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In idioms, the automobile industry in China is under the protection of the key, like the flowers in the greenhouse. Auto companies indulge in the joint venture mode and do not try to forge ahead; self-developed enterprises not only lack support. Instead, it has been repressed.
Chinese policy is very concerned about the automotive industry, but its results are not satisfactory. The fundamental sign of failure is that many years of industrial policies have prevented China's auto industry from developing its own capabilities for development. Even the original development capabilities have been lost. The direct cause of this consequence is that China’s auto industry policy has never focused on developing the ability to develop independent products, but has always focused its main policy objectives on industrial concentration and (individual project) scale.
In 1988, the State Council clearly proposed the “three major and three small†strategy for the distribution of cars. That is to say, the state only supports three production bases (the three major cars) of FAW, Dongfeng and SAIC and three production sites of cars in Beijing, Tianjin and Guangzhou (three small ), and no longer approve any other production sites. As a result, the automobile industry policy with a high starting point, high volume, and professionalism has gradually formed two key points or principles: one is to protect incumbents based on the principle of scale and concentration, and to restrict new entrants; the other is to pass The joint venture introduced product technology and made localization of corresponding parts and components. However, at the same time as restricting entry and strangling competition, the state has never put forward requirements for independent technological development for enterprises’ technological learning. As a result, long-term protected enterprises have gradually lost the motivation for independent development.
The need for production scale is to shirk responsibility
In order to shirk responsibility, some people spread several myths in the process of the Chinese auto industry's failure. Apart from the myth of industrial concentration, there is another important myth that has become cliche: that the development of independent products must be carried out with considerable production. Scale is a prerequisite. . In the face of self-development companies, these myths can only be jokes. Hafei embarked on the road of self-development when it was only tens of thousands of mini-vans, and its independent development became a decisive factor that enabled Hafei to accelerate its expansion. Geely and Chery entered the auto industry through independent development, that is, they began to develop independently at the zero scale, and they began to make profits when their production and sales amounted to 20,000-30,000. In 2003, Chery accounted for 90% of China's total car exports, and it became the first Chinese company to export car fittings and CKD parts -
Once again, it confirms the logic that Japan’s Toyota and Korea Hyundai have already proven: Self-development is the only way that the latecomers can squeeze into the international market. Claiming that there is more money to engage in independent development is a big lie to shirk responsibility.
It must be pointed out that technologies embodied in products and processes can be introduced, but technological capabilities cannot be introduced because capabilities are endogenous to the organization. Therefore, the key to the development of independent development capabilities is not the size of financial resources, but the efforts and determination to conduct technological learning.
The main obstacle to the development of independent development capabilities is the lack of courage, confidence and enterprising spirit.
Product development is the primary link in the automotive technology structure
For 20 years, the state’s industrial policy and technology policy for the automotive industry has been based on a key assumption, that is, the introduction of advanced product technologies through joint ventures, followed by localization of parts and components, and finally self-development. However, almost 20 years after this policy was implemented, the Chinese automobile industry was not only not close to the expected goal, but it seemed to be getting farther and farther.
From the process of the entire automotive industry, we can see that the product design is the highest end, and the entire automobile industry's technical system is actually a hierarchical structure. Accumulated experience in the product development process is reflected in technological capabilities, often internalized into the company's strategic decision-making capabilities, affecting the entire company's competitive performance. Without product development technology capabilities will lead to lack of strategic decision-making capabilities of enterprises, and strategic decision-making ability of enterprises can only be more easily subject to external forces.
Expensive product development is the major bottleneck faced by the latecomers. Its performance is
At present, in the automotive industry in China, a large number of production equipment and production methods are already at the international first-class level. Production level and workshop site management are no longer the major bottlenecks restricting the development of China's auto industry.
Because the entire vehicle design cycle has been shortened from the average 4-5 years in the 1980s to the current approximately 18 months. Therefore, product development capability has become the core link in today's world auto industry competition.
The automotive industry is highly continuous, both technically and from the market. This technological continuity has brought great advantages to the pioneers in this industry. Therefore, the long-term accumulation of the resulting technological capabilities constitutes an entry barrier for the automotive industry.
The capacity gap is the major bottleneck in the development of China's auto industry. Due to technical continuity, there is no possibility of overcoming this capability gap. The joint venture model of China's auto industry has gradually lost the autonomy of technological learning due to its dependence on foreign product technology, and the process of "technology introduction/technical cooperation-product introduction-joint venture" has actually become a "abandoned independent development activity-development." The demise of technological capabilities - the path to the demise of independent organizational entities.
Product development is the fundamental link to obtain intellectual property
Only product development can produce intellectual property rights. The current joint venture model of the Chinese automobile industry basically does not include technology learning at the product development level. This situation explains why the Chinese auto industry lacks independent intellectual property rights.
In the automotive industry, product development activities determine the right to confirm product design, and design rights are the embodiment of intellectual property rights. Without the right to confirm the design of its main product, the company cannot independently decide to modify or innovate the product. Therefore, without the right to confirm the design of their main products, companies will also lose the economic incentive to conduct R&D activities. In the real world, the joint ventures of the Chinese automobile industry not only have no economic motive force for product development, but also the efforts to develop for any reason will be consciously curbed by foreign parties.
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