Shiyan City is built for cars, and it is thriving with cars. The automobile industry is the leading industry in Shiyan City, and it is the foundation and market of the city. The Shiyan automobile industry has long relied heavily on Dongfeng's single supporting market. Its market competitiveness, risk resistance capabilities, and technology development capabilities have been highly dependent on many aspects and its autonomy has been severely inadequate. The rise and fall of Dongfeng Company directly determines the survival and death of most auto parts companies in Shiyan City. It can be said that: Dongfeng Xing, then Shiyan Xing, this is Shiyan's largest market conditions.
At present, Dongfeng and Nissan’s international strategic reorganization has entered a stage of operation, and a truly new wind has been born. This is not only a renewed and new test for Dongfeng. For Shiyan City and even Hubei Province as a whole, the local auto industry is standing at the crossroads of life and death and facing a historic decision. Shiyan City Auto Industry How to deal with life and death choices? ! This is a major topic that must be decided as soon as possible in front of leaders at all levels and the functional departments of the government.
I. The development of the automobile industry in Shiyan City is very worrying
Objectively speaking, Shiyan City's automobile and supporting industries, driven by Dongfeng Corporation's overall development, have formed a certain scale after more than 30 years of development, and have considerable potential for development. However, due to the sluggishness of the entire automotive industry during the Ninth Five-Year Plan period, the development of Dongfeng Motor Company was also at a low point. The automobile industry in Shiyan City was affected by this "great vitality." At present, under the background of China’s accession to the WTO, the obvious trend of global economic globalization and the restructuring of Dongfeng’s international strategy, reviewing and rethinking the status quo of the automobile industry in Shiyan City, especially in the past three years, is really worrying. Uneasy and worried. Mainly in the following aspects:
1. Under the background of the rapid development of China's automobile industry, the automobile industry in Shiyan has shrunk. According to relevant data, in 1998, the city owned 183 auto and supporting enterprises, with a fixed asset value of 5.73 billion yuan, a net value of 4.244 billion yuan, and 56,000 employees. That year, the city’s auto and ancillary enterprises realized a sales income of 6 billion yuan, creating a profit tax 3 Billion yuan (Data source: Li Xiansheng's speech at the Shifang City Party Committee's Working Retreat on September 28, 1999). By 2001, there were 105 vehicles and supporting enterprises in Shiyan City, a decrease of 78, of which 95 were enterprises of a certain scale, the original value of fixed assets was 3.514 billion yuan, the net value was 2.431 billion yuan, and the employees were 32,400, and the city’s automobiles and Supporting companies realized sales revenue of 4.244 billion yuan, creating profits of 228 million yuan. (Source: "Statistical Statistics of Shiyan Automobile Industry Enterprises (2001)"). Although the two sets of data may be subject to certain deviations due to different statistical calibers, it can be clearly seen that all indicators have shown a downward trend. This is in contrast with the rapid development of the entire Chinese automobile industry in the past three years. This is a very dangerous signal and should be highly vigilant.
2. Under the premise that Dongfeng Company's supply and procurement are continuously increasing, the overall supporting capacity of the automobile industry in Shiyan City has been significantly weakened. At present, the truck company is the main channel that Shiyan City provides for Dongfeng. From the perspective of matching auto parts, the statistics of 63 companies are only one of the A-level suppliers, 22 have not passed the Dongfeng Second Party Quality Certification, and the rest are Class B suppliers; from the perspective of supporting procurement, 2001 The annual purchase price of parts and components for heavy truck companies was 3.2 billion yuan, while the supporting amount of the municipal enterprises and cooperative supporting departments was 230.95 million yuan, and the share was only 7.22%; in 2002, the parts and vehicle procurement funds for truck companies were 4 billion yuan. The city’s supporting amount was 238.9 million yuan, and its share was 5.98%. In the case of a 25% increase in the supporting capital of truck companies, the supporting funds in Shiyan City fell by 1.24 hundred points, and there were 22 companies. There are 34.92% of auto parts companies, and the supporting share of Dongfeng Company in these two years is obviously reduced. For example, in Shiyan City Maojian District Dongcheng Parts Factory, in 2001 the supporting amount was 10.24 million yuan, in 2002 it was reduced to 6.57 million yuan, a drop of 35.84%; again if the original Yuxian County Liuye Machinery Factory in 2001 supporting amount is 1.36 million Yuan, because it did not pass the quality certification of the second party, was reduced to 900,000 yuan in 2002, a decrease of 33.82%.
Looking at the purchase of raw materials, from 2000 to 2002, the total amount of raw material purchases and procurement funds of trucking companies climbed year by year, while the purchase volume in Shiyan District only increased slightly. The share in 2000, 2001, and 2002 was 7.49 respectively. %, 9.12%, 9.36%, but its share of purchasing funds is declining year by year, which is 10.61%, 10.23%, and 10.08%, respectively (see Table 1).
This shows that although the number of spare parts and raw materials provided by the Shiyan region has increased, the actual growth rate differs greatly from that of Dongfeng, and the economic added value of the products is not high, the technical content is very low, and the overall supporting capacity is weakening. . Therefore, it is difficult to obtain better returns.
3. The overall profitability of the automobile industry in Shiyan is very low given the higher profit growth in the entire automotive industry. According to statistics, in 2001, the total profit of 95 auto industry enterprises in the city was 11.84 million yuan. In 2001, the profit of the Dongfeng Corporation's auto body factory was 13.21 million yuan, the profit of the frame factory was more than 55.9 million yuan, and the profit of the forging factory was 20.48 million yuan. Yuan; that is to say, the overall profitability of Shiyan City enterprises is lower than that of an ordinary professional factory of Dongfeng Company. Moreover, from the business situation in 2001, some key competitive companies suffered losses. For example, Dongfeng Jinshi Tire Co., Ltd. suffered a loss of 63.21 million yuan, Shiyan Automobile Cylinder Factory lost 5.79 million yuan, and Shiyan Jiuhe Friction Material Co., Ltd. lost 186 yuan. Million yuan, Danjiangkou Automobile Transmission Shaft Co., Ltd. lost 3.75 million yuan, and so on.
4. In the situation where the automobile industry is generally pursuing the effective allocation of resources, the asset allocation of the automobile industry in Shiyan City is unreasonable and the deviation is extremely large. From the perspective of corporate attributes and asset distribution, the total net fixed asset value of 95 enterprises with a certain scale in the city is 243.134 million yuan, and their asset allocation status is as follows (see Table 2 in the table below).
It can be clearly seen from Table 2 that the net value of fixed assets of the seven provincial companies in Shiyan City accounted for 58.77% of the total, which was more than half. If seven provincial companies are not considered, the overall scale of the automobile industry in the “Two Cities, Five Counties, and Three Districts†of Shiyan City is small, the layout is scattered, there is no leading enterprise, and the overall competitiveness is not strong. This shows that in Shiyan City, the overall investment in the automotive industry in recent years is seriously inadequate, causing the lack of success in the city's auto companies. Moreover, the relevant data also proves this point. In Shiyan City's automobile enterprises in 2001, there were only 9 enterprises with sales revenue exceeding 100 million yuan, accounting for 9.47% of the total number of enterprises in the automobile industry in the city; and 7 companies with 50 million yuan to 110 million yuan. 7.37% of the total; 37-50 million were 37, accounting for 38.95% of the total; 42 were less than 10 million, accounting for 44.21% of the total. In addition, due to the uneven distribution of the automobile industry and the level of development in the cities, counties and districts, it also led to a serious imbalance in the entire industrial structure and economic structure of Shiyan City, resulting in the limited resources and regional advantages of Shiyan City. Play well.
5. In Shiyan City, under the strategy of “relying on Dongfeng and serving Dongfengâ€, the operation of the automobile industry in Shiyan City still has competition with Dongfeng Company and even damages the “Dongfeng†brand. This is mainly reflected in the following: First, the city's affiliated companies are excessively pursuing small and complete, and there have been problems with Dongfeng Company's repeated construction. For example, the Dongfeng Company has frame, body, and axle plant, etc. Shiyan also has corresponding problems. As a result, Dongfeng Company, which is capable of production in Shiyan City, already has it. However, Shiyan City, which is required by Dongfeng, is not produced, and it has to be purchased outside Shiyan City. As a result, a large number of assets in Shiyan City are left idle or the capacity is insufficiently released. For example, Hubei Huayang Group's transmission fork production capacity is 430,000 units. In 2001, the actual output was 173,000 units. The Shiyan City Automobile Frame Factory has 7,000 units of production capacity. In 2001, the actual output was 4,661 units. In particular, vehicle companies and some conversion companies represented by the Three Rings and Ten Thousands are relying on the name of Dongfeng to actually treat Dongfeng as their primary competitor, causing considerable damage to the Dongfeng. Second, the internal repeated construction and competition in Shiyan City is also very serious. There are many companies that produce low value-added products such as castings, stampings, plastics, and rubber parts. Many of the products are duplicated in similarities, features are not obvious, and advantages are not. prominent. For example, the overall casting capacity of Shiyan City exceeds 50,000 tons, but all of them can only produce products with low added value and low technical content, which is entirely a low level of repeated construction. Third, and even more serious, some companies pursue short-term, immediate and partial interests. Under the banner of “Dongfengâ€, they illegally manufacture and sell counterfeit and inferior products (including whole vehicles, parts and accessories, etc.). ), seriously disrupted the Dongfeng market and damaged the image of the "Dongfeng" brand.
In fact, there are still many problems in the automobile industry in Shiyan, such as backward technology, talent shortage, low credit rating, poor financing channels, and low management level. Only from the above five points analysis, it is enough to show that the actual status of Shiyan City's auto industry is worrying and not optimistic. If these issues are not highly valued and effectively resolved, Shiyan automobile industry may have the danger of “annihilation†in the new round of strategic adjustment of Dongfeng Company. This is by no means a shocking subjective assumption.
Second, the automobile industry of Shiyan City will face more severe challenges From the current status, Shiyan City, automobile companies do have a great crisis, many companies themselves lack of competitiveness, but can not keep up with the pace of Dongfeng's product structure adjustment. The auto industry in Shiyan City is facing many problems and it urgently needs to be resolved quickly. From the perspective of future development trends, Dongfeng and Nissan’s international strategic reorganization will make the Shiyan automobile industry more like a “snowstorm†and face even more severe challenges. These challenges are mainly manifested in:
1. The development of Dongfeng Commercial Vehicles puts forward higher requirements for supply supporting enterprises. Shiyan City's automobile industry itself will undergo the test of “Nirvana of the Phoenixâ€. In 2002, Dongfeng Company put forward the strategic goal of “building the first brand of commercial vehicles in Chinaâ€. The focus of building the first brand is to develop third-generation commercial vehicle products. Dongfeng Commercial Vehicles will develop towards the two poles of heavy-duty vehicles and light-duty vehicles. The medium-sized vehicles will further shrink. The products will further develop in the direction of comfort, reliability, safety, energy saving and environmental protection. This puts forward higher requirements on the product quality, price and technical standards of raw materials and components. The current small-scale stock assets in Shiyan City are basically based on medium-sized vehicles. They have been unable to meet the requirements of the development of Dongfeng Commercial Vehicles, and many assets have become non-performing assets. How to integrate the Shiyan automobile resources as soon as possible, maximize the current inventory of existing assets, and at the same time advance the development of products with its own characteristics and advantages that are matched with the entire vehicle, which is the first challenge facing the automobile industry in Shiyan City. In other words, the automobile industry in Shiyan City must first face the challenges of self-integration, self-optimization, self-improvement, and self-improvement.
2. With the restructuring of Dongfeng and Nissan's international strategy, the "Dongfeng Limited" procurement system will be completely in line with international standards. Shiyan City's automotive industry is accustomed to living in the "protection umbrella" will no longer exist. The procurement platform of the Dongfeng and Nissan JV will be completely international, just as Yang Shaojie, the general manager of the truck company, said: After the joint venture is established, the domestic protection, government protection, and group protection will be broken. Domestic procurement will be transferred to global procurement, and as tariffs are lowered, many foreign high-quality components will enter at a low price. Shiyan City's supply and distribution companies will join other companies at home and abroad in the absence of "protection umbrellas" to participate in "quality than price, bidding procurement," and will always face the risk of being eliminated. In 2001, the trucking companies implemented a procurement method of quality and price parity, reduced 111 parts and components supporting enterprises, added 10 points to Dongfeng's parts and components company in Shiyan and adopted protection, and still eliminated more than 10 of them. More than 10%. Imagine if there is no protection, what is the status of the parts and components companies in Shiyan? !
3. The catastrophic and uncertainties in China's auto market will force auto companies to continue to change, and the auto industry in Shiyan will face a new test of "process reengineering". Under the background of accession to the WTO, the Chinese auto market is more catastrophic and uncertain. It requires the continuous transformation of the auto companies, especially to accelerate the adjustment of product structure, in terms of product variety, quality, price, delivery time and service, etc. Seek new breakthroughs and create new advantages. The current pattern of the world auto industry has undergone profound changes, the Chinese auto market is undergoing transformation, and Dongfeng’s operating landscape will also undergo major changes. This shows that the internal and external environments in Shiyan City have undergone fundamental changes. At present, many companies in Shiyan City have already been reformed and are undergoing restructuring. However, reforms are by no means simply "flopping" or "privatizing," but rather fundamentally realizing system and mechanism innovations. Can the Shiyan Automobile Industry truly realize the "process?" Rebuilding, how to reform and innovate? ! This is another even more serious challenge that the auto industry in Shiyan will face.
In addition, how to change concepts, attract talents, improve management, reduce costs, increase efficiency, and so on are all new challenges for the automobile industry in Shiyan City. For example, lowering the cost, this year, truck companies will regard cost reduction as the most important task for all tasks. Among them, the supply of raw materials and the procurement of parts and components will reduce costs, which will directly affect the production and operation of distribution companies in Shiyan City, and how to increase the efficiency of scale and digestion. The pressure and cost of cost reduction is a severe and realistic test.
Year 1 Truck Company Purchase Status Shiyan District Availability Share
In 2000, the procurement volume was 1.69 million tons, 127,700 tons and 7.49%.
Purchasing funds 2.3 billion yuan 244 million yuan 10.61%
In 2001, the purchase volume was 1.89 million tons 172,200 tons 9.12%
Procurement funds 3 billion yuan 307 million yuan 10.23%
Purchased in 2003 2.3 million tons 21.52 tons 9.36%
Procurement Funds 4 billion yuan 4.03 billion 10.08%
Table 2 Corporate Classification Number of Enterprises Total Fixed Assets Net Value Corporate Average Net Asset Value 9524.3134 million yuan 100% 25.59331 million yuan Provincial enterprises 7 142892 million yuan 58.77% 20413.14 million Municipal enterprises 17 400.47 million yuan 16.47% yuan Yuanmaojian District 20 enterprises 57.95 million yuan 2.38%289.75 million Zhangwan District 13 enterprises 14.781 million yuan 5.83% 10.9062 million yuan 7 enterprises in the Bailang Development Zone 7 22.20 million yuan 0.91% 31.718 million yuan Danjiangkou City enterprises 9 187.64 million RMB 7.72% RMB 20,848,900 RMB 8 enterprises in Ganxian County RMB 118.25 million 4.86% RMB 14778.13 million 8 enterprises in Fangxian County 30.67 million RMB 1.26% RMB 383.38 million 3 enterprises in Luxi County 31.64 million RMB 1.30% 1054.67 million Zhushan County Enterprise 1 8.23 million yuan 0.34% 823.23 million yuan Zhuxi County enterprises 2.359 million yuan 0.15% 1.795 million yuan