1. The "Auto Industry Development Policy" promulgated and implemented reviews: With the approval of the State Council, the National Development and Reform Commission formally released the "Auto Industry Development Policy" on June 1. Implement the people-oriented, comprehensive, coordinated, and sustainable scientific development concept; embody the principle of combining the basic role of market allocation of resources with the government's macro-control; propose the cultivation of the automobile market with private consumption as the main body, improve the automobile use environment, and maintain the automobile The policy of automobile consumption, such as consumer rights, etc... The formulation and implementation of the "Development Policy for the Automotive Industry" will surely give a great impetus to the development of China's automobile industry and related industries. 2. Market growth slows down, car prices fell sharply Comments: In 2004, the growth rate of the Chinese car market dropped from 75% to about 15%, accompanied by sales declines in some of the major car companies, inventories soared, and the price strategy became a stimulus to the company's sales. The measures that unfavorable conditions have to take and the price cuts have therefore become the hottest topic in the auto market in 2004. Statistics show that from the beginning of the year to the end of the year, the auto market experienced four rounds of price-cutting waves in a wide range, and the overall price reduction has exceeded 10%. However, due to frequent changes in prices, the psychology that consumers have to wait for the purchase of money has not only not eased, but has intensified, and the downturn in the auto market has not improved. This may not have been expected by the auto companies. 3. China signed the world’s first unified automotive technical regulations Comments: On November 18, 2004, the first globally unified automotive technology regulation—“Global Technical Regulations on Door Locks and Door Holdersâ€, in Global Automotive The Agreement on Technical Regulations was adopted by the Assembly of States Parties. China is one of the contracting parties. China has participated in the unification of global automotive technology regulations from beginning to end, indicating that China’s automotive technology regulations are officially in line with international standards. 4. Official Regulations on the "Regulations on the Recall of Defective Automotive Products": The implementation of the recall system for defective automotive products officially announced on March 1 last year and formally implemented on October 1 is undoubtedly a boon to the masses of consumers. Since then, Chinese consumers have also enjoyed quality commitments and services that are in line with international practices. Before and after the introduction of the system, domestic companies such as Guangzhou Honda, FAW Car, Changan Suzuki, and Shanghai General Motors have won the respect of consumers for their practical actions. The recall system and the soon-to-implement automobile "Three Guarantees" policy have also become an important means to urge auto operators to improve their quality standards. 5. SAIC acquired South Korea Ssangyong Comment: On October 28, 2004, the final contract signed by Shanghai Automotive Industry (Group) Co., Ltd. for the acquisition of 48.9% shares of South Korea Ssangyong Motor Co., Ltd. was formally signed. Although this move was complicated by the participation of Blue Star and the opposition of the South Korean trade unions, SAIC Motor Group finally took the tough stance of Ssangyong. When multinational companies dominated the Chinese car structure, SAIC Motors Group made huge investments in holding South Korean Ssangyong Motors, opening up the precedent for Chinese auto companies to acquire foreign car companies, and it also indicated that the “going out†strategy of China’s auto industry has shifted from simple product exports. The extension of capital output also provides a new way for Chinese auto companies to build their own brands. However, how to resolve the huge financial risks brought by cross-border mergers and acquisitions? How to achieve the integration of different corporate cultures? How will the acquiree's development capabilities and branding be used by me? It is still the three major problems facing SAIC. 6. Annual sales of FAW exceeded one million units. In 2004, the sales of vehicles of China FAW Group exceeded 1 million units, of which auto brand sales accounted for 50%. Mega-scale is the dream of several generations of FAW, and it also implies the efforts of several generations of FAW. The realization of the sales of 1 million vehicles indicates that FAW's production and sales scale has entered a new platform of magnitude. It is of great significance to FAW's acceleration of the construction of a new FAW goal of “scaled, digitalized, and internationalizedâ€. The realization of the scale of a millionaires also marks a new stage in the scaled production of the Chinese automobile industry. 7. Hafei and Changhe reorganized. SAIC shares were formed. Comments: From Hafei Motor's replacement of Changhe Auto to Hafei Automobile's backdoor Dongan Power, AVIC II Group launched the largest reorganization of China's micro-vehicle industry in 2004. At the end of the year, Changan Group held Jiangling Motors and SAIC Motor was officially established. Taking the above incident as a symbol, the restructuring and restructuring of the Chinese auto industry has taken another new step. 8. Foreign-funded auto finance companies started their business review: After the "Administrative Measures for Auto Finance Companies" and "Implementation Rules for Auto Finance Company Management Measures" were promulgated, Volkswagen, General Motors, Ford and Toyota established auto finance companies in China. However, due to the prudent government's principle of openness and the painstaking efforts of coordinated development, the auto finance companies that had been placed in high expectations have a certain gap between their business scope and business supervision and international practices. After commercial banks tightened auto credits in the second half of last year, auto finance companies did not play their due role, which was expected. 9. Multinational automobile companies continued to increase their investment in China. On September 6, Guangzhou Toyota Motor Co., Ltd., jointly invested by Guangzhou Automobile Group Co., Ltd. and Toyota Motor Co., Ltd., was announced. Three months later, the new plant of Beijing Benz-Daimler Chrysler Automotive Co., Ltd. was established. The establishment of Beijing Benz and Guangzhou Toyota is a landmark event for multinational automobile companies to fully complete the investment layout of the Chinese market, and also shows that multinational companies are full of confidence in the Chinese auto market and China’s economic development. 10. FAW Jiefang Aowei heavy truck listing Comments: August 15, 2004, Liberation Aowei heavy truck listing. The Aowei heavy-duty diesel engine that was built by the Aowei heavy truck assembly is the first four-cylinder heavy-duty diesel engine independently developed by China. The Aowei engines designed and developed jointly with Austrian AVL Company have not only met or exceeded the international advanced level in terms of technical indicators, but also have the ability to independently develop follow-up products due to the emphasis on the cultivation and promotion of system capabilities in the development process. The successful development of Aowei Engine and the listing of Aowei Heavy Trucks marked a new breakthrough in the independent development of China's auto industry. (2004 China Automotive Top Ten News was jointly reviewed by the People's Daily Economic Department, People's Daily, and China Automotive News)
People's Daily: Top Ten News Reports of China's Auto in 2004
1. The "Auto Industry Development Policy" promulgated and implemented reviews: With the approval of the State Council, the National Development and Reform Commission formally released the "Auto Industry Development Policy" on June 1. Implement the people-oriented, comprehensive, coordinated, and sustainable scientific development concept; embody the principle of combining the basic role of market allocation of resources with the government's macro-control; propose the cultivation of the automobile market with private consumption as the main body, improve the automobile use environment, and maintain the automobile The policy of automobile consumption, such as consumer rights, etc... The formulation and implementation of the "Development Policy for the Automotive Industry" will surely give a great impetus to the development of China's automobile industry and related industries. 2. Market growth slows down, car prices fell sharply Comments: In 2004, the growth rate of the Chinese car market dropped from 75% to about 15%, accompanied by sales declines in some of the major car companies, inventories soared, and the price strategy became a stimulus to the company's sales. The measures that unfavorable conditions have to take and the price cuts have therefore become the hottest topic in the auto market in 2004. Statistics show that from the beginning of the year to the end of the year, the auto market experienced four rounds of price-cutting waves in a wide range, and the overall price reduction has exceeded 10%. However, due to frequent changes in prices, the psychology that consumers have to wait for the purchase of money has not only not eased, but has intensified, and the downturn in the auto market has not improved. This may not have been expected by the auto companies. 3. China signed the world’s first unified automotive technical regulations Comments: On November 18, 2004, the first globally unified automotive technology regulation—“Global Technical Regulations on Door Locks and Door Holdersâ€, in Global Automotive The Agreement on Technical Regulations was adopted by the Assembly of States Parties. China is one of the contracting parties. China has participated in the unification of global automotive technology regulations from beginning to end, indicating that China’s automotive technology regulations are officially in line with international standards. 4. Official Regulations on the "Regulations on the Recall of Defective Automotive Products": The implementation of the recall system for defective automotive products officially announced on March 1 last year and formally implemented on October 1 is undoubtedly a boon to the masses of consumers. Since then, Chinese consumers have also enjoyed quality commitments and services that are in line with international practices. Before and after the introduction of the system, domestic companies such as Guangzhou Honda, FAW Car, Changan Suzuki, and Shanghai General Motors have won the respect of consumers for their practical actions. The recall system and the soon-to-implement automobile "Three Guarantees" policy have also become an important means to urge auto operators to improve their quality standards. 5. SAIC acquired South Korea Ssangyong Comment: On October 28, 2004, the final contract signed by Shanghai Automotive Industry (Group) Co., Ltd. for the acquisition of 48.9% shares of South Korea Ssangyong Motor Co., Ltd. was formally signed. Although this move was complicated by the participation of Blue Star and the opposition of the South Korean trade unions, SAIC Motor Group finally took the tough stance of Ssangyong. When multinational companies dominated the Chinese car structure, SAIC Motors Group made huge investments in holding South Korean Ssangyong Motors, opening up the precedent for Chinese auto companies to acquire foreign car companies, and it also indicated that the “going out†strategy of China’s auto industry has shifted from simple product exports. The extension of capital output also provides a new way for Chinese auto companies to build their own brands. However, how to resolve the huge financial risks brought by cross-border mergers and acquisitions? How to achieve the integration of different corporate cultures? How will the acquiree's development capabilities and branding be used by me? It is still the three major problems facing SAIC. 6. Annual sales of FAW exceeded one million units. In 2004, the sales of vehicles of China FAW Group exceeded 1 million units, of which auto brand sales accounted for 50%. Mega-scale is the dream of several generations of FAW, and it also implies the efforts of several generations of FAW. The realization of the sales of 1 million vehicles indicates that FAW's production and sales scale has entered a new platform of magnitude. It is of great significance to FAW's acceleration of the construction of a new FAW goal of “scaled, digitalized, and internationalizedâ€. The realization of the scale of a millionaires also marks a new stage in the scaled production of the Chinese automobile industry. 7. Hafei and Changhe reorganized. SAIC shares were formed. Comments: From Hafei Motor's replacement of Changhe Auto to Hafei Automobile's backdoor Dongan Power, AVIC II Group launched the largest reorganization of China's micro-vehicle industry in 2004. At the end of the year, Changan Group held Jiangling Motors and SAIC Motor was officially established. Taking the above incident as a symbol, the restructuring and restructuring of the Chinese auto industry has taken another new step. 8. Foreign-funded auto finance companies started their business review: After the "Administrative Measures for Auto Finance Companies" and "Implementation Rules for Auto Finance Company Management Measures" were promulgated, Volkswagen, General Motors, Ford and Toyota established auto finance companies in China. However, due to the prudent government's principle of openness and the painstaking efforts of coordinated development, the auto finance companies that had been placed in high expectations have a certain gap between their business scope and business supervision and international practices. After commercial banks tightened auto credits in the second half of last year, auto finance companies did not play their due role, which was expected. 9. Multinational automobile companies continued to increase their investment in China. On September 6, Guangzhou Toyota Motor Co., Ltd., jointly invested by Guangzhou Automobile Group Co., Ltd. and Toyota Motor Co., Ltd., was announced. Three months later, the new plant of Beijing Benz-Daimler Chrysler Automotive Co., Ltd. was established. The establishment of Beijing Benz and Guangzhou Toyota is a landmark event for multinational automobile companies to fully complete the investment layout of the Chinese market, and also shows that multinational companies are full of confidence in the Chinese auto market and China’s economic development. 10. FAW Jiefang Aowei heavy truck listing Comments: August 15, 2004, Liberation Aowei heavy truck listing. The Aowei heavy-duty diesel engine that was built by the Aowei heavy truck assembly is the first four-cylinder heavy-duty diesel engine independently developed by China. The Aowei engines designed and developed jointly with Austrian AVL Company have not only met or exceeded the international advanced level in terms of technical indicators, but also have the ability to independently develop follow-up products due to the emphasis on the cultivation and promotion of system capabilities in the development process. The successful development of Aowei Engine and the listing of Aowei Heavy Trucks marked a new breakthrough in the independent development of China's auto industry. (2004 China Automotive Top Ten News was jointly reviewed by the People's Daily Economic Department, People's Daily, and China Automotive News)