Yang Hong: Components Enterprises Should Create Core Competitiveness

Yang Hong: Component companies should create core competitiveness The OICA China Forum organized by the China Association of Automobile Manufacturers and the World Automobile Organization officially kicked off on April 19-20. The forum brought together government officials, automotive industry experts, and high-level manufacturers. For the development of the Chinese automotive industry, make every effort. Fenghuang.com reported the forum as a supporting media. At the forum site, Fenghuangwang Automobile spoke with Yang Hong, president of Hangsheng Electronics.

Mr. Yang Hong, president of Hangsheng Electronics, President Yang Yang, first wanted to ask about the independent research and development of parts and components manufacturers.

Yang Hong: Since 2000, China’s auto parts and components have made rapid progress in these years since the country advocated the strategy of independent innovation. We have mastered core technologies and some system technologies because auto parts and components are relatively late and their foundations are weak. There is still a certain gap. However, in terms of parts and components, sustainable development in the future must integrate an R&D, simultaneous R&D capability, including the competitive advantage of the system. What is system competition? It includes your R&D, manufacturing, supply chain, and sales services, forming a closed loop. In these areas, we must achieve a sustainable development of this industry. Therefore, we should make progress in terms of research and development. The progress is relatively fast. This benefits from the support of national policies. However, the parts and components companies themselves have to work hard. Compared with international first-class companies, the gap is still relatively large. Simply speaking from the automotive electronics industry, we say that the level of vehicle-mounted electronics compared with the national level should be said to be a small gap. There may be a gap of 10 between body electronics and construction site electronics. We must catch up in various ways. With the support of the country’s macroeconomic policies, we can promote ourselves as quickly as possible in the rapid development of China’s auto industry from a large and powerful environment. Technology to enhance your environment.

The recent earthquake in Japan is also very unfortunate. Some of their parts and components manufacturers will also be affected. Is this an opportunity for China? For example, occupying some market share in the world.

Yang Hong: This earthquake is indeed worthy of sympathy because Japan’s parts and components prospects, including the industrial chain, are also very complete. From chips to parts to components, there are long industrial chains. After the earthquake, it included zero for us. Component suppliers, we are equivalent to a system of parts suppliers, we use a lot of chips are Japan, many movements, some of the key parts are Japan. After the earthquake, we were affected by certain factors. At the same time, because these parts and components cannot be supplied simultaneously with the automakers, the quality of the automaker's production is affected. This is a challenge.

There is also an opportunity. In this process, we can say that if our parts and components companies can seize this opportunity, we can form a fast-providing part with the vehicle manufacturer. For example, just like our car electronics, the same companies find two or three of them. During this period, Japanese companies can't supply them. Chinese companies can supply them as soon as possible and then seize this opportunity. It is an opportunity for development.

In fact, we achieved a 40% to 50% growth in our first quarter and the same period last year. The growth in the second quarter is uncertain. We are also analyzing how to deal with it. One aspect is to put our own suppliers in Japan to speed up the resolution of this short board problem. At the same time, Japanese suppliers are unable to supply goods to the depot. We can supply the goods as soon as possible. In this way, at such a critical time, we have made our contribution to the automaker and seized our development opportunities.

The impact of the earthquake on us, we also learned some lessons from it, some of our industry layout, including some of our information, some of our data platform can not be developed in one place, there must be backup and security. If this factory is in danger of such natural disasters, then in the second factory, the third factory will be able to resume production as soon as possible, and minimize this natural and man-made disaster loss.

This is also a profound experience for us, so we are now in the country, Shenzhen is the headquarters, we have bases in Jiangxi, Shanghai, Beijing, Changchun, and Wuhan. In the future, in these bases, in addition to specializing in its layout, we may also sometimes have a response to this special event. In this type of natural disaster, we can back up and develop this space. This is also an important part of a parts and components company, especially an auto parts manufacturer, that can sustainably develop. This is an inspiration to us, especially our information system, which originally required from the strategic point of view, it requires the same data can not be put in one place, there must be a backup, or have a certain regional risk. The earthquake in this area, that area has not yet, that set of information systems, replace the layout, we can achieve the cycle.

The earthquake disaster is only a short-term opportunity. Is it still necessary to use some of its own core competitiveness to occupy this advantage in the long run?

Yang Hong: For parts and components companies, we must change from the opportunity level to the strategic level. At the opportunity level I pointed out, China's parts and components companies are doing a single part and seizing this opportunity to develop, but auto companies have great expectations for parts and components companies. That is to say, you must have the ability to develop synchronously. You must have a perfect quality assurance system. You must have a good process of developing, manufacturing, and selling the entire process, and in this regard, your entire service network and so on, including To understand the car culture, all of these must have a systematic competitiveness. Our abbreviation means that QCAD is used by Japanese companies. Q is quality, C is cost, A development ability, D is the ability to deliver and the competitiveness of the system. The system is competitive and your business is sustainable. In the short term, if some suppliers fail to supply goods due to the earthquake, we will only respond and seize the opportunity of this supply. This is only temporary. This is called the opportunity level. Others can't, others' failures, you're OK, but sustainable development can't be built on other people's mistakes. It's only short-term. You have to design your strategy from a long-term strategic perspective. Your strategic level is to integrate Resources, make up your own short board. After the short board is filled up, your system capability is the cooperation between the board and the board. This kind of tacit understanding must be synchronized with these developments. In these cases, the sustainable development of parts and components can only be realized, and this strategy is not only three or five years, but five years, ten years, or even fifteen, twenty, or thirty years. The development of a vehicle model has previously had a life cycle of 10 years and now 7 years. The development is 2 years, the supply is 5 years, it is a gradual process, and its life cycle is getting faster and faster. Faster and faster, our overall ability to reflect is getting faster and faster. In this planning process, you must have long-term plans, and then resource allocation can achieve this ability.

Therefore, the system competitiveness of parts and components, core competitiveness, including our cost-competitive advantages, are all required. And in the long run, to achieve industrial upgrading, I think not only relying on low-cost advantages, but relying on technology, relying on our brand to get the trust of consumers, to get our customers, large customer parking lot, it thinks we are now able to Now, our system is very competitive. Using our brand can improve its competitiveness. We can create value for our customers. Then our sustainable development can be realized. All parts and components companies should build their own core competitiveness in this mode.