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As the cottage electric car was exposed, Shifeng Group, China's agricultural vehicle giant that wanted to use the new energy concept of electric vehicles to achieve transformation, suffered another setback.
On November 16th, Liu Junbo, manager of the company’s sales company, told reporters that even though electric vehicles are still on sale, the daily production is less than 20 vehicles. In Jinan, the provincial capital, Shifeng Electric Vehicles has returned all the inventory vehicles to the wind. One reason is that it cannot be listed, and the second is that the traffic police will force a fine to check it, causing the owners to suffer headaches.
The Fengfeng Group, which originally planned to enter the car industry in 2004, developed an electric vehicle for the township in 2007. Although it resembles the Chery QQ, it is entrusted with the heavy task of transforming the Group and the financial crisis that ensued. At this time, when the wind realized that the new energy vehicles are ushering in huge business opportunities, they proposed a "million electric vehicle base" plan.
The company took the list of key energy-saving companies in Shandong Province. However, because of the lack of relevant certifications of the state, Shifeng Electric Vehicles is currently in the midst of dilemma, and Shifeng Group's “million bases†also face premature death.
The government took up the horse's electric car upstart
In June this year, the AQSIQ approved a piece of paper, making the nation's largest agricultural vehicle company, the Wind Group, indulge.
On June 11, the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China approved and Shifeng Group was approved to manufacture electric sightseeing vehicles. The so-called electric sightseeing vehicles refer to the relatively closed development of tourist attractions, parks, large-scale amusement parks, closed communities, campuses, garden-style hotels, resorts, villas, urban pedestrian streets, suburban areas, airports, ports, and docks. Vehicles cannot be used on city roads.
Previously, the Shifeng Group had been working and using government resources to hope to release the electric car for the time, but ultimately failed to do so.
The electric vehicles developed by Shifeng Group are divided into two types. They are equipped with 10 batteries and have a top speed of 50 km/h. They travel 200 km on a single charge. They sell for 30,800 yuan and have 8 batteries for 120 km. The price is 25,800 yuan. Both look exactly the same.
According to experts from the Shandong Automobile Industry Association, the electric vehicle of the hour did not get its way and it was related to the proposed standards for electric vehicles. It is said that there are two key indicators for this standard to be approved: First, the speed should not be less than 75 kilometers per hour; second, the mileage of one journey should not be less than 160 kilometers. When the wind electric vehicles obviously can not reach these two standards.
It is the local government’s full support that gave birth to the precocious electric vehicle. In the second half of 2007, Shifeng Group began to sell 5,000 electric vehicles in the surrounding cities and counties. In July 2008, the Liaocheng People’s Congress held a special meeting to discuss and approve the management methods of Shifeng Electric Vehicle. Unique local landscape, when buying wind electric vehicles do not have to be listed, open electric cars on the road unchecked.
The attitude of Shandong Province is also very clear. In August 2009, the “Opinions on Promoting the Development of New Energy Vehicle Industry†issued in the name of the General Office of the Government proposed to “breed up key players in the production of new energy vehicles such as the Shifeng Group and actively strive for the national qualification for new energy vehicle productionâ€. .
100 billion investment lacks basis
In September of this year, Liu Chengqiang, general manager of Shifeng Group, went to the research group of the Development Research Center of the State Council to explain that its production of electric vehicles was prepared.
Since the National Development and Reform Commission approved the production of commercial vehicle qualifications by Shifeng Group in October 2005, the Shifeng Group has invested RMB 500 million to build an auto production line and has the corresponding automotive design, development, inspection, and testing conditions. After 2007, the Electric Vehicle Research Institute was established to set up an electric vehicle production department, a sales department, and a planning room, which are responsible for the production and sales of electric vehicles and provide technical support for the development of electric vehicles.
In March 2008, the electric vehicle developed by Shifeng was tested and tested at the National Motor Vehicle Quality Supervision and Inspection Center in Chongqing and complied with relevant state standards and enterprise standards. On March 10th of the same year, Shifeng Electric Vehicle passed the Science and Technology Department of Shandong Province. Identification of scientific and technological achievements.
According to reports, in May of this year, when the Wind Group "annual production of 150,000 electric vehicle production project environmental impact report" reported to the State Environmental Protection Administration approved, "an annual output of 150,000 electric passenger car production project application report" has also been reported The National Development and Reform Commission approved the cross-approval of new energy vehicles, and Shifeng Group subsequently put forward the ambitious concept of “building a production base for 1 million new energy vehicles†- invest 10 billion yuan to build 1 million electric vehicles projects, build new China Energy electric vehicle production base.
According to the development plan of the electric vehicle industry of the Shifeng Group, an annual production capacity of 50,000 vehicles (45,000 lead-acid batteries and 0.5 million lithium batteries) will be formed in 2010; in 2011, it will reach an annual production capacity of 100,000 vehicles ( 90,000 lead-acid batteries and 10,000 lithium batteries; in 2013, it will reach an annual production capacity of 150,000 vehicles (120,000 lead-acid batteries and 30,000 lithium batteries). The 50,000-unit expansion plan this year will invest 100 million yuan.
However, the state’s regulations on the management policies for new energy vehicles have caused Shifeng Group to slow down its march. According to the “Regulations on the Management of New Energy Vehicle Manufacturers and Product Access Regulations†promulgated by the Ministry of Industry and Information Technology on June 17 this year, the electric vehicle of the current wind may only belong to the product in its infancy, or it may be in the product stage of development, that is, to the maximum "Can only be sold, used under approved areas, scope, terms and conditions." And to "real-time monitoring of the product's operating status."
The Wind Group, which originally wanted to use electric vehicles to transform from agricultural vehicles to passenger vehicles, had to stop. Before the National Games was held in Shandong, Liu Chengqiang told the media he came to interview that “The electric car produced only 5,000 units would not dare to produce. Because there is no basis for its listing, restricting consumer demand. If you let go, It can produce 40,000 units a year."
After October, when the wind electric car imitation Chery QQ's appearance was even more credited by the media as a "cottage car" notoriety, suffered from "shelling", making its prospects even more bleak.
Fatal Transformation Nightmare
The Shifeng Group is not the first time it has encountered transformation.
After obtaining commercial vehicle production qualification in 2004, Shifeng Group has proposed an ambitious light truck program and plans to increase the annual sales of light trucks to 80,000 units and enter the nation's frontline camps to achieve a magnificent turn from agricultural vehicles to auto companies. The preparations at that time were not sufficient, and the wind even put the group's best quality assets and half of its manpower into commercial vehicle companies.
However, it was counterproductive until 2008 when the Fengfeng Group's output of light trucks had hovered around 5,000 vehicles. In 2006, it sold 7,577 vehicles. In 2007, it sold 5,529 vehicles. The tricycle is still its flagship product, and it has been stable at around 800,000 vehicles in recent years.
In 2002, when the production and sales reached 1.12 million agricultural vehicles, the Wind Group accounted for half of the national agricultural vehicle sales at that time and became the agricultural vehicle leader. However, the policy changes in 2004 allowed the agricultural vehicle industry to fade overnight. The "Road Traffic Safety Law of the People's Republic of China" implemented on May 1st this year stipulates that the management of agricultural vehicles shall be transferred from the agricultural department to the public security department, and the cost of farmers' purchase and use of agricultural vehicles shall increase by 2,000 yuan per year.
This year, many domestic agricultural giant giant Shandong Shuangli even went bankrupt due to capital chain breaks. When the wind is no exception, many dealerships sell less than a month in previous years. When the wind deeply feels the pain of having only a single product.
In fact, with the continuous price reduction of mini-vehicles and the popularity of motorcycles in rural areas, production and sales of agricultural vehicles have been declining year by year since 2000, and the replacement of vehicle management agencies in 2004 has accelerated this process.
As a high-tech factory with the annual output value of less than one million yuan into the country's agricultural vehicles ranked No. 1 Liu Yifa, chairman of the group does not lack a strategic vision, as early as 2002, when the Wind Group tried to enter the field of commercial vehicles.
It was exactly this year that Shi Feng got a $30 million venture capital from Morgan Stanley. However, Liu Yifa does not seem to have stepped up its expansion efforts to obtain venture capital. In the same year, cooperation with Yantai Automobile Factory and China South Heavy Duty Truck (31.40, 1.20, 3.97%) both fell through due to the high price of the other party. Until 2004, when the Wind Group set up a commercial vehicle company, in October the same year finally received approval from the National Development and Reform Commission with commercial vehicle production qualifications, when the Wind Group has entered the field of commercial vehicles with great fanfare.
From agricultural vehicles to commercial vehicles to passenger cars, Liu Yifa and Liu Chengqiang’s father’s dream of building a car does not surpass everyone’s expectations, and there are even more realistic considerations for higher profits.
According to the internal accounting of the Shifeng Group, the cost of a battery is close to 300 yuan, the cost of the electric part of the 10 batteries is 3,000 yuan, and the price of a diesel engine is only 2,000 yuan. Other accessories do not change much, and the price of agricultural vehicles will not exceed the price. 15,000 yuan, while the 8 car battery electric car is the basic price is 25,800 yuan, net profit increased by at least nearly 10,000 yuan.
According to an insider of the Shifeng Group, in the meantime when planning the production and sales of commercial vehicles in 2006, Shifeng decided to “enter the economical sedan field within five yearsâ€.
Financial data can also be viewed. In 2002, Shifeng Group produced and sold 1.12 million agricultural vehicles with sales revenue of RMB 6.8 billion. In 2008, sales revenue reached RMB 18.27 billion. Behind the year-on-year growth in performance, it is difficult to conceal the hardships of the increasingly thinning profits of the main products.
At this time, Shifeng Group has an annual production capacity of 1.1 million agricultural vehicles, 300,000 tractors, 8.8 million sets of tires, 5,000 sets of combine harvesters, 20,000 sets of electric vehicles, and 1.2 million sets of engines. At the same time, it has an annual production capacity of 400 million kWh. Electricity, but half of sales revenue in the huge product line comes from the tire business.
In 2003, Shifeng Group cooperated with Double Star Group to produce agricultural vehicle tires. In the same year, it built a factory that could produce 300,000 sets of agricultural tires and 4 million sets of light-duty truck tires, and later developed a construction machinery tire product. In 2005, it built a second tire factory plant, and it achieved production in that year, producing light-duty truck tires of 1.40 million. There are 600,000 medium-sized heavy-duty tires and 100,000 engineering tires. In 2006, a production line with an annual output of 30,000 giant engineering tires was built. Customers include mining and engineering giants such as Vale and Caterpillar. At the beginning of 2007, Shifeng Group invested a further 500 million yuan to build an annual production of 10,000 radial tires projects, becoming the world's largest meridian project tire project.
As the profit of agricultural vehicles shrinks, and the situation of commercial vehicles, the Group recognizes that it must enter the field of passenger vehicles as soon as possible, and electric vehicles are the best entry point for the current wind.
When the wind did not retreat
But it seems that there is a fateful power that makes the seemingly over-satisfaction of the electric vehicle project seem to be repeating the mistakes of light trucks. However, Liu Yifa did not concede defeat. He once said that during the early days of the development of the Wind Group, it encountered some difficulties. Later, it did not also develop to the No. 1 in the country. The electric cars are now as they were then.
From the outside world, the fate of Shifeng Group may not be inevitable. If the Fengfeng Group invests a little more in the design of the model than the Chery QQ, will it avoid the notoriety of Shanzhai? At the same time, let consumers and the outside world have more sympathy and encouragement than ridicule and loathing?
As the agricultural vehicle giant in China, the accumulation of the wind for many years has even allowed the timewind brand to become a symbol of agricultural vehicles. However, agricultural vehicles and cars are of different types in their use. Whether the wind should be considered in both Do you need to build a firewall so that customers of electric cars do not have to bear the burden of driving a "transformed agricultural vehicle?"
The destiny of the times was obviously the result of its path-dependence of its competitive strategy. The reason why Shifeng Group can become the leader of agricultural vehicles is that its biggest competitive advantage lies in the low-cost strategy that has been formed for many years. When similar products in the market are sold at a lower price, other companies may already start to lose money, but when the wind is used for parts, their production and labor costs are more. Low but still profitable.
Its entry into the field of light trucks is unsuccessful. Because it is also relying on low-cost competition, Foton Motors has already seized the opportunity and relying on the same “playing method†will naturally not succeed.
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