The French philosopher Diderot once said: "Greatness is often the result of a natural balance of opposite qualities."
In the past six months, the issue of the location of Beijing Hyundai New Base has made Zheng Mengjiu, the head of Hyundai Motor Group, particularly worried. Zheng Mengjiu, who is pushing Beijing Modern to settle in Chongqing, is facing various pressures and tries to balance the balance with Chongqing. However, under various factors, the 76-year-old car industry strongman Zheng Mengjiu can only make difficult choices!
On August 18, the South Korean media disclosed that Hyundai Motor Group plans to renovate a car assembly plant belonging to the Chinese joint venture to pave the way for a new plant in Chongqing, western China. In addition, according to the reporter's understanding, Beijing Hyundai or Tongqi Chongqing and Ganzhou projects will achieve expansion in China through balance. On August 20th, people close to the core of Hyundai Motor Group told reporters: "At present, Hyundai Motor Group is advancing various issues in accordance with this goal!"
Tongqi two factories Chongqing construction fourth plant, Chuzhou construction fifth plant.
According to information disclosed by the South Korean side, in addition to continuing to promote the construction of the fourth plant in Chongqing, Beijing Hyundai will also transform its partner Beijing Automotive Industry Holding Co., Ltd.'s plant in Zhangzhou to implement the fifth plant construction plan.
The relevant news also revealed that the two factories in Chongqing and Zhangzhou will be completed and put into operation in 2016, with a production capacity of 300,000 and 200,000 respectively. In the future, South Korea plans to increase its production capacity to 450,000 and 300,000 respectively. For the simultaneous opening of the construction of the 4th Five-Year Plan, the Korean side explained that it is to meet the needs of the Chinese government in order to meet the construction base in the west.
It is understood that Beijing Hyundai was established in 2002 and is jointly established by Hyundai Motor Group and Beiqi. It currently has three production plants with a total capacity of 1.05 million. In 2013, Beijing Hyundai production and sales have exceeded 1 million. Therefore, expanding production capacity has become an extremely urgent demand in Beijing Hyundai.
This time, according to the information disclosed by the Korean side, the opening of the four or five factories in Chongqing and Zhangzhou will undoubtedly provide a strong impetus to the follow-up development of Beijing Hyundai. For the information disclosed by the Korean side, the reporter and the BAIC Group and Beijing Hyundai have contacted for verification. On August 20th, relevant persons of BAIC Group told reporters: “The relevant situation is that Beijing Hyundai is responsible, we don’t know the situation.” Zhang Jie, the head of public relations department of Beijing Hyundai Media, told reporters: “There is nothing at present. Can be announced."
Balance strategy A person familiar with the matter told reporters: "Zheng Mengjiu has always tried to realize Beijing Hyundai's settlement in Chongqing through various efforts."
Since 2012, Hyundai Motor Group has exhausted planning, construction, business, legal affairs and other teams to Chongqing for inspection and in-depth negotiations. After careful preparation, in March of this year, Zheng Mengjiu led most of the Hyundai Motor Group executives to Chongqing and signed a strategic cooperation framework agreement with Chongqing.
During his stay in Chongqing, Zheng Mengjiu said: “As a location for the whole vehicle factory, Chongqing is the city with the most favorable conditions and has the ability to compete fiercely with other competing companies.” Based on this understanding, Hyundai Motor Group decided to be in Chongqing. The Liangjiang New Area will build an annual production capacity of 800,000 to 1 million vehicle projects, and lay out advanced manufacturing processes to produce models suitable for market demand, making it the largest automobile manufacturing base in China.
However, after the strategic framework cooperation signed the agreement, Hyundai Motor Group encountered resistance from Hebei. Due to the needs of the layout of Beijing-Tianjin-Hebei, Hebei and Beijing tried to introduce Beijing Hyundai into Chenzhou. For a time, Beijing's modern settlement became a suspense.
However, the Midwestern market is highly valued, and the Hyundai Motor Group, which is expected to be located in the western Chongqing, is still insisting on investing in Chongqing under pressure. In mid-April, when Zheng Hongyuan, then Prime Minister of South Korea, visited Chongqing, he made a special mention of the hope to promote Hyundai Motor's construction base in Chongqing. In addition to the strong political signals from the top Koreans, Zheng Mengjiu also actively expressed his determination to increase investment in western China. In July of this year, General Secretary Xi Jinping participated in a welcome luncheon held by the four major economic groups in South Korea during his visit to South Korea. Zheng Mengjiu was preparing to invest in Xi Jinping to support the development of China's western region.
The reporter was informed that this is the second time that Zheng Mengjiu has sought support from the highest level in China. As early as November 28, 2013, Zheng Mengjiu wrote a letter to General Secretary Xi Jinping. The letter stated: "We intend to invest in the construction of an annual output of 800,000 to 1 million vehicles and related supporting industrial projects in the Liangjiang New District of Chongqing. It became the largest automobile production base of Hyundai Motor Group in China, and promoted the development of western China."
Thanks to the active efforts of Zheng Mengjiu and Hyundai Motor Group, the Hyundai Motor Chongqing project, once resisted by Hebei and other places, has also turned around. Earlier media reports had positively expressed support for Beijing Hyundai’s auto owner in Chenzhou, Hebei Province, and explained it when he called the reporter.
However, in China's industrial layout, there will often be compromises after a fierce local game. This time is no exception. In the end, Hyundai Motor Group chose to open the factory in Hebei and Chongqing in order to ensure that the new capacity layout in China can be successfully supported by the Chinese partners and the NDRC.
Modern ambition With the release of the balance plan, the ambition of Hyundai Motor Group is even more prominent!
According to the data of the China Automobile Association, from January to July this year, Beijing Hyundai sold 490,500 units, ranking fourth in the car industry, and was in the position of the second leg of the car company. However, the gap between Beijing Hyundai and the First Corps, which threatened to enter the top three four years ago, is obvious.
Data show that from January to July this year, FAW-Volkswagen, Shanghai Volkswagen, FAW-GM's sales reached 939,100, 895,500, and 806,900. At a time when the gap with the First Corps was far away, the contest of the Second Legion was also intensified. Dongfeng Nissan's sales volume after Beijing Hyundai was 427,700 units, and the gap is shrinking with Beijing Hyundai.
Faced with the strong position of the top three, Dongfeng Nissan and other second-line legions to catch up, Beijing Hyundai must achieve greater breakthroughs in production capacity. At present, from the perspective of the layout of the two places revealed by the South Korean side, it may be possible for BAIC Group, Hyundai Motor Group, Chongqing, Hebei, Beijing and other related parties to move from the previous projects to work together for the project to pass the examination and approval. In order to achieve the approval of the two projects in the fastest time.
The reporter learned that Chongqing has reserved more than 4,000 mu of land for the establishment of Beijing Hyundai's fourth factory. The flat field has been basically completed and construction is ready at any time. In Huangpu, Hebei Province, Beiqi Group has been deployed here many years ago, and the first phase of the Beiqi production base was completed at the end of 2013.
Once the modern production capacity bottleneck problem is solved, the modern automobile group will also greatly promote the global competition. Zheng Mengjiu said that Hyundai Motor can be in a leading position for more than ten years, and that Hyundai Motor can respond to the breakthrough growth of the Chinese market in a timely manner and expand the strategic decision of production. At present, Hyundai Motor Group's car layout in China consists of two sections of Beijing Hyundai and Dongfeng Yueda Kia, as well as Sichuan Modern Commercial Vehicles.
According to the data, in 2013, Hyundai Motor Group's total sales in China (Northern and Dongfeng Yueda Kia, as well as the total sales of Hyundai and Kia imported cars) reached 1,618,422 units, an increase of 16% year-on-year. Sales accounted for 21% of sales.
Obviously, with the opening of factories in Chongqing and Zhangzhou, Hyundai Motor Group will occupy a very favorable position in the Chinese market. However, Zhang Zhiyong, a well-known commentator in the automotive industry, also has concerns: "In the current situation of the Chinese auto market, the opening of two factories at the same time is a relatively large burden for any auto company. The layout of Hyundai Motor Group is in the west. It is necessary, but it is still debatable to try to find the whole layout of Hebei."

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