Li Shufu, the "disruptor": The Internet cannot subvert the automotive industry

Li Shufu, the "disruptor": The Internet cannot subvert the automotive industry

"In the future, the automotive industry will be dominated by automotive companies, not Internet companies." As the only representative of the automotive industry, Li Shufu, chairman of Geely Holding Group, said this at the 2015 World Internet Conference held in Wuzhen at the end of last year. In such an environment, this statement has a certain meaning of "disrupting the situation". It seems that this is not the first time that Li Shufu has played the role of "disruptor".


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Twenty years ago, when he entered the automotive industry with the idea that "a car is just four wheels and a sofa", people in the automotive industry at that time were much more surprised by Li Shufu than by the current Internet companies that "want to play with cars". However, from the first sedan product without a "birth permit" rolling off the production line, to the number one domestic independent brand car, to the full acquisition of Sweden's Volvo Cars, Geely has now become a domestically important private automobile enterprise group.

Maintain a positive attitude

In 2015, Geely Group's total production and sales volume exceeded 1 million vehicles. As a private enterprise that mainly produces its own brand products, this achievement is not easy. Not to mention that Li Shufu could not have imagined it when he opened a photo studio and made refrigerators, even when the first Geely car rolled off the assembly line, it is estimated that no one, including Li Shufu himself, had expected today's achievement.

Li Shufu told the Economic Information Daily that he is currently reading a book called The Power of a Positive Mindset, written by the famous American pastor and speaker Roman Vincent Peale. The book says that life is not all sweetness and brightness, and most of life is filled with all kinds of difficulties, pains and failures. Passion is a priceless treasure that can make everything different.

This passage may be the driving force behind Li Shufu's success. Without a positive attitude and enthusiasm, he might still be an ordinary farmer in Taizhou, Zhejiang, or a small owner of a small photo studio, or a small boss of a township enterprise... But Li Shufu did not fall into the "trap" of "being content with a small fortune", nor was he bound by the labels of 1989, 26 years old, and multi-millionaire, nor was he blocked by his past glory. He stumbled all the way to today, relying on passion and a positive attitude.

In 1993, Li Shufu entered the motorcycle manufacturing industry; in 1999, Geely Motorcycle had achieved an output value of 1.5 billion yuan, and Geely Group also won the reputation of "the kingdom of scooters". It was also during this period that Li Shufu had the idea of ​​entering the automobile industry, but encountered greater opposition than when he entered the motorcycle industry. There were no policies and no access. In countless applications to government departments, Li Shufu uttered the famous saying "Please give me a chance to fail."

In 1998, Geely's first car rolled off the production line, and the new product had not yet obtained a "birth permit". The subsequent naming - "Geely Pride" was also seen as a reflection of the power of faith that supported Li Shufu in the face of numerous difficulties.

At the World Internet Conference, Li Shufu proposed the goal of making Geely Group one of the top ten automobile industrial groups in the world. In the past, Li Shufu, who was known as a "madman", was often criticized for his "shocking words", but as the business of Geely Group has flourished, more and more people no longer "immediately reject" Li Shufu's "mad words".

Automobile companies are the future industry leaders

"In the future, it will be automobile companies, not Internet companies, that will dominate the automobile industry. A soul cannot exist without a body, and the soul must still be attached to the individual." With just a few words, Li Shufu has already determined the direction of the future automobile industry.

This judgment is not groundless, nor is it impulsive. "Internet companies and automobile companies are two different companies with different characteristics, different market positioning and different profit models," Li Shufu said. "Internet companies' research technology is mainly focused on the online level, and their profits are also online. For automobile companies, although they need to use Internet technology to improve the level of vehicle connectivity, they are not dependent on it. Automobile companies still improve their reputation through the vehicles themselves and derivative services."

Li Shufu told reporters that Internet companies are currently more focused on autonomous driving in the automotive field, while auto companies including Geely are working on autonomous driving, which can satisfy drivers' driving pleasure and meet their autonomous driving needs when they have specific needs, giving drivers the choice of self-driving or autonomous driving. "The technology sources are basically the same, but the concepts, market positioning and focus are different. Autonomous driving pays more attention to people and is more down-to-earth. Automotive innovation comes from people-oriented, and the future of automobiles must also be for the development and progress of mankind."

"When talking about 'Internet+' now, many people think about the business aspect, while automobile companies understand it more from the engineering aspect, that is, the integration of industry and information technology," said Li Shufu. In the future, users can participate in design and manufacturing through the Internet, and customize the products they need through the combination of personalized design and factory manufacturing capabilities. "This is the integration of 'Internet+' and manufacturing industry, and e-commerce is just the extension of 'Internet+'."

The automobile industry has always been a capital-intensive and technology-intensive industry. With the development of information technology, the automobile industry is entering the intelligent era. Automobiles are liberating people's hands and feet and understanding people's words and deeds through smart interconnection and autonomous driving technologies.

Li Shufu said that Internet of Vehicles, artificial intelligence and autonomous driving are the three major technologies of intelligent connected cars. The product form of cars will also undergo fundamental changes. Industrial Manufacturing 4.0 and personalized customization are inevitable trends. The changes in business models have gradually extended from e-commerce, maintenance, auto finance, used cars, talent training and other fields to the design, research and development and production at the front end of the supply chain.

"Which concept is correct in the end is still unknown. But I think our market positioning is accurate," Li Shufu said. "The Internet cannot subvert the auto industry, but auto companies should have the Internet spirit. The future of the auto industry will no longer be a model of 'I produce what you buy', but 'I produce what you need'."

By 2020, 90% of Geely's cars will be new energy vehicles

Although he insists on the leading position of automobile enterprises in the future industrial direction, Li Shufu does not reject the penetration of the Internet into the automobile industry. On the contrary, he is a person who loves the Internet and new technologies very much. In his opinion, the cooperation between Internet technology and the automobile industry is an inevitable trend and is conducive to the amplification of the synergy effect of all parties.

"It is not enough to make cars behind closed doors. We must learn to use the Internet and information technology to meet new challenges in the transformation of the traditional automotive industry," said Li Shufu. Cars will inevitably become intelligent mobile terminals, and Geely Auto is taking action and has achieved initial results.

"The Volvo XC90 is already a mobile terminal in a certain sense. The cloud and the devices on the car are connected, and the central display screen on the car is connected to the mobile phone and the information terminal at home. All the functions that can be realized on the mobile phone are realized in the car," said Li Shufu. The car as a mobile terminal is different from the mobile phone as a mobile terminal. The functions of the car terminal will be much more powerful. "The future is the interconnection between cars and people, cars and roads, cars and cars, and cars and other facilities."

Li Shufu said that Volvo has been researching Internet cars and autonomous driving for 10 years. After acquiring Volvo, Geely shifted all its resources to Volvo, investing $11 billion in Volvo's R&D and technological transformation over the past five years. In 2016, Geely and Volvo will work together to invest 20 billion yuan to jointly develop smart connected car technology.

"In terms of artificial intelligence, the XC90 is equipped with more than 100 sensors and 270 microcomputers. The XC90 can automatically detect pedestrians, large animals and bicycles day and night to avoid collisions and automatically brake at critical moments," said Li Shufu.

The reporter noted that Li Shufu said in his New Year's greetings to all employees, "New products developed in the future will basically be new energy vehicles and smart connected vehicles, and traditional vehicles will gradually be phased out of production. By 2020, 90% of Geely's cars will be new energy vehicles, realizing the strategic transformation from a traditional car company to a new energy car company."

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.

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