Cummings Vice President Cao Side: Green Development Drives Healthy Growth in the Automotive Industry

The 2009 China Automotive Industry Development International Forum was held on September 4-6 in Tianjin Binhai New Area. Fenghuangwang Automobile was the exclusive new media support unit for the forum. At the forum on September 5, Cao Side, vice president of Cummins Group, made a speech:

Cao Side: Dear guests, everyone is good at noon. My name is Cao Side. I am very honored to be here to discuss with you how we can get out of this crisis with a stronger face.

We all know that the current situation of the crisis has two words, one is a dangerous crisis, and the other is an opportunity. So, what I'm talking about today is how the topic we discussed turned into a crisis.

For the Chinese auto industry, we are now facing a precious green opportunity. I think the current opportunities are very good. In the first strategic and economic high-level dialogue between China and the United States, we sent a strong signal that the world’s largest Both the developed countries and the largest developing countries have simultaneously placed environmental issues on the primary agenda. The United States and China have reached a consensus that a true partnership will be established to jointly reduce greenhouse gas emissions while promoting economic recovery and sustainable development. We all know that for the automotive industry, the most direct manifestation of green development is the continuous reduction. Emissions, strict emission regulations have significantly reduced the level of vehicle pollutant emissions, will reduce 20% of nitrogen oxide emissions and 80% of particulate emissions.

U.S. regulations are the most rigorous in the world. Now China has made rapid progress in narrowing the gap in emissions levels since 2000. No matter which country or place, to implement more stringent laws and regulations, all things have two sides, emissions standards are no exception, there are some difficulties. Cummins combined global research experience. If there are more stringent regulations, every company must be unified. In terms of technology, in terms of equipment, as well as the performance of our engine parts, trucks, and vehicles, these are all improved. A very big challenge. However, this challenge can also be regarded as an opportunity. If we take short-term figures and look further afield, we will find that the various opportunities that emission advances can generate are far greater than short-term losses.

I will use the time below to discuss in detail why we say that in the long run, the road to green development can promote technological progress and industrial upgrading, and it can enhance the competitiveness of local companies in the international market, and it will also lead to a new round of investment growth. It eventually translates into economic growth. The most important force in promoting technology and industrial progress is the customer. From the perspective of the customer, emissions are important, but this is not their only concern. They are considering power, their reliability, the economics of their fuel system, and low Noise, etc. These are very important to them. If we want to win customers, we need to prove to them that the increased single-time, purchase costs can be offset by long-term lower interest rate costs, and this hope of the customers is in turn driving the continuous improvement of the entire industry.

Under this kind of force, no matter if the industry develops new technologies and innovative solutions continue to emerge, more environmentally friendly, energy-saving new products will gradually occupy the market. We also have this experience in the United States, Europe, and elsewhere. Meeting environmental requirements is very beneficial to our technology. Therefore, we often say that there are aspirations and that progress in emissions will also bring great opportunities for the Chinese auto industry. The key components of the demolition fuel system and post-processing will be delivered to the engine, and then to the entire vehicle industry. Every link in the industry chain will be They will be promoted and progressed, their capabilities and creativity will be released, and they will have tremendous productivity. To achieve the goal of promoting technological progress through strict emissions, we need to implement environmental laws and regulations on time. We believe that higher emission standards will also increase the competitiveness of our local companies in the global market. We all know that all regions have different environmental protection requirements, and some are more stringent. However, if we can meet more stringent requirements, we are competitive globally. This is very difficult for our current situation.

The ancient Chinese language says that if the spring breeze comes overnight, thousands of trees will blossom. For the automotive industry, the implementation of timely and strict emission standards is to promote the flourishing spring of the entire industry. Under this trend, each sector of the industry must be prepared for emissions progress, from fuel to suppliers, from From spare parts to engines, from vehicle companies to end users, each of us must follow the positive attitude of starting from now and starting from me, and firmly take the road of green development. Each company is to achieve scientific development. The executor of the concept is my responsibility. We have no excuse for not fulfilling this responsibility.

We are now faced with a golden opportunity for development. But this opportunity is fleeting. We must act quickly and seize this opportunity. All other markets are continuously escalating emissions. If we are pulled down this time, it will be even harder to promote it. . Now is our time. It is also our opportunity. Our Chinese automobile industry needs to act quickly. We must compete for higher standards and achieve a win-win situation at the economic and environmental levels. Thank you!

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