From January 24th to February 10th, the National Development and Reform Commission announced the list of WMI (world manufacturer identification codes) that have been obtained by some vehicle manufacturers. This list involves a total of 147 companies, among which 124 permanently terminated vehicles (including whole vehicles, modified vehicles and special vehicles) will be disqualified from production, 21 companies have multiple WMIs, some WMIs will be cancelled, and 2 others The type of vehicle that the company has obtained WMI approved production also
It is revoked.
Will increase industrial concentration
WMI (World Manufacturer Identification Code) is the top 3 of the 17-digit VIN (Vehicle Identification Number). The vehicle identification code is arranged and combined so that the production of the vehicle model will not occur within 30 years and the vehicle will be uniquely identified. Therefore, it is known as the "car ID card." However, WMI has nothing to do with corporate property rights. For example, although SAIC Motor Corporation has already controlled Ssangyong Motors, its WMI also represents its Korean "bloodline." All automakers around the world have one or more WMIs to provide “matrix†certification for vehicles they produce. Therefore, the application and revocation of WMI code is related to whether an automobile company has car production qualification.
The move by the government is to rectify the auto industry and eliminate ineffective production capacity in the event of excess auto industry.
Excluding the “death of the dead†in the auto industry is only the first step. It will then make a scientific assessment of the existing production capacity and adopt a series of policies to strengthen macro-control, such as perfecting industry planning policies, strict market access, controlling new projects, and advancing. Technological transformation, speed up mergers and reorganizations, support superior enterprises to become bigger and stronger, and increase industrial concentration and other measures.
May affect industry profits
The famous automotive analyst Jia Xinguang analyzed that the NDRC's move is to really rectify and rectify some of the actual vehicle manufacturers, motorcycle factories, or assembly plants that have zero production.
For example, he said that Yunnan Jinma Machinery Plant had zero production in 2005 and only produced nine cars in 2004. Zhengzhou Light Vehicle Manufacturing Plant had zero production in 2005 and only 8 vehicles were produced in 2004. Those companies that have actually exited the automotive industry, the NDRC terminates the production of vehicle products, and will also cancel its WMI. Another part of the company, because it had registered multiple names, obtained multiple WMI codes, causing confusion in management, and the NDRC would also withdraw some of the WMI. This is the case for companies including the Hubei State-owned Dasha Machinery Plant.
However, the government’s strict control over production capacity will have an impact on the auto industry's profits that have just recovered this year. According to recent statistics from the Ministry of Commerce, the profits of the automotive industry began to reverse the downward trend from the second half of last year. This mainly depends on the rapid growth of production and sales volume to make up for the losses caused by price cuts and rising costs.
In addition, the government's control over the production capacity of automobiles has increased the uncertainty of private capital entering the auto industry.
The new auto industry policy stipulates that shell resources cannot be bought or sold. As a result, many private enterprises have found various alternatives to “break throughâ€, such as joint ventures with companies with auto production qualifications, establishment of branch factories, or participation in state-owned auto companies, and disguised access to the auto industry. (Lu Huimin)
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