OEM: Is The Shortcut For National Brands Still To Be Lost?

From the end of last year, the American dream company separated from Chery. By 2007, the "disappeared" of the Geely car at the North American auto show was not difficult to see that the national brand was not smooth sailing in the process of entering the "enemy".

After paying millions of dollars in registration fees, these enterprises are beginning to realize that the road to enter the mature automobile market in Europe and America is not so easy to imagine.

Does this mean that the leg that has already set foot on the land of Europe and America will shrink back?

China's "go to the test" standard IV of the country has encountered a crisis of confidence. The process of going out of the national brand is not smooth sailing. Looking at the other side of the ocean, it seems that the British and American life is not very good recently. ROVER and MG are keen to see new flowers on the east side of the land. And the Chrysler with a high exposure rate seems to be gradually becoming the "chicken ribs" of Deckard group.

Recently, we have noticed that Geely and Chery in the East have found new opportunities for cooperation with the British manganese bronze company and Chrysler in the west, and what does this mean for our growing brand?

Is going forward or backward on the way out of the country?

To enter the European and American brand building, it is necessary to accumulate experience in the field of foundry production. European market has always been highly civilized with non-tariff barriers. It is easy to see from the experience of a group of ethnic brands such as Lu Feng and China in the first trial of water that European peers are not so good friends with outsiders.

Although the US market in the Atlantic on the other side is much more open to Europe, its high domestic labor costs, uneven partners and the same high standard vehicle "physical examination" project make it difficult for car manufacturers outside the United States to adopt imports or domestic factories.

Although some enterprises have made great progress in product development, they still have a certain gap with foreign manufacturers in terms of product quality and consistency.

Besides, there is still a lack of brand awareness among Chinese enterprises.

It is always a bad idea to attract consumers at all times without brand value and relying on low prices, and this is precisely a weakness in the national brand at the moment. The experience of Korean counterparts tells us that it is almost impossible to make a brand by cheap price.

The high cost and the weakness of pickup SUV are the most troublesome problems of the US car factory. It can be said that most of the Chinese car manufacturers do not have the ability to operate their brands independently in the European and American markets.

These are the real problems that national brands can not face, and the foundry is precisely to solve some of them, or to avoid them.

In fact, OEM is a common way of cooperation in production enterprises.

From braking system to MP3, you can find this form of existence.

From the current reports on the cooperation between Chery and Chrysler, there is no way of using mutual shareholding capital cooperation, and this kind of production cooperation mode similar to NIKE shoes will undoubtedly bring greater freedom to both sides. At the same time, it can also effectively avoid risks arising from joint ventures.

Chinese enterprises can improve their R & D capabilities, better grasp the pulse of the development of the world's cars and the level of production technology of their own workers. At the same time, the resistance of these OEM products when they enter the European and American markets will decrease exponentially.

China's low-cost production shows that the dominant economy cars have more say why why these old automobile manufacturers in the United States have been losing ground in the competition with the rising stars such as Japan and South Korea in recent years?

A very important reason is cost, which seems to be a well-known problem.

Analysts once pointed out that companies like Chrysler pay $4 thousand a month for every employee (in the low income regions of China, only 120 dollars per month), and even more so that their counterparts in East Asia envy that they only finish 8 hours a day.

Naturally, it is difficult for the cars produced to defeat Asian rivals by price.

The low cost of China's manufacturing industry has long swept the world away from her light industrial products. As a new star in the automobile industry in East Asia, we cannot help the European and American counterparts to remember the pain of the rise of Japan and South Korea.

China's low labor force makes its cost control advantage far exceed that of European and American counterparts.

In the process of many visits to the major auto factories in China, it is not difficult to find that even at present, even the number of first-class car manufacturers, the automation level of their pipelines is not very high until now. The scene of a large number of workers bustling forward is still quite different from that of the factories which are full of robots in foreign factories.

But this is just a reflection of the low labor force and obvious advantages in China.

Under such advantages, a strong boycott or praying for Chinese enterprises to fail in landing is obviously not feasible under such an open market environment.

It should be like Tom, President of Chrysler, that he has become a partner rather than a competitor.

From the low cost issue mentioned earlier, we can also draw a question that we have more say in the development and production of economic cars than those in Europe and the United States.

After the big European and American giants rush to China, the market space for our national brand has been very narrow.

But they invariably put their eyes on the low-end car industry, which seems to be very low profit margins and unwilling to get involved.

Over the years, the brand of the Chinese national car has been gradually taught by the "big brothers".

Therefore, what kind of car and price car are more easily accepted by the most extensive consumer groups? I believe that our national brands have more say.

Today, when the large pickup SUV is weakening in the North American market, it seems that the balance is tilting towards our advantageous side.

For these domestic brands, they are moving forward with a solid step forward. How to seize this favorable opportunity to develop themselves is a key issue for the next successful entry into the European and American markets.

We do not want to see that the national car industry has finally fallen into the shadow industry of foreign giants under the seduction of interests.