The automobile engine is the "heart" of the car and is the core component of the car. Its value accounts for 20% to 30% of the entire vehicle. In 2009, China's auto production will reach around 12 million vehicles, making it a world leader in automobile production. However, China is not yet a strong automobile producer. In the field of automobiles and automobile engines, some core technologies have not been fully grasped by the Chinese and the capacity for independent development needs to be urgently improved. Foreign capital is constantly controlled in all aspects such as share ratio, technology, products, brands, etc., and insecurity factors of the Chinese automobile engine industry do exist. . How to enhance self-development capacity, enlarge and strengthen independent engine companies, and strive to overcome and avoid engine industry insecurity factors are major issues facing us. Industrial insecurity in the engine industry 1. The core components are controlled by foreign parties At present, China has not yet fully grasped the core technologies of automotive engines, and key technologies have been controlled by foreign capital. The EFI and ECU are currently controlled by United Electronic (technically from German BOSCH) and Wanyuan Delphi Engine Control Systems (technologies from Delphi, USA), the two joint venture companies. Foreigners accounted for 51%, and China accounted for 49%. Technology is entirely in the hands of foreign parties. United Electronics was originally a 50:50 share of China and foreign countries and eventually became a foreign holding company (51:49). Jinheng Automotive Safety Technology Holdings Co., Ltd. also produces some engine ECU products. The company is a 100% Hong Kong-owned enterprise. Some key foreign-controlled enterprises are still being established. For example, the US company Otkeim invested 25 million U.S. dollars to solely produce EFI systems and ABS. In respect of diesel engine key components, most of the common rail EFI systems, electronically controlled monomer pumps, and electronically controlled pump nozzle technologies that are used to achieve emissions from State III and State IV are mostly controlled by foreign companies. The common rail system is controlled by Bosch in Germany, Delphi in the United States, and Denso in Japan. Bosch has established a diesel engine system for common rail diesel injection in China. Bosch has 67% of the shares. Nippon Denso invested $54.8 million in Changzhou to establish a common-rail EFI factory in June 2006. ASIMCO Corporation 2007 In July, the company established a diesel engine electronic control monomer pump plant in Hengyang, Hunan Province. Although Chengdu Witt also produces electronically controlled monomer combination pump products, it only produced more than 10,000 units in 2008, and the number of millions of units in the country each year. Compared with the output of diesel engines, it is far from meeting the needs; although FAW Wuxi Fuel Pumps Yuzu Research Institute has developed a common-rail EFI system and has already been put into trial operation, it cannot be put into production in batches. 2. Obvious foreign investment and shareholding trends When China entered into the WTO to sign terms, the state allowed foreign companies to wholly or partially control the production of vehicle engines in China. In previous years, the ratio of automobile engine joint ventures was mostly 50:50, such as: Tianjin Toyota Engine Co., Ltd., Dongfeng Honda Engine company. In recent years, there has been a clear trend in the foreign-funded wholly-owned and controlled companies. Many auto companies with 50:50 Chinese and foreign stocks have also built foreign-owned auto engine plants to achieve full control of engine technology and product sales. For example: Volkswagen FAW Engine (Dalian) Co., Ltd. (produced EA888 engine) established between Dalian Volkswagen and FAW in Dalian, VW accounted for 60%; Shanghai Volkswagen Powertrain Co., Ltd. established by SAIC and Germany Volkswagen (production EA111, 1.4L, 1.6 L Gasoline engine), Germany VW accounted for 60%; GAC Toyota Motor Co., Ltd. (production Camry, RAV4 gasoline engine), Toyota Japan accounted for 70%; South Korea's Hyundai established in Shandong Rizhao engine (Shandong) Co., Ltd., South Korea's absolute holding In August 2008, Fiat Power Technology Co., Ltd. established a wholly-owned diesel engine plant in Chongqing with a total investment of 1.8 billion yuan and an annual output of 100,000 units. Although some foreign-funded engine plants were completed, some of the products were exported, but with these Enterprises in China to increase the number and type of vehicle production, the proportion of exports will be smaller and smaller (such as Guangzhou Automobile Engine Co., Ltd. was originally only for GAC Toyota Camry, and now for FAW Tianjin Toyota RAV4). 3. Foreign companies are also expanding their markets in the field of general engine components. In the field of general engine production, foreign companies are also entering the Chinese production field. For example: German Mahler has established three wholly-owned automotive piston production plants in Chongqing, Nanjing, and Liaoning, China; Honeywell’s superchargers in the United States have occupied most of the domestic market and have signed strategic agreements with companies such as Yuchai and Changan. Supply turbocharger products; TRW invested 10 million US dollars in the production of valve products in Langfang; Japan Marlene Teners invested 12 million US dollars to produce oil filter products in Huadu, Guangdong. Foreign companies still have the tendency to merge or acquire domestic companies in the automotive engine sector. For example, Germany's ThyssenKrupp has invested 50 million euros to acquire a 51% stake in Tianrun Crankshaft, a domestic automotive crankshaft leader, and to control Tianrun crankshaft production. 4. Many companies need foreign help when developing new products Most Chinese companies have not yet fully mastered high-end engine development technologies, and they need foreign help in developing new models. Such as Yuchai's development of YC6M, YC6G, YC6L and other countries III models, please help the German company FEV; Xichai in the development of the State III diesel engine, please Austria AVL company to help; Yangchai development of YZ4DA1 III, Chery develop 18 kinds of diesel engine AVL also asked for help; Yunnei developed D16TCI, D19TCI, D25TCI 1.6L, 1.9L and 2.5L diesels for passenger cars. It also requested FEV's technical help. The independent development capability of high-end engines for domestic companies needs further improvement. 5. Less investment in technology costs At present, Chinese domestic companies and research institutes have insufficiently developed some advanced engine technologies and forward-looking technologies and invested too little. For example, engine variable displacement technology, cylinder deactivation technology (such as the universal EXT2005 car has 8 cylinders, can stop 4 open 4); intelligent valve (SVA) (France Vareo has produced a prototype); variable compression ratio engine (The French MCE-5 company has developed a prototype); gasoline engine direct injection (GDI) (domestic mass magotan, Mingrui, Hao Rui installed); gasoline engine homogeneous combustion (HCCI) and so on. A few years ago, the country’s investment in electric vehicle research was relatively large, which was correct, but the traditional gasoline and diesel engines were still the main engine of the automobile for quite a long time; the national 13 cities and 1,000 vehicles were planned to be implemented in 2012, and the output was only 1 year. More than 10,000 vehicles account for only 1/1000 of the output of more than 10 million vehicles; even if the output of electric vehicles reaches 500,000 in the future, it will be less than 5% of the total vehicle output. Therefore, it is necessary to meet the world advanced level in the technology of diesel engine. The research and development costs (R&D) of foreign auto OEMs and engine manufacturers account for about 4% to 6% of the company's sales revenue, while most domestic companies only account for 2% to 3%. 6. Abroad foreign brands dominate and the proportion of own-brand models is too low In the field of diesel engines, foreign brands account for a large proportion, such as Dongfeng, Shaanxi, Futian, Cummins, FAW Dachao Deutz, Dongfeng Chaochai, Wanguo, Shangchao Hino J08, PC11, Jiangling Huatai VM and so on. Foreign brands in the gasoline engine sector accounted for a greater proportion. In 2008, China Automobile Industry Association had a total of 38 gasoline engine manufacturers. There are 19 joint ventures, accounting for 50% of the total, and all of the products are imported products. Most of them are controlled by foreign capital. 19 joint venture gasoline engine manufacturing enterprises produced a total of 395.46 million gasoline engines, accounting for 62.5% of the total gasoline engine production of 6.3275 million units in 2008. The remaining 19 corporate products are also imported models (such as Changhe K14B (Japan Suzuki) and foreign Toyota 491 (4Y), Suzuki 474Q, Suzuki 465, Toyota 5A, etc.) About 30% of production capacity of passenger cars of independent brands (excluding micro-passengers) accounted for about 28% of the total passenger car production in 2008, including some branded joint-venture engines for self-owned brands, such as BYD F3 and F3R equipped with Mitsubishi. 4G93, 4G15, JAC's Mitsubishi 4G15 with Dongyue, Mitsubishi 4G63, Dongfeng's Mitsubishi 4G63, and Great Wall Hover's Mitsubishi 4G64, so the proportion of self-owned brand engines in the field of passenger cars is less than 25%. And the road is far. 7. The State has insufficient incentives for self-developed engines and insufficient assessment In the past, when the state assessed some state-owned enterprises, it focused more on the total corporate profits and taxes, the value-added rate of corporate assets, and the taxation of profits and taxes. The assessment of independent research and development of enterprises was insufficient. This has led some large companies to continuously introduce new models and new models of foreign companies after joint ventures with foreign companies, forming an undesirable cycle of introduction, backwardness, reintroduction, and backwardness. The continuous introduction of new vehicles (machines) has low risk, large profits, and quick results. Some enterprises are not enthusiastic about independently developing new models, and they have relatively low investment. Over time, this will certainly have adverse effects on the healthy development of the automotive engine industry. In contrast, some companies that have not joint ventures with multinational companies are more enthusiastic about developing their own engines. For example, Geely developed JL4G18, JL4G10, CVVT gasoline engine; Great Wall developed GW4G15, GW4G13, CVVT gasoline engine; Lifan developed LF4G16 CVVT variable valve gasoline engine; Brilliance Jinbei developed BL18T booster gasoline engine; Geely also developed JL1.3T, 1.5T Turbocharged gasoline engine; Chery developed 18 types including direct-injection diesel engines in the cylinder ... Some large companies have also developed many new models, but the development speed is slow (especially for passenger car engines), and its numerous technical staff Compared with strong economic and technological strength, it is not commensurate. 8. Multinational companies bring in a batch of original OEM support plants, and it is very difficult for Chinese companies to enter into their OEM supporting systems. With the entry of automotive multinational corporations into China, some foreign automobile and engine supporting companies have also entered China to support their OEMs. For example, a group of South Korean parts companies gather around Beijing Hyundai, and a large number of Japanese parts companies gather in Foshan and Huadu of Guangdong. Among the joint ventures and wholly foreign-owned enterprises, China lacks the right to speak. Therefore, it is difficult for most of its own-brand engine parts products to enter the OEM market for foreign-branded engines. Some foreign-owned engine parts and components companies also use the advantage of low labor costs and raw materials in China to enter their own brand engine market. For example, the Mahle Pistons are supported by Chery; Shanghai Mahal Filters is supplied by JMC; Shanghai Denso Fuel Injection Company is a high-pressure pump for Shangchai and Chaochao. 9. The introduction of many foreign models, the production of small quantities, the degree of concentration is not high, the model specifications are different, supporting difficulties After the reform and opening up, engine products of multinational corporations have entered China one after another, and China has introduced a variety of models, with many models, but most of them have low output, and their supporting specifications are numerous. Many products cannot meet the economic scale due to their small output. Taking diesel engines as an example, in 2008, the China National Automobile Industry Association's 24 diesel engine manufacturing plants nationwide produced 2.334 million diesel engines, with an average of 97,000 units each. This is far from the economic scale, but the technology comes from over 10 foreign countries. Company, see Table 1 for details. 10. There is still a certain gap between the domestic engine products and the foreign advanced level on the technical level. There is still a certain gap in the technical level of domestic self-owned brand engines compared with foreign advanced levels (such as fault-free mileage, reliability, fuel consumption, etc.), and product quality needs to be further improved. Some models meet State III or National IV emission standards just after they leave the factory. However, after a certain period of operation, emissions, noise, etc. often exceed the prescribed standards. policy suggestion 1. Does not support foreign mergers and acquisitions of engine parts companies Local governments and relevant state departments must take good measures. They can't only care about the immediate interests of local governments and corporations, and they can't be tempted by foreign preferential purchase prices. 2. Using policy levers to control foreign investment structure National government departments announce every year the list of industries that encourage foreign investment in industries and restrict foreign investment. It is recommended that the state should spur foreign investment in high-tech engine parts and components that are really lagging behind in China, such as diesel Euro IV, Euro V emission post-processing systems, hybrid power, fuel cells, etc., and domestic consumption of domestic energy, labor, and raw materials. A certain scale of engine parts projects should limit foreign investment. 3. When establishing a joint venture with a foreign company, request the establishment of a research and development institution In joint ventures with foreign companies to establish engines and parts joint ventures, it is required to establish R&D institutions at the same time to change the practice of foreigners to regard China as only a production and processing base, so that China can learn some new technologies and new design methods. 4. Organize national strength and jointly tackle high-tech products It is recommended that the Ministry of Science and Technology should charge a portion of scientific research expenses, and the national unification should organize major auto and engine manufacturing companies to jointly fund and produce talents. The combined production, learning, and research efforts should break through some technical bottlenecks and jointly develop high-tech products and share research results. , Diesel IV, National V emission selective catalytic system (SCR), particulate traps. In the future, the domestic demand for these products will be huge. If we cannot independently develop these products, they can only be controlled by foreign parties. 5. The government authorities further implement the self-development encouragement policy Government departments must earnestly implement the encouragement policy of autonomously developing automobile engines, and independently develop engine products should be given preferential treatment in terms of research funding, taxation, credit, etc. Imported prototypes, test equipment, and trial materials should be reduced or exempted in terms of import duties; When enterprises develop their own brand engines and parts with insufficient power, the SASAC not only assesses the profit growth of enterprises, the value-added value of state-owned assets, and other economic indicators, but also includes independent development in the scope of assessment. 6. Automobile Engines and Components Do Their Best to Avoid Foreign Control Joint ventures with foreign companies to produce complete vehicles, the state stipulates that the foreign share ratio is up to 50%; we should emphasize that the engine production together with the entire vehicle production is also part of this project, and must also have a 50:50 ratio between the two parties to jointly build a factory, not Allows independent engine joint ventures such as Volkswagen FAW (Dalian) Engine Co., Ltd. (Volkswagen 60%), Shanghai Volkswagen Powertrain Co., Ltd. (60% for Volkswagen) and GAC Toyota Motor Co., Ltd. (Toyota accounts for 70%) Beyond the project, the "heart" of the car - the phenomenon in which the engine is controlled by the foreign body is repeated. 7. Strengthen the construction and cultivation of human resources The auto industry will strengthen the construction of human resources and strive to cultivate innovative talents. Elizabeth Henlington, president of the American Business Group of Hanlington Global Business Management once pointed out: “Chinese spare parts companies should cooperate with independent R&D institutions to jointly develop and train talents and create independent innovations. At the same time, change China’s talent cultivation methods. Training personnel often only pays attention to how much they have learned, and Western education often emphasizes what problems can be solved.†His words have some truth. At the same time, China’s auto industry enterprises should also take advantage of the opportunities of the world’s financial crisis and enthusiasm to attract domestic and foreign talents, including returnees and foreign companies, to improve their own independent development capabilities. Continue to rely on the strength of foreign development organizations, such as: Chery AVL help to develop 18 kinds of engines; Yuchai to help the German FEV company in the development of the State III, State IV diesel engine, so that the Chinese side in the joint development with foreign companies to learn and improve themselves . For example: Chery developed the engine with the help of AVL, and at the same time independently developed a new model according to the AVL design method and mastered a large number of development techniques. 8. Encourage mergers and reorganizations to expand company strength Compared with foreign countries, the scale of domestic engine and component companies is still small, and the state should encourage mergers and acquisitions to expand its capabilities. For those companies with smaller scale or subsequent development disadvantages, the sooner they join the dominant company, the more opportunities for development can be achieved. The two companies can join forces to achieve a 1 1>2 effect. For example, when Nanjing Auto joined SAIC, the two companies both produced Rover cars and engines, and now they can work together on product production and development. This not only increases strength but also avoids repeated waste. 9. Encourage the export of engine and component products The state should continue to encourage the export of engines and parts and components, expand the market of enterprises, expand the production scale of enterprises, increase the income of enterprises, and expand the vision of product development. The strength of the enterprise has increased, and the investment in research and development will increase accordingly. The relevant state departments will provide preferential policies to the engine and parts and components companies in terms of taxation and credit, and at the same time, they will import policies, regulations, certification bodies, certification standards, etc. in countries around the world. It should also provide export companies with services and guidance. Rain Cap,Stove Accessories Rain Cap,Solo Stove Accessories,Camp Chef Stove Accessories Jinan Huancheng Heating Equipment Manufacturing Co., Ltd. , https://www.globalstove.com