Deputies to the National People's Congress Lu Guanqiu: Parts Enterprises Reorganization

As the representative of the National People's Congress, Lu Guanqiu, chairman of Wanxiang Group, submitted nine proposals during the two sessions this year. He said that when the country carries out industrial restructuring, it must also promote the joint reorganization of parts and components companies that are upstream of the automobile industry chain. Cultivate a large number of large-scale component companies with international competitiveness.

As for the current financial crisis, Lu Guanqiu stated that companies cannot adjust the structure until the crisis arrives, but must adjust the structure at any time.

【Keywords】 Merger and reorganization hopes to simplify the approval of mergers and acquisitions of foreign companies

Beijing News: You have been calling for Auto Parts companies to become bigger and stronger. This time you also proposed policies to support the reorganization of parts and components companies. Is there any specific advice?

Lu Guanqiu: At present, China's auto parts industry lags behind the development of the entire vehicle, and its ability to manufacture parts and components is seriously insufficient. Foreign investment has accounted for 60% of China's auto parts market. In the field of high-tech products and core components, the share of foreign investment is even as high as 90%. As a component company in the upper reaches of the automotive industry chain, once the loss of market status, the local automobile industry is hollowed out. Therefore, we should take the international financial crisis as an opportunity to adopt policy tilts to increase the concentration of the parts and components industry and cultivate a batch of internationally competitive parts and components companies. For example, policies support the joint reorganization of parts and components companies. In particular, during the process of Chinese-funded enterprises acquiring foreign-funded and technologically strong companies, the state can grant anti-monopoly review immunity, ease the approval of foreign exchange control, and simplify project approval.

[Keywords] new energy vehicles for lithium battery factory exception celebration

Beijing News: Wanxiang began researching and developing electric vehicles 10 years ago. What stage has it entered?

Lu Guanqiu: We have been burning money every day for 10 years. We have never earned a penny. Now the opportunity has come to make big money. We have completed a total of five 863 projects from 2003 to the present and this year has also been included in the national “Ten Thousand Cities” pilot company. We are focusing on the development of key components such as batteries, motors, and electrical controls.

After the end of the conference, we will go back and give us a bustling foundation laying ceremony for our lithium battery production base for pure electric vehicles. In the 39 years since its establishment, Wanxiang has never held celebrations. This is an exception to be taken to boost everyone's confidence.

Beijing News: What are the suggestions for the country's support for new energy vehicles?

Lu Guanqiu: The country’s support will also be increased, because it is a competition between countries and countries. In terms of financing, taxation, etc., we must support R&D investment in new energy products.

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