China Automobile Summit: China Market in the eyes of Multinational Companies


Multinational corporations value Chinese "tiger tigers" and despise "big lions"

A group of “foreigners” came to China and gathered in a big hotel in China to discuss the development prospects of the Chinese auto industry. After listening to such things, do you think it's funny, or is it a bit guilty in your heart? What makes people even more guilty is that some multinational groups have publicly stated that the "big lions" of the Chinese auto industry are nothing in their eyes.

During the Beijing International Auto Show, a high-level forum was held at the China World Hotel, called the "China Auto Summit." Unlike many seminars during the auto show, this forum is organized by a foreign media. Most of the participants are senior automotive and parts manufacturers from abroad. The lecturers are all automotive and parts joint ventures in China. President or CEO.

What makes people think incredible is that they are also working hard in the Chinese market. They also make enough money for the Chinese people. The speaker's understanding of the Chinese market is very different.

“From their speeches, you can feel that some foreign companies only use self-owned brand companies as potential competitors, but they think that the 'big three' that we think is still acceptable is nothing.” The person showed his own speech record to the reporter.

Deng Kai, president of GAC Resources, said in his speech: “Emerging companies like Geely, Chery and Great Wall are more dangerous. And the big lions (referring to the three major auto groups) have good profits. They are Satisfied.” He said the competition between the two companies is very different.

"This at least sends a signal to domestic companies. We cannot take this lightly." Through this man's frown, he knows his worry.

Multinational companies seem to favor this auto summit. The top companies of Chinese companies including GM, Dai Ke, Brilliance BMW, Guangzhou Honda and others all attended the conference and made speeches at the conference. In addition, Miao Wei, General Manager of Dongfeng Motor Group and Dong Yang, President of Beijing Automotive Industry Corporation, attended the meeting. Chen Qingtai, deputy director of the Development Research Center of the State Council, also delivered a speech.

Among the speakers, Murphy, chairman and CEO of General Motors China, was the most compelling. He believes that the development of Chinese cars has encountered many constraints such as rising oil prices, traffic and environmental pressures. China should make full use of the resources of transnational corporations to achieve sustainable development.

When Deng Kai was speaking, there was a topic that caused the audience to laugh. This topic is a very serious topic for domestic companies. That is the issue of intellectual property rights. He took Geely and Daihatsu and Xiali, QQ and SPARK, Shuanghuan and Honda CRV as examples to illustrate that some domestic companies are “doing plagiarism work” and “plagiarize research and development, plagiarism projects, plagiarism market research,” and expressed that they should be present. The foreign companies "knocked on the alarm."

Intriguingly, for the same problem, Fengchuan Shang, the president of Dongfeng Honda Motor Co., Ltd., who took office shortly afterwards, said that there is no intellectual property issue in his company. Moreover, he believes that the Chinese government will pay attention to this issue and properly resolve the relevant intellectual property rights. Problems.

“Two different perspectives reflect the different attitudes of multinational corporations in dealing with intellectual property issues, and also reflect the different strategies they have adopted in China.” After the meeting, a Chinese employee working at a foreign company told reporters.

According to his analysis, from the speeches made by high-level executives of some multinational corporations, it can be seen that they did not regard three major Chinese companies as their opponents because they are fully seen in the following sentence: “Shanghai, FAW, Dongfeng did not Doing too much work for your products because they already have products."

“Multinational companies value so few self-developed companies in China that they only regard them as rivals, and they also explain the importance of independent research and development. For these companies, their competitors are now the world’s top car manufacturers. If it cannot be a climate in recent years, I am afraid it will be difficult to turn over." He sighed.

A president of a multinational company compared these domestic self-owned enterprises to the “little tiger” and considered the “little tigers” to be their real opponents of these multinational companies. He also commented that several "little tigers" are doing well now.

China's spare parts product quality and logistics have become a bottleneck for multinational companies' procurement.

At this summit, another topic that people are more concerned about is the parts and components. The presidents of Delphi, Visteon and Bosch's three major component companies made speeches at the conference. According to Chen Jinya, president of Delphi China, the quality and logistics of parts and components have become the bottleneck for multinational companies in China.

"Although it is really cheap to buy things in China, most suppliers in China are not ready to provide products. The bottleneck is quality and logistics issues," Chen Jinya said in a statement.

Chen Jinya said that problems in hardware, software, and communication capabilities make it difficult for multinational companies to purchase in the Chinese market. Last year, Delphi spent $25 million on procurement, and Delphi's goal was to purchase $1 billion in China.

“Logistics is also a very problematic headache.” Chen Jinya cited an example: If Delphi were to ship a 20m×40m container from Shanghai to Chengdu, it would be equivalent to shipping it from China to California in the United States.

Hearing here, Mr. Luz, who first came to China, appeared to be worried.

“Is this true? Our company has come to China this time mainly to seek cooperation. After listening to some of the president’s briefings, I’m very confident; but after listening to other people’s introductions, I’m also a bit worried.” Mr. Luz told reporters After he returned this time, he would write a report and submit the report to the board of directors to decide whether to invest in China.

Luz was a market manager for a foreign parts company. Before he came to China, he did not understand the Chinese market at all.

"If there are problems with logistics and product quality, we have to reconsider the Chinese market."

“In addition, it is said that counterfeit products are very serious. Is it right? I just heard that in Wuxi, there is a factory that produces turbochargers and there are many factories that fake their products. They have to file a lawsuit.”

In this regard, Chen Jinya’s view is: “The Chinese government is not willing to have such a situation. Because the auto industry is China's pillar industry, they want to make this industry better and better. They also see where the benefits lie.”

He believes that most Chinese companies have already realized the importance of this issue. They often work together closely to do a good job in this area.

It is reported that about half of the multinational companies participating in the summit come to China to find cooperation opportunities. Some parts suppliers said that the Beijing auto show has enabled them to further see the great opportunities of Chinese autos. It is not too late to enter the Chinese market.

“I only brought in one customer this time, but I feel very good. Next time, I will bring more customers to China.” Jean Sisi, president of ZTS Information, told reporters.

Several presidents of multinational companies said in their speeches that China’s spare parts suppliers are still relatively low. For nearly a hundred corporate CEOs who sit attentively at the stage, these words are undoubtedly like a summons and have great appeal.



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