Build a Cooperation Platform and Turn Crisis into Opportunity

09-04-06 16:54　source: Network Team

Build a Cooperation Platform for Automobile Industries across the Taiwan Straits and Turn Crisis into Opportunity 
Kuo-Rong ChenChairman ofTaiwanTransportationVehicle Manufacturers Association 
 
Since mainlandChinalaunched its reform andopening-up drive, its economic takeoff has brought both opportunities andimpact to the world economy. As a result of the close geographic, kinship,cultural, historic and linguistic ties with the mainland, Taiwaneseenterprises, including automakers and parts and components manufacturers, haveflocked to mainlandChinafor investment. In particular, since both sides of the Taiwan Straits joinedthe WTO,Taiwanand the mainland have been enjoying an increasingly closer economic relationship.Continued exploitation of advantages and sharing of experiences betweenmanufacturers across the Taiwan Straits in the future will undoubtedly helpboth sides to complement their respective advantages and definitely facilitatethe further development of the automobile industries and the overall economyacross the Straits. There is no denying thatTaiwan’sautomobile industry has a small scale and is susceptible to global recession;consequently, its production and sales are gradually diminishing and its capacityutilization rate is low while costs are high. Moreover, with the steady taxreduction since accession to the WTO, the difference in duties between completevehicles and parts and components has gradually narrowed. All these factors areunfavorable for the survival of the automobile manufacturing industry.Fortunately,Taiwan’s autoparts and components boast high quality, sound management and powerful strengthsin vehicle electronics and precision molds; this means thatTaiwanis wellpositioned to serve as the R&D center for international automobile groups.Thus, there is vast room for cooperation between auto industries across theTaiwan Straits in the manufacturing of complete vehicles, parts and components,joint development of complete vehicles, and development of vehicle electronicsand precision molds. In order to boost thecompetitive strengths and industrial upgrading of the auto industries acrossthe Taiwan Straits, in the future, we will build a cooperation platform for theautomobile industries across the Taiwan Straits on the basis of cooperationagreements to consolidate value-chain resources across the Straits, such asmarketing, design and R&D, production and manufacturing, and salesservices. We will also promote the liberation of the trade of complete vehicles,parts and components across the Straits, and take advantage of trade balanceand quota management to develop division of labor across the Straits and tocomplete mutual advantages in order to secure win-win results. Furthermore, as energyconservation, pollution prevention, clean energy, intelligence and safety, andcomfort and convenience represent the future trends of vehicles, the autoindustry may capitalize on Taiwan’s advantages in IT (information technology)and ET (energy technology), combine the forces of industry, government,academia and research to develop energy-conserving, environmentally-friendly,intelligent and safe vehicles, such as LPG (Liquefied Petroleum Gas) Vehicles,HEVs (Hybrid Electric Vehicles), and EVs (Electric Vehicles). We should also steerautomobile products to high technology and high added value production and introduceinnovative service models to boost the future competitive advantages of theauto industries across the Taiwan Straits.