On May 2, the news that Weichai “ backdoor” Chongqing Jialing River to enter the passenger car was disclosed and attracted attention in the industry. The reporter found that a passenger car of the Zhangzhou brand codenamed “YZ6410” under Jialing Chuanjiang had already appeared on the catalogue of “Vehicle Production Enterprises and Products” released on April 10th. It seems that the arrival of Weichai into the field of passenger vehicles seems to have been nailed down. .

Can Tan Xuguang, who operates under the trust capital, rely on the "backdoor egg" to make a world of passenger vehicles? Can Jialing River support a 300,000 passenger car brand annually? Tan Xuguang seems to have started a new adventure again.

Into the "Red Sea"

According to the information released by the Shandong State-owned Assets Supervision and Administration Commission's official website, the Weichai Jiachuan base was laid on the 29th in Chongqing Jiangjin Shuangfu New District. After the completion of the base, it will become a complete vehicle factory with four complete processes, such as stamping, welding, painting, and final assembly. It can achieve an annual output of 300,000 complete vehicles. Related information also shows that the first phase of Weichai Jiachuan's product planning is for urban leisure SUVs, compact MPVs, pickup trucks, and cross-country SUVs with the same platform.

The first model, the Yeoju YZ6410, is a small SUV with a length of 4 meters, a wheelbase of 2.5 meters, and a displacement of 1.5L. It looks like a Korean car.

“Commercial vehicle companies have been waiting for opportunities to enter the field of passenger vehicles. However, there are only a few that can actually enter the market.” Du Fangzi, an adviser to the China Association of Automobile Manufacturers, stated bluntly: “Weichai has done well in the commercial vehicle sector. If you can, there is a certain amount of money, but the key to whether you can enter the field of passenger cars is national approval.To enter and have entered is not a concept, from the current information, it is not easy to say whether Weichai will eventually enter. ”

Although the outside world is not optimistic about the Weichai Jiachuan project, the governments of Shandong and Chongqing are full of confidence. According to the government website's interpretation of Weichai's related plans, in addition to the depth of the product, Weichai Jiachuan will also achieve international and domestic benchmarks in terms of channel construction, cost control, brand planning, etc., as well as SUVs, MPVs, and pickups. Product development has become the top three in the country.

Contrary to the positive attitude of the governments of Shandong and Chongqing, Weichai has been very low-key. On May 3, the reporter of "Automobile News" told Liu Yi, head of propaganda department of Weichai Power, about the situation. The other party said that he was unaware of the incident.

For the attitude of Weichai, the auto industry analyst Tian Yongqiu said: “After entering the passenger car, Weichai is involved in a backdoor and is somewhat cautious about the attitude of Jialing Jiangchuan.”

See also the "shell" resources

In July 2013, the Ministry of Industry and Information Technology released the Notice on Establishing the Exit Mechanism for the Automotive Industry. The "Notice" requires that, from 2016 onwards, the category of other types of passenger cars and pick-up trucks be reclassified in the "Notice" management. Existing passenger car and pickup production enterprises of the existing conversion category should quickly reach the access conditions for similar new-build vehicle manufacturers and upgrade them to complete vehicle companies. The two types of conversion enterprises that have not been upgraded on time should be converted to passenger cars, special vehicles and other products.

“Looking forward to the 2016 deadline, Weichai seems to want Jiachuan, who has been idle in his hand for four years, to play its due role as soon as possible. If this 'shell' is not used, there may be dangers in his hands.” Tian Yongqiu The reporter said that according to the investigation, Weichai acquired Chongqing Jiachuan in 2009, and Jiachuan had the M1 model production qualification. According to "National Standards of the People's Republic of China", multi-purpose passenger cars (often called SUV models) can be produced with M1 qualification.

Tian Yongqiu said: “After the introduction of the auto manufacturing qualification exit mechanism, the past practice of backdoor construction has been criticized by people. The industry also has a lot of blunders about building a car on the back door. Weichai wants to get into the passenger car only by relying on the backdoor. In the current environment, Weichai is unlikely to promote its own backdoor activities in a grand manner.” “From the current situation, Weichai’s evasion has more or less the reasons for this. But the most important reason Or because of the high risk factor of entering the field of passenger vehicles, Weichai does not want to promote it too much."

The reality is not beautiful

“Involved in a number of major environments, the commercial vehicle market has seen a slight decline in the past two years. Entering the passenger vehicle market may become a path for the increase of commercial vehicle manufacturers themselves.” Chen Guangzu, a full-time member of the China Automobile Industry Advisory Committee, told the reporter. “I haven’t heard of Jialing Jiangchuan, and it is estimated that the company is not large. Weichai’s acquisition of such a small company needs to achieve an annual output of 300,000 vehicles. The key depends on whether its own strength is strong.”

Tian Yongqiu also holds a similar opinion: “As far as I know, before the Jialing River, it was just a small factory producing small boxes and buses, and the capacity of Jialing River itself was not enough to break through the highly competitive passenger car market. Weichai has strong support, but it is unclear whether the use of commercial vehicles to start Weichai will give much help to the Jialing River."

“Before considering the difference between a commercial vehicle and a passenger vehicle, the actual cycle of designing a process, purchasing period, collision, etc., testing, and parts integration, etc. Two or three years is not enough. Not to mention there is currently only one model of Weichai Jiachuan. To achieve the goal of 300,000 vehicles, Tan Xuguang still has a long way to go."

“Furthermore, the commercial vehicle market in the past two years has been sluggish. Some commercial vehicle-related companies including Yuchai and Weichai have not been comfortable and the engine business has dropped dramatically. In this context, Weichai can come up with How much money to build a passenger car system?"

During the interview, some people in the industry said: “The public information shows that the 1.5L engine on Weichai’s car catalog model does not belong to Weichai, but is provided by Shenyang Aerospace Mitsubishi. The shape design of this car is also suspected of being outsourced. 'Leveraging' engine and outsourcing design is not impossible, but whether or not we can form an independent R&D system is a major difficulty.

"It is possible to make a car out of the backdoor, but its products do not have a core competitiveness or not." Chen Guangzu expressed a few expressions of concern. "We still have some gaps in relying on Weichai alone."

New adventure

The risk of building a car may have long been known to Tan Xuguang, but the pressure of Weichai's transformation has made it impossible for him to stop trying.

“Before, we have been developing in good times. Our operating income and net profit have all doubled. Within a decade, we have accumulated 500 billion yuan in operating income and 36 billion yuan in net profit. I’ve also been worried that if one day the situation goes bad, , what we rely on to win? Now it seems that fear is becoming a reality.” Tan Xuguang had said publicly in an interview. In the first quarter of 2013, Weichai Power reported that revenue fell 2.80% year-on-year and net profit fell 20.65% year-on-year.

"Accelerating industrial transformation is the solution to changing the status quo of commercial vehicles." Chen Guangzu said in an interview. And Tan Xuguang’s industrial transformation is almost equivalent to cross-industry acquisitions. Tan Xuguang himself admitted: "We have placed the most important resources on M&A."

In 2005, Tan Xuguang's acquisition of the Hunan Torch extended Weichai's production scope to the core components of heavy-duty trucks such as transmissions and axles. In 2009, it acquired Baudouin in France, and Weichai filled up the gap in high-power engine technology of 16L and above; Weichai again placed Shaanxi Heavy-Duty Truck under its own control and Weichai Power fully entered the vehicle manufacturing field. In 2011, it acquired Yaxing Automobile into the field of new energy buses. In 2012, Tan Xuguang successively reorganized and acquired the world’s largest yacht manufacturer, Italy’s Farah. The world leader in the industry of emperors, industrial forklifts and hydraulics, KION of Germany, and the Taionong Yue Crane Factory of Manitowoc of the United States.

“Tan Xuguang's idea is to combine product strategies and penetrate into each market segment,” an industry source told the reporter. “The promotion of diversification will allow passenger cars, new energy sources, and medium and light engines to become The company's new growth point, but these new business segments have not brought much cash flow to Tan Xuguang, and the continued investment in the future is extremely imminent, and the same challenges faced by the backdoor into the passenger car."

"I buy all the companies have risks, but how to control risks is a technical activity." This time, for the adventurous Tan Xuguang, the need for technical skills may be more profound.

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