ZF: Will vigorously promote the process of localization

Dr. Ye Guohong, President of ZF China Investment Co., Ltd.

Gasgoo.com: In 2009, ZF suffered a net loss of 421 million euros. The financial report released in mid-September 2010 showed that during the first eight months, ZF sales revenue rose by 40% year-on-year, from 58 in the same period last year. Billion euros rose to 8.2 billion euros. What is the share of ZFW's global sales in the Chinese market in 2010? How do you view the global market position of ZF in the Chinese market?

Ye Guohong: The global financial crisis in 2009 brought a certain amount of losses to most companies in the industry. However, we are pleased to see from the Group's 2010 financial statements that ZF has responded positively to the crisis response. Effect - Group sales reached 12.9 billion Euros in the year, an unprecedented increase of 38% compared to the same period of last year. Even if compared with 2008 before the financial crisis, sales have also increased significantly. The company is very pleased with the rapid recovery.

Among them, ZF's sales in China this year accounted for more than 10% of the group's business share, and China has become the region with the highest sales volume except in Europe. On June 8, 2010, ZF Asia Pacific headquarters officially settled in Shanghai. This move further reflects the Group’s recognition and expectation of the Chinese market. With the successful completion of the Asia-Pacific headquarters, our R&D capabilities have also reached a new level with the advancement of advanced equipment. "Designing for China in the Chinese market" will be our localized research and development principle in China.

Gasgoo.com: There are many international parts companies that have changed their view of China as a “manufacturing plant” in the world. They have set up their R&D centers and Asia Pacific headquarters in China. How does ZF consider the competition with other parts companies in China?

Ye Guohong: Since ZF’s establishment in 1915, it has become a 100-year-old company with a well-known industry reputation. It has always maintained its undefeated position and persisted in its own development strategy. It is not difficult to see that ZF’s innovative products rank among the top three in the world in all market segments. We have always focused on market segments where our products have a competitive advantage and are in a leading position. We have devoted more energy and expertise to ZF's areas of expertise in order to seek more benign and rapid development.

In recent years, it is no accident that more and more international parts and components companies have set their sights on China. The rapid development since China's reform and opening up has made the world amazing. Like partners and industry colleagues, ZF hopes to integrate into and promote the development of the Chinese automotive market, and to contribute to the progress of the Chinese automotive industry. Of course, we also hope to learn from more young Chinese companies on successful experiences. In this process, ZF’s global management experience and in-depth insight into the automotive industry can also help us achieve win-win or even more with Chinese companies. Winning situation.

Gasgoo.com: In 2010, China's auto production and sales both exceeded 18 million, making it the No. 1 in the world. Do you agree that the Chinese auto industry will enter a new period in the next five years? Where are the major changes in the new period? What kind of significant impact will this change have on the auto parts industry?

Ye Guohong: For the development direction of the Chinese auto industry in the next five years, there has been in-depth discussions in the “two sessions” that have just ended. I personally agree with the basic judgments of the government functional departments and industry leaders on the development of the Chinese automobile industry. In the next five years, the development of China's auto industry will further develop from the original "bigger" to "stronger", thus completing a qualitative leap in the automotive industry.

In this macro context, we also see two opportunities currently present in the automotive industry:

First, the global consensus on new energy vehicles and various automotive energy-saving and environmental protection technologies. This not only requires the support and input of governments and vehicle manufacturers, but also relies on the constant innovation and research and development of auto parts suppliers like ZF, so as to bring together the strength of the entire industry chain to promote new energy vehicles as early as possible. The land can be applied. As a leader in transmission and chassis technology, many products such as the 8-speed automatic transmission and lightweight components developed by ZF can help vehicles effectively reduce fuel consumption and carbon dioxide emissions. For example, an 8-speed automatic transmission used in a full hybrid system can reduce fuel consumption and emissions by 25%. These products have been highly recognized by the entire industry including Chinese automobile manufacturers. We will continue to give full play to our technological advantages to provide various green energy-saving technologies and solutions.

Second, as Chinese auto companies “going out” have been elevated to national strategies, more and more Chinese auto companies have begun to formulate a global strategy. Under this trend, ZF can use the proven and mature management mode accumulated by a global company and rely on a globalized layout to fuel the Chinese companies that are going global. At present, ZF’s customers and strategic partners include SAIC, Foton, Chery, Dongfeng, Yutong, and Hualing, which are already operating in a globalized Chinese automotive industry. We will actively cooperate with and promote the global strategies of these Chinese brands. Successfully achieved.

Based on this, I have reason to believe that the future of China's auto industry will accomplish much, and the auto parts industry will also be accompanied by this trend to achieve considerable development. As one of the world's largest auto parts manufacturers, ZF will actively contribute its own experience and energy.