Zuo Yan'an: Adjusting Automobile Industry Policy in Time


"Now China's auto industry is big and not strong. The layout of joint ventures has now basically come to an end. Under this arrangement, automakers under their own brands are under greater pressure." Zuo Yanan, the original chairman of JAC, said without hesitation.
Regarding the automobile industry policy, Zuo Yanan said that the lack of two strategies in the auto industry led to the consequences of the backwardness of self-owned brand cars: First, excessive opening to the outside world, and second, excessive internal management. The current status of self-owned brand car companies does not match the market size of 20 million vehicles nationwide. At present, China's auto industry is dominated by joint-venture car companies, which is detrimental to the safety of China's auto industry. Therefore, it is of great significance to make a self-owned brand car. It involves not only national security but also social harmony.
Zuo Yanan proposed three suggestions on how the future of the automobile industry will develop:
First of all, we need to establish a harmonious and common development concept with our joint venture partners. At present, the joint venture has insufficient capacity, and its own brand has excess capacity. If the self-owned brand is encumbered, what will happen to the existing production capacity and workers? Multinational companies will certainly think of this. More specifically, joint ventures need to produce less economic models, and some joint ventures should expire when their contracts expire.
Second, big groups need to engage in mixed ownership. If FAW becomes a holding company, all of the following will become legal entities with independent accounting, including the largest state-owned shares, private participation, and management's equity participation. Unreasonable ownership structure leads to low efficiency of corporate decisions. If we can engage in public-private partnerships in a new situation and achieve a high level of return, enterprises will certainly have a strong vitality.
Finally, it is very important to formulate the third round of industrial policies. Be sure to start with a strategy and choose a good path. Zuo Yan'an said: "We need to do useful things at the right time and in the right place, and do useful things with limited resources."

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