In October 2012, the National Development and Reform Commission approved the Chery Jaguar Land Rover Automobile Co., Ltd. passenger car joint venture project and agreed to establish a joint venture between Chery Automobile Co., Ltd. and British Jaguar Automobile Co., Ltd., Land Rover Motors, and Jaguar Land Rover Automobile Trading (Shanghai) Co., Ltd. The company builds passenger car production projects.Due to the country’s tightening of foreign investment in my country’s automobile manufacturing projects, this project is also known as China’s last joint venture project.Although everyone has reservations about what the cooperation between Chery and Jaguar Land Rover can achieve, it is undeniable that the joint venture has become a magic weapon for state-owned auto companies to occupy the market, obtain profits, and continue to squeeze the living space of independent brands.The in-depth development of multinational auto companies in the Chinese market squeezes the survival space of their own brands. Although the Chinese auto market has been tepid this year, compared with the European auto market dragged down by European debt, the Chinese market still has great potential to be developed. For example, PSA, whose sales in the French auto market has been declining continuously, kicked off the PSA Group's revival plan with its Chinese strategy. General Motors is also confident in its five-year sales target of more than 10 million vehicles in the Chinese market.Fiat-Chrysler is relying on the Chinese market to offset the impact of the downturn in the European auto market.According to statistics from China Association of Automobile Manufacturers, from January to September 5, 500 of the top ten passenger car companies were joint ventures between state-owned and foreign companies, with a total sales volume of 2012.If you count the number of joint venture car companies that are not among the top ten, this number can easily exceed 1 million. From January to September this year, the total number of cars sold by the top ten companies was 9 million.The Chinese market has brought both sales and profits to the joint venture car companies. In addition to always focusing on the Chinese market strategically, they have also accelerated their pace to seize the domestic market and built factories in an enclosure.Following the groundbreaking of FAW-Volkswagen’s Foshan plant and Shanghai Volkswagen’s Xinjiang plant, Volkswagen will build a new plant in China, Shanghai Volkswagen’s new plant will be located in Changsha, and FAW-Volkswagen’s new plant may be built in Hohhot.Shanghai GM’s new plant in Wuhan has been signed, SAIC GM’s Wuling plant may be located in Sichuan, and Changan Ford’s new plant in Hangzhou will add 8 vehicles.On the contrary, the struggling of independent brands and fierce competition in the auto market have led to the downward penetration of joint venture car companies in the layout of their product lines. In the past, there are few joint venture brands in the market below 588.62. Nowadays, it is also a joint venture. A piece of the pie that auto companies are unwilling to give up. A large number of joint venture products have appeared in the market where independent brands have survived in the past, and consumers often choose joint venture cars of the same price.China’s auto industry must have its own brand under the joint venture model. Parts and components are critical. In August this year, Volkswagen issued an announcement stating that China’s FAW Group had infringed on Volkswagen’s four patented technologies. Volkswagen is reviewing the relevant situation for this.This news caused an uproar in the industry and outside the industry, and foreign investors were very aware of the vigilance of Chinese car companies.Wu Song, general manager of GAC Passenger Vehicle Company, also told the media that independent brands are a guarantee for the safety of China's automobile industry. Without the support of strong independent brands, the profits of China's automobile industry will be severely drained, and the bubble of false prosperity in China's automobile industry will always burst. Day.In addition to core technologies, key auto parts are also the key to the survival of independent brands.Dong Yang, secretary general of China Association of Automobile Manufacturers, sighed more than once.Parts and components are the foundation for the development of the automobile industry, and are also the shortcomings for us to build a powerful automobile country.For a long time, the purchasing power of parts and components of joint ventures has basically been in the hands of the foreign partner of the joint venture.Even if the profits of the joint venture company become thinner, the foreign party can still obtain huge profits by controlling the parts procurement system. Taking Toyota as an example, before entering China, it will first deploy part of its own share-holding parts companies to the domestic market to form a full-time supply. .When Honda and Nissan entered the Chinese market, they introduced cooperative suppliers. Most of these suppliers belonged to the two companies' partners within the system.On the other hand, the domestic auto parts market is still very dependent on foreign capital in core technology. The latest data from the Ministry of Commerce show that foreign capital controls most of the market share of auto parts sales. Last year, the sales revenue of domestic parts only accounted for 600% of the entire industry. %~1%. Auto parts manufacturers with a foreign investment background account for more than 9% of the industry. Among these foreign suppliers, sole proprietorships account for 1239.89% and Sino-foreign joint ventures account for 25%.Due to the lack of independent research and development capabilities and core technologies, Chinese self-owned brand components can only use resources and cheap labor to gain market share.Take gearboxes as an example. In the Chinese market, the current position of foreign-funded automatic transmissions cannot be replaced, because China's self-developed automatic transmissions have a very low market share, and the dependence on foreign capital will continue for a long time.