[YesAuto News] June 5-6, the 2018 (Ninth) Global Automotive Forum co-sponsored by the China Council for the Promotion of International Trade Automobile Industry Committee, the China Chamber of International Commerce Automobile Industry Chamber of Commerce and the Chongqing Auto Show Organizing Committee at Chongqing Yuelai Held at the International Conference Center. The theme of this forum is “Shaping the future of the industry in an era of change”. Guests from the automotive industry from all over the world gathered together to discuss new changes and trends in the automotive industry under the new generation of technological revolution. The following are some of the key points of Li Shufu, Chairman of Geely Holding Group:
● Three forms of cars
As I have said on many occasions, cars are divided into three forms. The first is the auto companies that actively adapt to changes in the industry, actively change, and have the ability to change. The second is the auto companies that stick to their traditional thinking and do not actively change or want to change but are unable to change. The third is that everyone is now The new force car-making companies that talk about it every day. These three car companies are now competing in the market at the same time. It is hard to say who will win and succeed in the end. But what is certain is that companies that have traditional thinking, adhere to their own traditional thinking, and are unwilling to change or adapt to the changes in this industry, I think it is difficult to have a great future.
China is the world's largest auto market, and changes in China's auto industry will affect the global auto industry. China's auto industry is facing a big challenge from how to shift from the low-end of the global value creation chain to the high-end. In the next five years, China's auto industry was completely liberalized, and various thresholds naturally disappeared. Foreign automobile companies have begun gearing up, and now everyone is looking forward to this day. The short period of five years is not only an opportunity for the Chinese market, but also a ruthless challenge facing the Chinese automobile industry. Of course, we cannot rush for success, otherwise the haste will not be achieved.
● Launch more than 30 new energy vehicles within three years
Volvo Cars is the first global automobile company in the world to propose a 100% electrification strategy for all models. Geely Automobile is also intensively implementing its electrification strategy. In 2015, we released the Blue Geely Action. Two days ago, we released the new energy power system “Zhiqing”. In the future, all new Geely products will be fully electrified.
Within three years, we may launch more than 30 new energy vehicles to the market, including some energy-saving and environmentally-friendly vehicles. This is the only way for the development of the automotive industry. This change is not an administrative arrangement, but the law of the market. It is the request of the user.
● Hype is not competitive
At present, there are many investors in China entering the electric vehicle industry, and Internet companies are also in full swing. This is a very good momentum. It must be actively guided and strongly supported, but some phenomena must be paid attention to. If we say that we do not steadily invest in this competition, just speculation will not be competitive, nor high-level, nor high-quality development. Of course, it is not that there is no chance to enter the auto industry now, but that the opportunities are indeed a little less, and the difficulty is a little bit more difficult. It must be a one-time success, there can be no mistakes, let alone half-hearted.
As far as the current automobile industry is concerned, I think the country should open up to the inside as soon as possible before opening up to the outside world, so that more capital and more power can participate in the Chinese automobile industry, and the competition of China's own automobile industry will be formed as soon as possible. Advantage.
● Bringing bragging and telling stories cannot create “smart cars”
I am a market faction, I fully encourage and support fair competition, resolutely oppose privileges, and resolutely oppose trade protectionism. I think that in the future, cars will be electrified and intelligent, and they will definitely become smart space mobile terminals. They will definitely help people solve more difficulties, problems, and troubles. They will definitely take off and land vertically, and fly freely over rivers, mountains, cities, and rural areas. Become the owner's secretary and bodyguard, make money for the owner, help the owner consume, protect the owner's safety, help the owner increase knowledge, etc., will definitely clean and maintain by himself, etc. This is the pursuit and ideal of smart cars and driverless cars. But all of this requires us to increase investment in science and technology to fundamentally form a core competitive advantage, instead of bragging, telling stories and telling that it can become such a smart car.
I think it's not difficult to build an automobile factory. If you have money, you can build it. It's not difficult to build an automobile factory. If you have money, you can build it. But how to form competitiveness and achieve sustainable development? Going alone is not suitable for the objective law of competition in this industry. Together, openness, and cooperation can bring positive changes to the transportation of all mankind, and can bring more enjoyment of transportation to everyone.
● Cooperation with Daimler
In my opinion, the auto industry should work together to meet the challenges of this industry in the future. Whether it is Geely, Volvo, Daimler, Mercedes-Benz, or all auto counterparts in the world, they face a common challenge. This challenge is now. The new car forces that everyone talks about. And this new car power, of course, is not the new car power that China is now aware of. I think the new car power will create online technological advantages. As a traditional automobile industry, if you can't build online technological advantages, it may face the disaster of extinction. Therefore, it is an objective reality that we auto companies discuss with each other and jointly deal with future challenges. However, this discussion must be based on compliance with laws and regulations, fairness and transparency, and must not violate any anti-monopoly clause. This is a prerequisite. Under this premise, we are free to discuss and freely imagine the space opportunities that may occur and exist.
● Geely's talent pool
This is our core. Geely builds cars first to cultivate talents. Before opening factories, schools are opened to train a large number of technicians and technicians, because it is very important to build vehicles well. The second is that it is very important to build a car with innovative ability. Where do innovative talents come from? We have recruited a lot of engineering R&D engineers from all over the world and China to train students and R&D talents. Talent is not only the core of the long-term sustainable development of an enterprise, but also the core of the long-term sustainable development of a region and a city. To focus on talents is to value the future.
● Geely Automobile's R&D investment
In the past, I said that it would be difficult to form a sustainable development capability without billions or tens of billions of investment in making cars. But today, I think this number is not yet this. There is no investment of tens of billions or hundreds of billions. It is almost impossible to have a position and make a difference in the automotive field, so capital is very important for the automotive industry.
● Volvo helped Geely repay a lot of debts
Geely acquired Volvo. Many people say that it seems that Geely has given Volvo a lot of money. If it has money, it can develop. Let me share here. In fact, Geely did not give the money to Volvo, because Geely acquired Volvo and gave the money to Ford. Volvo belongs to Ford. In turn, Volvo helped Geely pay off a lot of debts, because when Geely acquired Volvo for US$1.8 billion, in fact, we couldn’t spend US$1.8 billion. We only spent 1 billion or several billion. I forgot that we still owe Ford a lot , The money owed to Ford is returned by Volvo. So not only did we not give Volvo money, Volvo helped Geely pay off its debt.
How did Volvo develop? We gave Volvo a strategy, a concept, a management method, product planning, and a sustainable development method. Of course, we brought Volvo to the Chinese market. So I think how to understand the money, Volvo's air quality, so far no car can compare with it. You are sitting in a Volvo car, just like sitting in a Nordic forest. It's safe, sitting in a Volvo car is the same as sitting in a safe. This is the concept of safety and health, how much do you say is worth?
So what I said, like Geely, wants to become a competitive company in the world. The Geely brand, without hundreds of billions of investment, will not be able to form global competitiveness.