Based on manufacturing cooperation, traditional car companies and emerging forces are expected to integrate perfectly

Globally, the automotive industry is in a moment of confrontation between tradition and innovation. Technological trends such as intelligence, electrification, and lightweighting are driving many changes, and it has also attracted more and more Internet companies such as Apple, Google and other newcomers to join in, thereby reshaping the automotive industry's innovative ideas and production value chains.

In China, the huge car market and the booming internet industry have caused a lot of splashes. Baidu, LeTV, Ali, Easycar and Autohome have entered the same river. Although trapped in auto production qualifications, they are still ambitions.

In contrast to traditional car companies that focus on “staking their claims” and building their own national bases, Internet companies have begun to develop “light assets, focusing on R&D and users” strategies at the beginning of their manufacture, and adopting “manufacturers” or “cooperation” in the production process. The "manufacturing" way to complete the entire product.

It sounds good, but compared to mobile phones, cars with tens of thousands of parts are reliable. How will traditional businesses face this competition? On February 24, at the launch conference of the book “Animal Car Powers Dreams” organized by Fenghuang Automobile and Tsinghua University’s Automotive Industry and Technology Strategic Institute and co-sponsored by Machinery Industry Press, Wei Li’s founder, Chairman Li Bin and Beiqi Group’s directors The dialogue between Xu Changyi and Xu Changyi may perhaps be described as the machine front.

Cake temptation and new technology trends in Internet companies involved in the car industry <br> <br> change when it comes to the automobile industry, there are two things no one will deny.

First, China has become the world's largest auto market. China has been the champion of global automobile production and marketing for seven years in a row. This huge cake has great attraction for new entrants. As Li Bin said, “China is the largest automotive market, the largest electric car market, and the most developed one. The fast electric car market is the easiest market for innovation."

Second, under the third industrial revolution, the auto industry could not escape the impact of the Internet. Especially in such a country where the Internet is rapidly becoming popular and the speed of the mobile Internet is developing, the auto industry wants to be free from the influence of Internet technology and thinking. This is simply a fantasy. Xu Heyi, who has been a traditional enterprise for many years, also admitted that the development of China’s Internet definitely ranks first in the world, which greatly promotes the development of automobile intelligence in China.

As a result, Internet companies are wrestling with huge amounts of money and heading into the "bone-hard" industry of automobiles. However, compared with traditional car companies, they also have natural advantages in two aspects.

"Compared with general automobile companies, the biggest advantage of Internet companies is the mechanism and culture: First, they are not afraid of failure. Even if only 5% of the chances of success are met, they must be challenged. Second, from the user's point of view, the Internet is really from the user's perspective. From the perspective of thinking about issues, successful Internet companies are able to meet the needs of users in small, small details. This is a gene that has been born into a successful Internet company.” To build a car, Lee, who is his old rival and car home, wants to come together and become a "good friend" of the Internet.

“I feel that I am not afraid of failure, have the courage to innovate and the user's perspective is the basis for the courage to participate in such a revolution in the automotive industry,” said Li Bin. Of course, the background of participation is that the development trend of the recognized automotive industry, such as new energy vehicles, electric vehicles, smart cars, and driverless vehicles, is approaching step by step.

Internet natural gene import redefines car "user experience"

Judging from the experience of Internet companies for more than a decade, there are hundreds of years of auto companies at all times, and they are definitely "fossil-grade" and "bone-hard" enterprises. Most Chinese auto companies have decades of traceable history.

“The entire production chain of the automotive industry and the relationship between users and the entire value chain are based on the relationships that existed before the advent of the Internet, including the organizational structure of the company, including the 4S store model. Under such a model, the car Enterprises do not really grasp the user." Li Bin analysis.

Who is the real master user? 4S shops, insurance companies, financial institutions, even street repair shops, gas stations. Car prices are only indirect contact with the user, until the Tesla "direct sales model" appears. Maske, who made Internet products such as PayPal, turned Tesla into a car manufacturer that faces users. In 2016, the mobile Internet era really arrived, making this direct relationship with users even more important.

Li Bin told the China Industry News reporter that the change from the PC Internet to the mobile Internet is a quantitative change to a qualitative change. 70% of the sales leads brought to the dealers by the Autos are in the mobile terminal. Coupled with the development trend of electric vehicles, the automotive user experience will be a new look.

"In the era of mobile Internet, we want to reshape the relationship with our users. It's not a simple sense of participation. We need to create a sense of ownership." Li Bin said, "Everybody used to sell cars before, but in the future, I think we should only think of one thing. It is very different logic and very basic logic.” This is why Li Bin dared to start a new company under such high technical and financial barriers in the automotive industry. “Because I know that the existing auto companies need to be very, very difficult to be able to make the transition to truly user-oriented. This possibility is very, very low. Only a few companies can really make this transition. This is just like Nokia. Can not be a reason for Apple." Li Bin said.

Reshape the automobile industry value chain in emerging and traditional car prices complementarity and integration <br> <br> traditional auto companies, is undoubtedly the focus of investment in manufacturing, such as in the new five-year plan, the traditional car companies will Emphasis on how many new bases to build and how many thousands of capacity will be expanded within a few years.

"In fact, if we do this, we certainly have no chance." Li Bin said. Therefore, it is an inevitable choice for Internet companies to innovate and reshape the value chain of the entire automobile industry. We all saw that both the Lexus, the Kaiyi Motors that used the Internet concept of building cars, and the Weilai Automobiles controlled by Li Bin, all tended to “pay attention to both ends of the R&D and sales, and to light the middle (production)”.

“From the point of view of reshaping the automotive value chain, we focus on R&D and user experience. We must, of course, make high quality products for manufacturing, but we must do it with our partners. In that case we and existing The corporate car is more of a cooperative relationship. Everyone is good at doing things, win-win, and integration.”

This view has also been recognized by the traditional car companies. Beijing Automobile Group Xu Heyi stated that it is difficult for a company as large as a car to achieve world level or to play a leading role in certain aspects. As a single company, nothing can be done and everything depends on itself. "Not to say that LeTV or Weilai cars have to do what they have to do. Even if I do it, I don't necessarily do better than them. Therefore, everyone's cooperation is complementary and powerful," said Xu Heyi.

Xu Heyi once said on different occasions that BAIC is very open and willing to do OEM work for Internet car companies. "There is nothing wrong with OEMs. In terms of intermediate manufacturing, we have an advantage. The Internet is actually a light asset and has two ends. We also do two things, but we have more advantages in the middle. We each have their own advantages and they are well integrated."

However, Li Bin is reluctant to call this process "a foundry."

"We call manufacturing cooperation. There is an essential difference between manufacturing cooperation and OEM. Automobiles involve processes from the production process, including the design of the entire plant, the entire quality of the controls, and the follow-up management and control. The entire process is a very, very long process. There are also many links involved, certainly not just like Foxconn's OEMs like Apple and Xiaomi.From the production line design, production process, and quality control, we will participate in the whole process, and we are all looking for the world's most Good people do this thing together." Li Bin said.

Li Bin said frankly that he never thought of the automobile manufacturing business as simple, and the mode of choice for manufacturing cooperation was also based on economic rationality. “We respect the basic laws of the auto industry. Whether it is a production line or a skilled production line worker, it is very important for newcomers to get involved quickly. It is entirely possible to rely on skilled workers in existing auto companies.”

The president of Bosch China, Chen Yudong, also pointed out clearly: “As a parts and components company, Bosch is very respectful to the emerging Internet companies or the brave warriors who create new automobile companies with new ideas. We strongly support Weilai Automobile and Leshi Vehicles. In the move, they will introduce fresh blood for the auto industry. We must actively support and support them."

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