The car giant started by marrying the daughter of the king

"Mr. Yu, after the final struggle for the establishment of United Electronics, our group is now the largest shareholder."

"First Automobile Works, Second Automobile Works, Capital Automobile Works and other companies only took up a small share symbolically."

"This is of great significance to our development of the auto parts industry."

Wang Huiliang is in a very good mood now.

From the rapid development of BMW Group, he has felt the importance of the auto parts industry.

Previously, Volkswagen in Shanghai was working on a Santana localization project, which took several years, and only now has most of the parts been localized.

If Shanghai Automobile Group wants to grow and develop, it must have some core parts companies of its own.

Although United Electronics is only a joint venture auto parts company, its partner Bosch is a global auto parts giant.

This cooperation is willing to support United Electronics in developing the R&D capabilities of related parts.

For Shanghai Automobile Group, this is definitely a very meaningful thing.

With the help of the joint venture, Shanghai Automobile Group will be able to gradually develop other automotive parts in the future.

By then, we will supply Shanghai Volkswagen and Shanghai GM, as well as "Shanghai-branded" cars, and development and growth will be a piece of cake.

"The concessions made by Bosch this time are quite large. It seems that they are feeling a certain amount of pressure."

"Volkswagen is preparing to launch new models in China, all of which will use electronic fuel injection engines."

"Then the localization of the key component ECU becomes very important."

"If Bosch does not build a factory in China, then it is very likely that the ECU order will be given to Nanshan Technology."

"This is definitely not what Bosch wants to see."

Yu Jin analyzed the key reasons why Bosch made concessions.

In addition to being optimistic about the prospects of China's automobile market, we must also feel the pressure.

When there is competition, many conditions can be negotiated.

Otherwise, the attitude towards this exclusive business would be completely different.

"You are right. This time we can be said to have benefited from Nanshan Technology."

"In the future, if we cannot produce some parts for Shanghai-branded cars ourselves, we can consider cooperating with Nanshan Technology."

"This can also promote the development and growth of domestic auto parts companies and make those international auto parts giants less arrogant."

Wang Huiliang has seen the true faces of many auto parts companies over the years.

Don't think that just because you are the OEM or Party A, you are strong in front of the parts manufacturers.

Actually, it depends on the situation.

Are you asking others for more, or are they asking you for more?

This is the key to determining the right to speak.

Companies like Bosch and Denso will always have a certain say in front of OEMs, both now and in the future.

Especially when it comes to parts where they have a strong monopoly, they will have a greater say.

Parts that can be produced by more manufacturers on the market will have less say.

"Well, it is indeed necessary."

"The higher authorities are now also drafting relevant policies and regulations to encourage the development and growth of the domestic automobile and parts industries."

"The development and growth of our own-brand OEMs and parts manufacturers is even more important."

"As a Hong Kong-funded enterprise, BMW Group will also be considered an independent brand enterprise after the return."

"Supporting their development is, to a certain extent, also beneficial to us."

Although Yu Jin knew that the BMW Group had brought considerable pressure to Shanghai Volkswagen in terms of complete vehicles, it did promote Shanghai Volkswagen in the field of parts.

So let’s keep things separate. We should compete where we should compete and support where we should support.

As for whether his attitude has anything to do with Jiang Hui's father-in-law, Zhu Jiansheng, the head of the Ministry of Machinery and Electronics Industry, only he himself knows.

……

"Boss Jiang, United Electronics has been officially established. The shareholders of this manufacturer include almost all the OEMs in the country."

"When the time comes, the relevant parts of these OEMs will most likely be given to United Electronics for production."

"This is definitely bad news for us at Nanshan Technology."

As Jiang Hui's secretary, Zhou Yun is now considered to be quite knowledgeable.

In the domestic auto parts industry, Nanshan Technology is now leading the way.

Especially when it comes to electronic components, Nanshan Technology's advantages are even more obvious.

But the situation will definitely be different after the establishment of United Electronics.

For example, the engine ECU is the first new product that United Electronics announced it would introduce.

Other ABS and other related electronic components are also the parts that United Electronics focuses on importing.

This puts a lot of pressure on Nanshan Technology.

"Although there are many shareholders behind United Electronics, the actual major shareholders are Bosch and Shanghai Automobile Group."

"The other characters are just there to make up the story."

"For them, if cooperation with United Electronics can bring them benefits, they will choose to cooperate."

"If there are other better options, they will choose other options in a minute."

"After all, whether it's FAW or Second Automobile Works, their shares in United Electronics are only at the level of one point."

"It is impossible for them to tie themselves to United Electronics just because of such a small stake."

Jiang Xiangyang had known for a long time that United Electronics would appear, and Zhu Jiansheng had communicated with him personally.

So now I am not nervous at all.

The entry of foreign-funded auto parts companies into the Chinese market is an inevitable trend for future development.

To some extent, this is not a bad thing for the development of China's automobile industry.

Otherwise, if you don’t even have the production capacity for many parts, how can you grow and develop?
After foreign-funded parts companies come in, they may initially only assemble in Chinese factories or do some relatively simple processing.

But at least it's progress.

After feeling the market pressure, this pace will definitely accelerate.

Just like Bosch, it previously only produced some parts with lower technological content in its Chinese factories.

However, with the expansion of China's automobile market and changes in the competitive landscape, people are now willing to produce even core components such as engine ECUs.

And it is a direct joint venture production.

This is a very representative example.

The superiors strongly supported the establishment of United Electronics because this case is quite representative.

We hope this case will guide the subsequent development of the automotive parts industry.

"That's true, but the Shanghai Automobile Group will probably have more trouble in the future."

After hearing Jiang Xiangyang's words, Zhou Yun did not refute.

However, she still couldn't help but worry about the Shanghai Automobile Group, which has a very good development momentum.

"Nanshan Technology cannot monopolize the market. It always needs some competitors to highlight its excellence."

"In the future, we will let more OEMs know that Nanshan Technology is the supplier with the strongest comprehensive competitiveness in QCD."

"As for Shanghai Automobile Group, let them deal with it on their own for a short period of time." "After all, United Electronics only produces a part of the products, it is impossible for them to produce all the auto parts."

"We are now proposing to the competent authorities to introduce a series of relevant policies to lay the foundation for the development and growth of the automotive industry."

Jiang Xiangyang expressed his thoughts very generously.

Compared with this matter, he feels that the content of the "Automotive Industry Industrial Policy" being brewed by the ministry is more important.

He is willing to spend more energy on this matter.

"I have been following up on this matter recently, and the superiors have basically completed the production of the first version of the policy draft."

"We are now seeking opinions from major automakers including FAW, Second Automobile Works and us."

“It will be officially released soon.”

Seeing that Jiang Xiangyang was very concerned about the release of the "Automotive Industry Industrial Policy", Zhou Yun naturally wanted to focus on reporting on the relevant progress.

It serves as a programmatic document for the development of China's automobile industry in the next twenty years.

The importance of this document is unquestionable.

BMW Group is also an in-depth participant here.

……

"Director, we are now also shareholders of United Electronics."

"Will this matter affect the development of Hongqi BMW?"

Within FAW, Zhao Guangming is now assigned to be in charge of the affairs of Hongqi BMW.

Now that FAW, as a small shareholder of United Electronics, has participated in the competition between Bosch and Nanshan Technology, he must have some concerns.

It would be a pity to lose the big picture for the small.

"United Electronics was established under the joint promotion of the Ministry of Machinery and Electronics Industry and Bosch."

"With Jiang Hui's connections, he must have gotten the news before United Electronics was established."

"It can be said that the emergence of United Electronics was approved by Jiang Hui."

"He must have weighed the interests involved and will not blame us just because we are small shareholders among the four of us."

"So there is no need to worry about it affecting our cooperation."

"As for whether FAW should cooperate with United Electronics in the future, it is actually meaningless to consider this in the short term."

"After all, the engines of Hongqi BMW are purchased directly from Nanshan Engine, and they must use core parts produced by Nanshan Technology, not purchased from United Electronics."

"As for FAW-Volkswagen, we will look at the quotations from United Electronics and Nanshan Technology, and choose to cooperate with whichever one has the advantage."

"As for FAW Toyota, they have no plans to introduce electronic fuel injection engines yet."

"Even if there is, the relevant ECU and other core parts will definitely be purchased from Denso, and will have nothing to do with United Electronics."

Geng Weidong has a thorough understanding of this matter and feels that it will not have much impact on FAW.

If we really have to talk about influence, it is a good influence and there is no harm.

"I'm afraid that the BMW Group will be angry with me and use this incident as an excuse."

Although what Geng Weidong said made sense, Zhao Guangming was still a little worried.

"Mr. Jiang's vision is not that low, you don't need to worry so much."

"On the contrary, you need to follow up regularly on the development of the Hongqi A4 and Hongqi A8 models."

“Try to ensure that both models can be mass-produced as planned.”

Geng Weidong didn't want to bother with Zhao Guangming about United Electronics anymore.

This doesn't make any practical sense.

“The work in this regard is currently being carried out as planned.”

"If things go well, the Hongqi A4 will be officially off the production line by the end of this year, and will be put into mass production next year."

When it comes to new car models, Zhao Guangming's interest suddenly becomes much higher.

These are the future of Hongqi and BMW.

Now, relying on the Hongqi A6, Hongqi BMW is doing very well.

If there were two more products, life would definitely be more comfortable.

……

When people in China's automobile industry were paying attention to the emergence of United Electronics, relevant departments officially issued the "Automotive Industry Industrial Policy".

This policy consists of 13 chapters and 61 articles, mainly covering policy objectives, product certification, industrial organization and other aspects.

What has attracted the most attention is the policy requirement that the automobile industry implement a "catalog" management system.

Foreign-invested automakers are required to produce and sell cars in China through joint ventures, and the foreign party’s shareholding in the joint venture cannot exceed 50%.

Before this policy came out, China also established several joint venture car companies.

However, the establishment of these joint ventures was based on the policy guidance at the time and the willingness of enterprises to cooperate.

There is no clear policy requiring foreign automakers to enter the Chinese market in the form of joint ventures.

The emergence of this policy will have a huge impact on the future development of China's automobile industry.

"This policy was aimed at protecting the local auto industry and changing the situation at the time where the auto industry was in a state of chaos with blind investment and poor quality."

“At the same time, we will introduce advanced foreign technology and management experience through joint ventures to promote the development of China’s automobile industry.”

At an internal meeting of the BMW Group, Jiang Hui personally interpreted this policy document to a group of senior executives.

"Build the automobile industry into a pillar industry of the national economy and change the situation of dispersed investment and small production scale."

"In 2000, the total automobile output should meet more than 90% of the domestic market demand, and the sedan output should account for more than half of the total output, basically meeting the needs of families."

"The motorcycle output basically meets domestic demand, and a certain amount is exported."

"The country will promote the concentration of investment in the automobile industry and industrial restructuring to solve the problems of 'scattered, chaotic, low-quality and slow'."

“This is not bad news for our group.”

Jiang Hui interprets this policy from the perspective of someone who has experienced it, and his accuracy is absolutely very high.

This also allows a group of senior executives to form a correct understanding.

Lest you misunderstand.

"In this policy document, product certification is specifically mentioned."

"In the future, relevant national departments will implement an internationally accepted certification system for automotive products in accordance with technical regulations. Products that have not passed the certification shall not be sold, imported or used."

"This will definitely have a certain impact on the schedule of each OEM's new model promotion."

“The company needs to set up a dedicated certification department to ensure that all models we produce comply with regulatory requirements.”

Over the past few decades, the development of China's automobile industry has indeed been rather chaotic.

There's no harm in keeping abreast of this.

Jiang Hui also absolutely supports product certification.

Otherwise, it is very likely that bad money will drive out good money in the market.

Large companies such as BMW Group will suffer greatly.

Arrange product certification in advance now, and you will not be allowed to produce messy products at all, which can avoid some risks. (End of this chapter)