Foton: Leading China's Commercial Vehicle Innovation

As of May 2006, Beiqi Foton Motor Co., Ltd., which had been established for almost 10 years, had a cumulative production and sales volume of more than 1.5 million units, achieved sales revenue of approximately 90 billion yuan, and became China's largest commercial vehicle manufacturer with the most complete range of vehicle types. Its light trucks ranked first in the industry for seven consecutive years. At the same time, Foton has established assembly line factories in Pakistan, Ukraine, Turkey and many other countries. Since the export of automobiles in 2002, it has achieved a total of more than 20,000 cars and has become the largest exporter of commercial vehicles in China, with foreign exchange earning over US$100 million. .

When Beijin Foton Motor Co., Ltd. Party Secretary and General Manager Wang Jinyu introduced today's Fukuda with these numbers, it is remarkable that these more than 1.5 million vehicles are all self-innovative products, all have their own brands, and are autonomous Intellectual property, and there is no dispute of property rights. Fukuda, why has such a strong ability to innovate? The answer of BAIC Party Committee Secretary and Chairman An Qingheng was simple and clear. Integration of knowledge and innovation in linkage is a unique model of Beiqi Foton’s independent development and innovation.

Vitality: Enterprise innovation must conform to the direction of industrial development

If we say that the engine is an inexhaustible motive force of the automobile, then the enterprise innovation that conforms to the direction of industrial development will bring infinite vitality to the enterprise.

On April 28, 2006, Foton Motor signed a strategic alliance agreement with Beijing Weichai Power, China BOSCH, and Austrian AVL in the Great Hall of the People in Beijing. A new three-nation, four-party enterprise strategic alliance in the automotive industry chain was born. Its goal is to directly target the latest development direction of commercial vehicles in the world. At the same time, a new model of independent innovation in China's automobiles, integrated knowledge and chained innovation, was first proposed here.

Wang Jinyu said that the core of “integrated knowledge and linked innovation” is to achieve mutual complementarity, resource sharing, and collaborative development through the cooperation and alliance among enterprises in the entire industry chain to jointly enhance core competitiveness. "Linked" companies are a community of interests. Each innovation is not a company's own enjoyment, but the common wealth of all linked companies.

Foton Motor has closely linked the company's own innovation with the development of the industry. It is this connection that has made Futian a success and has also driven the commercial vehicle industry in China.

This time, Foton Motor has signed an agreement with three companies in the industry chain to sign an "international strategic alliance." This has caused a lot of repercussions in the automotive industry in China. It is of great significance to China's auto industry chain for joint innovation and achieving win-win development.

The four companies in the alliance have strong strength and status in their respective fields. Foton Motors is the largest manufacturer of commercial vehicles in China, and Weichai Power is the largest diesel engine manufacturer in China and is also a Tier 1 supplier to Foton; Germany BOSCH is engaged in automotive technology, industrial technology and consumer products, and construction technology. One of the largest industrial companies and a secondary supplier of Foton; Austrian AVL is a multinational high-tech group that integrates engine research, development, design, consulting, and engine test equipment production. It is also a third-tier supplier of Foton.

"Alliance is a tactic, a concrete result, 'integrated knowledge, and innovation in linkage' are strategies. It is the core strategy of Foton Motor's 10-year development and future development." As can be seen from Wang Jinyu's discourse, Foton Motor is not only In the joint building of heavy-duty commercial vehicle vehicles and powerful brands, it is more important to implement the upstream and downstream integrated knowledge of the automotive industry chain, integrate resources, and integrate innovative strategies.

In the 10 years since its establishment, Foton Motor has manufactured and sold one million commercial vehicles through independent innovation, and has paid over 3 billion yuan to the country. According to the correlation ratio of automobile manufacturing industry with upstream industry and downstream industry of approximately 0.65:1:2.63, Foton Motor has formed a pulling effect of nearly 400 billion yuan on upstream and downstream industries.

Market: the foothold of independent innovation

Foton Motor always regards market demand as the foothold for independent innovation, ensuring the effectiveness of innovation and market transformation of innovative products, bringing good social and economic benefits to the company. Therefore, the development model of Foton Automotive's innovation practice is open, and its core purpose is to integrate all available resources in the shortest period of time and with the lowest investment to ensure the high efficiency of innovation.

In terms of research and development, they cooperated extensively with foreign scientific research institutions, such as Austrian AVL Corporation, British Lotus Corporation, Japan MIM Design Corporation, United States Motorola, Westone, and Eaton USA. They and their suppliers jointly develop core components. Such as Yanfeng Visteon, Shaanxi Dental Fast, Dandong Shuguang Axle, Weichai Power and other companies in the interior, transmission, axle and engine technology development in close cooperation. In manufacturing, we cooperated with Japan's Chunghwa Industries to actively implement TPS (Toyota Production System). In terms of brand management, they signed a memorandum of cooperation for commercial vehicles with Mercedes-Benz, and the joint venture company of the future will implement a “dual-brand” strategy, which is a joint venture model innovation of the Chinese automobile industry.

In terms of asset operation, they are more market-oriented and innovative. With no direct investment from the country, they rely on the state-owned stock to realize independent innovation and leapfrog development. The asset restructuring of Foton Motor should be said to be the most successful in the Chinese auto industry. Over the past 10 years, Futian has used ten years of old state-owned enterprises for the purpose of revitalizing state-owned stock assets. This has not only improved the quality and control of state-owned capital, but also directly solved the employment problem of more than 10,000 employees of old state-owned enterprises. Upstream and downstream industries indirectly provided 100,000 to 150,000 jobs.

Each brand and product of Foton Motor is not a closed development of the enterprise, but is the result of integrating the most advanced technology and resources in the market. They insist on taking me as the main body and enhance the integration of enterprise system resources and integrated innovation through means of project cooperation, strategic alliances and other means, so as to enhance their core competitiveness.

Talent: the core and main body of independent innovation

"The innovative model of "integrated knowledge and linked innovation" emphasizes learning, learning from, digesting, and absorbing the most advanced international knowledge and technology on a higher platform. Therefore, whether or not it can absorb global innovative talents can be faster. To break through key technologies, whether it can accumulate and form the company’s own intellectual assets, thereby promoting the simultaneous upgrading and progress of the industrial chain, and enhancing the core competitiveness of the company and even the entire industry has become the core issue of Futian Automotive Development.” Wang Jinyu said this time. At that time, the eyes always looked at a young man around him --- Qi Xuebin.

Yan Xuebin is one of the representatives of the “Returnees” of the Foton Automotive Engineering Research Institute. He is a 41-year-old Chinese-American, expert of chassis and brake systems. He worked for GM and Ford Motor Company for 12 years. He joined Futian in early 2003 and is now a company. Chief Designer and Dean of Automotive Engineering Institute, Futian Automotive Technology and Management Expert. “At present, Foton has faced the world and has absorbed more than 2,000 management and technical talents, of which more than two dozen are foreign experts from the United States, Japan, Germany, and France, and 'returnees' talents.” Yan Xuebin said: “Fukuda’s R&D has three biggest features, a low-cost, harmonious work platform and a unique approach to project organization and development.”

"In Fukuda, engaging in research and development with the most efficient input is very enjoyable." Yan Xuebin said with a high spirit: "This is my greatest wish." Foton Motor has raised 3 billion yuan for technological innovation in 10 years, resulting in technological innovation. With 152 patents, the contribution to new products reached 80% or more. Under the guidance of the mode of chained innovation, the period of design, development, and upgrading of Foton Auto's products has been shortened to 3 to 5 years. During the four years from 2002 to 2005, Foton Motors has achieved Auman, Ouma, Euro V, Ao Ling, Times, landscapes, legends, Sapu and other eight brands were developed, upgraded and upgraded, stimulating the technological advancement and upgrading of China's commercial vehicle industry. This is difficult for other colleagues to imagine.

“Fukuda has created a very harmonious and friendly environment for talents and innovation.” Yan Xuebin told reporters, “At present, some returnees are dissatisfied with the phenomenon. Some people eventually opted to withdraw. But in Futian, returnees and local scientific research The people get along well and create one miracle after another.” He then told the reporter a story.

In order to save costs and optimize the seat adjuster, Foton Motor proposed to a company in the United States that the degree of mediation in the original design standard was changed from 0.5 degrees to 1 degree. Because they found that below 1 degree for the occupant does not perceive the area. This 0.5-degree change will greatly save company costs. However, as is customary, in the United States, a standard change will take at least two years. At this time, a miracle emerged. A customer standard covered with the Fukuda seal allowed Americans to immediately change the standard.

"I have the intellectual property rights of the seats. I have the final say." Yan Xuebin said that independent innovation allows them to have a say in this issue. And this kind of pride is not only learned once. In early 2006, Foton Motor invited Japanese experts to help improve the quality control of the R&D process. After several days of investigation, the experts concluded that we have nothing to do. In their eyes, Foton Motor's project management technology is world-class.

"Providing the Chinese with the best tools to make money and being one of the world's largest manufacturers of commercial vehicles is Futian's goal for the next 15 years," said Wang Jinyu. To achieve this goal, we have achieved a product gradient structure of one generation, one generation, and one generation of pre-research; formed an international R&D team that is well-managed and exquisite in business; established and perfected software and hardware support means for the technological innovation R&D system; The innovative development system supplemented by the integration of external resources will be the goal of Futian's “Eleventh Five-Year Plan”.

View related topics: Beiqi Futian, Futian Automobile brand value of 22.157 billion yuan

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