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back to index backASIAtalk June,  2017


Robots take over jobs in China's auto plants

Carmakers' reliance on automation and latest technology is driven by competition and the need to cut costs.

Even a decade ago, car manufacturing in China was still a fairly low-tech, labour-intensive endeavour.

Thousands of workers in a factory, earning little more than US$1 an hour, performed highly repetitive tasks, while just a handful of industrial robots dotted factory floors.

No longer. At Ford's newest car assembly plant in Hangzhou in east-central China, at least 650 robots, resembling huge, white- necked vultures, bob and weave to assemble the steel structures of utility vehicles and mid-size sedans.

Workers in blue uniforms and helmets still do some of the welding, but much of the process has been automated.

The state-of-the-art factory exemplifies the vast transformation that has taken place across manufacturing in China.

General Motors opened a similarly ultra-modern Cadillac factory in the eastern suburbs of Shanghai, as well as one in Wuhan. Other automakers are also pouring billions of dollars into China, now the world's largest auto market.

Robots are critical to China's economic ambitions, as Chinese companies look to move up the manufacturing chain.

The Ford assembly plant is across the street from a robot-producing factory owned by Kuka, the big German manufacturer of industrial robots that a Chinese company bought last summer.

For carmakers, the reliance on robots is driven partly by cost. Blue-collar wages have soared because multinational companies have moved much of their production to China even as its labour force is rapidly changing.

The combination of the one-child policy, which cut the birth rate through the 1980s and 1990s, and an eightfold increase in college enrolments has cut by more than half the number of people entering the workforce each year who have less than a high school degree and may be willing to consider factory work.

Blue-collar wages are now US$4 (S$5.60) to US$6 an hour in large, prosperous cities, though still far lower than in the United States.

Automation is also a competitive necessity. As carmakers jockey for customers' attention, they have no choice but to deploy the latest technologies, even in research and development.

The challenge is how to keep a competitive edge, while trying to prevent intellectual property from being copied quickly by Chinese rivals.

"We're basically building an R&D centre here in China, and test track, that is on a par with other parts of Ford" in North America, Europe and Australia, said Mr Mark Fields, chief executive of Ford Motor.

At the same time, he said, the company would protect its intellectual property.

Robots perform tasks like welding in exactly the same way every time, improving quality control. But they require a lot of fine-tuning along the way.

The painting process is also mostly automated. Elaborate spraying robots, their joints covered in many layers of plastic so that they do not become clogged with paint mist, snake back and forth across each car body.

Workers still apply protective sealant to the vehicles' interiors and under-bodies, as Ford has been leery of depending entirely on robots for this step until it is sure they work well.

More robots are scheduled to be installed in August, replacing manual labour for the protective sealant step as well.

Automation does not elicit the same fear of job losses in China as in the US. With car demand in China growing quickly, ever more factories and workers are needed to produce more cars.

"Robots aren't the threat," said Mr Paul Buetow, director of China manufacturing at General Motors. "The threat is not being able to run your business with products that people want to buy."

Source: Straits Times - GAI





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