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Wasting tens of billions of yuan to build engines, Xu Liuping had to let Hongqi electrify

In the history of the development of China's independent car companies, the two major parts of the engine and the gearbox are a major obstacle that is difficult to overcome, and the powertrain of independent research and development is a place where independent car companies must compete.

From Chery, great wall to Geely, all of them have spent huge sums of money on research and development, and there are rumors on the Internet that FAW Group has spent tens of billions of dollars to develop engines.

Although the specific amount is unknown, it can be seen from each new engine investment of FAW that it costs a lot.

Nowadays, FAW Besturn's average monthly sales of several thousand vehicles are indeed unable to absorb the huge R&D costs, as a red flag for the hope of FAW Group's independent passenger cars, it has to comprehensively transform new energy vehicles.

Wasting tens of billions of yuan to build engines, Xu Liuping had to let Hongqi electrify

In the process of collective upward and electrification of independent car companies, whether it is Geely, Great Wall or Chery, fuel vehicles still occupy the main share, and the accumulation of powertrain technology over the years has also been continued in the fields of oil-electric hybridization and plug-in hybridization.

Major car companies go hand in hand in the fuel and electric markets, because they have a large-scale retail market and users can rely on.

From Volkswagen to GM, multinational car companies are accelerating pure electrification, while independent traditional car companies led by Geely, Great Wall and GAC have entered a new stage of comprehensive hybridization, while developing pure electrification with the help of new brands.

Wasting tens of billions of yuan to build engines, Xu Liuping had to let Hongqi electrify

Whether it is one of the members of the T3 team or the exclusive car of Wanda executives, Hongqi's current sales market focuses on government-enterprise cooperation and online car-hailing, which has become the exclusive position of new energy vehicles, and electrification has become the only choice for Hongqi.

There is another good example in front of us, BYD has just become the world's first car company to stop production of fuel vehicles.

No matter how much it has spent on engine technology before, with the dissolution of the FAW Technical Center, for the FAW Group, it has to be adrift. Compared with the fuel vehicle market, which has no chance of winning, new energy vehicles have become the only hope for FAW's independent passenger cars.

Wasting tens of billions of yuan to build engines, Xu Liuping had to let Hongqi electrify

After FAW abandoned Xiali and Mazda, FAW Besturn may be able to hold out for some time, but in front of Geely, the Great Wall and Chang'an, it wants to break through the market discourse power of the top three independent brands and join the upward process of independent brands.

For new electric vehicles, the power battery and motor and other three-electric systems, as well as the sensors and other hardware that smart cars rely on, although independent car companies are ambitious, traced back to the source, but still do not have the imaginary leading edge.

When FAW and BYD set up a power battery company in Changchun, it also added a key competitive advantage to the development of Hongqi's new energy vehicles, at the same time, from the three-electric system to the vehicle pure electric platform, there seems to be no impossible factor to cooperate.

FAW Hongqi's "New Hongqi" will sell more than 300,000 vehicles in 2021, an increase of more than 50% year-on-year, and the cumulative sales volume will exceed 600,000 vehicles.

No matter where the sales come from, with the whole strength of FAW, or even abandoning FAW Car, Hongqi achieved a breakthrough in sales for the first time in history.

We may see Hongqi cars more and more frequently in the offices of relevant departments and in Wanda Plaza, and the tens of billions of yuan wasted and abandoned engines can only be regarded as tuition fees that are helpless to pay for the wrong judgment of the market.

Forgetting the past of tens of billions of yuan, fully investing in new energy vehicles may be Xu Liuping's helpless move, but it is also the only hope of the "new red flag", this time do not miss the opportunity.

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