ChinaAutoandManufacturingR_D---1

UniversityofMichiganChinaAutomotiveConferenceChinaAutoandManufacturingR&DProfessorJunNiShien-Ming(Sam)WuCollegiateProfessorofManufacturingScienceDirector,SMWuManufacturingResearchCenterTheUniversityofMichigan,AnnArborEmail:[e-mail],UniversityofMichigan-ShanghaiJiaoTongUniversityJointInstitute,ChinaUniversityofMichiganChinaAutomotiveConferenceOutline1.KeyStatisticsandChineseAutoIndustry2.ChineseManufacturingR&DStrategies3.PriorityAreas4.SampleProjects5.ConclusionUniversityofMichiganChinaAutomotiveConferenceFunFactsaboutChina•Population:~1.3billion(aBigmultiplier)•MorepeopleinChinastudyEnglishthanthoseinUSA.•Chineselunarcalendar-theoldestknowncalendar(Thisyearis4705)•ArchaeologicalevidenceindicatesChinesegrewriseasearlyas5000BC•GreatestAncientInventions–Compass(1040-44ADinSongdynasty)–GunPowder(1040ADinSongdynasty)–Paper-making(105ADinHandynasty)–Printing(220ADinHandynasty)UniversityofMichiganChinaAutomotiveConferenceKeyStatistics•GDP(Nominal)-2007,$3.42trillion(ranked4th)•GDP(PPP)-2006,$10.21trillion(ranked2nd)•GDPpercapita(Nominal)-2006,$2,034(ranked107th)•GDPpercapita(PPP)-2006,$7,800(ranked82nd)•Laborforce-795.3million•Unemploymentrate-4.3%(official)vs13%(unofficial)UniversityofMichiganChinaAutomotiveConferenceKeyStatistics•Annualproductionofdegreedengineersover1.6millions–0.6millionfrom4-yrprogramsand–1millionfrom3-yrprograms•Manufacturingaccountsfor48%ofChina’sGDP(2007data)•Manufacturingemploys11%oftotalworkforceand90%ofindustrialworkforce•ChinabecamethethirdlargestnationintotalmanufacturingoutputfollowingUSandJapan•ChinabecamethesecondlargestautomotivemarketintheworldUniversityofMichiganChinaAutomotiveConferenceAnnualGDPGrowthinChinaUniversityofMichiganChinaAutomotiveConferenceInscriptionofChairmanMaoforFAWDengXiaopingvisitsSVWHuJingtaovisitsFAW-VWJiangZeminvisitsDongfengMotorsChina’sautomotiveindustryhasover55yearshistory.HistoryofChina’sAutoIndustryUniversityofMichiganChinaAutomotiveConferenceAutomarketdevelopmentSpent40yearstoreach1,000,000Only8yearstoreach2,000,000Just2yearstoreach3,000,0001yeartoreach4,000,000TIMEYEARLYOUTPUT(thousand/year)195319922000200310002000300040002002FourMajorDevelopmentStagesForecastingofChina’sAutoMarketUniversityofMichiganChinaAutomotiveConferenceVehicleSales(MillionUnits)Predictionvs.RealityUniversityofMichiganChinaAutomotiveConference123autoenterpriseslocatedin27provinces23provinceshavesedancarassemblylineMorethan5000componententerprisesChina’sAutomotiveIndustryUniversityofMichiganChinaAutomotiveConferenceFAW-VWChangchunShanghai-GMShanghaiShanghai-VWShanghaiFiatNanyaNanjingGuangzhou-HondaGuangzhouChang’anSuzukiChongqingChang’an-FordChongqingDongfeng-CitroenWuhanDaimlerChrysler-BJCBeijingChanghe-SuzukiJingdezhenHyundai-BAICBeijingDFAC-NissanShiyanLiuzhouWulingLiuzhouFAW-ToyotaTianjinFAWGM-JinbeiShenyangGM-DaewooYantaiMajorAutoOEMsinChinaUniversityofMichiganChinaAutomotiveConference“39”structuremarketcentralizationrisesThreebiggiantgroupsNineindependentcarmakersGZHondaCQChang’anAnhuiCherySYBrillianceNJFiatZJGeelyHafeiAutoChangheAutoJianglinAuto“3+9”occupy91oftotaldomesticyearlyoutput!#$%&'()%*)'+,-.)(/0*12.2$340+03403(5&*6&70*189.3giantautogroup——519independentcarmakers——40others——9MajorPlayersUniversityofMichiganChinaAutomotiveConferenceChang’an——ChongqingHafei——HarerbinBrilliance——ShenyangChery——AnhuiGeely——ZejiangSeveralenterprisesmakeeffortstodeveloplocalvehiclemodelsBrillianceCheryHafeiGeelyChang’anCM8LocalModelDevelopmentUniversityofMichiganChinaAutomotiveConferenceluxuryclass,salespricemorethan400,000yuantopgrade,salespricebetween200,000and400,000yuanmiddlegrade,salesbetween100,000and200,000yuaneconomyclass,salesbelow100,000yuansubcompactclass,salesbelow50,000yuanMorethan30brandsinthemarketthesub-modelshavereached90AudiA6luxuryRegaltopgradeBORAmiddlegradeKIAeconomyclasssubcompactQ-QMarketDifferentiationUniversityofMichiganChinaAutomotiveConferenceMercedesareassembledinBeijing.AudiA6,A4andMAZADA6areproducedinFAW-VW.CadillacisproducedinShanghaiGM.SYBrilliancehaslaunchedBMW-3.600POLOofSVWhavebeenexportedtoAustralia.500GL10MPVofShanghaiGMexportedtoPhilippines.POLOexportedtoAustraliaGL10exportedtoPhilippinesRecentExpansionandExportUniversityofMichiganChinaAutomotiveConferenceSWOTAnalysisofChineseAuto&ManufacturingIndustryUniversityofMichiganChinaAutomotiveConference•Largenumberofhighlytrainedworkforce•Resources•Market•Dividendfromoldplannedeconomy•Largenumberofsmall-mediumenterprises(SMEs)•Entrepreneurship(S-Strength):SWOTAnalysisofChineseAuto&MfgIndustryUniversityofMichiganChinaAutomotiveConference•Lackofkeyprocessknowledgebaseandtechnicalknow-how&know-why•Lackofkeyequipmentdesign,manufacturingandintegrationcapability•Lackofsystemdesignandintegration•Lackofsystem-levelthinkingandintegrationofmanufacturingwithbusinessstrategy•Behindinadvancedprocesstechnology•Mostproductsarelowvalue-added•Weakinhigh-technicalcontentproductinnovationanddevelopment(W-Weakness):SWOTAnalysisofChineseAutoandMfgIndustryUniversityofMichiganChinaAutomotiveCo