Byton obtained the qualification to manufacture cars for 1 yuan, but it is still unknown whether it can deliver new cars on time next year

Recently, Byton purchased 100% of the shares of Tianjin FAW Huali Co., Ltd. for 1 yuan. Although this means that Byton has officially obtained the qualification to produce automobiles, it also means that Byton needs to assume Huali's 850 million yuan debt.

Behind the one dollar is the revitalization of junk assets

At present, many new car manufacturers have adopted OEM to solve the problem of production qualifications. For example, NIO relies on JAC for OEM, and Xpeng relies on Haima for OEM.

However, most traditional car companies are not interested in making wedding dresses for others. It is difficult for new car manufacturers to find well-known car companies to cooperate with, and they can only find some second- and third-rate car companies to do OEM. Although the car can finally be produced, the label of OEM does make the new car-making forces a little embarrassed, especially for NIO, which focuses on high-end products.

When NIO launched its new car ES8, it has been avoiding the issue of NIO relying on JAC for OEM. Not only did NIO remove the "JAC NIO" logo from the display car at the experience center, but it also emphasized in an interview that the NIO ES8 is not produced on the same line as JAC brand models, but is produced in a brand new factory built by JAC specifically for NIO.

The reason why NIO is reluctant to emphasize that it is a JAC OEM is also very simple. JAC Motors has had serious quality problems, and the "rust gate" incident was exposed by CCTV's 315 Gala. More importantly, JAC Motors mainly produces low-end models, which are not enough to support NIO's high-end car positioning. Although Xpeng Motors is positioned more close to the people, it is difficult to say that it is an advantage to be a OEM by Haima.

Apparently, neither Xpeng nor NIO are satisfied with seeking OEM services. NIO is promoting the construction of its own factories in Jiading, Shanghai, and Xpeng is in Zhaoqing, Guangdong. After all, OEM services are only a stopgap measure for the new car-making forces.

Automobile production has very high requirements for safety and quality. Although new car manufacturers have various innovations and fancy functions, they are still making a car, which needs to be based on quality. New car manufacturers have been criticized for their "PPT" car manufacturing with insufficient manufacturing capabilities, and looking for second- and third-tier car companies to do OEM is even more of a reason for criticism. This is why new car manufacturers such as Byton and WM Motor also want to obtain independent production qualifications through acquisitions.

Weimar is similar to Byton, which solved the qualification problem by acquiring Dalian Huanghai Automobile. However, Dalian Huanghai Automobile acquired by Weimar can only produce SUVs, while the qualifications acquired by Byton this time can produce both sedans and SUVs.

In June this year, Byton received a $500 million Series B investment led by FAW. Byton's ability to break through the competition with Xinte and Xiaopeng this time should be related to FAW's overall layout.

In June this year, FAW invested 260 million US dollars in Byton. The equity of Huali was transferred to FAW, and the creditor of the 850 million debt that Byton needed to pay for Huali was FAW Group. In other words, FAW transferred funds from one hand to the other, and at the same time turned Huali, a subsidiary of FAW, into Byton's shares; Byton also obtained comprehensive production qualifications from it. From the left hand to the right hand, junk assets were turned into high-quality assets. Byton and FAW did a good deal.

Is the big screen an innovation or a way to dig a hole for yourself?

After solving the production qualification issue, Byton is one step closer to mass production and delivery.

Byton, a new car manufacturer, was founded in 2016. Compared with Xpeng and NIO, which were founded in 2014, and WM Motor and CHJ Automotive Group, which were founded in 2015, Byton entered the new energy vehicle market later.

If NIO's feature lies in its high-end positioning and WM Motor's feature lies in its affordable price, then Byton's feature is its large screen that is more than one meter long.

The large screen inside Byton's car is a 1.25-meter-long full touch screen, which is very visually impactful and can be controlled by voice and gestures, giving it a full sense of technology.

In addition to this large screen, Byton also has an 8-inch driver touch screen on the steering wheel, a touch screen on the front center armrest, and a large entertainment system screen in the back. Rather than making cars, Byton is more like selling LCD screens.

Byton is the first to install such a large screen in a car. People's growing love for large screens is indeed a trend, both in mobile phones and cars. However, can Byton redefine the automotive industry by relying solely on large screens, or is the large screen just a sales gimmick?

The first is the issue of safety.

While this large screen is amazing, it also makes people worry: If such a large screen shatters in a collision, how can the safety of the people in the car be guaranteed? Will the huge LCD screen located in front of the driver affect the line of sight? Will the screen cause light pollution and distract the driver's attention? Will the airbag be affected by a screen installed on the steering wheel?

Byton has also proposed corresponding solutions to these concerns: strict collision tests are conducted to ensure that the screen will not hurt the people in the car if it is broken; the background color of the large screen is white, blue, gray, etc., and the screen will automatically adjust the brightness according to the ambient light to minimize the distraction of the driver's attention. There is space under the steering wheel screen to accommodate airbags. In terms of engineering, as long as the driver's downward line of sight is met at 2.5 degrees, the large screen will not be blocked.

To take a step back, even if these problems can be solved, when the in-car interaction methods such as voice, gestures, and even expressions and eye contact become increasingly sophisticated, the large screen may become a common burden for the car and passengers, a flashy burden. Moreover, what problems will such a large customized screen of irregular size encounter in production? Whether the cost is high will also be a problem that future mass-produced models will have to face.

Byton's mass-produced cars face great challenges in terms of both manufacturing and price. Of course, BYTON Concept is still a concept car, and Byton said that the mass-produced car can keep about 85% of the elements of the prototype. But how much of it can be realized is still unknown.

In the previous press conference, Byton did not introduce the mechanical performance of the car, but focused on the intelligent aspects of the car. Byton claims that this car can realize intelligent interaction such as touch, voice, gesture, and facial recognition. With so many screens plus various intelligent elements, and the starting price of the mass-produced version is 300,000 yuan, Byton will have a hard time controlling costs.

Tesla is known for its high level of intelligence, and its price is comparable to that of luxury cars. However, its interior and other parts are quite different from luxury cars of the same price, which is like robbing Peter to pay Paul. Byton's prototype car has many innovations, which requires a lot of R&D investment. If all functions can be realized, the high initial cost will not allow for too low a price. If you insist on lowering the price, you may have to reduce the configuration of other aspects of the car.

This year, some new car manufacturers have already started delivering new cars. As a latecomer, Byton is already at a disadvantage in terms of time, so launching more radical and eye-catching products is a competitive strategy. More disruptive products can attract more consumers and also help to raise further funds.

Byton's mass-produced car will be officially delivered at the end of 2019. Byton was officially established in March 2016, so even if it is delivered in 2019, it is less than four years. As a new car manufacturer, it is conceivable that Byton faces challenges in launching a highly intelligent electric car in such a short time.

Considering the successive delays in delivery of new cars by many new car manufacturers this year, it remains unclear whether Byton can deliver new cars as scheduled by the end of 2019.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.