Zhao Hang: The standard of new energy

　　[Editor's Notes] On July 15, the 7th Changchun International Auto Show kicks off grandly, which is the 57th birthday of Chinese automobile industry. During the auto show, Society of Automotive Engineers of China (SAE-China) Congress will be held. As a high-level comprehensive academic exchange event in the domestic automobile industry, SAE-China Congress has already become an important platform of academic exchange for numbers of scientific and technological workers in the car industry and other related industries. After years of elaboration and nurture, it has grown into a grand international academic meeting. Sohu Auto interviews Zhao Hang, President of China Automotive Technology and Research Center (CATARC) exclusively.

　　Society league provides the platform for value chain

　　Sohu Auto: We have learned, in this Society of Automotive Engineers of China Congress, a dozen of automobile companies will reach a consensus on joint research and development of new technology. In your opinion, how will this method influence the technologies' upgrade of Chinese vehicle industry?

　　Zhao Hang: Through making connections between different parties to form a league, or using the way of project team to specialize research and know-how, which could work more concentrated and more focused, it is definitely better to organize as a whole than separately works.

　　Sohu Auto: There are many unions in different areas in the automobile industry. Which kind of operation modes do you think will play better role for the league?

　　Zhao Hang: At the first stage, it will be called union. After a period of operation, it still needs to develop complementary upstream and downstream enterprises. As a union, the constraint force cannot be strong. It might be also involved interest conflicts in the alliance. If there are interest conflicts, it's not easy to run the union. By means of fair division among the alliance, and balancing assignment of interests, the league will become the group of mutual interests.

　　The alliance is at least the platform for partners to get to know each other. Through this platform, you can find your position of interest connections in the league. It should be clear how many shares will be obtained.

　　Independent R&D and overseas acquisition: A success is good

　　Sohu Auto: Recently, there are some overseas mergers and acquisitions of auto parts companies, for example Pacific Century Motor Systems Co., Ltd. (PCM) bought GM's power steering system. In your opinion, for the upgrade of spare part industry, is it better to research and to development independently? Or is it more efficient to purchase abroad?

　　Zhao Hang: Who succeeds, is good. It can't be said which one is better. On one hand, someone develops depending on independent researches and developments, which is very difficult. The brought success is definitely great. On the other hand, some companies have worked on researches and developments for several years, but still couldn't produce products and form industrialization, which totally waste of the time and money. Although the spirit is valuable, we want results. It might be better to just buy the technologies directly. Geely purchased an automatic transmission plant that it possesses immediately the capabilities of manufacture and development of automatic transmission. Geely bought even the team of research and development, which gradually forms the complete product set and the own staffs has also learned from it. Then it is completely independent. Not relying on purchase and acquisition, would simplify the path. There are no better way. These ways should be all explored. Which succeeds, is the good way to go.

　　Nowadays, we are not lack of people to work on research and development, but aren't at the stage of commercialization. Many inputs for products are wasted, which are short of competitive power. Only when the technologies and techniques outdo the international levels, and the price are also lower than abroad, it should be considered as the victory. Otherwise, to produce only small amount, production costs cannot be reduced, and the final research results are total wasted. Therefore, I believe we can't use simply one path or model. You should know which stage you are standing and what kind of method matching the stage you need to use. If you already have the platform of whole vehicle, and are lack of only one or two key product technologies, you may only need to merge, acquire and buyout to solve the problem, and form an industrial chain through merge. If you have none of technologies and buy them all, you still don't have any competitive force. To fill up missing breakpoint, would be more efficient.

　　Sohu Auto: As an industry association, China Automotive Technology and Research Center plays the role to connect the government and enterprises, which is very important for both parties. At your acknowledges, what are the demands of technology upgrade for company and for government?

　　Zhao Hang: Now it should be said that the purpose is the same. The enterprises want to be strong, and the state also hopes the automobile industry could develop strong as a whole. But the point of emphasis is different. In order to go strong, the country would considers how to study policies, or how to draw up the laws and regulations to control the industry. From the standpoint of enterprises, they will try their best to upgrade the technologies to break through laws and regulations in order to not let the state draw up more standards, laws and regulations to restrain the developments in automotive industry, which will exceed the national standards, laws and regulations. C-NCAP is higher than the requirements of laws and regulations. But the goals of the country and auto companies are same.

　　The standard of new energy vehicle in China is a little low

　　Sohu Auto: The government has been working on the standard of electric vehicles. How do you think of the relationship between between this standard and the status of research and development of car companies?

　　Zhao Hang: There are some technical standards, but not enough. They are not enough, viewing from not only the projects, but also the organizations. Because the standards should be able to adapt to the developments of the automobile industry, and also to help the upgrade of the industry. Your standards can not be too high for the companies to achieve, which will exist only in name. Nowadays, our standards for electric vehicles are not short of number comparing to international research projects, but has not very high quality. Our products are not very high-end, therefore the standard can't be set too high.

　　Sohu Auto: About the formulation of the standard of new energy vehicle, the competition between automobile companies is very intense. Which direction tends China to go?

　　Zhao Hang: It is impossible for an enterprise to draw up the standard. The country needs to have its own interests and its own systems. Now, these systems are still coordinating, but the Standardization Administration of the people's republic of China is still working on them. Some of the specific technologies can't be compared with foreign standards. On the contrary, Japan and the United States are both concerned about the standards we set. Our point of view is, the common technology standards of interface, plug, voltage should exist. There are several teams, but we should still consider who we learn from depending on the projects. We can neither totally follow others, nor reply entirely on our own to draw up another set. Therefore, it is still under consideration and coordination.

　　Electrification technologies still need upgrade

　　Sohu Auto: Electric vehicles are industrializing faster and faster in the past year. In your expert opinion, what cause this rapid industrialization? Our technologies are accumulated enough or just a false prosperity?

　　Zhao Hang: For now, I can't conclude. There are some blind investments. But general speaking, the technologies of battery, motor and other areas should be raised. At the current level, in comparison with world, they are not too high.

　　Sohu Auto: How much is the difference?

　　Sohu Auto: How long will we be able to catch up this gap?

　　Zhao Hang: That depends on how we do it. If fast, it will take only one or two years. If other countries also work hard, the gap may grow even bigger.

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100715/n273529116.shtml

　　(Jianfei Keke)