Dialogue | Zhou Xiaoying, CEO of Gaz Automotive and Editor-in-Chief of Gaz Automotive Information Department
Written | Gaz Auto Editor Liu Caijun
At present, the global consensus on carbon neutrality has been reached, and the new energy revolution inspired by it has further accelerated the transformation of the automotive industry to green and sustainable development. As an international automotive supplier, Gestamp has many years of experience helping car companies reduce emissions, as well as reduce emissions from their own operations and supply chains. Today, it is sparing no effort to help Chinese car companies implement the "3060" double carbon target.
"Gestamp has made the task of reducing low-carbon emissions a top priority," Antonio López Arce, CEO of Gestamp Asia Pacific, revealed in a high-end series of interviews with C Talk conducted by Gestapo Motor. He believes that whether from the perspective of the industry or out of the sense of social responsibility of enterprises, energy conservation and carbon reduction are indispensable.
The Spanish parts supplier is known for developing and producing automotive body structural parts, chassis components and mechanism parts, and has been deeply involved in the battery box business of new energy vehicles for a long time. Its products have been widely used in the automotive market in 24 countries around the world, and have also been favored by many foreign and independent brand car companies in China. When it comes to its core competitive advantage, it is impossible to avoid "lightweighting".
According to Luo Anton's introduction, Gestamp is determined to lead the development of lightweight technology, so it has been unremittingly creating lighter components for many years, and the pursuit of lightweight at this stage has penetrated into all product lines, "It can be said that the vast majority of GESTP's research and development projects are related to lightweight."
It should be known that the lightweight of automobiles is not an easy task, which not only requires weight reduction, but also takes into account collision, safety and other aspects of performance, which is a complex system engineering. Because of this, Gestamp does not treat lightweighting as an isolated module, but as a concept that runs through all aspects of research and development, production and even plant operation. "Under the premise of ensuring product quality and controlling costs, we consider all aspects related to design, materials and processes."
In the field of lightweighting, Gestamp has a considerable accumulation. However, in the ever-changing automotive market, how to deal with the endless stream of new technologies and industry trends is also a challenge in front of it.
"Changes in the industry always involve the whole body. Sometimes we swing between continuing to invest in high R&D or prioritizing corporate profitability, the general trend of industrial change no longer allows us to stop. "Luo Anton is soberly aware that the advancement of technological change is irreversible, and as a company itself, it is better to lead the trend than to be pushed by the tide." Beyond this hurdle, companies will gain more upside for their own development and profitability. ”
Anton Lo, CEO of Gestamp Asia Pacific
However, when asked how to view some of the current industry trends with high topics, such as many international mainstream auto industry players continue to increase investment in Research and Development in China, Luo Anton bluntly said that companies should have their own more rational attitude. "The development of the enterprise should be a process of constantly weighing investment and returns, and R&D investment needs to be targeted according to the needs of customers."
For the vast majority of multinational companies, entering China faces a huge challenge of localization, but Luo Andong said that Haistamp has done a good job of localization. He said that the company currently has more than 4,000 employees in China, two R & D centers, and has production bases in Shenyang, Beijing, Tianjin, Wuhan, Kunshan, Chongqing, Dongguan and other places. Gestamp has "engraved the concept of 'in China, for China' into the company's DNA and is determined to further enhance its competitiveness in the Chinese market." ”
In addition, Luo Anton also explained to Gaz Automobile his views on China's auto market and his expectations for business development in China, for details, please see the following interview transcript:
——The electric vehicle market is a place where enterprises must compete——
Zhou Xiaoying: In the past two years, the automotive industry has encountered many challenges, such as the COVID-19 pandemic, chip shortages and rising raw material prices. What impact do you think this has had on the automotive supply chain?
Luo Anton: First of all, the rebound of the epidemic and the shortage of chips have made companies face great uncertainty when making plans, of which the impact on the production side is the most direct. In areas where the epidemic or supply is more severe, factories can even shut down for several weeks, which can put a lot of pressure on them to meet production targets.
Secondly, the epidemic has also caused a great impact on the logistics industry, especially in the maritime transport, often encountering the problem of cancellation of shipping schedules or insufficient space, and transportation costs have also risen, which makes enterprises with a large proportion of raw material imports very worried.
As for the rise in raw material prices, parts and components companies must come up with more ways to reasonably control inventory, not only to ensure that goods can be delivered on time, but also to avoid excessive cost increases.
Zhou Xiaoying: How do you see the trend of China's electric vehicle market?
Luo Andong: In the long run, electric vehicles replacing fuel vehicles is an inevitable trend in the development of China's automobile market. At present, China's electric vehicles are at the forefront of the world in terms of sales growth and product performance improvement, and this advantage will remain for a long time. I will judge this not only based on the incentives of the policy environment and the efforts made by car companies to transform electrification, but also because I have seen many industry-leading technology companies enter the electric vehicle industry. Obviously, different types of enterprises are well aware that as the best carrier of intelligence and the main path to achieve emission reduction goals, electric vehicles are a must.
—— The task of reducing low-carbon emissions has become a top priority ——
Zhou Xiaoying: What efforts has Gestamp made to achieve the "double carbon target"?
Luo Anton: At present, Gestamp has made the task of reducing low-carbon emissions a top priority, and has taken a number of measures around the world to help achieve carbon neutrality goals. Whether it is an important participant in the industry or a socially responsible enterprise, energy conservation and carbon reduction are indispensable. In this regard, our efforts have also been highly recognized by the industry. For example, Gestamp was selected for S&P's Global Sustainability Yearbook 2022. There are only 6 OEMs and 8 suppliers from the automotive industry on the list. In addition, the company received AENOR Zero Waste Certification at the beginning of this year, the first company in the automotive industry to achieve this certification.
Lightweight body parts; Image source: Gestamp
Zhou Xiaoying: How have Gestamp products helped car companies reduce emissions?
Anton Lo: This is mainly due to our lightweight products and technologies. Because the lighter the body, the lower the energy consumed by the vehicle operation, under the dual impetus of energy saving and emission reduction and performance improvement demand, lightweight has naturally developed into an inevitable trend. As a leader in lightweight technology, Gestamp has been working tirelessly to create lighter components over the years, and the pursuit of lightweighting has penetrated into all three product lines (body in-white, chassis, and mechanism parts).
Zhou Xiaoying: What measures has Gestamp taken to reduce emissions from its own operations?
Anton Lo: The company has also invested a lot of effort in reducing its carbon footprint. In addition to continuously improving technology to improve production efficiency, the rational and appropriate disposal of waste is also a topic that Gestamp has been studying. In addition, Gestamp is also committed to using clean energy to reduce its own carbon emissions, and has carried out a number of photovoltaic power generation projects.
——Lightweighting is a systematic project——
Zhou Xiaoying: What is the proportion of resources invested by Gestamp in lightweight research and development? What are the main technology paths?
Luo Anton: It is difficult to give a specific number, and the vast majority of Gestamp's current research and development projects are related to lightweighting. Automobile lightweight is not simply to reduce the weight of the body and parts, it should be a system engineering, in order to ensure product quality and control costs, the overall consideration of all aspects related to design, materials, process. In terms of materials, Gestamp uses a multi-material synthesis scheme, with applications for both aluminum and carbon fiber. We have also developed an innovative one-piece thermoforming door ring technology that integrates multiple individual parts into one, significantly reducing the welding process for OEMs.
Zhou Xiaoying: Can you introduce the battery box business of Hystamp?
Anton Lo: One of Gestamp's business goals is to help customers build safer cars, and the original intention of developing the battery box business is in line with this goal. Today's market size of electric vehicles is growing rapidly, and consumers attach great importance to the safety of power batteries. As the carrier of the power battery, the quality of the battery box is of great significance to the safety of the power battery.
Battery box; Image source: Gestamp
The development of the battery box business by GESTAMP is not a whim, but a lot of research and development resources have been invested in it. Our battery pack products meet high safety standards related to collisions, specific regulations related to crashes and emissions, and sealing requirements. In addition, Gestamp innovates at the material level, offering a variety of solutions, including aluminum battery boxes, and combining various assembly technologies to ensure strength and sealing while taking into account the effect of lightweighting.
——R&D layout should closely follow customer needs ——
Zhou Xiaoying: In the process of the transformation of the automotive industry to electrification, the trend of new technology development is always emerging, how do you think enterprises should deal with this change?
Luo Anton: The changes in the industry always affect the whole body, and sometimes we swing between continuing to have high R&D investment or prioritizing corporate profitability, but the general trend of industrial change no longer allows us to stop. After all, customers want to sell cars, and they have to constantly innovate in order to attract more consumers, and they will naturally put forward more new requirements for suppliers. In this process, suppliers are bound to face many challenges, but they are also full of opportunities. Beyond this hurdle, companies will gain more upside for their own development and profitability.
Zhou Xiaoying: The car-making field is constantly pouring in new players, although the initial volume is not large, but often launch some fresh products and technologies. How do you think this phenomenon will affect the automotive supply chain?
Anton Lo: Working with these types of clients is certainly challenging, especially in terms of resource management. First, many processes, such as mold making, have to be rearranged. In addition, compared with traditional car companies, the order volume of such partners is generally not large, and when products enter the mass production link, the economy of scale effect will be greatly reduced.
Zhou Xiaoying: What adjustments do you think need to be made when working with such OEMs?
Anton Lo: Efficiency and flexibility are two key factors. With more and more new needs, enterprises must establish an efficient response mechanism internally, flexibly adapting existing technical solutions or developing new solutions according to customer needs. In addition, you have to be careful to measure how to meet new demand while ensuring positive profitable growth of the company, and you need to continuously optimize the cost control system.
Zhou Xiaoying: In recent years, many international car companies and supply chain companies have continued to increase their investment in China, setting up design/R&D centers in China, and even transferring the global R&D headquarters of some businesses to China. How do you see this trend?
Luo Anton: The development of enterprises should be a process of constantly weighing investment and returns, and R&D investment needs to be targeted according to customer needs. Whenever our customers need it, we look for ways to support them. Gestamp already has two R&D centers in China, located in Anting Town, Shanghai and Qiandeng Town, Kunshan. Among them, the Anting R&D center has been operating for five years so far, and before it was put into operation, the company had also carried out local R&D work.
—— Performance in China hit a new high The harvest season is coming fast——
Zhou Xiaoying: In January this year, Gestamp released the Chinese brand logo, which shows what your company's expectations for the Chinese market are?
Luo Anton: The release of the Chinese brand identity shows that Gestamp has done a good job of localization in China, engraving the concept of "in China, for China" into the company's DNA, and is determined to further enhance its competitiveness in the Chinese market. Without abandoning the group's historical traditions, Gestamp "follows the customs", integrates many Chinese cultural factors into the daily operations of the company, and in terms of supply chain, it has also increased cooperation with local enterprises.
Zhou Xiaoying: How will Gestampper perform in 2021?
Luo Anton: Although the performance of Gestamp in 2020 has been affected to a certain extent due to the outbreak of the epidemic, on the whole, the company has maintained a relatively stable growth trend in the past two years. Last year, the specific details can be seen in this month's financial report, and our performance in the Chinese market reached an all-time best level.
Zhou Xiaoying: What are your expectations for the development and performance of Gestamp in 2022?
Luo Anton: In the future, Gestamp will still firmly practice the concept of sustainable development and constantly adjust its positioning in the field of electric vehicles to the best state. The company's large investment in research and development over the years has also reached the harvest, and it is expected that this year's performance will increase significantly compared with last year.
Zhou Xiaoying: When customers mention Hystamp, what kind of evaluation do you want to hear?
Anton Lo: I hope they will call Gestamp a "technically competent", "cost-effective", "sustainable" company and a "reliable" partner.