Futian Innovation: The Rise of Commercial Vehicles in China
In the field of commercial vehicles, the rapid rise of local automobile companies like Foton is affecting the development process of the Chinese auto industry. It can be predicted that in the next 5 to 10 years, the global auto industry's competitive order and industrial structure will be significantly changed.
In September 006, Futian Auman ETX was the first commercial vehicle to be released in Germany. It was used as a permanent collection of milestones in the development level of the world's transportation technology by the German Museum of Technology.
At the Beijing Auto Show at the end of April 2008, a Futian Euro V bus directly injected exhaust gas from the exhaust pipe into the fish tank. This car adopts the new third-generation fuel cell technology and is equipped with a NiMH battery pack, which truly meets the “zero emission†standard for automotive environmental protection.
These two historical events are less eye-catching in the turbulent world auto market. However, for the Chinese auto industry that started with commercial vehicles, its significance is very important.
Futian Auman, who has reached the world's manufacturing level, marks that China's own brand of commercial vehicles has already had the ability to go high-end; in the field of new energy development technology, Chinese auto companies have the strength to synchronize with the world.
In many commercial vehicle companies, Futian started late. After more than ten years of struggle, this native-born brand has now taken the lead in China's commercial vehicle. In 2007, it sold 402,000 vehicles, ranking first in Asia and second in the world, second only to Mercedes-Benz commercial vehicle companies.
The rapid rise of Foton is a microcosm of an era. It is a product of the reform of state-owned enterprises. It also records the generation of automakers pursuing original innovation, the ultimate dream of auto manufacturing.
Twelve years ago, moving towards original innovation
Twelve years ago, Foton Motors was incorporated in Beijing by 100 corporate legal entities in the upstream and downstream industries. At the beginning of the venture, Futian found that the vast majority of urban and rural areas in China generally required durable, fuel-efficient light trucks. At that time, light trucks were in a neutral state in the market, and there was a significant contradiction between supply and demand. Fukuda worked hard to integrate the absorption of related technologies to create a small card, Fukuda, and received wide acclaim. In 1999, sales of Foton light trucks reached 64,000, ranking first in the country.
In the following years, through a series of mergers and acquisitions, Foton quickly expanded its scale and successfully realized the development strategy of a full range of commercial vehicles.
In 1999, Futian Scenic Light Bus rolled off the assembly line; in 2003, Futian Auman commercial vehicle production base was completed and put into production, becoming the largest heavy truck manufacturing base in Asia; in 2004, Futian Euro V Bus was officially listed; in March 2005, Ao Ling series The listing of light trucks broke the 20-year pattern of Japan’s Isuzu dominating the Chinese light-card market; in March 2006, two high-end truck brands that met the European standards—Ohman ETX and Ouma can be listed simultaneously; in November 2006, Foton MPV products MP -X PM Park officially unveiled at the Beijing International Auto Show.
For more than ten years, Futian has completed a full range of commercial vehicles from a single variety, and has been the first brand of commercial vehicles in China from scratch.
Futian's independent innovation is divided into three stages: the primary stage is "introduction and digestion", the introduction of technology from a joint venture plant or abroad, mainly "reverse development"; the intermediate stage is "improvement", that is, "reverse + positive". It does not infringe intellectual property rights; the advanced stage is original innovation, that is, full "forward design." Zhang Xiaoji, vice president of the China Federation of Automobile Manufacturers, commented that Futian is in the midst of independent innovation.
Fukuda did not have a joint venture background at the beginning of its establishment. It was this “congenitally deficient†that appeared at that time that led to Futian’s consistent corporate culture of independent innovation.
Some experts believe that the biggest mistake in the history of the development of China's auto industry is a joint venture, and that Chinese auto companies should start original innovations like Toyota did.
In this regard, Fu Xun, deputy general manager and director of the Institute of Automotive Engineering Ruan Xuebin's attitude is part of the recognition, "Without original innovation, you can only always follow others. You can not be a leader, at best, become a 'with Nice people."
"But I don't think the joint venture is wrong," said Yan Xuebin. "History proves that the joint venture has nurtured our markets and consumers and cultivated talents. Many senior management talents of independent brands are cultivated by joint ventures. It also cultivated a supply chain. On the one hand, most of the international suppliers of parts and components have landed in China, and on the other hand, China’s own suppliers have also developed. The joint venture has laid a foundation for us in all aspects. Now we have to pass The efforts of independent brands have reached the original innovation.†On this issue, Zhang Xiaoxuan also expressed the same point of view.
“Now we can carry out safety development and design ourselves. The vehicle electronic control platform we have independently researched and developed is currently being industrialized and will be used at the latest in the first half of next year. It will be used on heavy trucks first.†said the dean of the Automotive Engineering Institute. Fukuda's latest research and development.
For heavy trucks, reliability is critical, and electronic control is the key to reliability. The autonomous design and development of the vehicle's electronic control system symbolizes that Futian is marching towards the original stage of innovation.
History cannot be assumed again. In fact, a large number of talents from joint ventures contributed to the development of Foton. The internationalization of Futian's vehicle design and R&D technology also benefited from extensive cooperation with foreign companies. These are important accumulations of original innovation.
“Japan’s auto R&D has been used for 50 years, Koreans have spent 30 years, and we haven’t even been exploring for 5 years now, so we cannot fully imitate Japan’s and Korea’s development and innovation models.†said Yu Xuebin.
In another way, Fukuda explored a path that no one had before and created a new model of innovation.
This innovative model is Futian’s and it’s also China’s
Yan Xuebin believes that Futian's "integrated knowledge, linked innovation" is the most suitable for Futian, and is the most suitable innovation model for Chinese auto companies.
Facts have proved that this special innovation model has created the core competitiveness of Foton.
The so-called integration of knowledge is to fully integrate, digest, and absorb advanced technologies, strategies, operations, marketing, and other aspects of the world's knowledge, the formation of unique corporate knowledge assets, and the application of the knowledge assets to all aspects of the value chain.
Linked innovation refers to the integration of knowledge on the basis of breaking the independent innovation approach of a single company, extending to the entire industry chain between upstream and downstream companies, and related industries and even international companies for joint cooperation and integration innovation.
Futian’s 100 sponsoring legal entities consist of 55 host plants and 45 dealerships. They are located in 13 provinces, cities, and autonomous regions across the country, including multiple companies in the upstream and downstream of the automotive industry chain. This is based on products and property rights. Ties, linking suppliers and distributors closely, laying the foundation for innovation in the chain.
On May 14, 2005, Foton Motors established the list of the 40 member companies of the first batch of the "Joint Supply Chain Synchronous Development Consortium". These members are well-known suppliers in the fields of internal and external ornaments, lamps, axles and other parts. Fukuda chooses specific members based on different projects.
For the joint development of choice, Yan Xuebin said: “The vehicle is a complete system. For the auto manufacturer, there is no need to master the core technology of every part. 95% of the parts of our car are made by suppliers. I only own 5%. The so-called 'chaining' is to integrate other people's core technologies into Futian's vehicle. We must have vehicle technology and choose the most suitable technology for our platform. The chain includes the value chain and the industrial chain."
During the development process, Foton designed the standards that the parts needed to meet and jointly developed members of the Commonwealth to discuss the running-in issues between the various subsystems of the vehicle (including chassis, body, electrical, and power), and then the members of the consortium The "parallel connection" method is developed synchronously, which can effectively shorten the development cycle. At present, there are about 190 concurrent development cooperation projects between Foton Motor Research Institute and suppliers, and more than 140 patents have been obtained.
In order to improve the supporting capabilities of parts and vehicles, Futian also invited foreign teachers for suppliers. In March 2006, Futian's SMPV project had some problems with the suspension. Futian asked the British Lotus Corporation engineers to collectively train the suppliers of the suspension and finally solved the problem. "I did a lot of similar things, and I usually asked several engineers to solve the problem in a few weeks. If we were to change a supplier, we could spend several million RMB more. The suppliers improved in the process. I am very enthusiastic about myself."
From the beginning of the project, the members of the consortium will jointly develop and the vehicle manufacturers and suppliers have a common understanding of the products. Yan Xuebin thinks that this kind of common understanding is very important. He said: "Only with synchronous development, after a period of time, vehicle manufacturers and suppliers can improve together, so as to enhance the strength of the entire industry."
Fukuda has also expanded the scope of linkage to a global scope: cooperation with AVL Austria for engine optimization; cooperation with UK Lotus Company for complete vehicle matching and verification; and German BOSCH Corporation for engine fuel system, engine control and chassis matching cooperation; The Eaton Company of the United States carried out the hybrid development of passenger cars; the cooperation with Dyke, a strategic partner of commercial vehicles, was also on schedule.
"In the process of cooperation with foreigners, how much we can learn, to some extent, depends on how many problems we can raise." Yan Xuebin said, "On the operational level, we let the partners work together. In order to set targets within the company, it is necessary for technical personnel to have responsibilities and even have a sense of national mission. Futian has a complicated assessment system. If the employees learn well and the defense is good, his salary will rise."
On the field of "new energy"
Buss have always played an important role in transportation in China, and the fuel consumption and emissions of buses are generally high. Therefore, the application of new energy technologies to large passenger vehicles is of great significance for energy conservation and environmental protection.
"At the beginning of the establishment of the European V Division, when the market had not yet broken through, we invested in new energy, which is energy-saving and environmentally friendly vehicles," said Liu Guoqiang, deputy general manager of Foton Europe V. Fukuda's Euro V buses include the city bus Euro V Shinkansen, long-distance bus Euro V Pioneer, and tour group passenger trains infinity of three series, with seven product platforms, five body platforms, and body lengths from 8 meters to 13.7 meters.
To develop energy-saving and environmentally friendly vehicles, the European V Division has a clear plan, which is divided into three steps:
First, the full-scale industrialization of CNG-powered passenger vehicles (ie CNG) covers the entire series and opens up overseas markets.
CNG, as a new energy vehicle, uses natural gas as its fuel, has abundant fuel resources, and has a low price. It has obvious advantages in the era of high oil prices. “Thailand, India, and Pakistan now have this kind of car. Thailand does not have oil, and gas is cheap, including cars and buses that are all replaced with natural gas. The cars we make for India are basically all natural gas,†said Liu Guoqiang. “At present, we have made a CNG bus for New York Transit, which is in line with the US’s next-generation emission standard EPA10. This standard is even higher than the European emission standard, equivalent to the Euro V and Euro VI, and is expected to be paid in September this year. Cargo, exhibition in October. Next we are ready to develop a hybrid bus for them."
The second step is to produce a large number of hybrid electric buses. The European V Division started to develop in 2006. There are now 30 trials in Guangzhou and the market will be put on the market.
Liu Guoqiang said: “Our hybrid car is an independent brand, global procurement, and integration of global technology. At present, this road is very correct and successfully solved the reliability and performance problems. According to our understanding, it is currently being demonstrated in Beijing. The 10 hybrid buses in operation have been running for more than a month, and the fuel saving effect is not obvious. The main reason is that their failure rate is high. The average fuel consumption of our products is more than 30 liters, and we will immediately participate in this demonstration operation. There will be more realistic comparisons."
Finally, the fuel cell bus industry, to achieve "zero emissions" bus.
"The fuel cell bus emits completely clean water vapor without any harmful gas. This kind of water can even be directly consumed." Yan Xuebin introduced. Futian Company is a high-tech vehicle sponsor of the National 863 Program. Currently, 3 prototypes have been listed on the road.
“Currently, fuel cell vehicles can meet our license standards for us. Sample cars are ready to begin operation from the end of July this year for a period of one year. This stage will continuously verify the technology and promote the market.†Liu Guoqiang said.
It is understood that the current fuel cell engine price is 2.2 million yuan, the vehicle price is at least 4.5 million. It does not have the possibility of industrialization.
"To the end of the 11th Five-Year Plan, if the price of the fuel cell engine can be reduced to about 500,000, then this kind of car has practical value, and the future car must be diversified in fuel." Liu Guoqiang "zero emission" The prospects are full of confidence.
Integrating knowledge and linking innovations, this kind of innovation to the innovation model has given Fukuda a fruitful R&D achievement and the status of China’s commercial vehicle leader for the past decade, and is still accumulating. "I think that in the period of Euro-III Euro IV emissions conversion in 2010-2012, many of Futian's technical reserves will burst out," said Yan Xuebin.
"We not only insist on 'technical value creation', but also understand it in reverse - technology that does not create value is not the technology we are pursuing. The research and development that we spend every penny of our shareholders will bring to shareholders in the future. More returns.†Yan Xuebin emphasized Futian’s concept of innovation.
Looking at the world, the eternal survival rule of the market is innovation. When the international auto giants completed the car layout in China and began to take advantage of the huge business opportunities in the commercial vehicle sector, China’s commercial vehicle companies will face greater pressure for innovation.
Fukuda's innovative model has shown strong adaptability in the era of fierce changes and rapid development. It is believed that this innovative model from the market and proven by the market will have a strong vitality in the face of new challenges and will also have a profound impact on the development of China's auto industry and even the world auto industry landscape.
View related topics: Beiqi Futian, Futian Automobile brand value of 22.157 billion yuan
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