Li Dakai: Industry crossover can promote the optimization of industrial structure
As the largest heavy-duty automobile transmission, automobile gear manufacturing enterprise and export base in China, the Fastest Group's every move has aroused great concern in the industry. Recently, Li Dakai, chairman and party secretary of the Fast Group, received an exclusive interview with the Tire World Network on related issues such as cross-industry operations, overcapacity, and status quo of the transmission industry.
Industry cross-operation will become the future trend Tire World Network: It is understood that Fast is brewing the production of construction machinery, but also intends to expand the scope of the transport industry in various fields; recently Chery and other auto companies have also been involved in construction machinery or other related industries. What advantages do you think this type of cross-operation can bring to your business?
Li Dakai: This approach can indeed bring great advantages to companies. As these cross-sectoral industries are affected by different factors, some are driven by investment, while others rely on consumption and economic conditions. Therefore, if a company can be involved in multiple industries and multiple points for layout, it can more reasonably arrange company resources and greatly reduce risks.
Tire World Net: On the other hand, does it also have a negative impact?
Li Dakai: When companies do this kind of industrial layout, they must not exceed their own tolerance. If the company's operating capacity, funds, etc., do not reach a certain level, even if they are optimistic about a certain industry, it is impossible to invest in a large amount of loans. Otherwise, it will only make the company bear a bigger burden.
Only under the premise that the company's capital, R&D, sales, and other aspects are sufficiently strong, the aforementioned cross-operations and developments involving various industries can greatly reduce risks and promote the development of the company.
Tire World Net: Do you think this cross-operation mode will become a trend for the development of complete vehicles and parts companies in the future?
Li Dakai: This will become a trend in China. In fact, at the international level, this trend has already taken shape. At present, some companies may be struggling with difficulties in capital, R&D, sales, etc., and they may not be involved in multiple industries at the same time. However, once funds are revitalized, companies will adopt this mode of operation one after another.
In addition, national policies have been promoting the optimization and upgrading of industrial structures and accelerating the transformation of economic development methods. This kind of cross-operation is exactly in line with national policy.
Gearbox industry also has excess capacity Tire World Net: At present, there are many industries, such as vehicles, tires, solar energy, etc., all have excess capacity, what is the transmission industry?
Li Dakai: The gearbox industry also has excess capacity. At present, the market share of Fast Transmission is as high as 70%-80%, but our competitors are trying to invest in expanding production capacity. However, many companies eventually failed and the equipment they invested in could only be idle.
The normal development of society is mainly driven by the "troika" of consumption, exports and investment. Due to the situation in China and the development of the market, neither consumption nor exports can play a good role. At present, there is only investment in this “carriageâ€. This situation can easily lead to overcapacity.
Tire World Net: Is there an effective solution to this overcapacity?
Li Dakai: How to do after excess capacity? The main method is to eliminate it naturally. Industrial adjustment must be carried out. Through competition, those with high energy consumption, high pollution, and low quality will be eliminated. Only in this way will it be conducive to healthy social development.
As one of the world's major countries, China must take corresponding responsibility. I firmly believe that after China adjusts its industrial structure, there will be 20 years of gold development from 2015; if it does not adjust the industrial structure, the consequences will be unthinkable.
Tire World Net: In this overcapacity situation, the transmission industry is still growing?
Li Dakai: As with the entire vehicle situation, the transmission industry is also growing. This is one of the reasons why the country has repeatedly asked for structural adjustment, but its effectiveness has been very small. What's more, the quality of these newly added transmissions is still varying, and these problems are not resolved in one-and-a-half times. Therefore, the state should strengthen the protection of intellectual property to reduce counterfeit and shoddy products.
Tire World Net: The country has been calling for industrial adjustment. How do you feel about the current progress?
Li Dakai: Still not ideal. For various reasons, many executive orders cannot be implemented, and some even run counter to expectations. This shows that administrative orders alone are not enough and will only lead to a more chaotic market environment.
Enterprises must have ownership awareness and moral values, and take corresponding measures in accordance with the actual conditions of market development; in addition, coupled with the country's policy guidelines and mandatory requirements, this will result in a substantial breakthrough in industrial development.
Enterprises should accelerate the research and development of energy saving and environmental protection technologies Tire World Net: You talked about energy saving and environmental protection issues on many occasions. What are the inevitable links between transmissions and energy saving and environmental protection?
Li Dakai: There is a close connection between transmission and energy conservation and environmental protection. Each company developed and researched and introduced transmissions with different gears. The original intention was to save energy; and whether the gears of the transmission were matched or not were directly related to the emissions of combustion exhaust gas. The effect on environmental protection was self-evident.
In short, no matter whether it is an entire vehicle or a parts and components company, whoever can do energy conservation, consumption reduction, and environmental protection will win the market and win.
Tire World Net: There is a current contradiction: Everyone knows that energy conservation and environmental protection is a development trend, and it is good for the environment and society, but the reality is that the market is very bleak. How do you think about this issue? How to regulate this contradiction?
Li Dakai: This contradiction cannot be coordinated so far. Some media have conducted a survey and found that many auto company executives do not choose to use new energy vehicles themselves. Under such circumstances, why do companies complain that consumers do not choose new energy vehicles?
The reason, in the final analysis, is still a question of cost and technology. Therefore, we must continue to strengthen technological research and development, and insist on the general direction of energy conservation and environmental protection. However, when large-scale production is put into operation, it must be based on the actual development of technological progress and cannot be blindly acted.
Tire World Net: In reality, there are different automotive product standards at home and abroad, which brings a lot of security risks to Chinese consumers. In your opinion, what causes this problem?
Li Dakai: There are two main reasons for this. First, China lacks standards for automotive products similar to those of foreign countries, and there are no relevant mandatory policies and regulations. Second, domestic law enforcement is not sufficient and the cost of illegal activities is relatively low.
In fact, this is no longer just a matter of the standard level. This has seriously infringed the rights and interests of Chinese consumers. The state must formulate relevant standards as soon as possible and must enforce them. This is what I proposed in this year's proposal.
Industry cross-operation will become the future trend Tire World Network: It is understood that Fast is brewing the production of construction machinery, but also intends to expand the scope of the transport industry in various fields; recently Chery and other auto companies have also been involved in construction machinery or other related industries. What advantages do you think this type of cross-operation can bring to your business?
Li Dakai: This approach can indeed bring great advantages to companies. As these cross-sectoral industries are affected by different factors, some are driven by investment, while others rely on consumption and economic conditions. Therefore, if a company can be involved in multiple industries and multiple points for layout, it can more reasonably arrange company resources and greatly reduce risks.
Tire World Net: On the other hand, does it also have a negative impact?
Li Dakai: When companies do this kind of industrial layout, they must not exceed their own tolerance. If the company's operating capacity, funds, etc., do not reach a certain level, even if they are optimistic about a certain industry, it is impossible to invest in a large amount of loans. Otherwise, it will only make the company bear a bigger burden.
Only under the premise that the company's capital, R&D, sales, and other aspects are sufficiently strong, the aforementioned cross-operations and developments involving various industries can greatly reduce risks and promote the development of the company.
Tire World Net: Do you think this cross-operation mode will become a trend for the development of complete vehicles and parts companies in the future?
Li Dakai: This will become a trend in China. In fact, at the international level, this trend has already taken shape. At present, some companies may be struggling with difficulties in capital, R&D, sales, etc., and they may not be involved in multiple industries at the same time. However, once funds are revitalized, companies will adopt this mode of operation one after another.
In addition, national policies have been promoting the optimization and upgrading of industrial structures and accelerating the transformation of economic development methods. This kind of cross-operation is exactly in line with national policy.
Gearbox industry also has excess capacity Tire World Net: At present, there are many industries, such as vehicles, tires, solar energy, etc., all have excess capacity, what is the transmission industry?
Li Dakai: The gearbox industry also has excess capacity. At present, the market share of Fast Transmission is as high as 70%-80%, but our competitors are trying to invest in expanding production capacity. However, many companies eventually failed and the equipment they invested in could only be idle.
The normal development of society is mainly driven by the "troika" of consumption, exports and investment. Due to the situation in China and the development of the market, neither consumption nor exports can play a good role. At present, there is only investment in this “carriageâ€. This situation can easily lead to overcapacity.
Tire World Net: Is there an effective solution to this overcapacity?
Li Dakai: How to do after excess capacity? The main method is to eliminate it naturally. Industrial adjustment must be carried out. Through competition, those with high energy consumption, high pollution, and low quality will be eliminated. Only in this way will it be conducive to healthy social development.
As one of the world's major countries, China must take corresponding responsibility. I firmly believe that after China adjusts its industrial structure, there will be 20 years of gold development from 2015; if it does not adjust the industrial structure, the consequences will be unthinkable.
Tire World Net: In this overcapacity situation, the transmission industry is still growing?
Li Dakai: As with the entire vehicle situation, the transmission industry is also growing. This is one of the reasons why the country has repeatedly asked for structural adjustment, but its effectiveness has been very small. What's more, the quality of these newly added transmissions is still varying, and these problems are not resolved in one-and-a-half times. Therefore, the state should strengthen the protection of intellectual property to reduce counterfeit and shoddy products.
Tire World Net: The country has been calling for industrial adjustment. How do you feel about the current progress?
Li Dakai: Still not ideal. For various reasons, many executive orders cannot be implemented, and some even run counter to expectations. This shows that administrative orders alone are not enough and will only lead to a more chaotic market environment.
Enterprises must have ownership awareness and moral values, and take corresponding measures in accordance with the actual conditions of market development; in addition, coupled with the country's policy guidelines and mandatory requirements, this will result in a substantial breakthrough in industrial development.
Enterprises should accelerate the research and development of energy saving and environmental protection technologies Tire World Net: You talked about energy saving and environmental protection issues on many occasions. What are the inevitable links between transmissions and energy saving and environmental protection?
Li Dakai: There is a close connection between transmission and energy conservation and environmental protection. Each company developed and researched and introduced transmissions with different gears. The original intention was to save energy; and whether the gears of the transmission were matched or not were directly related to the emissions of combustion exhaust gas. The effect on environmental protection was self-evident.
In short, no matter whether it is an entire vehicle or a parts and components company, whoever can do energy conservation, consumption reduction, and environmental protection will win the market and win.
Tire World Net: There is a current contradiction: Everyone knows that energy conservation and environmental protection is a development trend, and it is good for the environment and society, but the reality is that the market is very bleak. How do you think about this issue? How to regulate this contradiction?
Li Dakai: This contradiction cannot be coordinated so far. Some media have conducted a survey and found that many auto company executives do not choose to use new energy vehicles themselves. Under such circumstances, why do companies complain that consumers do not choose new energy vehicles?
The reason, in the final analysis, is still a question of cost and technology. Therefore, we must continue to strengthen technological research and development, and insist on the general direction of energy conservation and environmental protection. However, when large-scale production is put into operation, it must be based on the actual development of technological progress and cannot be blindly acted.
Tire World Net: In reality, there are different automotive product standards at home and abroad, which brings a lot of security risks to Chinese consumers. In your opinion, what causes this problem?
Li Dakai: There are two main reasons for this. First, China lacks standards for automotive products similar to those of foreign countries, and there are no relevant mandatory policies and regulations. Second, domestic law enforcement is not sufficient and the cost of illegal activities is relatively low.
In fact, this is no longer just a matter of the standard level. This has seriously infringed the rights and interests of Chinese consumers. The state must formulate relevant standards as soon as possible and must enforce them. This is what I proposed in this year's proposal.
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