Original by New Energy Outlook (ID: xinnengyuanqianzhan)

The drawbacks of car companies' price wars are experiencing a "blowout", and industry leaders are feeling uneasy.

"The cheaper the price wars get, the worse the quality becomes, and the worse the service experience gets. If this continues, the company will be ruined." Recently, at the "Shufu Public Class" of the Taizhou International Auto Industry Expo, Geely Chairman Li Shufu criticized the current chaos in the automotive industry, "Some companies have no ethics and are acting recklessly."

Great Wall Motor Chairman Wei Jianjun also stated that malicious competition is devastating to the automotive industry.

The remarks of these two industry leaders are heavy, but the reality may be even more severe.

As we all know, the shoddy workmanship encountered by consumers covers almost the entire vehicle body. This article primarily focuses on the "spot" of car paint to gain a glimpse of the "whole picture."

1. Is your brand-new car rusty?

There are many complaints about new car rust on the National Automobile Consumer Complaint Acceptance and Handling Platform. Typically, rust appears on cars after six years of use.

On September 26th, Sun Jian (pseudonym), a car owner in Zhanjiang, Guangdong, claimed that he purchased a small electric vehicle from a leading new energy vehicle company. After just one year, the car body had extensive rust, and the four doors had rusted and the paint had peeled off.

Image/Door Rust

Source/Photo provided by Sun Jian (pseudonym)

From the photos provided by Sun Jian, the car does not resemble a brand-new vehicle, even though it's only a little over a year old. Judging by the extent of the rust, it's not an exaggeration to say it looks like a car over 10 years old.

The car was purchased from a 4S store in Zhanjiang on June 28, 2023. After more than a year and three months, extensive rust appeared on the car, especially at the bottom of the four doors, causing the paint to peel off.

After reporting the vehicle's condition, the manufacturer's proposed solution was to leave the car for grinding to confirm whether the rust had penetrated the door. If so, the door would be replaced; if not, it would be repainted.

As the car owner, Sun Jian Speak frankly and openly that this solution was unacceptable. He believed that even if a brand-new car rusted significantly within a year, it was impossible for the entire door to rust through in such a short time. Secondly, the rusting started from the inside out, not due to peeling paint, but due to internal rust that caused the paint to burst. In this case, grinding and repainting would not solve the problem, and rusting would continue.

In fact, the car's issues went beyond just rust. Sun Jian admitted that he had already dealt with the 4S store's after-sales service several times due to various issues: first, a strange noise from the rear tailgate lock, which was repaired several times; second, a battery fault was detected, and while they initially said they would replace the battery, they later restored the data to normal. The entire process took a long time and required multiple visits. This rust issue was the third time.

In just over a year, this brand-new car had been to the 4S store countless times for repairs, and this ordeal continued with no end in sight. Sun Jian was determined to have the manufacturer replace the doors and refused to accept mere grinding and repainting.

Liu Meng (pseudonym) also struggled with rust issues. She purchased a plug-in hybrid vehicle from the same company and found extensive rust throughout the vehicle after a year, including holes in multiple coverings of the vehicle's overall structure. She contacted the 4S store and the manufacturer, underwent an inspection (without being told the results), and after half a month, the final solution offered was rust prevention treatment.

Image/Vehicle Body Rust

Source/Screenshot from New Energy Outlook on the Internet

Liu Meng stated that there were serious issues with the vehicle's overall structure, with severe rust at multiple welding points, resulting in holes. Even with rust prevention treatment, such a vehicle would still pose safety hazards during driving, affecting personal safety. How could anyone accept such a solution?

A netizen commented under Sun Jian's post, "Such severe rust issues suggest that rust prevention was not properly done during manufacturing." Liu Meng also bluntly complained that the rust on her brand-new car was due to manufacturing defects.

2. The buyer pays for what they get

In recent years, the automotive market has been embroiled in price wars, leading some manufacturers to act dishonestly. If you want to lower prices, they'll cut corners and skip steps to control costs. After all, once the new car is painted, consumers can't tell the difference for a while.

More and more car owners have discovered that their cars, which are only two or three, or even one or two years old, are already rusting, usually from the inside out. Many car owners wonder how their well-maintained and cherished vehicles could rust despite their care.

First, it's essential to understand the steel plates used in car doors and bodies. Typically, most cars use double-sided galvanized steel plates, which have a protective film to prevent rust. However, some car companies opt for cold-rolled steel plates to save costs during price wars. While cheaper, these plates have inferior rust resistance.

Image/Comparison of Two Types of Steel Plates

Source/Screenshot from New Energy Outlook on the Internet

Before painting, cars undergo a series of treatments, including an important step called electrophoresis, which can be thought of as a primer coat on the car body. Before applying the primer, the welded car body must be cleaned of oil and dust, a process called cleaning and degreasing. If not done properly, it can affect the adhesion of subsequent paint layers.

If manufacturers cut corners and fail to degrease thoroughly, oil stains in corners may remain. Just like oil on your hands makes it hard to grip things, the same principle applies to paint adhering to the car body surface. Over time, the paint may bubble or peel off.

Next is the phosphating process, which forms a phosphate coating on the car body surface. This coating serves two purposes: to help prevent corrosion and enhance the adhesion of subsequent electrophoretic paint. If phosphating is not done properly, such as due to incorrect temperature or insufficient time, the quality of the phosphate coating will be compromised, possibly resulting in an uneven or too thin coating, undermining the car body's rust prevention foundation.

Image/Microscopic View of Phosphate Coating

Source/Screenshot from New Energy Outlook on the Internet

Electrophoretic painting is a technical process requiring precise control of paint concentration, time, and temperature. Failure to do so can affect the quality of the electrophoretic paint, leading to uneven thickness or surface issues.

In summary, if inferior materials are used from the start, combined with lazy manufacturing processes, the car is bound to develop problems eventually. This is especially true for new energy vehicles, as their batteries and other components have high environmental requirements. Once rust appears on the car body, internal issues often emerge quickly and worsen rapidly.

Overall, a vehicle's durability and rust resistance depend significantly on the manufacturer's production processes and the quality of materials used. This underscores the adage that "you get what you pay for." When buying a car, it's crucial to consider not just the price but also quality and production processes.

3. Hurting the enemy while damaging oneself

The automotive manufacturing industry is currently engulfed in fierce price wars among various brands, with consumers seemingly benefiting greatly. However, as the saying goes, "The seller knows best." When a car that originally cost 168,000 yuan suddenly drops to 98,000 yuan, such a significant price reduction undoubtedly hides some secrets.

In fact, authorities are also cracking down on vehicle quality issues to serve as a warning.

According to an announcement on the website of the State Administration for Market Regulation on September 29th, 96,714 BYD vehicles, including domestic Dolphin and Yuan PLUS electric vehicles, were recalled due to manufacturing defects in the electric power steering column assembly (CEPS) controller, which could lead to safety hazards such as short circuits, overheating, and even fires.

Image/BYD Vehicle Recall Notice

Source/Screenshot from New Energy Outlook on the Internet

BYD Auto Industry Co., Ltd. and BYD Auto Co., Ltd. will entrust authorized BYD dealers to install insulating gaskets on the recalled vehicles free of charge to eliminate potential safety hazards.

Similar quality issues leading to recalls are numerous, especially during the intense price wars of the past two years. Consumers have had to frequent 4S stores due to manufacturing defects, incurring additional costs for repairs and replacement parts.

Take radiators used in cars as an example. Before price wars, OEMs offered higher procurement prices, and suppliers strictly adhered to national standards. However, during price wars, OEMs demanded cost reductions, leading suppliers to switch from national standards to non-standard production to maintain profits. This often compromised quality, with suppliers even further diluting production standards to meet OEMs' demands for cost reduction and shorter delivery times.

To survive in this market, cost reduction is essential. An interesting phenomenon has emerged: as the domestic supply chain becomes increasingly sophisticated, not only domestic carmakers but also joint venture brands are procuring more domestic components on a large scale.

Price wars often result in mutually assured destruction, with both sides suffering significant losses. Prolonged price wars could lead to widespread supplier defaults, posing a significant threat to the automotive supply chain.

Therefore, it's crucial to recognize that domestic carmakers' price wars aimed at ousting joint venture brands may not necessarily be a positive development. A healthy industry requires sufficient profits to ensure sustainable growth, and competition from strong rivals spurs continuous improvement and strengthening.