Taiwan modelling car abandoned Ningbo Wang Yongqing hydrangea transfer to Kunshan, Jiangsu Province


Taiwan's modelling car abandoned Ningbo Wang Yongqing's hydrangea transfer. Taiwan's subsidiary Taishou Automobile, a subsidiary of Jiangsu Kunshan Formosa Plastics Group, has decided to abandon Ningbo, Zhejiang, and transfer the embroidery to Kunshan, Jiangsu Province. According to informed sources close to the Formosa Plastics Group, Taiwan’s decision to abandon Ningbo was due to the fact that it was unable to help the company obtain a production catalog. If Taiwan-based automobiles are to enter the mainland market as soon as possible, they will either join joint ventures or produce components first, and Kunshan is the right choice to meet this demand. News of Accidental Leakage A person in charge of the China Merchants Bureau of Ningbo Development Area was very surprised and said that he did not know the news that Taiwan Motors investment had changed. Taiwan’s auto project has been the direct negotiation between Ningbo’s top management and Formosa Plastics’ chairman Wang Yongqing. An official from the Kunshan Development Zone also expressed similar surprises. However, what surprised him was why the news that Taiwan’s carmaker decided to invest in Kunshan could have leaked so quickly. The Formosa Plastics Group began testing cars only five years ago. Compared with Yulon, which has a history of nearly 50 years, and the Taiwanese auto giants such as China, which has a history of more than 30 years, Taiwan’s Taiwanese government appears to be weak. Therefore, Wang Yung-ching, the "god of business", considered allowing Taiwanese to move to the mainland to seek development opportunities. At the end of 2001, Taiwan’s autos broke news about going to the mainland to invest. At the time, the preferred location was Kunshan. In June 2003, the Taiwanese car suddenly announced that it would build a car city in Ningbo, and now Taiwan's car investment location has changed. Some analysts believe that the reason why Taiwan-based vehicles are hesitant between Ningbo and Kunshan is that, apart from provoking the fight between the relevant departments of the two places and obtaining more preferential policies, the key to Taiwan’s decision to abandon Ningbo and select Kunshan is that Ningbo cannot allow Taiwanese obtains catalogues. For this point of view, the General Manager's Office at Taiwan Tai Motor Company declined to comment. Wherever there are catalogues, it is increasingly difficult to obtain catalogs after the relevant ministries and commissions of the country have made adjustments to the hot construction of cars. Taiwan’s autos need to enter into joint ventures with manufacturers in the Mainland, and Geely Group is the ideal manufacturer in Zhejiang. Chen Wenkai, director of automotive industry at ESG-Shandong Consulting Co., Ltd., believes that capital is not very scarce for the Chinese automotive industry. Brands and technologies are lacking. These are precisely the weak points of Taiwan's autos. The Geely Group is also a chicken rib for Taiwan Motors. Geely Automobile's brand is not strong in the domestic auto market, and the cooperation interest of Taiwan-based autos is relatively cool. Either he or she will find a permit or start with the production of parts and components first. Chen Wenkai thinks that the role of the government is crucial for Taiwan Motors to get approvals. According to informed sources, Wang Yongqing paid more attention to the integrity of the industrial chain when he chose to invest. Kunshan has a good auto parts industry base and is close to Shanghai Anting International Automobile City. The local auto industry cluster is uniquely endowed by nature. “Investing in Kunshan, Taiwan Automotive can immediately establish a complete automotive industry chain, which is in line with Wang Yung-ching's investment requirements.” Xiong Yingxiang, deputy general manager of Dynamic Point Investment Consulting Co., Ltd., with Taiwanese investment background, thinks this is the case. With strong entry, Wang Yung-ching's decision to empathize with Ningbo in the mainland has a very important background. At that time, Toyota Motor was also interested in investing in Kunshan. It is almost impossible for the Kunshan municipal government to get two approvals. On November 19, 2003, the Toyota Industrial (Kunshan) Co., Ltd. forklift factory held its opening ceremony and put it into mass production. This is Toyota's fourth-largest forklift factory built in the world after Japan, the United States, and France. According to informed sources, Toyota Motor is still negotiating with the Kunshan Municipal Government. To this end, there are also changes in Taiwan’s car ownership in Kunshan. On the afternoon of December 22, 2003, Xuan Binglong, director of the Kunshan Development Zone Management Committee, said, “Taiwan-based autos are not currently signing contracts with Kunshan, and the specific amount of investment is not yet clear.” Due to the fierce competition in recent years in attracting foreign investment, as long as The project has not yet started infrastructure, and there is the possibility of being taken away by other places. This is also the main reason for Kunshan's low-key handling of investment in Taiwan-based automobiles. “The two biggest problems that Taiwan Motors will encounter are catalogue and market risks,” said Jia Xinguang, chief analyst at the Beijing Automotive Industry Research Institute. The Formosa Plastics Group itself does not rely on automobiles to start its own business. With the auto market in the mainland booming and the capital outside the industry entering, it is inevitable that Taiwan-based auto companies will be optimistic about the mainland market. Of course, Formosa Plastics Group is the main business engaged in the production of plastics, there are still relatively large advantages in the production of auto parts. Chen Wenkai’s view is that Taiwan’s auto companies still have great hopes for success in investment in the Mainland. First, Wang Yung-chien has influence in the Mainland; Second, the current auto market in the Mainland is characterized by the fact that buying a car generally only considers the model itself, and does not value the brand; third, even if it is not possible to build a complete vehicle in the Mainland, the Taiwan-based car will It is also practicable to produce spare parts in the Mainland and to sell parts back to Taiwan. Formosa Plastics Group’s South Asia now has investments in Kunshan with an investment of more than US$2 billion. In the past few years, due to the strong competition from the surrounding areas, Kunshan has been in urgent need of finding a breakthrough in industrial development in Kunshan, and the auto industry is the focus of its development.

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