The Future: the next generation

SAIC throw "A framework" platform strategy, spend 1,000,000,000 lasted four years



 This reporter learned exclusively, a vehicle platform strategy called "A framework" are SAIC brand vehicles (hereinafter referred to as "SAIC brand") inside secrets to rapidly launch.  The $ 1 billion yuan, which lasted four years of platform strategy will be SAIC brand was founded seven years since the most important structural change models.

For SAIC brand, twice and missed profit targets, reduce development platform architecture to reduce manufacturing costs, will free up enough space to turn around the profitability of SAIC move.

"A framework" exposure

Since the 2005 acquisition of Rover assets, after years of operation, the current SAIC Motor has formed a five product platforms, A0, A, A, B and SUV platform, corresponding products are MG3, Roewe 350 , MG5, Roewe 550 and MG6 and other products.  "

"There are too many independent brand platform is too complicated, and each birth is different, there is the old Rover also has General Motors is not conducive to intensive development. "an insider close to the project told reporters," So have the cuts, the integration platform architecture vision. current thinking is that the A-class car platform all pinched together, to re-develop a new framework to guide all future A-Class product. "

"For example, cash Roewe 350 and 550, which are the product of two market segments, corresponding platforms are completely different. coming in the A structure, they will be the same platform product, part of the design interfaces consistent body parts also The implementation section interoperability. "to the informed sources.

According to the plan, a framework for the future on the A platform will be derived Roewe 350, Roewe 550, MG5, MG5 sedan, MG6 and an MPV products.  By then, the platform will be the largest passenger car sales SAIC production platform, and its importance is self-evident.

In fact, the SAIC brand "A framework" strategy in 2012 had secretly started, is expected to take four years, the investment of 10 billion yuan, plans to usher in the first production car in 2016.  "The car will be completely facelift Roewe 550." The aforementioned sources, "which means that, after A framework to improve the current SAIC class A passenger car platform will become void."

"From last year, in the R & D center in Anting SAIC, we are busy developing A framework, we hope to bring more models fitted into this framework, the platform to meet the needs of intensive universal." SAIC R & D center insiders admitted that "we hope to be able to SUV models fitted A framework to test several times, now it seems very difficult, SUV probably still be single."

The reporter also learned that, as well as SAIC powertrain innovation framework program and A simultaneously, and this work is mainly done by the Pan Asia Technical Center.  "SAIC and GM co-developed a new generation of small-displacement engine is nearing completion, is currently doing a road test and certification." Pan-Asian staff then said, "by the end of this year, early next year, a new generation of engines can be mass production of, and at the same time SAIC and Shanghai GM passenger cars to supply. "

Future, SAIC platform architecture models will be reduced to three.  In addition to the large amount of money to build the "A framework", born out of the common new Regal B-class car platform Roewe 950 will take up the follow-up model of the development, and is expected to Beijing auto show debut MGCS is the future of SAIC's main SUV platform.

As of press time, the response to these messages, SAIC did not respond on the matter.

Earnings pressure

A framework to focus on the development of SAIC, reduce vehicle platforms, meaning behind it is self-evident: although the first to break through its own brand of bicycles priced at $ 100,000 ceiling, but to the successful operation of its Roewe, MG two brands, an unavoidable problem is profitability problems.

Dropping by the joint venture brands, the market grew slightly and consumer confidence has not yet fully establish its own brand and other factors, SAIC brand has twice missed the target with the profits.  2012 raised 10 million yuan profit targets and raised 50 million yuan in 2013 profit target, were not successfully completed.

Official data show that in 2013, SAIC's Roewe and MG passenger car brands were sold 230,000 new vehicles , an increase of slightly less than 15% of the industry average, also failed to achieve the established sales target in early 240000.

According to estimates SAIC SAIC's own brand breakeven point is 230,000, the extra ten thousand is profit.  However, unfortunately, in 2013 SAIC brand in front of 230,000 red screeching halt, which also makes the task last year's earnings fell short of success.

On the other hand, due to the SAIC adhere to the "positive development", capital investment has been high.  Publicly available data, "SAIC brand total investment has reached 45 billion yuan," "invested 22.2 billion yuan a further period." Twelfth Five-Year

In SAIC ( 600104 , stock it ) (600104.SH) inside, two joint ventures - Shanghai GM and Shanghai Volkswagen has been playing the role of profits cows.  Three quarterly SAIC last year showed that three quarters of 2013, investment income (mainly for Shanghai Volkswagen, Shanghai GM's equity contribution to net profit) SAIC net profit attributable to the proportion of 114%, a loss is still being own-brand business.

SAIC's helm is also clear, independent brands can not go on forever deficit.

SAIC executive vice president and general manager of passenger car company Chih-Hsin Chen in a recent internal meeting that the initial confrontation joint venture brands, after a firm foothold, SAIC passenger car brands business will enter the second phase - earnings growth.  2014 SAIC Motor Company developed a profit of $ 100 million plan.

"Upfront own brand certainly is very large, but the earnings are not valued by SAIC, the key is to enhance its own brand of premium capacity and manufacturing capabilities. Compared with multinational giants, local car brand gap is mainly reflected in the brand, the product R & D capabilities and three aspects of globalization. "Chih-Hsin Chen admits.

Profitability under pressure to reduce vehicle development and manufacturing costs, appears to have a problem in the proper meaning.

Trend

A framework for the SAIC can really save much money?

"Reducing the number of vehicle platforms, or architectures to reduce costs, has been a trend in the automotive industry." Automotive Industry experts pointed out that "most notably Volkswagen MQB platform from the same modular platform products can share the same specifications of the engine, gearbox and air-conditioning assembly, sharing ratio is about 60% of vehicle spare parts. "

According to its analysis, modular development, not only to share some vehicle parts, and can be customized in different shape and wheelbase, etc. Depending on the product requirements to achieve the purpose of cross-level production.

 To engine parts, for example, from the engine to the firewall there a connection fitting a variety of styles, depending on the platform and engine size, 5 car will have five completely different accessories.  But after using the same framework to build, all the parts are the same.  The expert admitted that "through standardized, modular production, SAIC able to reduce production costs a lot."

Very Coincidentally, last Monday (March 17), BMW and Mercedes - Benz luxury car maker two also announced that future BMW and MINI brand will be retained only two platforms, while Mercedes-Benz will also be reduced to 4 kind of platform.

BMW Group research head Herbert Deas (HerbertDiess) said that the current BMW and MINI has a total of five platforms, the future will be reduced to two platforms - front-wheel drive and rear-wheel drive one each.  Platform architecture combined strategy to accelerate progress in the development and reduce costs.

Mercedes - Benz global R & D head Thomas Weber (ThomasWeber) also said that the future will only use the four-Benz modular platform architecture, from five years ago, nine platforms reduced by more than half the cost of "consolidation platform brings immeasurable savings, improved product quality, new and modified cars from concept to dramatically reduce time to market. If no new platform strategy, is unable to achieve this. "

Reduced from five platforms to "A framework," SAIC brand has Tazhun the "pulse of the times", then, is the test of a critical moment SAIC R & D capabilities of the system.

SAIC MPV Icebreaker Maxus G10

March 21, the first full-field SAIC vehicles Maxus MPV G10 officially off the assembly line production base in Wuxi, Shanghai Automotive Commercial Vehicle Co., Ltd. has become the third anniversary of the founding of the greatest birthday present.

G10 SAIC Maxus strategic transformation of competitive products. As early as February 28 in Shanghai issued a price range of 129,800 to 219,800 yuan. SAIC Maxus G10 will be officially listed in April. G10 vehicle platform director, said Wang Rui, G10 will be directly on the standard low-end models GL8, China MPV occupy the high-end market segments. Over the past decade, the Chinese MPV market is dumbbell-shaped, two large, thin in the middle, and the future will be the development of the pyramid. "G10 goal is to lock in the top position of the pyramid." Rui was very confidently said, "This market segment has more than ten million units annually about market demand." According to the Beijing Morning News reporter Le Jiedao, G10 limited to SAIC Maxus part of the existing authorized dealers, along with improving product does not rule out future force with SAIC's own-brand passenger car sales may be on the same stage.

NLE SAIC self-developed engine platform is to promote the "Speed ​​Maxus" core speed of power again. SAIC is open to the media for the first time the port engine plant, annual capacity of 100,000 units. The platform can produce transverse 2.0T, 2.0L, 1.8T, longitudinal 2.0T, 2.0L, two categories of five engines. The G10 is mounted on an engine that is 2.0TGI integrated TURBO turbo, GDI direct injection and twin variable valve DVVT three timing leading technology, the maximum output power up to 225 horsepower, up power of 82.5kW / liter. The future will be mounted on a self-developed SUV models.

Beijing Morning News reporter Le Jiedao, G10 will return to take up the responsibility of Europe, SAIC V80 Maxus plans to achieve in the UK later this year, early 2015 will G10 into the UK market in 2017, will launch a large-scale product mainly for overseas pickup .

unfortunately, in 2013 SAIC brand in front of 230,000 red screeching halt

patpending wrote:I love this image:

unfortunately, in 2013 SAIC brand in front of 230,000 red screeching halt

Reading that, you would think SAIC management had only just become responsible for MG, let alone Roewe. I bet if they had said in 2005 or 2008 that they would sell only cars based on their own MQB that we would still be waiting for any! (No mention of 750 above!).

The talk of "profit" is worrying. To build up world-wide volumes, SAIC must invest and spend on a production, sales and distribution network, and forgo profit for a few years - sprat to catch a mackerel. Reminds me a bit of the noises from Germany in 1998...

snifferdog1 wrote:
I know that you have mentioned MG wanting to make a profit before Pat, just wondering where you saw that?

snifferdog1 wrote:

patpending wrote:The talk of "profit" is worrying. To build up world-wide volumes, SAIC must invest and spend on a production, sales and distribution network, and forgo profit for a few years - sprat to catch a mackerel. Reminds me a bit of the noises from Germany in 1998...

I know that you have mentioned MG wanting to make a profit before Pat, just wondering where you saw that?

SAIC's helm is also clear, independent brands can not go on forever deficit.

SAIC executive vice president and general manager of passenger car company Chih-Hsin Chen in a recent internal meeting that the initial confrontation joint venture brands, after a firm foothold, SAIC passenger car brands business will enter the second phase - earnings growth.  2014 SAIC Motor Company developed a profit of $ 100 million plan.

patpending wrote:Previous references to "profit" have been for MG Motor UK which has to be stupid immediately. I cannot for the life of me explain the accounts.