new products from vehicle manufacturers, we are always ready to solve the problem.†“The current status quo is that many new car companies are very objective in financing, and then burn three more. Five years is basically possible, but in the case that there is not a large number of prototype cars that are not covered, many problems of quality control and quality have been exposed, and in 2018, it is a product for the new forces of the constructors to be consumers. At the time of the collective inspection of the market, 'naked swimmers' will soon surface,†said the management of one of the parts.
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