Brilliance brewing layout Xinjiang build truck
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Brilliance’s industrial layout in the west is rapidly expanding. Last week, Huachen built a 300,000 micro-faceted factory in Fuling, Chongqing, and the BMW N20 engine project transferred to Brilliance will also be put into production in Mianyang. The two actions marked the initial completion of the layout of Brilliance Automotive in the southwest, and Brilliance’s mid-term planning. The new shape of the "North and South echoes" prototype has also been formed.
After the initial completion of the Southwest layout, Brilliance focused its attention on the northwest region. On June 25, Bing Yumin, chairman of Brilliance Group, stated that Brilliance will invest in the western region in an overweight way and plan to deploy in the northwest region. “Northwest has no layout yet. Originally we wanted to engage in trucks in Xinjiang. Now we are in the certification stage.†If all goes well, the industry landscape of Brilliance’s south, north and west will be upgraded to the “Iron Triangle†layout.
Southern Base Formation
Last week, Brilliance acted frequently in the Southwest. On June 18, Xinchen Power, a listed company of Huachen Group, officially announced that the N20 engine project authorized by BMW Group for this company was formally started in Mianyang. BMW also provides personnel training, process planning, quality standards, production equipment installation and other related technical consulting services for Xinchen Power.
The N20 is BMW's most competitive brand product. According to reports, after the completion of the new morning power N20 engine plant, it will provide engines for the three brand models of Brilliance, Gold Cup and BMW Brilliance. After the replacement of the core, Brilliance hopes to break through the high-end and profit bottlenecks. "With the BMW's latest N20 engine, the China and Jinbei brands will gain more profit, and the new models will also leverage BMW's brand influence to enhance the brand's recognition and competitiveness." Yan Yumin said.
Less than four days before the start of construction of the BMW N20 engine, the second production base of Huachen Group in Chongqing was also officially contracted. Brilliance will invest and build an annual output of 300,000 vehicles and 300,000 automotive engine production projects in Liling.
According to Brilliance’s medium-term plan, in the future, in the southwest region, Brilliance will deploy a 500,000-unit vehicle factory, including 300,000 micro facets, 200,000 SUVs and other models, and another 500,000 engines. project. Among them, a 200,000-vehicle vehicle and 500,000-vehicle engine production base were set up in Mianyang, Sichuan; a 300,000 micro-faceted factory was established in Chongqing.
With the success of the two construction projects, Huachen Group has formally established two production bases in the northeast and southwest, and formed a situation of “south and north echo†in the industrial layout.
Or will form a triangle layout
Outside of the two cities mentioned above, due to policy guidance and the growth potential of the western market, Brilliance will also expand investment in the west. “Northwest has not yet been deployed. It was originally intended to engage in trucks in Xinjiang. It is now in the certification stage.†Yan Yumin disclosed to reporters.
Investing in the Western Region is a major trend for the current vehicle manufacturers. The recently published Catalogue of Advantageous Industries for Foreign Investment in the Central and Western Regions (Revised in 2013) has a very clear intention of guiding automobile production capacity to settle in the west. The entire vehicle and auto parts manufacturing industry is listed as an advantageous industry in most provinces and cities such as Chongqing, Sichuan, and Guizhou. According to the “Guidelines on Guiding the Direction of Foreign Investment,†foreign investment projects that fall under the Catalogue will enjoy preferential policies.
In fact, the market reaction also prompted Brilliance to focus on the western region. Yan Yumin said that from the increase in the sales of Brilliance Automotive last year, it can be clearly found that the fastest-growing regions in the market are the western region first, followed by the central region, followed by the eastern region, indicating that the market has shifted from the east to the central and western regions, from the first and second tier cities to three. The fourth-tier cities sink.
If the layout in Xinjiang is smooth, Huachen will form three major production bases in the northeast, southwest, and northwest in the future, and the industrial layout will also upgrade from “south-north linkage†to “iron triangleâ€.