[YesAuto News] Do you still remember everyone’s reaction when Boss Xu called out to win the AFC Champions League in five years? A certain Chinese football star even publicly mocked: “If you don’t treat it as a joke, then your mind must be flooded “As a result, Evergrande soon used the two AFC Champions to slap those who had laughed at them. Many years later, when Boss Xu announced that he would cross the border to build a car, his doubts were familiar. So, what is the actual progress of Boss Xu's car dream? As a fan who once witnessed Evergrande's AFC victory at the celestial scene, I changed my identity today and went to Nansha, Guangzhou to see the production base of Evergrande Automobile as an automotive media.
Quickly understand the key points of this article:
◆ The four major workshops of Evergrande Automobile’s Nansha plant have been formed. ◆ The workshop production line and equipment are being assembled and are expected to be completed by the end of the year. The surrounding areas are yet to be developed, and it will take some time for the supply to keep up. Those things
■ The latest progress of the Evergrande factory, can it really be completed by the end of the year?
As early as last June, Evergrande signed a strategic cooperation agreement with the Guangzhou Municipal Government, announcing that Evergrande Automobile City has officially settled in Nansha, Guangzhou. In terms of specific details, Evergrande invested 160 billion yuan to build three new energy vehicle bases and other projects in Nansha District, including a vehicle production base with an annual production capacity of 1 million vehicles, a power battery super factory with a production scale of 50GWH, and a motor/electronic control system Production base. It can be seen from this that, compared with other new car-making forces that are struggling with funds, Evergrande is absolutely proud and feels that it is not bad for money.
In fact, Guangzhou Nansha is not the only production base of Evergrande. Also in June last year, Evergrande signed a strategic cooperation agreement with the Shenyang Municipal Government, stating that it would invest 120 billion yuan in the construction of new energy vehicles and other related projects in Shenyang, the scale of which is comparable to that of the Nansha plant. We don't know the specific division of labor between the two production bases for the time being. Considering that Evergrande is headquartered in Guangdong, the early strategic significance of the Nansha plant should be more prominent and serve as a benchmark.
Evergrande has always brought its own traffic. Boss Xu has visited Europe and Japan several times in the past year to inspect the parts giants, which has attracted everyone's attention. However, since the signing of the agreement, the Nansha plant has no relevant news, and the progress has always been a mystery. After arriving at the factory, the construction progress of the factory was much faster than expected. It is not a barrenness shown on the satellite map. The core production workshops are already formed, and the main body is very close to the renderings.
Through the aerial photos, we can see that the Nansha plant of Evergrande Automobile is progressing very fast. After all, people are from real estate, and they have “innate” advantages in the construction of the plant, especially experience and resources. It is reported that all of Evergrande’s production bases, including Guangzhou, Shanghai, Tianjin, and Shenyang, are built in accordance with Industry 4.0 standards, which include advanced production processes and equipment, and through the use of Internet of Things technology and artificial intelligence to achieve stamping, A “black light factory” for unmanned production lines such as welding and painting.
After a simple on-site visit, we saw that the Evergrande factory is being constructed in an orderly manner, especially the workshops are already being installed one after another, and they are definitely not empty houses. I believe this can dispel the doubts of many people. According to the plan, the Nansha plant will complete plant equipment installation at the end of July and will have production capacity by the end of 2020. According to the current progress and Boss Xu's vigorous working style, everything is possible.
■ Evergrande is really fast enough, but when will the surrounding supporting facilities keep up?
As we all know, automobiles are one of the most difficult industrial products with tens of thousands of parts, and the industrial chain involves almost all manufacturing sectors. For Evergrande, this is a completely unfamiliar industry, everything has to start from scratch, and Xu Jiayin obviously knows this too. According to statistics, since last year, he has led Evergrande auto executives to visit 23 countries and 47 cities around the world, visited 58 leading companies in various fields of the auto industry, and desperately traveled around the world to realize the “auto dream” . However, from the field visits, the linkage between Evergrande and the “Circle of Friends” will take time.
Although Evergrande’s reputation is large enough, it is still a newcomer in the eyes of many auto parts giants when it first entered the automotive field. Thanks to Boss Xu, the establishment of cooperation between the two parties is only the beginning, and trust still needs to be built on the long-term interaction of the “friend circle”. It is not realistic for us to require many things in one step. I believe that as the Evergrande factory is finally completed, a cluster effect will soon be formed. Maybe we came here again in half a year or a year, which is another scene.
■ What has Evergrande done this year?
Ever since they broke up with FF, Hengda has obviously realized that it has to rely on itself to build a car, and at least the rhythm is completely in charge. Since last year, news about Evergrande's car making has been common. Boss Xu took land everywhere and ran around the world, just to realize “changing lanes and overtaking” as soon as possible. On the official website of Evergrande Group, the news about automobiles even surpasses that of real estate, which shows the position of automobiles in the Evergrande Group. So, what has Evergrande done in the past year or so? Let us briefly review it.
From real estate to football, people have already experienced Boss Xu's bold and unrestrained style. Car manufacturing is no exception. Two summits where industry leaders gather at the level of 1,000 people within a year announced that Evergrande has officially sounded the clarion call to enter the new energy vehicle industry. Of course, what is amazing is not the holding of the summit, but the goal that seems to be almost idiotic in the eyes of others. Can the AFC Champions depend on money, and so can cars? Can you do whatever you want with money, ignoring the basic cycle of building a car?
Different from other new forces that are diligent and thrifty in car-making, Evergrande is very aggressive almost every time it makes a move. Xu Jiayin once said boldly: “We are now talking about hundreds of billions of things, and we won't talk about hundreds of millions of things.” Obviously, “buy, buy, buy” is a routine operation in the initial stage of Evergrande. However, people seem to be more concerned about when Evergrande's new car will be off the assembly line than taking land to build a factory.
In fact, there is a reason why Evergrande chose “low-key” for the mass production of Guoneng 93 models. After all, the research and development of this model was completed before Evergrande took over. Strictly speaking, it has little to do with Evergrande. Despite this, Evergrande still gave a positive response to this, thinking that the mass production of Guoneng 93 is a milestone, marking that Evergrande's domestic production lines have also been able to mass produce.
On the product level, Xu Jiayin is also doing it personally. In October last year, Evergrande hired 15 world-class styling and design masters to create the “explosive” Hengchi. It is reported that Xu Jiayin attaches great importance to the styling design of the “Hengchi” series of products, and has organized several seminars with the world's top design masters. All in all, there is one requirement: In the future, Evergrande's new car must make the world shine, “Everyone sees, everyone wow”!
■ With rich wealth, is Evergrande really not short of money?
A sudden new crown epidemic caused many new car-building forces to fall. Even if those who can survive are either financing or on the way to financing, it is inevitable to live a “tight life”. In contrast, Evergrande does not seem to worry about money. Having said that, building a car needs to continue to burn money after all. In the context of increasingly tight real estate in recent years, it is also a test of the ability of selling houses to transfuse blood to build a car.
Despite the losses, Evergrande Health’s management is still positive, stating that the automotive industry has a long industry chain and long payback period. It is normal for temporary operating losses at the initial stage of expansion. The company is confident in the future development of the new energy vehicle business. A day later, on March 31, Evergrande held its 2019 annual results conference. Data shows that Evergrande achieved contract sales of 601.1 billion yuan in 2019, a year-on-year increase of 9%. At least from the data point of view, Evergrande Auto has not had to worry about money for a long period of time.
Although the car has not yet been built, Evergrande Health’s share price has already responded positively. Since June this year, the stock price has soared. Some people may think that this has something to do with Tesla's drive, and there is also a speculation. It can at least show that capital is optimistic about the new energy vehicle track, and it also shows that Evergrande Motors has attracted the attention of capital, which is enough.
Full text summary:
At last year’s summit, Xu Jiayin explained how Evergrande’s road to build a car in 15 words: “Buy, buy, combine, circle, big, well”, that is, use acquisition, alliance, and strategic cooperation. Ways to make Evergrande Automobile bigger and better. Now, Evergrande is in the stage of “buy, buy, combine, circle and circle”. Judging from the construction of the Nansha plant, Boss Xu is obviously serious about building cars. The last thing I want to say is that Evergrande is inevitably questioning at this stage. This is normal. But for such a “newcomer”, even if we do not have encouraging applause, should we let go of our prejudices? Of course, the self-esteem of top companies does not need to be cared for. Let us wait and see how Evergrande Motor will perform next.