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Qi shares opinion on China's auto industry

(China Daily)
Updated: 2008-10-13 13:57

Less R&D, more design

How can we master core technology? We must change the awkward position of having property rights without knowledge or having knowledge without property rights. I think we should set joint ventures for design or projects instead of manufacturing with the principle of "joint-design, cooperated-research" in order to master core technology.

Earning money depends on quantity, while keeping a foothold depends on quality. In China, we should talk less about research & development (R&D), but more about design. We can't talk about R&D if we can't design.

The country should find an R&D center to work out key problems including engine, transmission case as well as automotive electronics. At present, enterprises themselves are not capable of doing research. Also the government rather than enterprises is the subject at present.

Interactivity between industry and capital

We should combine auto industry with the capital market for further developing. It's impossible for us to accumulate funds. And we can't earn money by bank loans. Independent industry is a kind of social contribution because it needs big input and output with little profit. But it can promote employment.

We should insist on the interactivity between the auto industry and capital market. Capital is a means but never an aim. The two supplement each other.

Export strategy

Chinese Medium- and low-end cars will enter international markets like the country's household appliances. This depends on China's status as a big manufacturing country and the shifting of the world's industry.

China-made cars meet the conditions of export, especially in quality. The biggest blow is we don't have our own brand.

Brilliance's strategy is increasing market share by middle & lower grade products in the short-term and managing brand by high-level products in long-term. The lowest level of auto industry is products and the highest one is brand. Good products don't mean good brand. But products and brand have the same core that is quality.

What is quality? I will reach the international standard of quality by all means. Now, shape design is ok for us. Our engine and transmission case are also ok. But our products' inner-quality is not good enough.

First is security. Security standards will be higher and higher in the future. And the highest safety standard is in Germany. We worked hard and used one year to make 52 improvements in 5 aspects. Now, our products reached the 3-star standard of Germany. And no one except us reached this standard in China.

Second, we will send our products to America to examine our emissions. You know emissions standards in California are the highest. So if we pass it, we will reach the highest standard in the world.

If we pass these two standards, our inner-quality will be good enough. Technology is the key of inner-quality and it's the guarantee of quality. I will make Zhonghua's quality reach the highest quality standards in the world.

Then we will build up a brand to make all the customers in our country have confidence in Chinese brands. Meanwhile, we will sell our products around the world. So we kill three birds with one stone: 1. we reach the highest standards; 2. we occupy the international market and increase our sales; 3. we set up a brand.

Last year, we exported 15,000 Zhonghua. And we want to make it 30,000 this year, 60,000 in 2009 and 100,000 in 2010. Also, we will set sales groups in five areas: Russia, Europe, North America, Middle East and Africa.

In the future, we will export more types of products including lorries, sedans and microbuses. And we have sold 500 FRVs to Egypt and 440 Junjie to Germany so far.

Finally, the development of a complete vehicle should interact with key parts.

If we don't master key parts, we won't master core technology. In the past, we successfully developed the 1.8T engine for our country. And we will contribute more high-quality engines in the future.

Brilliance will surely achieve a harmonious development among the complete vehicle, engine and transmission case.

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