Luoyang Linkage Autonomous CVT Mass Production Plan is Still Stranded

A few days ago, 12 Chinese OEMs invested in the establishment of China DF Investment Co., Ltd. (hereinafter referred to as “ZF”) and established a Borg Warner Double Clutch Transmission System Co., Ltd. with BorgWarner.

“Independent innovation is related to the security and development of the country. It is a misguided act of large-scale joint ventures involving the majority of OEMs. This guidance indicates that we are going to put core technologies out of the hands of foreign companies. , so that the original difficult to survive the independent research and development companies into trouble, "said an industry source.

According to report, the mass production of continuously variable transmissions (CVTs) with high-tech auto technologies with independent intellectual property rights in China and the world has been repeatedly stricken for several years. That was the original Luoyang Sanming in the "eight years of grinding a sword", and now it is Luoyang United Transmission Co., Ltd. (hereinafter referred to as "Linkage Company").

"Every time the economic crisis affects the overall investment environment, the plan for mass production scheduled for March this year has not been reached for various reasons so far." Zhou Yunfeng, director of the United Transforming Company Office, told the reporter.

It is understood that Luoyang Sanming has been plagued with difficulties in implementing technology industrialization. As one of the world's top ten epoch-making technologies for the automotive industry, CVT technology is among the world’s automotive manufacturers, with only five German and Japanese companies owning it. As a result, it has also continued to receive multiple support. As early as December 2005, at the time when CVT industrialization was struggling, its founder Liu Yajun wrote to Premier Wen Jiabao, reflecting the difficulties that companies faced in the process of independent innovation and the rejuvenation of the national automobile industry. In April 2006, the project was approved by the National Development and Reform Commission and received 4.5 million yuan of state-directed support funds. However, in the end, most of the investment and bank loans promised by the company were frustrated.

"The domestically-provided CVT can form at least a 500 billion yuan in the big industry!" Liu Yajun, general manager of the joint change company has repeatedly appealed.

From May to May 2007, Luoyang Construction Investment Co., Ltd. invested 20 million yuan, and the municipal economic and technological development zone invested 10 million yuan. They jointly established Lianhua Co., Ltd. and formally promoted its industrialization operation. In July, Lianhua Co., Ltd. finally announced the construction of a phase-one annual output of 50,000 transmissions with a total investment of 220 million yuan, which is scheduled to be put into production in March this year. Unexpectedly, it has still been stranded.

"Because of the need to introduce foreign production lines, the amount of investment is huge, and the return period of funds is long." Zhou Yunfeng lamented. "Actually, we received a lot of orders. After the mass production was announced, there was still a blockage in funding." According to him , The procurement of equipment from abroad belongs to special equipment, and special tools such as knives, forks, etc., need to be redesigned and processed abroad. This is a major project.

It is understood that the industrialization of the mature technology synchronized with the international needs four links. The first link is that the process is completed through repeated demonstrations of related aspects to complete the program; the second link is to establish a complete supporting system; the third link is through market research and multi-census surveys, master equipment procurement standards, especially equipment accuracy Requirements; the fourth link is the capital in place, sort out the contract, procurement of production equipment for production. The crux of the unsuccessful industrialization of Lianhechang is in the final stage.

An important reason for the blockade of mass production of autonomous transmissions is analyzed by industry experts. Due to the long operating cycle of funds, the replacement cycle of funders' leadership is limited, which limits the planning of long-term investment. It is essentially a "system" problem.

"In a joint venture with BorgWarner, Chinese companies will take on more of the assembly business. Through this cooperation, it is necessary to reduce product costs. However, it is impossible to acquire core technologies." Zhou Yunfeng said to the large-scale joint venture incident. "Developing the automobile industry must have its own core components, and mass production of self-owned brand transmissions is also conducive to driving down the high selling prices of foreign manufacturers. The number of tens of millions of cars in China is about to be realized, but the profit target is due to the price of imported transmissions. Expensive is far from being achieved."

According to statistics, 20% of the profits of the global automotive industry come from core components, and 8% of this comes from China's procurement.

"At present, we have also been promoting mass production and have not given up." Zhou Yunfeng, who is helpless, is still full of expectations.

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