(SANITIZED)CHICOM RAILROAD EQUIPMENT AND MOTOR VEHICLE INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04546A003100080008-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 19, 2016
• Document Release Date: September 28, 2006
• Sequence Number: 8
• Publication Date: March 6, 1967
• Content Type: REPORT

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 Approved For Release 2006/09/28: CIA-RDP78-04549@J1197t467 (3 of 3)
Photos and Features of Chinese Industry, No. 70, 15 June 1966.
PRODUCTION OF NEW MODELS BY CHINESE AUTOMOBILE INDUSTRY
A Chinese automobile industry delegation invited by the Japan- China l~rade
Promotion Association is expected to visit Japan. It is believed that the Chinese
will gain a lot from the Japanese automobile industry, which has made a phenomenal
progress in the recent years. Trucks built to withstand rough roads and yet econo-
mical to operate will be of great interest to the Chinese because of the rough reads
and high cost of gasdline in China.
From Reconstruction to Adjustment
Since the first Chinese truck called "Chieh-fang" was produced by the Ch'ang-
ch'un Neel Automobile Plant in July 1956, various models have appeared. The pro-
duction of vehicles increased from 1,6514 in 1956 to 7,500 in 1957, 16,000 in 1958
and 19,1400 in 1959 (according to Soviet report) and the number of types has increased
to over 200.
However, China went into a period of adjustment in 1961 after the three succ-
essive years of natural calamities and the total withdrawal of Soviet economic
aid and technicians. Many of the automobile plants were changed over to marifacture
of parts and agricultural equipment. The number of types was reduced to nine and
these were manufactured by the Nanking Automobile Plant, Peiping Automobile Plant,
Shanghai Automobile Plant and the Chi-nan Automobile Plant.
TO withdrawal of Soviet materials, parts and oils was a great blow to the
Chinese automobile industry. The production of Neel Automobile Plat, which was
scheduled to produce 120,000 vehicles, was cut drastically. It wasn't until 1964
when the plant finally produced 2.7 times that of 1957 (7,S00).
-'I-
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'Redevelopment of Automobile Industry
In 1965, the No. 1 Automobile Plant increased its production by 140.8 % ever
19614. New model 3 ton, 5 ton and 7 ton "Chieh fang" trucks and new luxury sedans
called "Hung-eh'i" were designed and test produced. A mass production of heavy
duty "Chieh-fang" trucks started. A rate of self-supply of metals needed for the
manufacture of'automobiles was increased to 98% in 1965 from 19% in 1956. Rubbers,
glass, asbestos etc are now self-sufficient. Fuels and lubricating oils are also
self-sufficient through progress made by petroleum industry. A new model celled
"Shanghai" [sedan] was produced during 1965 in Shanghai. Tientsin started prod-
ucing light duty trucks, land cruisers and 9 passenger buses and Chungking began
producing 25-ton dump trucks. In addition, Shanghai started producing light weight
electric cars (all metal, 2 doors, 14 passenger, maximum speed of 33.14 kWhr and
electrical supply for 80 kn); Fu-chou Automobile Repair and Assembly Plant started
producing 500kg capacity three wheelers for both passengers or cargoes; and the
Kuang-chou Three Wheeler Management and Repair Shop started producing 300 kg capacity
three wheelers (speed of 30-35 km/hr). China proved again the geed results obtained
through working out its own problems.
Self Sufficiency of Steel Surpassed 98%
Most of the rolled steel materials were imported when China first started
building automobiles. This net only wasted foreign currencies but restricted the
progress of automobile industry. Therefore, China made an effort to increase the
rate of self-sufficiency first. During the second 5-year plan (1958-1962), industries
engaged in metallurgy, chemicals and petroleum gave priority to materials and fuels
needed by the automobile industry.
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The iron and steel industries cooperated in providing superior quality steels
for automobiles. A steel plate plant of the Anshan Steel Company responded to an
urgent request of the Neel Automobile plant for wide steel rolled materials for
roof tops. Shih-chin-shan Steel Plant in Peiping was asked to produce propeller
shafts of high quality which were being imported but the plant was not equipped with
a high precision roll to roll shaft pipes. In 1963, the Neel Automobile Plant built
a roller system for the Shih-ching-shan Steel Plant and within a month the Shih-
ching-shan plant overcame various difficulties and started producing the precision
shafts.
Development of New Alloys
A superior performance is demanded of automobile shafts, gears, cylinder blocks
and marq other parts. Some requires hardness but not brittle and some requires
toughness and not soft and some requires hardness on the outside and toughness in
the inside. The Neel Automobile Plant were using a normal foreign method in prod-
ucing parts from chrome steel and chrome cast iron, but this method consumed 5 kg
of pure chrome per truck. Since chrome is relatively valuable, a substitute element
became necessary.
In February 1959, no-nickel "Chieh-fang" trucks were teat produced. A saving
of 99.l3% in nickel and 29.58% in chrome was realized. This resulted in a saving
of 3kg of nickel per unit.
In 1958, the Noel Automobile Plant and the Pen-ch'i Iron and Steel Plant
worked jointly to Bind a substitute for chromes used in automobiles. They produced
and tested nihe different alloy steel materials and discovered parts made out of
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some of these alloy steel materials were either equivalent or superior to the
chrome alley.
Several hundred "Chieh fang" trucks using the new alloy materials proved
superior after the three year testa Tests were conducted under varying conditions
such as on hilly roads with many curves, high altitude, desert area and rai Wland
swampy area. These trucks were dismantled after ?80,000 to 160,000 km but the gears,
shafts and other parts were still normal and the wearability of cylinder blocks
proved very good. A formal production of this type will begin this year. The
discovery of new alloys is not only significant to automobile industry but to all
machine industries.
Development of New Techniques at No.1 Automobile Plant
Development of new techniques, processing methods and facilities is being
promoted constantly by the Chinese automobile industry. Since the first production
in 1956, the Neel Automobile Plant has progressed into building luxury type sedans
in 1959 through a technical reform. The designing and testing of this new luxury
automobile overcame over 600 technical problems. During the process, new techniques
for production of high speed bearing metals, high pressure oil pump, hydraulic
piston rod and noiseless gears were developed.
About 80% of the manufacturing methods used in the production of parts for
"Chieh-fang" trucks have been reformed. Fourteen hundred pieces used in engine were
imperved. The engine output, horsepower, speed and fuel consumption were improved
beyond the specifications set by foreign countries. They also reduced the cost of
production through improvement in production method ant economy in the use of raw
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materials.
A mechanization rate at No.1 Automobile t'lant was very high but bottlenecks
still existed. In overcoming these. bottlenecks, over 3,400 items were improved
dubing last year. The use of carbon disulfide gas protective welding [literal
translation, electric pulse processing for forged tools, new heat resisting steel
in place of nickel-chrome steel greatly improved the production. An use of arc
welding of spokes required a man to weld 20- 30 pieces, whereas, the use of carbon
disulfide gas protective welder increased the number to 80 pieces. Wheels de-
partment once went through 50 separate processes but the same processes are now
being carried out in a one continuos operation.
ant of Tools and Facilities
The heat treatment shop lacked a capability of galvanizing and the quality
of galvanizing was very poor. The shop was given 170,000 yuan by the government
to purchase a galvanizing machine; however., the workers renovated the existing
facility for slightly over 10,000 yuan. The galvanizing efficiency was doubled
and the quality was greatly improved.
Through a technical reform, operators of close to 100 machine tools almost
double their productivity.
Dynamic equilibrium testing machine was not produced in China and the import
of this machine meant a considerable expenditure of foreign currencies. Engineers,
technicians and workers decdAed to design and build their own and succeeded in
producing one in four months. They also succeeded in producing their own rolling
tools needed for processing the internal surfaces of cylinders of over 1 meter long.
-1 -
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Many of the imported facilities weto improved. In the case of heating furnaces,
internal structures were renovated to increase the productivity by 30- 80%. A box
type heating furnace used in forging plant was an obsolete model of 1930 but the,
workers without any plans or blueprints designed their own small heating furnace
which took up only a of the floor space and the weight was reduced by 1/13. The
production was doubled and the waste wads reduced. Recently, a medium size heating
furnace was successfully built. In addition, two medium size heating furnaces of
different characteristics are being installed.
New Products Through Reform in Industrial Management and Production System
In the past, the Chang-ch'un Ne..1 Automobile Plant used a "western system"
of industrial management but was changed to a system of placing responsibility
on plant chief under the guidance of the communist party committee. Cadres, workers
and technicians work together. They even go to test areas in desert, mountains and
rough terrains to gather test data to improve their products. In the "western
system", a production of a new model requires several years but the workers of this
plant have made possible to mass produce a new model "Chieh-fang" heavy duty trucks
in shorter time through rational planning and distribution of production facilities
and tools.
The production of a new model "Hung-ch'i" was also speeded up. This is a
3 seats, 6 passengers luxury sedan using a hydraulic automatic transmission and
new types of*frame and V type engine. It is good looking, powerful, speedy, stable
*von around curves and has a well balanced design. It is equipped with sound proof
glasses betwen each row of seats and has an electric temperature control. Specialists
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claim that this new "Hung-ch'i" model has reached a top level internationally in
outer design, internal furnishings and in performance. "Strictness", "carefulness"
and "exactness" were the workers' motto. They placed responsibility on quality and
over 5,000 pieces used in this model were carefully checked. Over 80 cooperating
enterprises gave priority on parts used in this "Hung-ch'i". They supplied expe-
ditiously over 800 parts of high quality to the No. I Automobile Plant. T#ese
factors contributed greatly in the production of this luxury model in such a short
time.
Automobile Plant From Small Plants
Like the Chang-ch'un No.l Automobile Plant, other.autemibile plants were also
repair shops at the beginning. The development of Chi-nan Automobile Plant, which
produces 8 ton trucks, is a most typical axample.
In 19149, this automobile repair shop had 200 employees and about 8 old belt
type lathes. The present deputy chief and concurrently a chief engineer is a war
veteran who repaired captured automobiles in a small shop. After he came to this
plant, the government provided with an investment for an expansion of the plant.
It started with the production of automobile parts and in 1958, small type jeeps
and two types of small trucks have been test produced.
The great leap forward program of 1959 placed a heavy load on motor transp-
ortations. A demand for trucks could not be met. Therefore, this plant requested
the government to take over the test manufacture of 8 ton trucks. The First
Ministry of Machine Industry approved the request. Designers used foreign blueprints
as references and some were despatched to foreign countries to study the use of
similar type trucks to be built and they came up with th&ir own design.
With the exception of 6135 type diesel engines being supplied by other plants,
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over 3,000 parts requiring complicated forging and precision are all manufactured
by this plant. When the test manufacture of trucks started, only a 250 ton hydrau-
lic press and a few multi-use machine tools were available. However, through tech-
nical reforms, facilities were renovated to mass produce vehicles. Since a large
chassis frame press costs over 2,000,000 Yuan and requires a larger building to
house it, workers tried presaging out chassis frames using 250 ton press in several
stages. However, the frames produced were distorted. The use of hydraulic jack
press by another plant to press out chassis frames came to their minds and in nine
months and a few thousand yuan they succeeded in producing a simple 1,050 ton
special press with 6 hydraulic cylinders. In addition, the workers resolved over
100 specialized facilities. It took them four years to test produce their first
vehicle but the cost to the government was only 1,000,000 yuan.
A test manufacture of 8 ton trucks was completed in 1963. Since Chi-nan is
located on the shore of the Yellow River, these trucks were named "Huang He" [Yel-
low River]. A test proved the trucks to be superior in performance and durable.
A mass production of this model started in 1964 and it is possible to change over
to a production of dump trucks and buses using the same chassis if neceasary.
The Nanking Automobile Plant, which produces 2* ton "Yueh-chin" trucks, was
also a repair shop emplpying only 30 people. It became a manufacturer of automo-
bile engines since the liberation. A test manufacture of automobile started in
1958 and is now producing automobiles.
Special Emphasis on Specialized Cooperative Enterprises
Automobile industry includes related industries which produce parts, raw
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materials and various equipment. Chinese automobile industry is placing a special
effort in the development of cooperative enterprises and in specialization. The
dependence on import of materials and parts from foreign countries was unavoidable
when Chang-ch'un Automobile Plant tried to become an all purpose plant with very
little reliance on related industries.
The Nanking Automobile k'lant started on a policy of manufacturing mainly the
engines and have specialty plants supply the other parts necessary for the prod-
uction of automobiles. They received cooperations from ever 60 plants in 11 Pro-
vinces. The Shanghai Automobile Plant manufactures only the bodies but has 120
specialty plants for other parts, for axample, engines come from"Shanghai Internal
Combustion Engine and Parts Plant and the chassis from the Automobile Chassis Plant.
Tpese specialized plants concentrate on few parts which contributes toward
the improvement in workers techniques and the quality of products. Each cooperating
industry exchange information and gives mutual technical assistance to produce higher
quality goods. The production of three wheelers in Shanghai was greatly accelerated
through use of this system.
This system is also more economical. A minimal expansion and increase of
facilities at three small and medium size plants, which supply parts to Shanghai
automobile industry, costs only 1/10 the amount needed to build a plant large
enough to produce the same amount of parts. The expenditures of these three small
and medium size plants amounted to only 15% of the profits offered to the government
during the second 5 year plan whale engaged in the manufacture of three wheelers.
The "Fong-huang" sedans, which have been manufactured by the Shanghai Auto-
mobile Plant for 8 years, have changed the name to "Shanghai". This plant is also
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producing an open car called "Shanghai" SH 761.
The Shanghai Automobile and Parts Plant is htighly automated and the effi-
ciency of this plant's single automation line is regarded superior to similar types
in other countries and the cost is only 1/7 of the imported price.
Gear Plant in Chungking; Now Producing 25 ton Ihmep Trucks
The Kung-chiang Gear Plant in Chungking, which produced only parts for auto-
mobiles in the past, has succeeded in the manufacture of "Hung-yen" 25 ton dump
trucks through cooperation from 60 plants of Shanghai. This model was given en-
durance tests at both northern and souther regions. The design, structure and
the usage proved superior. It is faster, has better turning radius and more ecen-
the
emieal than imported models of similat type.
Some of the plants, which supply parts for the Mung-chiang Gear Plant, not
only provided parts but have contributed technical data as well.
132 Plants Cooperate in Producing 3 Models in Tientsin
Tientsin has succeeded in test manufacture of light duty trucks, land cruisers
and 9 passenger buses through cooperation of 132 plants and industrial cooperative
unions.
These plants formerly produced fragile parts but the quality, amount and the
delivery of parts are now guaranteed after these plants were placed under a joint
management of the city. A system of "Joint designing, dispersed production and
centralized assembly" is practiced. These plants have been allocated to specialize
in manufacture of automobile parts, cast and forged parts, rubber products, plastic
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and glass products.
Several hundred special facilities and several thousand processing facilities
are required in the manufacture of automobiles. The Chinese overcame the problems'
and succeeded in designing and manufacturing 7,000 processing and 130 specialized
facilities in nine months. The structure of most of these facilities is simple and
the quality is very good. They are also efficient and not expensive.
All cars seen in Shanghai prier to 1958 were imported models. Some remarked
that Shanghai was an international fair for foreign cars. Today, however, cars
and three wheelers, "Chian-t'ung" trucks, "Hai-ou" mini-cars, "Hsing-fu" motor-
cycles and "Shanghai" sedans are all produced in Shanghai. Although China has a
long ways to go to meet the demand of the nation but has gained tremendous exper-
iences during the last 10 years of struggles.