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China’s commercial vehicles have strong international influence . Shaanxi Automobile Group is a major heavy-duty vehicle manufacturer. At the 2009 China Automotive Industry Development International Forum, Fang Hongwei, Chairman of Shaanxi Automobile Group Co., Ltd., gave a keynote speech titled "Accelerating Independent Innovation and Structural Adjustment to Improve Core Competence Comprehensively."
Fang Hongwei: Good morning, distinguished leaders, colleagues in the industry, and friends in the media. I am very honored and very grateful to the Forum Organizing Committee for giving us an opportunity to speak.
This morning, the leaders of various parts of the country, experts in the automotive industry, and colleagues at home and abroad have given us broad insights and provided many useful lessons for the development of the automotive industry. At the request of the Forum Organizing Committee, the theme of my speech today is "Accelerating Independent Innovation and Structural Adjustment and Comprehensively Improving the Core Competitiveness of Enterprises."
Today, with the severe impact of the global financial crisis, such a theme is more realistic and can guide us to successfully resist the impact of the financial crisis and find a sustainable and healthy development path for the auto industry. In the following, I will combine Shaanxi Automobile's response to the financial crisis to accelerate the pace of independent innovation and structural adjustment, and to ensure that the company's sustainable development views and practices talk about some views and experiences.
As we all know, the unprecedented financial crisis that broke out in the second half of last year has caused a serious impact on the global automotive industry. The Chinese auto industry, especially the commercial vehicle industry, has experienced a severe decline in production and sales compared with the same period last year under the impact of the crisis. In the face of the impact of the crisis, domestic auto manufacturers have taken the initiative to seize the development opportunities hidden in the crisis and fully promote the smooth and healthy development of the company.
Shaanxi Auto is a commercial vehicle manufacturer started from heavy military off-road vehicles. Now it is a heavy-duty off-road vehicle for major industries, heavy-duty trucks , large and medium-sized passenger cars, and chassis, heavy-duty vehicle engines and other products. Since entering the new century, enterprises have maintained an average annual growth rate of over 50%. After the outbreak of the financial crisis, this extensive growth model of enterprises has been severely impacted, and various degrees of stagflation have appeared at various links, such as production, supply and sales. It also exposed our own structural problems and deep-seated contradictions. Faced with this situation, how to seize only the adjustment opportunities brought about by the crisis, fully exploit the deep-seated problems covered by high-speed development in previous years, and promptly promote the structural adjustment, strategic transformation, and independent innovation of enterprises, and truly turn crisis into reality The machine is a serious subject given us by the times.
Adapting to the transformation of economic growth and taking the initiative to carry out structural adjustments, like many companies, Shaanxi Auto is a heavy truck -based company with relatively simple original product lines, a relatively low degree of product integration, and a significant short-term in the Group’s automobile industry chain. Boards have relatively poor ability to combat market risks. This lack of industrial structure is even more evident in the financial crisis. Therefore, after the crisis broke out, we promptly reviewed and adjusted the original strategy. A new enterprise development strategy for strengthening heavy trucks, expanding commercial vehicles, nurturing new growth points, and realizing sustainable development is proposed. While continuing to strengthen traditional heavy trucks, it actively seeks for medium-duty trucks, passenger cars, mini vehicles, and key zeros. The comprehensive development of special vehicles such as parts and components forms a reasonable product composition. Through mergers and acquisitions and extensions, we have supplemented and improved the Group’s industrial chain and further enhanced its ability to combat risks.
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