Chery harps on human capital in auto industry

Chery Overseas Investment Corporation has explained the process involved in manufacturing a vehicle from its plant.

According to Chery, the automotive manufacturing industry, in the literal meaning, has auto manufacturing as its ultimate purpose. All advanced technologies and forward-looking auto designs have to be realised via manufacturing.

The manufacturing strength not only decides whether an automaker can complete the production target on time and in good quality, but also determines probability and completion of product design and batch production of technologies.

A statement made available to The Guardian by Senior Sales Manager, Chery Overseas Investment Corp., Jason Han, said: “When talking about manufacturing strength today, we often focus on how many advanced equipment and facilities the automaker has, and how high the automation rate is. It seems the automaker’s manufacturing strength can reach the top level if its factory is full of the latest and most advanced equipment and its workers are replaced by robots.

“By visiting the four factories of Chery, we found that it attaches great importance to people, system and regulations. These software aspects constitute the core competitiveness of Chery in auto making. This cannot be purchased or brought by one or two top management,” he said. He said Chery is not only proficient in managing people, but also has its unique way of cultivating people.

“In the workshop, we saw a few studios of skill masters, whose owners are workers. Through long-term training on production technology and after years of working and operation, they have become skill masters in the factory. Unlike engineers on the site, these skill masters are more proficient in quickly solving problems.”

He said automotive factories would provide workers with three ways of promotion: administrative route (promotion to management positions such as team leader), professional and technical route (promotion to engineer, with requirements for academic background), and technical worker route (promotion to technicians).

However, the third route, according to him, is often least popular, having least attraction to workers.

“We have never seen other manufacturers giving such high honour to their workers. However, Chery provides technical workers with studios on the site and makes big bulletins to publicise their deeds.

“Chery’s respect for talented people has been rewarded by their loyalty and arduous efforts. After these outstanding workers with exceptional skills become skill masters, they would feel greater responsibility on their shoulders. They not only work hard in their posts, but also help train other workers and newly-recruited employees. Besides, they never stop making progress, afraid of being overtaken by newcomers.”

He said emerging automakers with abundant funds would have been able to produce premium-quality automotive.

“Equipment, facilities, robots and other hardware are available if you have money. However, talented HR, system and experience need time to foster and accumulate. Hardware can only decide the ceiling of an automaker’s manufacturing strength. However, existing manufacturing strength is more determined by the software,” he said.