We never felt afraid of technology. Others have it, we dare to do; others not, we dare to think. We always do a proof of title to prove that technology can change lives, change the world. We want to use battery technology plus automotive technology and build out the electric vehicle technology, using electric cars, green technology to achieve the dream of mankind. “This is for justice in the” build your dream “(Build your dream) of BYD head Wang Chuanfu words.
In the industry have claimed that Wang Chuanfu body can see that the former General Electric (GE) Jack Welch, the legendary head of the (Jack Welch) style, as well as the legendary inventor Thomas Edison (Thomas Edison) characteristics. In fact, this technology entrepreneurs are pouring in BYD him a “magic” is different fromVGP-BPS8, VGP-BPS8A, ,VGP-BPS8B, general manufacturing enterprise model innovation: vertical integration of industrial chain, to the profit part of the entire industry, as far as possible to stay in business within the walls. In this regard, deputy general manager of BYD Auto Sales Company Wang Jun-CBN journalists interpreted as a right, fundamental to the success BYD is “to create fully completed thoroughly.”
BYD are also concerned about product manufacturing and production methods, that is manufactured more than just the product, but also involved in the industry to change its production system is mode of production “BYD-oriented.” To truly understand the “BYD” of the production of different, it must be a simple comparison with the traditional way. Bring China’s manufacturing industry, it is the first impression is often low-cost products with low price worked hard for the market, enterprises are only earn a small profit. Industry standards, core technology, advanced equipment, etc. These are a monopoly in the hands of transnational giants.
It’s like a race, the rules formulated by others in the game, but when you start when the competitor has long been a leader in laps. If so rules of the game play, BYD is obviously very difficult than others.
Wang Chuanfu seen this from the start on the “do not follow common sense out the card,” For instance, he put the battery production process can be decomposed into a month to complete the process manually, such as “hand-jig plus” the cost of the production line to produce only 1 million yuan, but to produce less expensive than its competitors half of the battery, the company and therefore profit margins as high as 200%.
Strategic expert Zeng Ming once made of this method is called BYD is China’s unique “cost innovation” a typical representative, in his view the greatest advantage is that BYD fixed assets investment is very low, the corresponding depreciation costs are very low. BYD depreciation costs may be only 3% to 4%, while the Sanyo automatic production line may be 30% to 40%.
This pattern is not only used in battery production, is also copied to make the car. Automobile industry 100 years of history, has already gone through vertically Ford era of vertically integrated manufacturing. In the whole industry chain, from the mold, tires until the rear-view mirror, each component has a ready-made products. Such an environment, companies need to do seems to be based on market demand, design, production models, and then sell. But in that VGP-BPS9,, VGP-BPS9/B, VGP-BPS9/S ,VGP-BPS9A, VGP-BPS9A/Bcase, any new entrants are determined by the cost structure, transnational giants leading the technical standards, manufacturing equipment, competition can only be around the cheap labor cost. Transnational giants rush into China, this labor advantage does not exist any more.
BYD broke the auto industry such rules, at least 70% of the parts produced by the division within the company to BYD F3, for example, their parts and components except tires, windshield, and a few general pieces of things, including the steering, damping, seats, doors and even CD and DVD, and all their own production. BYD Auto’s vertical integration strategy to maximize use of resources, cost savings, creating a product cost-effective advantages, frequently set off a price war continued to rewrite the context of the industry’s bottom line price, BYD Auto opponents far behind them. BYD Auto sales so far this year has exceeded 40 million units, an increase of more than 100%.
However, Wang Chuanfu was his intention, he said: “Traditional fuel car is just a transitional phase, BYD will be directly across to the electric car.” In December last year, BYD launched the first dual-mode electric vehicle F3DM. In this regard, the Japanese media, commented: “When five years ago, Wang Chuanfu proposed BYD to enter the automotive market, many people only laugh, but now, new energy vehicles in China has been the commercialization of the signs might BYD dark horse is the next-generation vehicles. “