A New Age of Auto Fosters A Bright Future for Talents

David Liu April 24, 2018 4 mins read

The “new energy” auto’s coming as a concept signals that the global auto industry has entered a new era at a high speed. Under the pressure of “dual credits” policy, Chinese automobile is experiencing a wave of joint venture. Jianghuai and Volkswagen, Zotye and Ford have announced the establishment of new energy vehicle (NEV) joint ventures. Earlier this year, the Great Wall Motor also built a joint venture with BMW, as part of their efforts put into the NEV industry.

BAIC was the first to kick off cooperation between auto makers. BAIC and Daimler planned to expand their production in China with a total joint investment of 11.9 billion yuan to build a new luxury car production base in Beijing. Meanwhile, Daimler purchased 3.93 per cent stock of BAIC BJEV, as a move for further cooperation. In early march, FAW and Audi together with related parties signed a memorandum of understanding to set up two new companies, which are to specialize in sales, and mobile travel & digital services respectively.

While other auto makers, as represented by Geely, started a new round of overseas acquisitions. After the successful acquisition of Volvo's passenger car business, Geely has brought London Taxi Company, PROTON, Luster, and Terrafugia in the past two years under its name. At the end of last year, Geely acquired a stake of 8.2 per cent in Volvo and became its largest shareholder. In February 2018, Geely further acquired a 9.69 per cent stake in Daimler and also became Daimler's largest shareholder, injecting a strong momentum into the company.

In 2018, auto industry ushers in various new development trends. With joint venture, cooperation, M & A, under the multi-level comprehensive practices, a NEV industry will take shape in China and even in the world. Therefore, the talent development of the whole industry will also see a new development trend.

First, the NEV joint ventures will create a peak demand for talents with expertise at battery, motor, and electric control. Compared with the traditional fuel vehicle joint ventures, Chinese automakers show confidence and competitiveness in the boom of NEV joint ventures in a new era. The present joint capital is of great significance for the growth of independent brands, the accumulation of technology and brand, and an improved international competitiveness of China's new energy vehicles. Further, a peak demand for the above-mentioned talents will be created in China’s market, posing new challenges to talent cultivation, and bringing a more intense fighting for excellent talents in this field.

Second, all-round cooperation will lead to a broader and deeper talent demand. Since last year, the cooperation between new energy auto makers and the Intelligent and Connected Vehicle (ICV) industry chain has increased, showing a trend of cross-boundary integration. For example, chehejia.com and Brilliance Auto signed a strategic cooperation agreement to carry out in-depth cooperation in R&D, supply chain, manufacturing and other fields of Smart Electric Vehicle, so as to realize resource sharing and enjoy complementary advantages.

Third, international M & A will further broaden the global vision of enterprises and accelerate the in-depth integration of talents. At present, the Chinese consumers’ demand for cars is more and more diversified and high-end oriented. Geely, by buying into Daimler, reflects its cultural genes and corporate spirit, which are characterized by forging ahead, constant pursuit of excellence, and innovation-driven growth. In addition to capital investment and a greater say at the board of directors, what Geely values most is its profound culture, technology accumulation and huge manpower of Daimler Group, so as to seek the chance to learn from the industry benchmark and seek new opportunities while following the trend of current era. In terms of NEV and ICV domain, Geely can obtain from Daimler more resources and absorb more nutrients, in respect of cooperation at technique level, as well as communication between and cultivation of high-level talents. Therefore, its international M&G activities will further broaden the communication and in-depth integration of high-level talents.

It is sincerely hoped that China's auto industry will join hands with international auto giants in this new era, pursue cooperation, seek win-win cooperation, explore new ways for the communication and integration of elite talents, and achieve more technological breakthroughs.

David Liu's picture
Manager | Industrial & Automotive Recruitment
dliu@morganmckinley.com