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On March 11, 2011, an earthquake of magnitude 9.0 on the Richter scale occurred in Japan. Some people later predicted that Japan’s industrial chain must be broken, and some people saw opportunities from it. Some automakers in China are also claiming to replace Japan and become new suppliers in the industrial chain. Can we really replace Japan? Opportunities are always there, and the key is to have the ability to grasp opportunities. Where exactly is the gap between us and Japan? Recently, at the 3rd Global Automotive Parts Summit hosted by Gasgoo.com, Geely Auto President Chen Wenkai's impact on Japan's OEMs and parts suppliers and Dongfeng Nissan's spare parts procurement from the earthquake in Japan Director Qin Hua, Purchasing Director Wang Yongqiang of Nanjing Iveco, President Chen Yan of Yanfeng Pareto, and Terry Onica, Director of Automotive Industry Marketing of Enterprise and Management Systems Software Co., Ltd. jointly conducted a new change in demand of the host plant in the new era. And how to work with suppliers for a win-win round-table discussion.
From left to right, Chen Wenkai, Qin Hua, Wang Yongqiang, Chen Xi, Terry Onica
Chen Wenkai : The Japanese earthquake has received widespread attention from the world. Some people even said that this earthquake has seriously affected the production capacity of the automaker . What is the situation in the end?
Qin Hua : Dongfeng Nissan was less affected by the earthquake. After the earthquake, we quickly resumed normal production. This rapid recovery is mainly due to the rational deployment of Renault Nissan to the supply chain. In addition, we have conducted timely investigation and analysis of market conditions and formulated effective countermeasures. Therefore, we are fully confident that we will achieve the sales target set for the year. .
However, some people now say that the automobile industry chain affected by Japan’s earthquake has been cut off. Can Chinese suppliers take this opportunity to replace Japan’s industrial chain? Today, we have entered a period of globalization. Can Japanese suppliers put this chain into China and export products to Europe, the United States, and other places through China? In my opinion, these are all possible. However, whether or not China can repurchase the industry chain or whether Japanese suppliers can be replaced by Chinese suppliers will depend on the overall strength of Chinese suppliers or the competitiveness of the entire industry chain. How, however, China does not have such strength from the current situation.
For example, in the field of automotive electronic components and petrochemical raw materials, after years of development in Japan, Japan has formed an industrial chain that resembles a spider web and firmly grasps the technical and production advantages of its core components. This is also their long-term international competitiveness. The key will not be easily grasped by their competitors. Therefore, if China’s home appliance industry has developed into today, although it owns a number of products with its own brands, the scale of the industry is among the highest in the world. However, it is undeniable that the core components of household electrical appliances, such as display screens, are still produced domestically. No, it must be purchased from Japan, South Korea or other countries.
So in the final analysis, it is whether domestic suppliers have sufficient technical strength and have high-quality products. If a company does not have long-term technology accumulation and investment in R&D funds, it is impossible for its products to reach the same quality of Japanese products in the short term. With the gradual recovery of Japan's industrial chain after the earthquake, domestic suppliers should actively participate in the strategic plan of reconstructing the supply chain with auto manufacturers and strive to become a new supply chain.
Chen Wenkai : Listening to your words reminds me of talking to the purchasing director of another German automaker one month ago. He said that at present, in order to reduce the weight of aluminum casting products with special processes, their original supplier in Germany is Georg Fischer (GF). To come to China, it is still necessary for GF to provide products for production and supply, and it is necessary to find production. It is very difficult for local suppliers to produce the same quality products. Associating with China, there are at least several hundreds of aluminum-casting local parts and components companies, and their export volume is very large. However, almost none of them can produce the same quality products as international suppliers, which also explains the technology of the products. We still need to improve. In short, opportunities are always there, but they also need the ability to grasp opportunities.
In addition, I would like to know if commercial vehicles are affected by the Great Japan Earthquake, or are they less affected than passenger cars?
Wang Yongqiang : The Japanese earthquake has basically no effect on us. Our suppliers are basically from the mainland. Of course, some of these core technologies are still provided by foreign suppliers.
I very much agree with the opinions of Mr. Qin Hua and Mr. Chen Wenkai. If you want to achieve something in the automotive industry, you need a long-term accumulation process. Like George Fischer, after more than two hundred years of development, they have been conscientiously working in their own industries and have achieved today's results. No company in China's spare parts industry has such a profound technological accumulation, so it is difficult to achieve the same level. In addition, in terms of cost, similar methods such as reducing laborers’ salaries to achieve cost reduction are not sustainable for a long time. What we need to do is to constantly enhance our R&D capabilities and creativity. Only in this way can we compete with foreign brands. .
As an automaker, we hope that our suppliers will not only be a counterfeiter, but will also be able to become a manufacturer that can cooperate with us for new development and provide us with products that meet performance, quality and cost requirements.
Chen Wenkai : As a representative of the auto manufacturer, just now both of them talked about their views on suppliers. As a first-tier supplier, Yan Li Bai Lide has been affected in this earthquake?
Chen Hao : Our influence as a Tier 1 supplier in this earthquake is also very small. Through this earthquake, I have seen that we have entered a globalized industrial era. The impact of certain regions after suffering an unexpected event can spread to the world. But I noticed that the most affected by this earthquake was not in Asia but in Europe or even North America. In addition, this also makes me ponder some problems, that is, whether it is an auto manufacturer or a supplier, how should we rationally design the industrial chain, how to layout, and how to optimize and avoid risks in this process.
Furthermore, this incident is an opportunity for us, after all. Can we grasp such an opportunity to achieve catch-up and reposition itself in the global industrial chain? This is the key to the problem.
Chen Wenkai : Let’s take a look again at Enterprise Anda, which has been focusing on automotive software management systems. After this great earthquake, some people said that the biggest lesson from earthquakes is not to engage in lean production because inventory is too small, once it encounters large After an accident or change, it becomes very fragile. What do you think of such a problem?
Terry Onica : The impact caused by the Great Japan Earthquake is indeed huge, but it is not because of the issue of stocks, because this is an occasional major incident. And I believe that most manufacturers can basically resume production in the second half of the year. Therefore, companies should continue to do lean manufacturing or lean management systems, otherwise it will be difficult to maintain sustained competitiveness in the automotive industry.
On March 11, 2011, an earthquake of magnitude 9.0 on the Richter scale occurred in Japan. Some people later predicted that Japan’s industrial chain must be broken, and some people saw opportunities from it. Some automakers in China are also claiming to replace Japan and become new suppliers in the industrial chain. Can we really replace Japan? Opportunities are always there, and the key is to have the ability to grasp opportunities. Where exactly is the gap between us and Japan? Recently, at the 3rd Global Automotive Parts Summit hosted by Gasgoo.com, Geely Auto President Chen Wenkai's impact on Japan's OEMs and parts suppliers and Dongfeng Nissan's spare parts procurement from the earthquake in Japan Director Qin Hua, Purchasing Director Wang Yongqiang of Nanjing Iveco, President Chen Yan of Yanfeng Pareto, and Terry Onica, Director of Automotive Industry Marketing of Enterprise and Management Systems Software Co., Ltd. jointly conducted a new change in demand of the host plant in the new era. And how to work with suppliers for a win-win round-table discussion.
From left to right, Chen Wenkai, Qin Hua, Wang Yongqiang, Chen Xi, Terry Onica
Chen Wenkai : The Japanese earthquake has received widespread attention from the world. Some people even said that this earthquake has seriously affected the production capacity of the automaker . What is the situation in the end?
Qin Hua : Dongfeng Nissan was less affected by the earthquake. After the earthquake, we quickly resumed normal production. This rapid recovery is mainly due to the rational deployment of Renault Nissan to the supply chain. In addition, we have conducted timely investigation and analysis of market conditions and formulated effective countermeasures. Therefore, we are fully confident that we will achieve the sales target set for the year. .
However, some people now say that the automobile industry chain affected by Japan’s earthquake has been cut off. Can Chinese suppliers take this opportunity to replace Japan’s industrial chain? Today, we have entered a period of globalization. Can Japanese suppliers put this chain into China and export products to Europe, the United States, and other places through China? In my opinion, these are all possible. However, whether or not China can repurchase the industry chain or whether Japanese suppliers can be replaced by Chinese suppliers will depend on the overall strength of Chinese suppliers or the competitiveness of the entire industry chain. How, however, China does not have such strength from the current situation.
For example, in the field of automotive electronic components and petrochemical raw materials, after years of development in Japan, Japan has formed an industrial chain that resembles a spider web and firmly grasps the technical and production advantages of its core components. This is also their long-term international competitiveness. The key will not be easily grasped by their competitors. Therefore, if China’s home appliance industry has developed into today, although it owns a number of products with its own brands, the scale of the industry is among the highest in the world. However, it is undeniable that the core components of household electrical appliances, such as display screens, are still produced domestically. No, it must be purchased from Japan, South Korea or other countries.
So in the final analysis, it is whether domestic suppliers have sufficient technical strength and have high-quality products. If a company does not have long-term technology accumulation and investment in R&D funds, it is impossible for its products to reach the same quality of Japanese products in the short term. With the gradual recovery of Japan's industrial chain after the earthquake, domestic suppliers should actively participate in the strategic plan of reconstructing the supply chain with auto manufacturers and strive to become a new supply chain.
Chen Wenkai : Listening to your words reminds me of talking to the purchasing director of another German automaker one month ago. He said that at present, in order to reduce the weight of aluminum casting products with special processes, their original supplier in Germany is Georg Fischer (GF). To come to China, it is still necessary for GF to provide products for production and supply, and it is necessary to find production. It is very difficult for local suppliers to produce the same quality products. Associating with China, there are at least several hundreds of aluminum-casting local parts and components companies, and their export volume is very large. However, almost none of them can produce the same quality products as international suppliers, which also explains the technology of the products. We still need to improve. In short, opportunities are always there, but they also need the ability to grasp opportunities.
In addition, I would like to know if commercial vehicles are affected by the Great Japan Earthquake, or are they less affected than passenger cars?
Wang Yongqiang : The Japanese earthquake has basically no effect on us. Our suppliers are basically from the mainland. Of course, some of these core technologies are still provided by foreign suppliers.
I very much agree with the opinions of Mr. Qin Hua and Mr. Chen Wenkai. If you want to achieve something in the automotive industry, you need a long-term accumulation process. Like George Fischer, after more than two hundred years of development, they have been conscientiously working in their own industries and have achieved today's results. No company in China's spare parts industry has such a profound technological accumulation, so it is difficult to achieve the same level. In addition, in terms of cost, similar methods such as reducing laborers’ salaries to achieve cost reduction are not sustainable for a long time. What we need to do is to constantly enhance our R&D capabilities and creativity. Only in this way can we compete with foreign brands. .
As an automaker, we hope that our suppliers will not only be a counterfeiter, but will also be able to become a manufacturer that can cooperate with us for new development and provide us with products that meet performance, quality and cost requirements.
Chen Wenkai : As a representative of the auto manufacturer, just now both of them talked about their views on suppliers. As a first-tier supplier, Yan Li Bai Lide has been affected in this earthquake?
Chen Hao : Our influence as a Tier 1 supplier in this earthquake is also very small. Through this earthquake, I have seen that we have entered a globalized industrial era. The impact of certain regions after suffering an unexpected event can spread to the world. But I noticed that the most affected by this earthquake was not in Asia but in Europe or even North America. In addition, this also makes me ponder some problems, that is, whether it is an auto manufacturer or a supplier, how should we rationally design the industrial chain, how to layout, and how to optimize and avoid risks in this process.
Furthermore, this incident is an opportunity for us, after all. Can we grasp such an opportunity to achieve catch-up and reposition itself in the global industrial chain? This is the key to the problem.
Chen Wenkai : Let’s take a look again at Enterprise Anda, which has been focusing on automotive software management systems. After this great earthquake, some people said that the biggest lesson from earthquakes is not to engage in lean production because inventory is too small, once it encounters large After an accident or change, it becomes very fragile. What do you think of such a problem?
Terry Onica : The impact caused by the Great Japan Earthquake is indeed huge, but it is not because of the issue of stocks, because this is an occasional major incident. And I believe that most manufacturers can basically resume production in the second half of the year. Therefore, companies should continue to do lean manufacturing or lean management systems, otherwise it will be difficult to maintain sustained competitiveness in the automotive industry.
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