On December 19, 2010, Foton Motor's 2011 Supplier Conference was held. The theme of this year's conference was to provide value for the brand and create wealth through chaining. The proposal of this theme has once again attracted the attention of all sectors of society. At the annual meeting, Foton Motor proposed that strategic suppliers can participate in the development of Futian's new products, and follow Futian's overseas development plan to actively integrate local resources for investment in parts and components.
For Foton Motor, the development of this model of chained development did not happen overnight. At the beginning of its establishment, Foton Motor, through the power of the market, used 100-manufacturers Futian to establish economic bonds of common destiny with the key resources of the upstream and downstream, and quickly formed its own production base layout and dealer team for the future. Development laid the foundation. In the more than ten years since its establishment, Foton Motor has cooperated extensively with upstream and downstream companies in the vast space provided by the automotive industry. After continuous exploration, Foton began to intensify cooperation with key partners in the industry chain. Formed a model of the development of the chain. The so-called linking is that Foton Motor has broken the closed development of individual enterprises. Through in-depth cooperation among enterprises in the industry chain, the upstream and downstream resources have been integrated to form a common development and common growth model. This model has brought a qualitative leap to the development of Foton, making a company that does not possess innate advantages. In just over ten years, the market competitiveness has rapidly increased and it has become a multinational giant in the field of commercial vehicles in the world. A competing national car brand.
The development model of linkage is the result of the development of Foton Motor, which is not closed, does not catch up with the tide, understands itself objectively, studies the market and users in depth, and actively practices. The automotive industry is an industry that requires a lot of capital investment. Futian is a young, learning-oriented company. Therefore, in the early stages of development, we have always adhered to the principle of the most economical, integrated the largest resources at the lowest cost, and achieved the most results and achieved the greatest satisfaction from users. In Futian's view, the joint development of upstream and downstream companies is such a development mode with the highest "cost-effectiveness". The greatest significance of Futian's development model of linkage is to be able to improve the efficiency of independent innovation, save the cost of independent innovation, and quickly shorten the gap with the world's advanced level. The final measure of this model still depends on the results of independent innovation. Fukuda developed this model through chained development and achieved a series of independent innovation achievements. It has rapidly developed into a company with the largest sales volume and the most complete variety of commercial vehicles in China.
The fundamental reason why Futian's chained development model can be full of vitality and fruitful results is that the link between Futian and the industrial companies is oriented toward market demand and meets end-user goals, and they are linked together through a bond of interest. The common innovation of the market. With the market interest as a link, we can give full play to the enthusiasm of chained partners and jointly complete product innovation. For example, the modeling technology of the British Lotus Company, the engine matching technology of Bosch in Germany, the interior technology of American Viscount, and so on, all through the chained model, adding luster to the brand products of Foton Motor. In March 2005, the China's light vehicle model led by Japan's Isuzu technology and models was eventually broken by the Otalink series products independently developed by Foton. An international development team consisting of 6 international experts, 14 domestic experts and 67 engineers has shortened the development cycle of the new series of Olling new products to 27 months. At the same time, it completely broke through the original Japanese Isuzu technology platform and achieved a major technological innovation of “1+36†in terms of safety applications. Among them, nine main items were domestic initiatives. On the new Olympian, foreign experts such as the British Lotus and Isuzu Isuzu worked on their strengths and manufacturing techniques. The director of Fukuda Motor Co., Ltd., who participated in the research and development process, made the new Olympian products able to disregard the domestic light trucks. Herd.
The Futian Auman Heavy Trucks, which was synchronized with the world at the start, also embodied Futian's development model. Similar to entering the field of light trucks, Foton has established a strategic alliance with upstream and downstream companies such as Weichai and jointly invested in the establishment of a joint R&D center and key production facilities in the process of launching the Auman Heavy Trucks. Quality and matching of key resources such as axles and axles. In this way, through the integration of resources in the industrial chain, Foton Motor has not only grasped key points in the R&D process, but also made full use of social resources in an open manner, which has made Auman one of the most competitive heavy truck products in the domestic market. Similarly, the research and development of new automotive products such as Foton Motors, Omagh, MiDi, and PU201, which will be listed in the future, are similar to the research and development of the new Aubell. The difference is that their R&D cycles are shorter, and more integrated new technologies are used. The main market for products is aimed at higher-end markets in developed countries. Foton Motor integrates the world's best and most cost-effective technology resources to achieve the highest efficiency innovation.
The chained development model of Foton Motor is a strategically oriented deep cooperation, not a short-term alliance and cooperation in a general sense. In this industrial chaining, all parties have the driving force of internal interests: vehicle companies through the integration of engine and parts company's innovative capabilities, and ultimately expand the market share in the vehicle and enhance the brand of vehicle companies; Engines and parts companies can also increase their market share by leveraging the influence of the entire vehicle brand. In the development of Futian's chained development and synchronization system, all parties involved are equal. If the overall goal of R&D design is determined by Foton Motor, it is because of the professional division of labor. For engine and component companies, they still have a lot of room for innovation in their own fields. As a vehicle company, Foton Motor can study the market and consumers as a whole, and can pass market user information to these engine and component companies through design goals and other forms. By linking up with Foton Motors, parts and components companies indirectly realize the linkage with the market, so that they can further use their accumulated specialized innovation capabilities to meet the needs of the market. In this way, the upstream parts supplier's market is more targeted. At the same time, upstream suppliers, which are linked partners, can share cutting-edge information on technological development with downstream vehicle companies. In this way, the various parties involved in the chain can exert their respective advantages through deeper cooperation, which will greatly increase the efficiency of innovation in the industrial chain, make full use of resources, and significantly reduce waste, so that all parties in the industry chain can achieve common development and Benefit sharing.
In order to support the development of distributors, Foton Motor also fully utilized the advantages of vehicle companies and established a scientific support system to help suppliers improve processes, reduce production costs, improve product quality, and achieve strategic win-win results. Foton Motor not only learns Toyota's TPS lean production method, but also extends this production method to the supply chain, recruits expert teams, guides and supports suppliers, and helps suppliers improve quality, improve management, eliminate waste, and reduce cost. In the chain of development of Foton Motor, participating parties can not only achieve the sharing of benefits but also jointly avoid risks. In 2008, the global financial crisis struck, and the raw material markets related to the automobile industry, such as steel products, have experienced great ups and downs. As a result, many domestic independent brand automobile companies have suffered a lot of losses. In recent years, Foton Motor has been committed to communicating with key component suppliers on raw material price fluctuations, understanding the possible impact of fluctuations in raw material prices on the production and operation of various companies, jointly establishing component pricing models, and following raw materials. On the basis of fluctuations, the price of parts and components can be adjusted in time. In this way, it not only ensures the normal order of production and operation of enterprises within the industry chain, but also enhances the confidence of suppliers in cooperation with Foton Motor, and also provides guarantees for all parties to expand their markets and meet market demands.
Of course, the growth of any one strategic supplier needs a cycle. Foton Motor has always been able to provide development opportunities and space for potential suppliers, so that they have more opportunities to participate in new product development process, so that a large number of companies grow into the backbone of Futian parts suppliers. It has cultivated star parts companies like Wanliyang, Yihe Cheqiao and Qingte. At present, a large number of suppliers cultivated by Foton Motor have already possessed independent R&D capabilities and began to participate in the development of a series of key models in Foton, from times to Omar, from ETX to H4, from landscapes to Mpak, from Sapu to 201, from the traditional bus to the new energy bus, from the Olympic bell engine to Foton Cummins, a large number of suppliers are growing together with Foton Motor.
Foton Motor believes that automobile companies do not have regional, national, or world-class. Therefore, automotive companies must create international brands. Fukuda Motor Co., Ltd. came along the way, under the chained development model, in the depth cooperation with upstream and downstream companies, played the leading role of the vehicle brand. Through the development of the chain, Foton Motor will not only realize the immediate market benefits of the company, but more importantly, it will enable its own brands to achieve breakthroughs in core technologies and move toward the international market. According to the planning of Foton Motor, Foton Motor will implement a 5+3+1 development strategy in the future. 5 It will build 5 overseas plants in India, Russia, Brazil, Mexico, and Indonesia respectively; 3 it will break through North America by producing high-end vehicles and engines. In addition, Western Europe, Japan, and South Korea are the three most high-end automobile markets in the world. 1 It is centered on China and builds a global innovation center. By 2020, the sales volume of Foton Motor will exceed 4 million vehicles worldwide, sales revenue will exceed 400 billion yuan, and profits will be more than 20 billion yuan. By then, Foton will complete the global market and industrial layout. Overseas sales will account for 38% of total sales, and it will be world-class. Business scale and world-class enterprise development capabilities have become world-renowned car brands and have entered the top ten global automotive companies. Participating in global competition and achieving a globalized layout is not an enterprise thing, but a common mission of the entire industry chain. The parts and components companies must go out of the country together under the unified planning and guidance of the entire vehicle company in order to win the international competition.
At present, the 5+3+1 strategy implemented by Foton Motor has been fully rolled out. With the launch of the Foton 5+3+1 strategy, the first station in India, the Foton Auto Procurement System has launched a global search. Future Futian will establish a global procurement center, complete the integration of procurement resources, and ultimately achieve global procurement, and select valuable parts suppliers worldwide to cooperate. In order to maintain the advantages of China's manufacturing, Foton Motor will guide its own parts suppliers with cost advantages and technological advantages to invest in overseas and build factories in a globalized layout, so that the parts suppliers will grow together with Foton Motor. Realize globalization.
At present, Foton Motor's component supplier system has also brought together many international component giants such as Continental Electronics, Visteon, Bosch, ZF, and WABCO. These internationalized parts and components companies have been integrated into Futian's chained development model. They no longer simply stay in the traditional drawings, incoming materials, and sample processing, but are more involved in design and development, manufacturing inspection, and Full responsibility for quality assurance and marketing services. They are taking advantage of their systematic development, modular manufacturing, and integrated delivery to contribute to the upgrading of Futian's automotive products and to the world. Not only that, Foton Motor will also use the globalization of these international parts companies to support its own global manufacturing strategy.
Lu Zhongyuan, deputy director of the Development Research Center of the State Council pointed out that the development of the world's industrial structure is emerging in a new direction. The developed countries have begun to integrate innovations at the industrial chain level, and corporate innovations have come in alliances. There are mainly two modes: one is the joint innovation of the same value chain, such as It is jointly developed by auto industry component manufacturers and vehicle manufacturers. The second is a corporate alliance between competitors. The competitors sign alliance agreements according to phased strategic goals for product development. The in-depth cooperation between Foton Auto and parts suppliers is exactly the inevitable choice for auto companies with powerful capabilities to respond to international competition. The efforts of Foton Motor undoubtedly provide reference and enlightenment for the Chinese auto industry to become stronger and bigger.
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