This winter, the autonomy of Chinese automotive companies has not declined, and a new trend of "joint venture self-reliance" is gaining momentum. Following the recent announcements by Shanghai Volkswagen and Guangzhou Honda, among other joint ventures, about developing their own products in China, GAC Group Auto and Dongfeng Motors have also begun leveraging the technical resources and R&D capabilities of their joint venture partners to build independent car bases and research centers.
However, a lingering concern remains: once the products are launched, who will support the brand? If China fails to effectively absorb and integrate the technologies transferred from its joint venture partners, it could face a challenging situation where it's unable to sustain its own development.
In terms of self-reliance, Guangzhou Automobile Group (GAC) took center stage during the Guangzhou Auto Show Media Day on November 19. With the advantage of hosting the event, GAC unveiled four concept cars under its own brands. While production models may not be available for another three years, the excitement around these projects is palpable. GAC General Manager Zeng Qinghong expressed great enthusiasm, comparing the process to "waiting for the birth of one’s own child."
The four concept cars represent just a small part of GAC’s broader strategy to develop its own brands. Three days prior, on November 16, the foundation was laid for GAC’s Automotive R&D Production Base in Panyu, Guangzhou. The project spans over 1.5 million square meters with a total investment of 6.8 billion yuan. The R&D center alone covers 300,000 square meters and costs 3 billion yuan, while the first phase of the production plant requires 3.8 billion yuan. “GAC has made a significant investment in its own brand this time,†said one employee at the groundbreaking ceremony.
According to Huang Xiangdong, head of GAC’s Automotive Research Institute, the company’s autonomous passenger car plan will begin construction in January next year. The project aims to develop a series of models, starting with a mid-level sedan expected to launch in 2010. “Although our experience in R&D is limited, we treat the joint venture like a university, constantly communicating with senior management and technical staff to share knowledge and resources.â€
Similar efforts are underway at other automakers. In July, both Shanghai Volkswagen and Guangzhou Honda announced plans to develop their own products in China. Guangzhou Honda even set up an independent R&D company, using the technology and management expertise from its foreign partners to create vehicles with independent intellectual property.
The transfer of technology through joint ventures has long been a topic of discussion. Zhang Fangyou, chairman of GAC Group, noted that while direct access to Honda and Toyota’s core technologies isn’t possible, there are many indirect ways to obtain them. Some engineers from joint venture factories like Guangben and Guangfeng have been transferred to GAC’s R&D department, which now boasts a 3-billion-yuan investment. This move is seen as a way to gain more returns from the joint venture.
This approach isn't new. Since 2005, SAIC has gradually moved many Chinese engineers from the SAIC-GM-Pan Asia Center to its own R&D teams. These individuals have become key players in SAIC’s independent development. For example, Wei Yanqin, former deputy general manager of Pan Asia, now leads SAIC’s British Research Institute.
Under the current policy framework, China is using new production capacity as a condition for technology and talent acquisition. The second modern plant in Beijing, for instance, was built with the promise of establishing a joint R&D center with Beiqi. Similarly, Guangzhou Toyota planned to expand, and GAC used this opportunity to gain more technical and human resources from Toyota.
While GAC hasn’t directly confirmed these strategies, Zhang Fangyou hinted at the importance of absorbing joint venture resources: “By tapping into the strengths of joint ventures, we gain technical experience and a skilled team, which in turn helps us further strengthen our partnerships.â€
However, challenges remain. Zhang Fangyou has repeatedly warned about the risk of "technology hollowing out," emphasizing the need to truly digest and absorb the technology before it can be fully utilized. FAW and Dongfeng, for example, have relied heavily on joint venture support for their own brands, but still lack full control over product development.
Even Guangzhou Honda, despite setting up its own R&D center, faces a talent bottleneck. It must recruit overseas experts and rely on Honda’s assistance to fill the gap. Moreover, when launching new models, Guangben will likely need to establish its own platform, relying on Honda’s existing systems for now.
Currently, GAC lacks the capability to build a strong production platform, which means that future independent models may still depend on foreign partners. As Zhang Fangyou noted, building an independent brand is just the first step in a long journey. The real challenge lies ahead, and the success of this "joint-venture autonomy" model remains uncertain.
Sodium Ascorbyl Phosphate,Sodium Calcium Ascorbyl Phosphate,Phosphate Ester Sodium,Sodium Ascorbyl Phosphate Eucerin
JINGJIANG HENGTONG BIO-ENGINEERING CO.,LTD , https://www.jjhtbio.com