Wanxiang is not only a leader in auto parts

Among the top 500 Zhejiang merchants in 2011: Wanxiang Group ranked first with a revenue of 66.14 billion yuan. On January 21, 2011, 66-year-old Lu Guanqiu brought his Xiaoshan accent into the White House. As one of the four Chinese entrepreneurs invited by the White House during President Hu's visit to the United States, the chairman of the board of directors of Wanxiang Group had the opportunity to have a face-to-face exchange with President Obama.

In 1969, Lu Guanqiu started the Ningwei Commune Agricultural Machinery Factory, the predecessor of Wanxiang Group, with 4,000 yuan, and established Wanxiang in the late 1970s.

From a small workshop producing agricultural machinery, it has developed into the first OEM supplier in China to provide parts for General Motors, and Wanxiang has grown into the largest auto parts manufacturer in China. And the diversification strategy makes today's Wanxiang more than just a leading auto parts company. At present, Wanxiang's tentacles extend to dozens of industries such as finance and new energy.

Auto parts are steadily moving towards the world

In the spring of 1984, Wanxiang's products were favored by foreign businessmen at the Canton Fair, and American Plex ordered 30,000 sets of universal joints. This order was called "the first export order" in China's auto industry at the time. Immediately afterwards, the American Scheler Company also signed an agreement with Wanxiang: order at least 200,000 sets per year within 5 years. Scheler is an American auto parts giant founded in 1923 and has the world's largest number of universal joint patents.

“To deal with foreigners, you must learn from the advanced management experience of others for nearly a hundred years.” Lu Guanqiu said that in 1992, Wanxiang sent personnel to the United States, and truly felt the gap with the international market. For example, a peer company in the United States has only 250 people and produces 4 million sets of universal joints annually. At that time, Wanxiang had nearly 1,000 employees and only produced more than 800,000 sets per year. Compared with American companies, Wanxiang has adopted a high starting point of investment, introduced high-precision equipment, cultivated high-quality talents, and manufactured high-end products. The overall quality of the company has been effectively improved.

In 1994, Wanxiang USA was established, which enabled Wanxiang to make full use of domestic resource advantages and integrate the localized operation of the United States, starting from a high starting point and making great strides. The company has implemented the operation skills of combining capital management and industrial development such as "equity for market", "equipment for market", "profit for market" and "intangible asset acquisition". 19 companies have been established in 8 countries including Canada and Australia. The strategy of going global not only expanded Wanxiang's international market share, but also opened up a channel for Wanxiang to utilize international resources.

In August 2001, Wanxiang successfully acquired UAI, a NASDAQ-listed company in the United States; in July 2007, Wanxiang acquired a 30% stake in an American AI company, becoming its largest shareholder.

Back then, when Lu Guanqiu founded Wanxiang America, he set three goals: first, to establish Wanxiang's image in the United States, and to introduce products into mainstream markets such as GM, Ford, and Chrysler; second, to collect information and timely Feedback to the group to expand into new areas; third, optimize the combination of international resources, so that international capital can be used by me. So far the original goal has been achieved.

Strategic investment in line with industrial policy

As a successful manufacturing enterprise, Wanxiang Group relies on the capital market, implements a two-pronged approach of capital operation and industrial layout, seizes opportunities and blossoms more. Lu Guanqiu likes to use "seeding" to describe his diversified investments. He believes that in the corporate diversification strategy, "seeding" is the most important thing. The seeds of Wanxiang have long since stepped out of the field of auto parts, and have begun to take root and grow vigorously.

In the ten tasks of the national "Twelfth Five-Year Plan", it is clearly proposed to improve the competitiveness of the industrial structure and accelerate the transformation of a resource-saving and environment-friendly society. Obviously, the implementation and development speed of the environmental protection and new energy industry plan will bring There are huge investment space and investment opportunities. As a large enterprise, Wanxiang has foreseeably aligned its strategic investment and industrial adjustment with the "Twelfth Five-Year Plan".

More than ten years ago, when Lu Guanqiu poured money into the field of electric vehicles, the industry was only "looking beautiful"; It has become a beautiful scenery line at the World Expo and the Asian Games.

In 2010, "Wanxiang Manufacturing" went to the World Expo magnificently. A relevant person from Wanxiang Group told reporters that in April, Wanxiang Electric Vehicles cooperated with SAIC Group to complete the power of 152 sets of hybrid electric buses, 120 sets of 50% pure electric buses, and 174 sets of 40% venue vehicles for the Shanghai World Expo. Assembly and battery system supply. In October, they joined hands with GAC Group to provide powertrain systems and batteries for all pure electric buses for the Guangzhou Asian Games.

The Wanxiang lithium battery production base was officially put into operation in November 2009. Now they are developing in accordance with the idea of "battery, motor, electronic control and electric vehicle". Through market research, expert demonstration, manufacturing improvement, vehicle loading test, etc., the motor transmission assembly has been successfully developed.

The success in the field of electric vehicles allowed Wanxiang to make another step forward in its new energy layout in 2010.

On December 23 last year, Wanxiang signed a strategic cooperation agreement in the field of fertilizer and energy with Xinjiang Autonomous Region. In the next ten years of the agreement, Wanxiang will make huge investments to develop solar power and wind power generation based on the development and comprehensive utilization of sodium saltpeter, with the support of large open-pit coal mines, pit-head power stations, and coal-based projects, and form fertilizers, coal, electricity, The development model of comprehensive utilization and recycling of chemical industry and clean energy.

“By the end of the 13th Five-Year Plan, the annual output will reach 1.2 million tons of potassium and sodium nitrate, 20.8 million kilowatts of thermal power generation, 800,000 kilowatts of solar power generation, 200,000 kilowatts of wind power generation, 70 million tons of coal and 4 billion cubic meters of annual output The production capacity of coal-to-natural gas." Regarding the future, a relevant person from Wanxiang Group told reporters such a set of data.

Investing in new energy, Wanxiang's tentacles also extend overseas. Wanxiang's 20 MW solar project in Rockford, Illinois, USA, has officially been put into operation. The total investment of the project is 12.5 million US dollars. It is the first solar energy project in the Midwest of the United States. At the same time, the 62 MW solar power station project invested by Wanxiang in the city has received financial support from the local government and will provide electricity to 10,000 local households in the future.

Common prosperity, benefit the country and the people

Wanxiang Group's decades of struggle can be summed up in Wanxiang's performance of "struggling to add zero in ten years". In the 1970s, it achieved a daily profit of 10,000 yuan, and the highest employee income exceeded 10,000 yuan; in the 1980s, it achieved a daily profit of 100,000 yuan, and the employee's highest income exceeded 100,000 yuan. In the 1990s, it achieved a daily profit of one million yuan and the highest employee income. Breaking through one million, in the new century, a daily profit of 10 million yuan will be achieved before 2020, and the highest income of employees will also strive to exceed 10 million yuan.

As an enterprise with industry leadership qualifications, Wanxiang has a firm value orientation and its own development path. Lu Guanqiu himself is also a sentimental entrepreneur.

More than 40 years ago, Lu Guanqiu started his business on the deserted beach of the Qiantang River. He went from the field to the world, and flew back to the field from the world, using the money earned from industry to invest in agricultural development.

The Sannong Company under the Wanxiang Group has made great strides in holding shares in listed agricultural companies, and has also established an advanced ocean-going fishing fleet to lead thousands of offshore fishermen to develop ocean-going fishing bases. At present, Wanxiang Group has invested more than 2 billion yuan in the agricultural industry and has more than 9,000 agricultural employees, directly driving the employment of more than 400,000 farmers and benefiting nearly 3 million farmers. Lu Guanqiu said: "Wanxiang also needs to make money when investing in agriculture, because you can't do anything that can't make money. But we invest in agriculture so that farmers can earn more money and be prosperous together with us."

Time Rushuo, now it is 2011, what will Wanxiang do in the future? Lu Guanqiu said, "In 2011, we mainly did four things: First, Wanxiang's coal, chemical and power projects in Xinjiang will be included in the national plan to serve the country's 'Western Development' strategy. This project is not subject to government approval. It will be very difficult to support. The second one is that the North Korean Youth Copper Mine is officially put into operation. We have been fighting for this project for three years. When Premier Wen visited the DPRK, he was working for us. The third one is the Zhoushan Oil Storage and Transportation Terminal Project. We have approved this project for 6 years since it was put into operation. The fourth one, the opening of Zhejiang Industrial and Commercial Trust, we have applied for this project for 8 years. After these four things have been done, the main purpose is to add a zero for the fifth 'ten years of struggle'. Lay the foundation. For the whole year of 2011, we will ensure a revenue of 75 billion yuan and strive to complete 80 billion yuan."

Interactive Questions:

1. Wanxiang's diversified development, how to lay out the relationship between the main business and other businesses ?

2. Wanxiang fits well with the country's strategic plan. How to obtain such predictability and how to understand industrial policy?