People in the automotive industry: car manufacturing avoids blind pursuit of localization

Abstract In the context of the industry's situation becoming more severe, “reducing costs and increasing efficiency” has become a top priority for manufacturing, especially for automobile manufacturers. At the 2014 China Metal Cutting Tool Industry Summit held in Beijing on the 17th, many domestic auto companies...
Against the background of the industry's situation, “reducing costs and increasing efficiency” has become a top priority for manufacturing, especially for automobile manufacturers. At the 2014 China Metal Cutting Tools Industry Summit held in Beijing on the 17th, many domestic auto companies pointed out that cost reduction is the means, efficiency is the purpose, enterprises choose manufacturing tools, and when it is to reduce costs, it is necessary to evaluate whether it is really realized. To increase efficiency, it is forbidden to blindly pursue the level of localization in order to reduce costs.

Metal cutting tools are important tools for machining and manufacturing, including automobile manufacturing. They are widely used in automobile parts manufacturing, engine and transmission manufacturing. Taking China FAW as an example, Hou Ruoming, director of the planning department of FAW Group, said that FAW’s total revenue last year reached more than 460 billion yuan, calculated according to the ratio of metal cutting tools in the industry to annual sales of 1% to 4%, used in metal cutting tools. The cost is between 4 billion yuan and 18 billion yuan.

Such a large amount of use makes the choice of manufacturing tools an important focus for companies to reduce costs and increase efficiency. Hou Ruoming revealed that strengthening the use of metal cutting tools has become an important part of FAW's cost reduction and efficiency. In the past, FAW's tool control was mastered by each subsidiary. FAW currently has hundreds of cutting tool suppliers, some of which are The level of supplier products is mixed, and the next step is that FAW is prepared to “make a difference” in supplier selection.

The industry situation has made many industries “reducing costs and increasing efficiency” in the present. The overall economic operation of the machinery industry in the first quarter showed that the machinery industry was in the low fluctuation range. Some sub-sectors were affected by historical data, seasonal and policy factors, and the main economic indicators rebounded to a certain extent, but overall they still face the pressure of rising costs. Less, the main activity is going uphill.

However, in the pursuit of cost reduction and efficiency increase, some manufacturing enterprises have fallen into a certain misunderstanding. Because of the relatively low price of some localized tools compared with foreign products, it has become a new choice when many manufacturers reduce the cost pressure. Zhang Taihe, chief engineer of Fu Nike Superhard Materials Co., Ltd., told reporters that many companies bid, "Whoever has a low price and win the bid"; he stressed that cost reduction is the means, efficiency is the purpose, not just the low price of the product. Also assess whether the new option can really achieve efficiency.

"We have been caught in such a misunderstanding in the past, over-emphasizing the level of localization." Zhao Baoming, deputy general manager of Chery Automobile Engine Co., said, but the result is that it hurts the interests of automakers and customers. He believes that the choice of manufacturing tool suppliers should emphasize more cost-effectiveness. "If the products are good and the price is right, they should not be divided into domestic or non-domestic". "If you choose some domestic suppliers with low product level in order to pursue localization, you will instead Harm the domestic suppliers."

Many industry insiders agreed with this view when interviewed by reporters. Hou Ruoming revealed that the next step for FAW Group is to prepare for its existing hundreds of tool suppliers, which will be selected according to the supplier's strength and product quality level rather than “localization”. There will be practical capacity and regular management supply. The quotient is solidified, and if the product quality and price are not up to the requirements, it must be eliminated.

The China Metal Cutting Tool Industry Summit was sponsored and sponsored by China Machinery Industry Metal Cutting Tool Technology Association and sponsored by the Electromechanical Business Newspaper. The summit focused on the theme of “reducing costs and increasing efficiency” and improving production efficiency and reducing the cost of use in many fields. In-depth discussion, the summit attracted the well-known manufacturers such as Sandvik Coromant, Kennametal, and Fenike to share their experiences. Beijing Futian and AVIC Chengfei Company talked about the development trend of the industry; in addition, the summit also organized the second session. China metal cutting tool customer satisfaction service brand.

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