Eliza Wong
The automotive world was set abuzz when Great Wall Motors Chairman Wei Jianjun (魏建军) addressed swirling rumors about potential collaboration with Jia Yueting’s FX Super One project. His clarification revealed a complex supply chain arrangement involving knock-down kits and intermediary operations rather than direct partnership between the two companies. This revelation sheds light on the evolving nature of automotive manufacturing relationships in China’s competitive electric vehicle market.
On September 10th, Wei Jianjun made his position clear regarding the speculated partnership. He stated that the FX Super One project was being handled through middlemen using completely knocked-down (CKD) assembly methods. This approach involves shipping disassembled vehicle components for final assembly at destination facilities.
The Great Wall Motors chairman emphasized that while his company wasn’t directly involved, he saw potential benefits in such knock-down kit arrangements for Chinese automakers. This model allows for flexibility in production and potentially lower costs through distributed manufacturing. Wei’s acknowledgment of the model’s validity suggests that knock-down kit operations might become more prevalent in the industry.
The collaboration rumors gained traction after FF’s second brand, FX, unveiled its first model that bore striking resemblance to Great Wall’s Wey Gaoshan 9. Automotive analysts and enthusiasts noted the visual similarities, sparking discussions about potential design sharing or technology transfer through these knock-down kit arrangements.
Knock-down kits represent a manufacturing approach where vehicles are shipped as sets of parts rather than as complete units. This method has several advantages in today’s global automotive landscape.
In August, FF Global President Wang Jiawei (王佳伟) addressed the design similarity concerns through a video statement. He asserted that the vehicle was developed in collaboration with Chinese industry partners and denied any抄袭 (copying) allegations.
The automotive industry is witnessing increased adoption of flexible manufacturing approaches. Knock-down kit operations represent one evolution in how companies structure their production and partnerships.
For Chinese manufacturers, knock-down kit operations offer several strategic advantages: Access to international markets with lower trade barriers, Opportunities to learn from global partners, Reduced risk compared to full-scale manufacturing investments, and Flexibility to scale operations based on market demand.
Wei Jianjun’s recognition of these benefits suggests that Chinese automakers may increasingly pursue such arrangements as they expand globally. The relationship between traditional automakers and new EV startups continues to evolve. Partnerships take various forms, from direct collaboration to more arms-length arrangements like the knock-down kit model discussed by Wei Jianjun.
This case offers valuable insights for automotive industry observers and participants. The clarification from Wei Jianjun provides a window into how modern automotive partnerships actually work behind the scenes. The automotive industry benefits from clearer communication about the nature of collaborations.
The lines between competition and collaboration are blurring in the automotive industry. Companies may: Compete in some market segments while collaborating in others, Share technology while maintaining brand independence, Utilize similar manufacturing approaches while differentiating products, and Leverage common suppliers while developing unique features.
The automotive industry continues to evolve through various collaboration models, with knock-down kit operations representing one flexible approach to manufacturing partnerships. While Great Wall Motors maintains its independence from direct involvement with Faraday Future’s FX project, the acknowledgment of potential benefits from such arrangements signals broader industry trends.
