Great Wall Motor Company Limited(601633) the industrial park outside Shangrao factory (formerly hanteng automobile phase II factory) is empty and quiet, and few workers can be seen. “The factory is still in the stage of system construction and preliminary preparation, and has not been officially put into operation.” Wu Na (a pseudonym), an employee of Shangrao factory, said in an interview with the daily economic news that the factory will not start SOP (i.e. small batch production) until August this year.
Wu Na (a pseudonym) is a worker in the former hanteng automobile workshop and has now become a production line worker in Great Wall Motor Company Limited(601633) Shangrao factory. “Our group of ordinary workers recruited are required to go to Great Wall Motor Company Limited(601633) other factories for three months of practical learning.” Wu Na said that she was sent to Jingmen production base in Great Wall Motor Company Limited(601633) .
According to the reporter, more than 300 people have taken over the Shangrao plant of Great Wall Motor Company Limited(601633) since taking over the second phase plant of hanteng automobile. “Except for more than 80 old employees stationed by Great Wall Motor Company Limited(601633) , other personnel are recruited locally in Shangrao.” The relevant person in charge of Shangrao factory told reporters that by July this year, the scale of employees of the factory will be expanded to 1000 ~ 1500.
2021 is a year of Great Wall Motor Company Limited(601633) rapid expansion. In addition to the acquired hanteng automobile phase II plant, Great Wall Motor Company Limited(601633) also took over the Hanlong automobile plant located in Daye, Hubei Province. “The company has planned many new models and set the goal of annual sales of 4 million vehicles worldwide by 2025. The existing plant capacity can not meet the future development goal.” The relevant person in charge of Great Wall Motor Company Limited(601633) group said that the idle capacity of car enterprises with difficult operation is the company’s further expansion of the existing capacity.
” Great Wall Motor Company Limited(601633) the above actions are win-win for both Great Wall Motor Company Limited(601633) and local governments. Great Wall Motor Company Limited(601633) obtaining production bases, factories and plant production equipment far below the market price can quickly meet their capacity expansion needs; local governments can take this opportunity to revitalize idle resources and improve local employment rate.” Cui Dongshu, Secretary General of the national passenger car market information joint committee, believes that the above measures of Great Wall Motor Company Limited(601633) are win-win for itself and the local government.
Shangrao factory has recruited
In June 2021, Great Wall Motor Company Limited(601633) announced that the Great Wall Motor Company Limited(601633) complete vehicle and parts production base project was officially settled in Jiangxi Shangrao economic and Technological Development Zone, which was originally the location of hanteng automobile phase II plant. Due to the poor operating conditions, hanteng automobile has laid off a large number of employees since 2020, and its phase I and phase II plants have also been shut down one after another. In June 2021, Great Wall Motor Company Limited(601633) officially signed a contract with Shangrao Municipal People’s government to take over hanteng automobile phase II plant.
Thanks to the reception of hanteng automobile plant and existing production equipment, Great Wall Motor Company Limited(601633) from the taking over of the panel to the completion of the project reconstruction, the trial production takes only one year. “At present, the factory is still undergoing project transformation, and the production line will start production in July.” The relevant person in charge of Shangrao factory told reporters.
It is worth mentioning that less than half a month after taking over the second phase plant of hanteng automobile, Great Wall Motor Company Limited(601633) started large-scale recruitment. In July 2021, a number of resigned employees of hanteng automobile disclosed to reporters that Great Wall Motor Company Limited(601633) asked them whether they were willing to work in Great Wall Motor Company Limited(601633) Shangrao factory, and the salary could be increased by 30% at most on the basis of the existing salary.
The reporter learned from a recruitment information of Yilabao standing at the gate of Great Wall Motor Company Limited(601633) Shangrao factory that the comprehensive salary of the factory’s recruitment of production and manufacturing employees is 4000 ~ 8000 yuan / month. “Eight hours of work, after becoming a regular, the salary is 3600 yuan / month.” The relevant person in charge of the above Great Wall Motor Company Limited(601633) Shangrao factory told reporters that if you work overtime for one to two hours a day, the salary can basically reach more than 4000 yuan.
It is reported that because the factory is still in the project reconstruction stage, employees recruited in the early stage need to practice in Great Wall Motor Company Limited(601633) other factories for three months. “This year’s recruitment will start after the Spring Festival. New ordinary workers also need to practice in other places for three months, and then come back to work.” The relevant person in charge of the above Great Wall Motor Company Limited(601633) Shangrao factory said that the factory will start trial production from May to June, and employees who go to practice in years can work directly in the factory when they come back.
the Great Wall has a “low-cost” layout
According to the reporter, in addition to Shangrao factory, Great Wall Motor Company Limited(601633) the transformation of the production base in Jingmen, Hubei Province has been basically completed. “Jingmen production base strives to carry out corresponding production before the Spring Festival and raise the production speed as much as possible.” The relevant person in charge disclosed to reporters that the first model produced by the factory was tank 500.
According to public data, in October 2020, Great Wall Motor Company Limited(601633) announced the formal acquisition of Jingmen vehicle production base, and Jingmen Municipal government transferred the production base to Great Wall Motor Company Limited(601633) by means of equity transfer, which previously belonged to cheetah.
According to the agreement, Great Wall Motor Company Limited(601633) upgraded the original cheetah automobile factory and transformed the original SUV production line into a flexible production line for both SUV and pickup truck models. In addition, Great Wall Motor Company Limited(601633) also plans to build four parts supporting projects in the base, including car seats, interior and exterior decoration, chassis and rubber parts. “Jingmen vehicle production base project will be built into a comprehensive base project with vehicle manufacturing as the core, key parts as supporting facilities and related industries as services.” Wei Jianjun, chairman of Great Wall Motor Company Limited(601633) has said publicly.
According to public information, in addition to producing tank 500, Great Wall Motor Company Limited(601633) Jingmen factory also plans to produce P04 and P05 pickup trucks, as well as two MPVS and tank 700 and tank 800 that have not been launched. It is worth noting that after successively taking over the factories of cheetah and hanteng, Great Wall Motor Company Limited(601633) the pace of capacity expansion has not stopped. At the end of 2021, Great Wall Motor Company Limited(601633) was transferred to Hanlong automobile factory in Daye City, Hubei province again.
According to public information, as early as October 2021, Great Wall Motor Company Limited(601633) signed the “framework agreement on vehicle and parts project cooperation” with Daye municipal government. According to the agreement, Great Wall Motor Company Limited(601633) will take the original Hanlong automobile plant as the base, integrate existing resources and revitalize existing assets. It is expected to be reassembled and put into operation in January 2022 and the first complete vehicle will be officially offline in May.
In this regard, the relevant person in charge of the above Great Wall Motor Company Limited(601633) group only told reporters, “at present, our official channels have not released relevant information. The company will make a unified response to this matter in the near future.”
According to the progress requirements of the implementation of the Great Wall Motor Company Limited(601633) project, Great Wall Motor Company Limited(601633) recruitment will be started in November 2021. At the same time, Great Wall Motor Company Limited(601633) Daye plant, plant 1 and plant 2 are also under bidding.
take over the factory but not bear the debt
“The reason why the company quickly purchased some vulnerable factories ready for sale from local governments is to achieve the company’s strategic goal of 2025.
”Relevant sources said.
In June 2021, the “2025 strategy” released by Great Wall Motor Company Limited(601633) made it clear that in 2025, Great Wall Motor Company Limited(601633) will achieve an annual global sales volume of 4 million vehicles and an operating revenue of more than 600 billion yuan, of which 80% will be new energy vehicles, and the R & D investment in the next five years will reach 100 billion yuan.
After taking over panhanlong automobile Daye factory, Great Wall Motor Company Limited(601633) has formed eleven production bases in China, located in Baoding, Hebei, Xushui, Tianjin, Rizhao, Shandong, Taizhou, Jiangsu, Zhangjiagang, Zhejiang Pinghu, Yongchuan, Chongqing, Jingmen, Hubei Daye, and Shangrao, Jiangxi.
According to the available data, Great Wall Motor Company Limited(601633) the total production capacity of production bases nationwide exceeds 2.5 million vehicles. Official data show that in 2021, Great Wall Motor Company Limited(601633) new car sales were about 1281000, a year-on-year increase of 15.2%, a record high, and sold more than one million vehicles for six consecutive years. Although the existing capacity is enough to cover the current capacity demand, it is still far from the global capacity target of 4 million vehicles.
Cui Dongshu said, Great Wall Motor Company Limited(601633) in order to expand production capacity, the acquisition of factories with production capacity such as hanteng automobile and Cheetah automobile can not only greatly shorten the construction period and speed up production, but also spend less money to maximize benefits.
The relevant person in charge of the above Great Wall Motor Company Limited(601633) group also said that the factories acquired by Great Wall Motor Company Limited(601633) are poorly operated idle resources of production capacity. The completion of the acquisition can promote the development of local real economy and increase employment opportunities.
The reporter learned from many sources that these second-hand factories purchased by Great Wall Motor Company Limited(601633) from the local government only buy plants and production equipment and do not bear the debt responsibility of enterprises facing bankruptcy. ” Great Wall Motor Company Limited(601633) this time is only to invest in the purchase of hanteng automobile phase II plant and equipment in the plant, and will not participate in the reorganization of hanteng automobile.” Hanteng auto executives have admitted.
The above Great Wall Motor Company Limited(601633) relevant person in charge said that the cost of acquiring such a second-hand factory is much lower than that of a new factory, and the production time will be greatly shortened. Great Wall Motor Company Limited(601633) is based on the principle of “resource saving, cost priority” to control the cost as much as possible.
However, many people in the industry are worried that Great Wall Motor Company Limited(601633) such capacity expansion mode will put pressure on its internal capital turnover for a long time. “We have made the corresponding layout according to our actual product planning. The company has also done sufficient research work in the early stage. Since we decide to do it, we are sure to make money.” The above Great Wall Motor Company Limited(601633) relevant person in charge explained that “the company will not invest too much at one time. In the later stage, it will make corresponding preparations in advance according to the product launch plan and sales promotion plan.”
From the cash flow statement, Great Wall Motor Company Limited(601633) the operating cash flow in recent three years has continued to be positive. “In order to ensure the sufficient liquidity of such funds, the scale and quantity of many monetary funds of the company are about 10 billion yuan.” The above Great Wall Motor Company Limited(601633) relevant person in charge disclosed to reporters that the acquisition of factories such as hanteng automobile does not cost much.
“In recent years, it is a rare window for Chinese independent brands to quickly seize the market. If they miss it, there may be no opportunity. This is also the reason why we put forward the three-year strategic plan instead of the five-year or 10-year strategic plan.” The relevant person in charge of the above Great Wall Motor Company Limited(601633) group told reporters.
