Lu Linkui: Rules are the development of domestic parts and components companies

There are no red carpets, no flowers and wine, no dragons and lion dances, and the factory building of the Shanghai Jiading public transmission. The lights are dark and the air that is not in circulation is slightly hot. However, it is here that Volkswagen Group's annual "Quality Management Excellence Award" award ceremony was held in a low-key manner.
Lu Linkui, currently the general manager of Volkswagen Automotive Transmission (Shanghai) Co., Ltd., who is still not considered as a “Legend of the Chinese automobile industry” and who is not talkative, first faced the media after being silenced for four years and was insulted by disgrace. Breaking the winning secret with an unpleasant speed: "Thank you for everything I have experienced, and thank you for the free time in Germany. At that time, I traveled to every factory of the public and learned many management ideas that will affect my future life. "Lu Linkui used his two simple words to summarize his experience - rules, "no rules, no limits," and to ensure maximum quality, we must minimize human factors and allow machines to "talk."
It is reported that the “Excellence Award” is the highest award that Volkswagen Group has achieved each year in the production and management of its affiliated companies. The selection scope is the Volkswagen Group's companies all over the world, but the award is granted to only one vehicle each year. Production companies and a powertrain and key parts company. Shanghai Volkswagen Transmission Shanghai Co., Ltd. is the only Volkswagen Group's powertrain and key component company in the world. It is the only company that won this award and is also the first award-winning Volkswagen China joint venture.
From the standpoint of 19 powertrains and key component companies, Volkswagen Transmission Shanghai Co., Ltd. took only more than two years. This alone is enough to make it more publicized. However, Lu Linkui did not do so. He even told reporters with a "tough and honesty": "Cost saving is very important to us. If it is not for you, we generally do not have air conditioning. Because of the cooling of light, it will cost 15,000 yuan a day."
Three "Volkswagen" First Cooperation
On May 26 of this year, Volkswagen FAW Engine Co., Ltd., a new engine factory jointly established between Volkswagen and FAW, laid the foundation for Dalian Economic and Technological Development Zone. Wei Zhibo, vice president of the Volkswagen Group, said that after the engine plant is completed, it will supply Shanghai Volkswagen and FAW-Volkswagen at the same time, and strive to achieve exports as soon as possible. This incident caused a lot of buzz in the industry. There are media commentaries. Before this, the two “masses” each had its own parts and components supporting system, and resource sharing was “no matter what”. Everyone seems to have overlooked that Volkswagen Transmission Shanghai Co., Ltd., which was established two years ago, is actually the product of three "mass" alliances. It was on January 28, 2003, before a newly built factory building in Jiading, Shanghai, when the giants of the Chinese auto industry --- Yan Yanfeng, president of FAW Group, Chen Xianglin, chairman of SAIC, Hu Maoyuan, president, and Chen Zhixin, general manager of Shanghai Volkswagen; Qin Huanming, general manager of FAW-Volkswagen, gathered together to attend the opening ceremony of Volkswagen Transmission (Shanghai) Co., Ltd.
The reason why so many heavyweights come to join in, is that it represents a historic breakthrough between German Volkswagen, FAW, and SAIC. This signifies that Shanghai Volkswagen and FAW-Volkswagen will change the situation of competition and confrontation. Manual transmission production line, thus ending the history of this model product relying on imports.
Compared with the "passive" cooperation of the engine company, the establishment of the transmission plant is more prescient. It is reported that due to the appreciation of the euro since the beginning of this year, the import prices of public parts and components have remained high, resulting in a substantial reduction in profit margins and a sharp decline in market share. In the first quarter of this year, Volkswagen suffered a loss of 17 million euros in China, and its market share fell to about 18%. This made the public determined to make a fuss about reducing costs.
Following the foundation of Volkswagen FAW Engine Plant in China, Volkswagen China has recently launched another strategy to reduce costs and accelerate localization—establishing a Chinese central laboratory. The inauguration of the laboratory has enabled many of the materials inspections that have so far been required to be completed at the German headquarters to be moved to Beijing, which greatly simplifies and accelerates the certification process for the use of domestically produced parts by Shanghai Volkswagen and FAW-Volkswagen.
Many "actions" let Volkswagen Transmission Shanghai's award-winning "sexy and reasonable." Wei Zhibo, head of China affairs for Volkswagen Group, said at the awards ceremony that Volkswagen Transmission Shanghai Co., Ltd. can stand out from the fierce competition of all the companies in the group and is the best cooperation and common development between Volkswagen, SAIC and FAW. illustration.
The beginning of "the great cause of reunification"
"Compared to vehicle manufacturers, we are only corner accessories, so we have more autonomy." When it comes to the joint venture's impact on the company, Lu Linkui used a "self-deprecating" tone to speak up, more autonomy, let the transmission company Become simpler and develop faster. It is understood that in the joint venture company, VW takes up 60% of the shares, and SAIC and FAW Group take up 20% of the shares. The company has a total investment of US$96 million and a registered capital of US$32 million. Its products are transmissions developed by the German public at the end of the 20th century and have internationally advanced standards. They are mainly supplied by Shanghai Volkswagen’s POLO and FAW-Volkswagen’s Bora and Kaidi. It adopts modern advanced manufacturing processes and equipment, and currently has an annual production capacity of 180,000 units and is expected to reach an annual output of 300,000 units during the year. "Production capacity is not a problem." Lu told reporters that they are now implementing the production and sales, and the company's output last year was about 70,000 units. It is also understood that, under the leadership of Lu, the operating costs of the Volkswagen transmission plant have been reduced by 18%. The company improves and optimizes the production area almost every quarter. Through the quality monitoring facilities established in the production process, it strictly controls and obtains the true information of all processes, and implements necessary improvements on this basis, thereby reducing production costs. . Shi Lin, Director of Quality Management of Volkswagen Group, expressed his appreciation for this. He said that quality assurance measures are not an overnight act, but rather a long-term and arduous task. “Only through continuous and long-term quality improvement measures can we meet the increasing demands of our customers”. .
In this regard, the industry believes that, as the third largest joint-venture production company in Germany, Volkswagen Transmission Shanghai company behind the award has a far-reaching significance. As Wei Zhibo said, the joint venture company has given full play to its comprehensive advantages in terms of quality, price, technology and services brought about by the platform strategy, and has created a brand-new new model for car parts cooperation. The recent signs of the public also show that to increase the competitiveness of German Volkswagen in the Chinese auto market, to maintain the "one-third of the world has its own" market share, we must first complete the North and South public's "big reunification."
Whether it was the Shanghai Volkswagen Transmission Shanghai company two years ago or the just-founded engine company, the localization of key components was not only the need for the mass to reduce costs, but also its use of “resource strategy” and “supply alliance” methods to "Governance" is an important step. Li Jingwen, an academician of the Chinese Academy of Engineering and a well-known economist, deeply felt: “Two Chinese 'masses' come together to not only reduce production costs, realize complementary advantages and resources sharing, and generate economies of scale, but also to the Chinese auto industry and even the entire Chinese economy. The development has benefits."