According to legend, Wang Feng, the general manager of Shandong Linglong Group, had changed Audi's seat to a Land Rover that had been custom-built from abroad for safety due to an accident several years ago in hopes of safer driving. In the face of the US special insurance event on China's tire tariff increase in 2009, the general manager of China's third-largest tire company also began to consider, should pay more attention to technology research and development, brand building and marketing model changes, and this will become exquisite Group's future adjustment direction. Order has dropped According to the special safeguard measures approved by President Barack Obama, starting from September 26, 2009, the United States will impose special tariffs on all cars and light truck tires imported from China for a period of three years. %, 30% in the second year and 25% in the third year, compared with the previous tariff of only 4%. Prior to the implementation of the SPS, Linglong Tire had active communication with customers in the United States. US customers also participated in lobbying for the government. Delicate Group also sent staff to participate in the exchange mission to the United States organized by the China Rubber Industry Association. Departments, trade representative offices, etc. have pros and cons. During the survey period, Delicate’s top six customers in the United States stated that they would continue to cooperate with Delicatessen. One of the largest ones promises to maintain at least 150,000 orders per month. Of course, the relevant person of Linglong Tire also told the Times Weekly reporter that after the special security case occurred, there were still a number of small US customers who did not continue to order due to concerns about poor sales, but the overall number was small. According to people from Linglong Tire, after the special insurance was approved, Linglong Tire has neither lowered the price to increase the competitiveness in the US market so far, nor has it raised the price. In a nutshell, it is still waiting to see US consumption. Can the person accept the increased tariff? At present, the share of domestic-funded enterprises supporting domestic auto plants is still relatively small, and Korean-owned tire companies have a large market share in China. The main reasons are: First, Korean-owned enterprises have been doing for decades, and their history is longer than that of Chinese-funded enterprises; second, Korean-funded enterprises have paid more attention to brand building, and consumers or automobile manufacturers have mentioned Korean-owned tires as their quality. Domestic investment is good. In fact, the difference in quality is very small. In addition, since Korean-funded companies are also manufacturing in the Chinese mainland, the labor costs are basically the same as those of domestic-funded companies, so their bids even lower than domestic-funded companies at the time of bidding, which also leads to the cruelty of the Chinese auto-matching market competition. . When talking about the new car support problem, a person from the Delicate Group told the Times Weekly reporter that the production of domestic cars needs fixed production capacity, because these car manufacturers will require companies to be able to guarantee supply on time and on a regular basis. Even in the face of special protection, the problem is still insufficient production capacity, product demand. This is also one of the reasons why the Delicate Group is more cautious in supporting domestic new cars. Because if you can't deliver to the auto manufacturers in time, the tire company will have a fine for default. In addition, in addition to the need to ensure the supply of new car accessories, these new car tires will change the tire after a period of use, and the replacement will often choose the same brand model, which also need to ensure the replacement of the maintenance market There must also be sufficient product supply, and exporting overseas or domestic sales is used to replace the maintenance market. There is no fear of breach of contract. In fact, although China’s tires have “awards†for supporting cars in China, they are mainly used in the maintenance and replacement markets in foreign countries. Exquisite Group has only obtained opportunities for a heavy-duty vehicle company in Europe to complete its support. The orders for car accessories have not yet been obtained. In the future, if we can provide support for a number of overseas car companies, Delicatessen can be considered a truly international leader. enterprise. When it comes to this issue, people of the Delicate Group attributed this to the inadequacies of brand building and marketing models. Invest 300 million yuan to fight technology with foreign companies Exquisite group of people told reporters that although the quality of foreign and domestic similar, but foreign tire companies, it will create a marketing concept, in addition to technology research and development, foreign high-end tires as early as several years in China. In addition, foreign companies already have electronic pre-vulcanization technology. This technology can make the metal wire in the tire less deformable and ensure the safety of the tire. This technology, Linglong tires is still in the R & D stage, has not been used for production, and this technology and run-flat tire technology, exquisite has invested nearly 300 million yuan in R & D costs to fight with foreign companies in the end . In addition to the technical gap, there is also a gap between Chinese tire companies and foreign tire companies in terms of marketing concepts. For example, companies in the United States and the European Union first proposed the concept of green tires, that is, the limited use of compliant polycyclic aromatic hydrocarbons in the production and use of tires to reduce the production of carcinogenic substances. This requires the addition of polycyclic aromatic hydrocarbons that meet EU regulations during the production of tires. Currently, exquisite tires have imported such raw materials and produced such tires because the European Union has already issued a ban on non-green tires. Restricted non-green tire imports in 2010. In short, people from the Delicate Group told the Times Weekly reporter that the technology is often dominated by foreign-funded enterprises. Domestic companies will master the process of research and development for a period of time. Conceptually, foreign-funded enterprises are often put forward first. Chinese companies then learn, always follow. Run behind. Exquisite has recognized this problem. The group's management stated that in order to respond to the special insurance and consider the long-term development of the company, Exquisite will step up research and development of technology, change the marketing model, and increase brand building efforts to achieve the improvement of some products. Added value 10%. People from the Delicate Group believe that the backwardness will be beaten. For a long time, due to factors such as weak influence of its brand, low level of technology research and development, and unreasonable marketing model, Chinese manufacturing has frequently encountered trade barriers in its march to the international market. Because of its unfair terms, the US Tire Special Protection Case once again caused Chinese tire companies to fall into a dilemma. However, on the other hand, the development of China's tire manufacturing industry is not worth reflecting. The low level of repeated construction has triggered domestic The disorderly competition in the market and the low end of the international market. To be fair, China has many products including tires that are basically not competitive in the international market. It is all about relying on low-cost to expand the market. Once the low-cost advantages are lost or technical barriers to higher barriers are introduced, the consequences will be very serious. Very serious. Therefore, the reverse thinking, special protection case is a mirror, it makes China's manufacturing industry began to reflect on, and the optimization of products and industrial structure on the agenda. In fact, over the past year or so, the development path of Linglong Tire has not been smooth. At the time of the worst financial crisis last year, the company’s operating payment has been affected. After that, exquisite old factory also had a fire and suffered some losses. After the economy gradually recovered after the year, the company's production and sales boomed but it met the US special security case. However, on the whole, exquisite products are still in the stage of expansion of full-load production companies, and they continue to overcome misery and move forward. Shandong will reorganize tire industry At the government level, Wang Junmin, vice governor of the Standing Committee of Shandong Provincial Party Committee, said recently that it will strengthen the joint merger and reorganization of tire companies in Shandong province and cultivate the same scale as the international tire giants in terms of production scale, product quality, corporate management, scientific research and development, and brand recognition. Large enterprise groups join forces to fight against special security storms. The people of Linglong Tire responded by saying that although they are currently building their own factories, they are also looking for opportunities for mergers and acquisitions. In addition, Wang Junmin proposed other methods for tire special protection. He said that companies should actively expand exports to the non-U.S. markets such as the Middle East, the European Union, Latin America, and Africa. Qualified companies should go to overseas trade and economic cooperation in Venezuela and Pakistan. District and overseas export processing zones and free trade zones to develop overseas processing trade; establish plants in neighboring natural rubber plantations in Indonesia to achieve diversification of origin; and develop overseas semi-finished products processing and production in Mexico, Canada and other countries close to the US market American market. Because it can avoid the United States on Chinese tires special protection measures. Wang Junmin also stated that Shandong Province will increase support for the foreign market development activities of tire exporting companies in the next two years, reduce the fees for participating in non-U.S. exhibitions and the transport costs of exhibits, and promote and promote overseas brands of brand enterprises. The overseas trademark registration fees of enterprises shall be appropriately subsidized. When Chinese President Hu Jintao met with U.S. President Barack Obama on September 22, he also stated that the U.S. has taken special safeguard measures against Chinese imports of U.S. tires is inconsistent with the interests of the two countries. Similar incidents should not happen again. In the current economic and financial situation, both China and the United States should firmly oppose trade and investment protectionism. 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January 03, 2023