·Chen Guangzu: FAW and Dongfeng can not be merged and reorganized

A few days ago, the reporter asked me: What is your opinion on the rumors of the merger of FAW Dongfeng? I simply replied "Good, Confused." Think again about this is the history of China's auto industry, facing structural integration, restructuring and other major events, such as let more car people come to seriously think and explore, so this document.
Historically, in the 1960s, the construction of Dongfeng (then known as the Second Automobile) began. At that time, it was still in the "Cultural Revolution" era. There would be no help from others. It is really a very difficult and important task. engineering. First of all, FAW fully supported the construction of Dongfeng, and invested in product research and development, manpower support, site construction, production preparation, management and other aspects. Only 20,000 people were transferred from FAW to Dongfeng, many of them were from Northeast China. I am willing to stay away from my homeland and go to the southern hills to fight. It can be said that FAW is the leading force supporting Dongfeng construction. Of course, there are Shanghai, Hubei, Jiangsu and other places. Almost all parts of the country have contributed to the construction of Dongfeng. Factory work.
In the same year, the construction of Dongfeng adopted the method of “package construction, gathering treasure”. The “package construction” was to use the original set of methods. It was basically imitating the move, the purpose was to be quick, and “Jubao” was imitation. For example, when processing several planes of the engine, a large multi-faceted broaching machine was designed. The complicated broach was also produced by itself. This was also an internationally advanced thing at the time, but our factory design was singular at that time. The fixed production line, one line only produces one kind of product, unlike the current one, it can automate the variety adjustment processing, so when the product is updated, the equipment can only be idle. I remember when I arrived at Dongfeng in the beginning of this century, I went to the old engine factory to see it. When I entered the dark old factory building, I saw all the dust in front of the large multi-faceted broaching machine. I touched it with my finger bed. Black, this is a typical representative of our traditional production methods, so innovation has become the standard of the automobile industry, but in those days, various conditions and thinking have not kept up. The Shiyan is also in a very difficult day. The department store is covered. It has been unable to put into operation for several years.
In the past two years, I went to Dongfeng again. I spent seven days visiting Wuhan, Shiyan and Xiangfan. I saw a brand new Dongfeng, a new factory, new products, new equipment, Dongfeng, whether it is a car or Trucks and buses are all new rounds of wheels, and their market share has increased year after year. An "Internet +" era is accelerating. I am deeply impressed by the fact that the Baiyin Building in Jianjian has also changed its appearance. We went to visit it. It is really full of supplies and dazzling, so I kept thinking about it in my mind. What is the motivation for the change of the Ten Commandments? I answered my question “Innovation, Innovation, Innovation.”
FAW is the eldest son of China's automobile industry. Its experience in more than 60 years has spurred itself to have full potential for development. FAW and Dongfeng are like brothers of the same roots in history. There are many genes that work together and cooperate. What is needed is to dig well.
The rise of China's auto industry has become the country with the best production and sales of automobiles in the world, and will continue to be maintained for a long period of time. This can hardly be compared with the history of the world automobile industry. However, we have a reverse development in the development of autonomous vehicles. There are relatively serious homogenizations and lags, and there are still many problems in the core technologies. This is fundamentally due to the problem of industrial organization structure and innovation mechanism. If the design perspective is carried out in depth, the market share of self-owned brand cars will only be grasped and the roots will not be grasped. The market share of self-owned brands is like the waves of sea water. It is fluctuating and difficult to take root. The automobile industry may be in a medium In the income trap, it can be said that, like the large-scale engine broaching machine mentioned above, there is no innovation in the traditional manufacturing industry and it has to fall into the pit of risk.
We envisage that if FAW and Dongfeng are combined, it is a true combination. It is a major integration and optimization of the organizational structure of China's auto industry. If it is not in line with the market, it will inevitably be "infighting" in the market. The "wolf bucket", when combined, becomes a huge synergy, which shows the new force together, and it is immeasurable. The prospect is even more infinite, corresponding to the arrival of the automobile industry 4.0 era. Meeting the new round of industrial revolution in the global automobile industry and promoting the development of new energy vehicles and smart cars will make a major contribution. China will once again have a multinational automobile group with an advanced level to cope with the new car competition and cooperation in the world. challenge.
There are also many discussions in the society on the merger of FAW and Dongfeng. Many people advocate that it is not good, because the merger problem in China's auto industry is too difficult, or it is not good. We think that the country is facing an era of deepening reforms, and it is forced to increase the implementation of reforms and strive to make the reform measures take root. This will make it necessary to stand up to the difficulties of the merger, not to retreat because of difficulties, but to overcome difficulties. We dare to break through the barriers of various localities and departments, and dare to resolve the obstacles in the existing system and mechanism. According to the "four comprehensive" concept, we will definitely solve the problem of the merger of FAW and Dongfeng. We envisage that in order to do a good job of mergers, we can take the "three firsts and twos" steps to solve. “Three Firsts” is the first combination of R&D institutions, new energy industrialization and foreign institutions. Under the relatively independent situation, the three operations will be combined to operate. This will strengthen the R&D level of self-owned brands and put them on the market. The industrialization of automobiles, the unified actions of foreign institutions, the strengthening of external efforts, and the promotion of export of automobile products, construction of new projects for foreign cooperation, external acquisitions, and external financing are all beneficial. The "second post", that is, the entity of the original manufacturing industry, the full-featured management and operation, and the integration of the original upstream and downstream suppliers' industrial chain, this workload is very large and difficult. Therefore, a "strategic operation team" can be formed to conduct research, propose operational procedures and steps, and after thorough discussion and arrangement, it is necessary to ensure the success rate of the merger and reduce operational risks. The "strategic operation team" is working under the leadership of the senior leadership team of the two major enterprises.
The merger of FAW and Dongfeng is in line with the operating rules of the new normal economy, in line with the rules of market economy operation, and in line with the rules for further transformation of large state-owned enterprises. In this way, the government should play a decisive decision-making role in the merger work. This is a necessary measure in the auto industry at a certain period. The government should guide in principle, and full policy support and guidance is absolutely necessary.
Through the merger of FAW and Dongfeng, this is not only the behavior of the two major state-owned enterprises, but more importantly, through this important case, leading China's automobile production to more enterprises, including parts and components enterprises, to carry out effective Reorganize, integrate and optimize structural issues. And precisely in our industry, there is a saying: foreign cooperation is easy, and internal cooperation is difficult. The combination of FAW and Dongfeng will break this traditional backward thinking and promote the arrival of a new wave of mergers and acquisitions in China's auto industry.
At present, most of our automakers and auto parts manufacturers are in miniaturization, small-scale marketing, lack of high degree of grouping, and too few transnational enterprises. This inevitably leads to the lack of large group companies, and many small-scale enterprises In order to fight, we are in a homogenous, repetitive, and decentralized state, so that the overall strength cannot fully play its role, and innovation synergy cannot be carried out. From the history of the development of international multinational auto companies, mergers and acquisitions are a major experience in the development of enterprises. We must learn from this experience, especially in the era of the current economic crisis, to strengthen mergers within the country, and to strive to achieve the "world factory" from the outside world. "Towards "World Investors", from the "going out" and "bringing in" leapfrogging actions, more international cooperation projects have exerted effects, which will transform and upgrade our traditional car structure and let Chinese cars The reshaping of the industry and the driving force for the car’s strong national dreams will be immeasurable.

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