The change of the two Chinese executives of Beijing Benz seems to indicate that the strategic adjustment of BAIC has begun to take action. There are various indications that Beijing’s own brands have also entered an important stage.
A relevant person of Beijing Automotive Holding disclosed to the “First Financial Daily†that Beijing Automotive Research Institute, which is responsible for Beijing Automotive’s independent R&D work, is currently working overtime for the Beijing brand independent research and development concept car to be unveiled at the Beijing auto show in April this year. “Besides, it does not rule out that BAIC will also display its own brand results of brands other than the Beijing brand at the auto show,†he said.
According to a reporter from a person close to Beijing Auto Holding, it is known that the major strategic adjustment of BAIC will also be reflected in the layout of the country. “Southern manufacturing base in Hunan Zhuzhou is an important step, but also for the future of BAIC R & D chess out The pace of strategy," he said.
Beijing Automotive Research Institute undertakes independent research and development of cars
The Beijing Automotive Research Institute, located in Beijing's Yizhuang, has officially operated for less than a year and is currently actively preparing for the construction of a research and development base. According to the relevant person in charge of the Research Institute, "The main task of the Research Institute is the research and development of BAIC's own brand vehicle."
The reporter learned that in addition to the display of the concept car of its own brand at the Beijing Auto Show this year, the Beijing Automotive Research Institute will also showcase the new vehicle technology being developed.
According to an insider of Beiqi Holdings, the reporter revealed that in the future, Beijing Auto will have a variety of models such as cars, Beijing off-road and high-end SUVs on its own branded products.
The relevant person of Beiqi Holding stated that the adjustment of the personnel of Beijing High-Tech Holding Co., Ltd. to the senior staff of Beijing Benz Dyke was due to the further implementation of the group strategy. “Tong Zhiyuan is still the deputy general manager of BAIC Holdings and the director of Beijing Benz Dyke, and continues to leverage its technological advantages in independent research and development and building its own brand base.â€
It can be seen that Beijing Automotive has made full preparations for hardware and software for the development of self-owned brand cars.
In 2007, BAIC ranked the fifth in the industry, with FAW, SAIC, Dongfeng, and Changan leading the team, and GAC was aggressively behind it. As a local car company in the top ten camps, Beiqi without its own-brand cars has always lost its momentum. SAIC and Changan have already had molding products. GAC has exhibited its own concept car in a high profile at the Guangzhou Auto Show in 2007. The "Beijing brand" that Beiqi owned as early as 30 years ago has long been forgotten by the market in the historical corner.
According to an old Beiqi employee, this year marks the 30th anniversary of the "Beijing brand" nomination for Zhu De. The Beijing brand's debut of the "Beijing brand" independent brand concept car will continue to be the chapter of Beijing's own-brand car.
However, the reporter learned from relevant personnel of the Beijing Automotive Research Institute that the current independent research and development work is also difficult. "There are less than three months away from the auto show and the time for us is very urgent," he said.
According to him, the work of independent research and development is not only a manifestation of BAIC's own design and R&D capabilities, but also the level of manufacturing and the level of raw materials that restrict the in-depth development of independent research and development. He said: "The things that can be designed sometimes cannot be put into production due to the limitations of the manufacturing level. This is not helpful."
Futian's own-brand sedan is still in the future
In addition to the Beijing brand's own-brand car, Foton Motors, another major independent brand of Beiqi Holding, also shoulders the burden of independent research and development.
According to Wang Jinyu, General Manager of Foton Motors, the goal of Foton Motor is to achieve the industry first in all segments of commercial vehicles. In addition, Wang Jinyu has more visions for the future and uses his rhetoric to say: “Fukuda Motor aims to be a car in the future and hopes to make a breakthrough in the car.â€
However, according to the related personnel of Foton Motor, the reporter disclosed that the current Foton Motors own-brand car is still in the planning state, has not yet entered the substantive stage of implementation, "This year's Beijing auto show should not have its own brand cars debut." He said.
Wang Jinyu said that at present, Foton Midi released by Foton Motor Co., Ltd. is a multi-function vehicle and is the first product for the Foton Motor's test-water passenger car market, and is also a good preparation for the market for Foton Motor's entry into the car market.
According to Wang Jinyu’s plan, he must choose the best environment and timing to enter the car market. He believes: “When Foton Motors’ commercial vehicle reaches the first in the industry, corporate profits will reach 3 billion to 4 billion yuan. The profits obtained by the car have the ability to develop cars."
In view of this, Foton Motors' car plan will remain in the future for a short period of time, and Beiqi’s own-brand sedan will still have more hope for the rise of the “Beijing brandâ€.
Expanding the ground for research and development
The regional restrictions in the Beijing area are also a burden on Beiqi's own research and development. According to analysis by industry experts, Beijing Automobile's production capacity in Beijing is currently about 1.35 million, Foton Motors 550,000, Beijing Hyundai 600,000, Beijing Benz 100,000, and BAE 100,000. “But the potential for expansion of production capacity in Beijing is not very large. BAIC will inevitably expand its production base in other cities.†He analyzed.
On December 23, 2007, Beijing Auto Holding also held a signing ceremony for Southern Manufacturing Base in Zhuzhou, Hunan Province. It plans to invest RMB 2 billion in the construction of light trucks, pickup trucks, light passenger cars and off-road vehicles in the Zhuzhou High-tech Zone. Xu Heyi, chairman of BAIC Holding, said at the signing ceremony: "The construction of BAIC's southern manufacturing base is an adjustment of the strategic layout of BAIC Holding."
According to an industry insider who is close to BAIC Holdings, BAIC is expanding across the country as an independent R&D agent. “Beiqi Holding has built a southern manufacturing base in Zhuzhou, Hunan Province some time ago. In fact, it hopes to have a base in the south and timely move some of its current low-end mature products to the South Base to make way for Beijing to produce its own branded products and high value-added products. He told reporters.
Analysis of industry experts, distribution in various locations can also transfer Beijing's high costs in logistics, manpower, etc. to other cities, and reduce expenditures in these areas.
According to the reporter's understanding, Foton Motor has already begun to fully implement the strategy of expanding the site throughout the country. Zhao Jingguang, deputy secretary of Beiqi Foton Motor Co., Ltd., said that at present, Foton Motor has established production bases or engine factories in Beijing, Tianjin, Shandong, Hebei, Hunan, Hubei, Guangdong, and Liaoning.
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