2006 China Automotive Leaders Summit Held in Beijing

Sponsored by China Business News, Sohu Automobile, and New Automobile Magazine

● The first dialogue - harmony: Yan Yanfeng, Yin Jiaxu, Xu Heyi
● Second Dialogue - Cooperation: Tong Dongcheng, Ling Yuzhang, Huang Xiangdong, Wang Shiping
● The third dialogue - together force: Cai Dong, Zhang Baolin, Chen Zutao, Nakamura Kaiji

The world is big and full of opportunities. Today the Chinese auto industry is moving toward a flourishing state.
On November 17, 2006, the "China Auto Leaders Summit 2006" with the theme of "Discovering the Harmony Road of the Chinese Automobile Industry" was held at the Diaoyutai State Guesthouse by China Business Daily, Sohu Automobile, and New Automobile Magazine. Li Miaomiao, deputy director of the newspaper, presided over the three exciting summit conversations. Leaders of the Chinese auto industry and participants discussed the opportunities, challenges and solutions for the Chinese auto industry in the context of internationalization.
In recognition of the outstanding people who have made outstanding contributions to the development of the Chinese automotive industry, the summit specially set up the “Outstanding Contribution Award for the Chinese Automobile Industry”. After a serious, strict and cautious selection by the organizer, Dongfeng Motor Co., Ltd. President Nakamura Katsumi, SAIC shares Vice President Murphy won this honor.
The honored guests at the summit were: Yan Yanfeng, General Manager of FAW Group, Yin Jiaxu, Party Secretary of Changjiang Group, Chairman of China General Armament Corporation, Xu Heyi, Chairman of Beijing Automotive Group, Tong Dongcheng, Deputy General Manager of Dongfeng Motor Corporation, and Fujian Automobile Industry Group. Lingyu Zhang, Chairman of the company, Cai Dong, General Manager of China Heavy-Duty Truck Group Co., Ltd., Huang Xiangdong, Deputy General Manager of GAC, and Wang Shiping, Deputy Chairman of Huachen Automobile. As a distinguished guest of the "China Automotive Industry Outstanding Contribution Award", the Chinese automobile industry veteran, member of the National Committee of the Chinese People's Political Consultative Conference and the full-time member of the Ministry of Science and Technology, Chen Zutao also made a special trip to present the trophy to Nakamura Kaji and Murphy.
He Yi, deputy editor of Sohu Automobile, stated: “This is a real summit dialogue that will have a profound impact on the health and harmony of the Chinese auto industry.” Li Yuyuan, editor-in-chief of New Automobile Magazine, said: “This is the top event of the Chinese auto industry. I believe that the topics discussed today will have a positive and positive effect on the Chinese auto industry and will soon become a meaningful ideological collision in the Chinese auto industry."

Nakamura Katie, Philip Murphy
Won the “Outstanding Contribution Award for China Automotive Industry”
At the 2006 China Automotive Leaders Summit, Murphy Feifei, Vice President of Shanghai Automotive Co., Ltd., won the “Outstanding Contribution Award of the Chinese Automobile Industry” awarded by the organizer. Chen Zutao, a veteran of the Chinese automobile industry, a member of the National Committee of the Chinese People's Political Consultative Conference, and a full-time member of the Ministry of Science and Technology The honored guest awarded the trophy.
As the president of Dongfeng Limited, the largest joint venture company in China, Nakamura Keji led the development of Dongfeng Limited for three years. Its operating experience and model have become a classic example of the integration of China's super-sized state-owned enterprises with foreign capital. More importantly, he and his Chinese partners jointly advocate the harmonious coexistence of the Chinese and foreign parties, laying a good foundation for the smooth integration of Chinese and foreign cultures.
He was once the CEO of the world's largest car GM in China, and now is the vice president of SAIC Motor Corporation. As the person in charge of the largest joint venture between China and the United States, Murphy and his team have shaped an unknown brand in China into the most influential brand in the Chinese automotive industry. Now, as vice president of SAIC shares, he is stepped up and goes to Korea. His ability to handle Korean workers’ strikes has been called a miracle by South Korea.
Nakamura Katsumi said in his acceptance speech: “I feel very honored. This is the result of the joint efforts of our employees. The automotive industry has a very big development prospect in China and we will certainly move to a new level.”
Murphy also said: “I’m very honored to be able to receive this award today. I’ve been in China for many years and I’m very happy that I’ve been working with a very good partner. 10 years ago because of Shanghai GM Having met with SAIC leaders, I am still proud to be their partner.”

"Conscientious" is the highest realm of life
Feelings of confession from Yuan Zhongrong, executive deputy general manager of Guangzhou Toyota
In April of this year, Guangzhou Toyota played background music during the National Distributor Conference. It was Tchaikovsky's "Piano Concerto in C Major". The reason why the track has been invented for 100 years is that the world is recognized as an enduring classic. The reason is that the heroic spirit it wears through from beginning to end is often shocking and it also rewards A passion for life that allows oneself to be bold.
Rationally speaking, this passion is not only the indispensable primary color of life, but also the original driving force for all undertakings. Therefore, it is not a bad idea to regard it as a portrayal of the minds of all those with great ambitions.
Interestingly, my favorite tune hit with the preferences of Guangzhou Toyota bosses and employees. In the "basket" of culture, we unexpectedly easily met.
I think this is the lasting charm of advanced culture. General Secretary Hu Jintao's latest proposal for "prospering advanced culture and building a harmonious culture" at the Eight Generations Congress and at the Seventh Representative Conference is the principle.
In September of this year, Guangzhou Toyota, which had a 50% share in Japan’s Toyota and Guangzhou Automobile Group, was established. Although it has just completed two years, and the company’s flagship model, Camry’s launch, has only been listed for more than half a year, sales have soared to 60,000 units. Can be described as "a blockbuster."
It is not surprising to see their next annual sales target of 150,000 vehicles.
From the point of view of the auto media, why is the Sino-Japanese joint venture that has come from behind and why it is so irresistible that it can't be stopped? Looking for reasons from the corporate management mechanism alone may not be able to explain the secret of its success. In my opinion, the intangible pull of corporate culture must have played a unique role.
I would like to know what causes Toyota Guangzhou to have such a firm belief and boldness. A "Ciano Concerto No. 1 in C Major" is insufficient to interpret this issue.
Through the exchanges with Yuan Zhongrong, I found the answer. This is the confucius of Guangfeng's corporate culture - "The Source of Drinking Water" and "Thanksgiving Dade."
Yuan Zhongrong said that he valued these eight words not only because it is a common deficiency in China today, but also because it is urgently needed for advocacy and reconstruction, and because it is an indispensable cultural connotation in the "people-oriented" approach. Specifically to Guangzhou Toyota, these eight words are set as the spiritual coordinates of employees and there are deep considerations for building a spiritual home.
To be honest, “drinking water and thinking about the source” and “giving thanks to Dade” are not esoteric principles, and their meanings are almost the same. The only difference is that the former speaks of the fact that people cannot forget the facts at any time, while the latter talks about being a human being and still has to worry about it. Known to the heart of the newspaper.
For example, on June 6th this year, Macau Chief Executive Ho Hau Wah did something similar to drinking water and thanking Dade. After the opening ceremony of the “3rd Pan-Pearl River Delta Regional Cooperation and Development Forum”, he personally came to the source of the outlet of the Zhujiang River, bent down, and devoutly held a handful of rivers in his hand, thus demonstrating the “source of drinking water”. And "Thanksgiving Dide" is still a complementary relationship.
The eight words “Sinking the Source of Drinking Water” and “Thanksgiving Dide” will be realized. Some of the simplest truths in life often contain the deepest realm. This deep realm is the “self-consciousness” of life. What needs to be emphasized is that this kind of self-consciousness of life is often mixed with all kinds of desires in life. A little carelessness will be overwhelmed by the turbid waves of desires. Therefore, it should be rooted in the green space of the self-mind, from the owner of the green space - self, carefully and constantly work, care, support. Only in this way can a person in his short life be able to do everything from time to time, "Taishan does not bend over the top," and everywhere, "the cloud is still flying calmly."
Similarly, for a young enterprise like Guangzhou Toyota, which is full of vigor and vitality, in today's increasingly prosperous and dazzling human civilization, it is possible to establish “drinking water source” and “gratitude Dade” as guides for corporate culture, which is also reflected in this kind of life. The highest realm.

Dialogue guests:
Dong Dong Deputy General Manager Tong Dongcheng
Chairman of Fujian Automobile Group Ling Yuzhang
Deputy General Manager of GAC Group Huang Xiangdong
Brilliance Automotive Deputy Chairman Wang Shiping
Principal: Vice President of China Business Daily Li Miaomiao
Invited to host: Sohu Automotive Editor Yu Qingmu


The second dialogue: cooperation

Win-win with joint venture partners
Li Miaomiao: When it comes to cooperation, there are many opinions in the industry that are not very consistent. This is understandable. However, in the development of the Chinese auto industry in the past decade, it should be said that without joint ventures and cooperation, there will be no flourishing development today. The companies in which the guests are present have a background in joint ventures and cooperation. I would like to ask Mr. Tong. What are the fundamental changes that Dongfeng has made since the joint venture between Dongfeng and Nissan?
Tong Dongcheng: This topic should be said to be a topic that we Dongfeng people have been summing up and deepening since the reform and opening up. The two major themes of today’s world are “peace and development.” In such an international topic, it should be said that when we specifically implement it, it is more important to achieve peace and development through cooperation. If we say that there is no such way of cooperation, today’s The world’s two major themes are also difficult to achieve.
Dongfeng has persisted in diversified cooperation since the reform and opening up. During the process of cooperation, Dongfeng people have not only placed themselves in the middle of the international family, but also made themselves continue to develop. Dongfeng was formerly a truck builder. Before our production and sales volume hovered around 100,000 vehicles, I can comfortably tell you that there are no problems with the breakthrough of 700,000. Measured only by quantity is not what we need, but it should be measured in terms of corporate culture, corporate quality, corporate technology, ability to participate in market competition, etc. Within the enterprise, we are a kind of surviving ability. It is social contribution ability.
Li Miaomiao: I would like to ask Ling Zong. Southeast Motors has brought profound changes to the Fujian Automobile Group. What was your deepest feeling in the cooperation with Taiwan-funded Taiwanese businessmen?
Ling Yuzhang: After the reform and opening up, Fujian, like other provinces, is very much in need of this opportunity to develop the industry. Our cooperation with Taiwan’s autos is a more complicated process and it also reflects harmony. However, I think this harmony has gone through a process that is not necessarily very harmonious. I think that the cross-strait cooperation in the past 10 years is a decade in which the auto industry in Fujian and Taiwan have learned from each other and established a win-win relationship. It is a special model for the development of the Chinese auto industry. In the process of cross-strait cooperation, the Fujian automobile industry has received help and the effectiveness of cooperation. Still more harmonious.
Li Miaomiao: I would like to ask Guangzhou General Automobile Huang, the first joint venture of GAC should be a failure. In the past few years, through the cooperation with Honda and Toyota, what do you think is the biggest gain of GAC Group?
Huang Xiangdong: GAC once had a particularly painful lesson in cooperation, and certainly has experience. By learning the lessons of failure, GAC gradually learned how to cooperate, how to cooperate, and how to achieve harmony through cooperation, which is to achieve a win-win and win-win situation. Without the strong investment of the state, the automotive industry developed in small areas is very weak. Especially after the first failed cooperation with Peugeot, many people doubt that Guangzhou will be able to do cars and do a good job of cars. Through practice, we use facts to tell everyone that Guangzhou is also able to do cars. Of course, we will tell everyone in the future that Guangzhou people will also do their own brand cars.
Li Miaomiao: I would like to ask Chairman Wang, Huachen as a start-up company based on its own brand. It is necessary to build China and cooperate with BMW. How can you, as a group leader responsible for planning, balance the relationship between the two?
Wang Shiping: I am responsible for planning and purchasing in the group. It should be said that we support each other in the process of cooperation. In March this year, Junjie was listed. We invited the BMW team to help with the rectification. It should be said that BMW has done a lot of work in this area to help us plan and solve many problems before launching. It should be said that we have worked very well in cooperation. Now that we have positioned BMW as our company's top advisor, we have found that problems can be resolved at any time during the course of our work. BMW is very supportive of us and cooperates better.
Joint ventures strengthen their own strength
Li Miaomiao: I still asked Wang Zong. Some people said that this year Brilliance played a turning point. Junjie’s sales are promising, but there are also people talking about Junjie’s loss-making sales. Is it still?
Wang Shiping: Junjie’s current gross profit margin is basically the same. Although the market is very popular in March this year, it can be limited due to limited production capacity. Now that we can produce 7,000 to 8,000 vehicles a month, I believe we will further reduce our costs through the use of quantity. This year, the group will create 9.3 billion yuan and create about 1.06 billion yuan next year.
Li Miaomiao: In the context of a full-scale joint venture, does Dongfeng still have the strength to develop its own brand?
Tong Dongcheng: The technology of the parent company brand exists in the society as a whole. As Dongfeng, it is the basic task of the company to carry forward the Dongfeng brand and continuously expand the NISSAN brand during the joint venture. In the past three years, we have expanded the Dongfeng brand. It should be said that this is our resource. This brand is our Dongfeng company's own brand. The parent company’s brand development depends not only on the joint venture company, but also on its own brand.
Li Miaomiao: Ling Zong, Last year, the situation of the Southeast Autos should be said to be not very satisfactory. Some people say that the Chinese have too little right to speak. As a chairman, how do you evaluate this?
Ling Yuzhang: I think it is not necessary to simply say that the power of speech is more or less. Any enterprise reflects a contradiction. This contradiction is whether it is going in the opposite direction or in the direction of the unity. This is the key, and it is in the direction of the unity, or it is harmonious and opposite. It's not very harmonious. This is job rights and corporate economic rights. From the perspective of personnel, as a company, we are pursuing a profit, not a purview, and this harmonious development is gradual.
From last year to this year we have completed a process from cross-strait cooperation to international cooperation. In this process, from the viewpoint of performance, there may be some ups and downs, which is also the case in the development process. The cooperation with third parties will create new conflicts and resolve new conflicts so as to achieve harmony. I think this is very necessary. This is also a huge impact on our Southeast Asian car.
Li Miaomiao: Huang Zong, 93% of the Accord's localization and manufacturing experience, can become the basis for GAC's independent development, does it mean that GAC's own independent brand will enter the high-end?
Huang Xiangdong: The specific low-end, mid-end, or high-end brand is currently the company's commercial secret. There are many things that a joint venture provides to us or we can digest and absorb. It will certainly provide very beneficial help to the development of our own brand, whether it be from production, quality control or even product development. .



Dialogue guests:
Cai Dong, General Manager of China National Heavy Duty Truck Group
Chang Bao Group Vice President Zhang Baolin
Member of the National Committee of the Chinese People's Political Consultative Conference and the full-time member of the Ministry of Science and Technology
Dongfeng Co., Ltd. President Nakamura Kaiji
Principal: Vice President of China Business Daily Li Miaomiao
Invited to host: Editor-in-Chief of New Automobile Magazine
The third dialogue: cooperation

Joint venture to promote development
Li Miaomiao: In the process of cooperation with foreign multinational companies, Sinotruk has absorbed nutrition, developed and expanded itself, can we talk about how to use their strength to develop independent brands in the process of cooperation with foreign investment?
Cai Dong: The joint venture and cooperation between Sinotruk and Volvo has made very slow progress. The talks have been going on for 8 years and now it has been done for 8 years. The whole process should be said to have drawn a lot of experience and ideas. I personally think that to make China's own independent brand, first of all rely on their own efforts, it is impossible for the old to rely on others because it also has a competitive relationship with the industry, so it is very difficult to get things, but get some ideas I Think it is okay.
Li Miaomiao: Under the environment of sluggish trucks this year, China National Heavy Duty Trucks has a new breakthrough in sales. Do you think that it is because of the joint venture with Volvo that it has achieved such sales today?
Cai Dong: I personally believe that the achievements made by China National Heavy Duty Trucks are the result of passionate struggle of the majority of employees, and the second is also due to the large market demand in China. China's heavy-duty truck industry is also somewhat different from that of foreign countries, because heavy-duty trucks are basically dominated by local companies, and I think the future is still local-led. From 2001 to the present, the entire heavy-duty trucks and parts and equipment have gone down significantly, and now go very low, which makes it impossible for any foreign truck company today to want truck assembly in China. This situation is conducive to the operation of domestic enterprises in the international market. Personally, I think that the heavy truck industry in China is very promising to develop in the country and there is a great promise to go global.
Liyuan: Mr. Zhang, I recently saw a report from the State Council Research Center. There is a report on Changan’s self-development model, referred to as the Chang’an model for short. I’d like to ask Zhang to briefly talk about what the Chang’an model is. So far we’ve Did not find that the process within the self-owned brand has such a level called the model, rose to the National Research Center, an organization, such a concept of corporate development model you give us a brief introduction.
Zhang Baolin: First of all, I would like to point out that different companies will take different paths in independent research and development. In fact, I think that no matter which way you go, you must be truly suitable for yourself, you must have independent research and development capabilities, and the second is to make products in the market through R&D. On the final acceptance by the majority of users. We have indeed conducted a series of explorations in the area of ​​independent research and development. In this regard, we have taken a path of normal development. In this process, we have both cooperation and autonomy. The first car is to learn from others. After our own ability to increase the second car, we can use our accessories. Most of the third car is our own, and we come through such a process.
Now Changan should also say that it is still in its infancy in terms of independent research and development. Although we have also engaged in about four to five years, there are currently three cars, but I think we still need to develop in the market.
Li Miaomiao: Cai Zong, once talking about the mixer truck, was originally the world of Japanese cars. Since the beginning of this year, due to the expansion of China National Heavy Duty Truck's market share, Japanese brands have gradually withdrawn from the Chinese market. How has CNHTC developed its products and expanded its market share?
Cai Dong: In the past few years, the import of mixer trucks has indeed been reduced. From the past, more than 20,000 imported mixer trucks were imported each year, and more than 10,000 vehicles were imported in the previous year. By the end of last year, more than 30 vehicles were imported. This year it is estimated that there may be even less. China National Heavy Duty Truck began to enter this market from the previous year and wanted to do something. Last year, we adopted the method of encircling the cities in rural areas. Now, basically 4,000 vehicles have been sold this year, accounting for 56 percent of China's sales. Now we see that most of the roads are our mixer trucks.
Liyuan: This year is a very good step for heavy-duty trucks. What plans are there for next year?
Cai Dong: Our company wants to sell 125,000 vehicles at the end of the “Eleventh Five-Year Plan” period. This is a very big goal. This year we will achieve 60,000 vehicles. I believe that the company will sell 75,000 vehicles next year.
Correct understanding of the significance of the joint venture
Li Miaomiao: President Nakamura, as the president of Dongfeng Limited, what is the deepest feeling in your work?
Nakamura’s self-denial: I feel most deeply that the development of China’s auto industrialization is very large. Under such a background, we have a team that strives toward common goals and strives hard. This is the point that attracts me the most. Dongfeng Limited, as the largest joint venture in China, set a common goal when it was established in 2003. The surrounding environment has changed greatly over the years, and it is basically different from the original. Some have become better and some have become more deteriorated. Under such circumstances, we have made adequate preparations. Our goal is how to do a good job of the company. After discussion we can earnestly work together. I think This is also the biggest breakthrough in recent years.
Li Miaomiao: I heard that the president of Nakamura participates in the party organization meeting on a regular basis every month and lived through party organizations. Is this?
Nakamura has expressed self-denial: I am very sorry that I am not a member of the Communist Party of China. In our company, it is very important to consider the support of party organizations and trade unions. I am responsible for daily operations. Some ideological work of employees is done by party organizations and trade unions. . I don't participate every month. There are at least four to five exchanges every year in the trade unions. There are also annual employees’ congresses. I probably participate in such activities once a month on average.
Li Miaomiao: Chen Lao, as our predecessor of the Chinese automobile industry, a member of the National Committee of the Chinese People's Political Consultative Conference, a full-time member of the Ministry of Science and Technology, and the former general manager of the China National Automobile Industry Corporation, are you satisfied with the status quo of the Chinese auto industry today?
Chen Zutao: I participated in the negotiation of 16 Chinese projects in Russia in 1950 and was very unfriendly at the time. Since then, I have decided to participate in the opening of the automotive industry. I participated in the construction of FAW from start to finish and from the beginning to the end of FAW. In addition, almost all auto factories in China I have participated indirectly, including Shanghai Volkswagen, Beijing Cherokee, Heavy Steyr, and many other auto plants. I have direct or Indirectly participated in their establishment or construction.
Over the years, I have felt that I am 78 years old and I can feel that from 1982 to 1983, the automotive industry was basically witnessing the development of a single truck until today’s era of more than 700 million units. I’ve witnessed the development of the Chinese automobile industry. I feel very happy.
There are several stages in the development of China's auto industry. After the reform and opening up, we have taken a joint venture. There are many different views on joint ventures. This is very natural. However, some people say that joint ventures use the market for technology and are detrimental to our development. I do not agree. If there is no stage of joint venture, our auto industry may still be in the original stage, so the joint venture is inevitable. This is a basic point of view. With respect to innovation, I believe that in the context of globalization, innovation can take multiple modes under the premise that we can use the international and domestic experiences that are worth learning from.

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