Profile

Curie Chen, vice president of Fuyao Group, is in charge of the global automotive replacement glass(ARG) business of Fuyao. Once majored in computer management information system in Beihang University, Curie Chen joined Fuyao Group after his graduation in 1989.In 1994, he was appointed as the vice president of Fuyao, and from then on, he has spent most of his career time in Fuyao taking responsibility of the sales of automotive replacement glass. Fuyao Group has become the main supplier in the global market of automotive replacement glass.He is also sophisticated in quality system, supply chain management, overseas operations management outside China and original supporting business.

China is the biggest new car single market. In 2023, a milestone event took place that China had further developed into the biggest car exporting country around the world. Now China is no doubt a automotive power whose new automotive technology and quality has reached the international level. 

China is also the largest car ownership country. The average age of cars in North America and the European Union (the second and third largest markets) is 10 years, compared with which the 6.5 years of that shows China’s after-service market is one of the most dynamic and valuable market and it also means a broad stage of development for automotive after-sales service market participants. The auto parts industry, including auto glass manufacturers, has ushered in an astonishing development in the past 20 years. The auto glass industry is no exception. In addition to the new car origin supporting business, the supply chain circulation amount for auto glass after-sales repair, replacement and calibration has exceeded 30 billion yuan.

The great development of China’s automobile industry has led to the technological innovation of automobile parts suppliers, whose manufacturing abilities are also constantly increasing. Moreover, they have achieved many amazing advances in automation, intelligence, electrification and lightweight. With the belief of ‘setting an example for professional suppliers in the automotive industry’ and ‘making a piece of automotive glass for Chinese people’, Fuyao Group has now become the world’s largest supplier of automotive glass and a leader in technological innovation. It has also made great contributions to the development of the automotive industry. In this background, China has formed a huge automotive after-sales service market in a short period of time, but there is a market reality that does not match the pace: in terms of the automotive glass after-loading market, the proliferation of sub-standard unqualified products and fake and shoddy products has a significant impact on customer’s safety.

Automobile glass is a structural safety part of automobiles. Fuyao can manufacture high-quality automobile glass, which can be called it has walked 99 miles if the whole process of automotive production is 100 miles. Whether the owner and passengers can be safely sent home depends on the installation of qualified automobile glass, namely the last 1 mile for the whole process of automotive production. The Fuyao brand is so well-known at home and abroad that the majority of car owners are familiar with it, but they are suffering from the inability to obtain the authentic Fuyao original car glass in the post-service markets because it is difficult to distinguish between original glass and counterfeit glass.

Whether it is insurance companies which are at the top of the post-service market pyramid, legal auto glass manufacturers including Fuyao, or wholesalers’ installation stores in the downstream, the majority of them are struggling without making money, some even having already lost money. Such a bad situation means that the automotive glass after-service market needs an urgent transformation, including the transformation of product quality enforcement, supply chain digital management, installation standardization, and the creation of a fair competition environment under legal compliance. Therefore, it is very important to create a healthy and efficient automotive glass after-sales service market.

At the ‘2023 Second CARG Automotive Glass Forum’ held on November 18, Fuyao ARG Group President Curie Chen delivered a keynote speech on ‘Digitalization, Products, Services, and Responsibilities’, comprehensively introducing the operating model and vision that CARG (China Auto Parts Glass Standard Coding System) platform is dedicated to establishing a standard for the automotive after-sales service industry. He said that CARG aims to set standards for the auto replacement glass industry, improve the operation efficiency and digital management level of the industry, and help build a digital China.

As a leader in the glass industry, Fuyao Group has such a unique ingenuity that it creates Fuyao’s brand image with its staff, product, quality and taste. Committed to setting a model for professional suppliers in the automotive industry, Fuyao has also been constantly extending its industrial chain and the boundary of ‘a piece of glass’. So, in the post-service market, how does Fuyao’s glass provide quality assurance for consumers? How to promote the reform of supply chain digitization and standardization, as well as the reform of the insurance industry and the improvement of automotive glass safety regulations? How to be a leader in the development of automotive glass industry ? To this end, the reporter interviewed Curie Chen, President of Fuyao ARG Group.

Finish the last 1 mile of glass production, that is, protect consumers to go home safely with qualified automotive glass installation 

Interviewer:
Fuyao is an internationally renowned manufacturer of automotive glass, and the CARG event is a skill competition event for automotive glass installation. As one of the organizers of the event, what is your original intention ?

Curie Chen:
Our original intention is to use authentic Fuyao automobile glass to safely send car owners and passengers home. To implement this, I believe that the most important thing is to complete the 99 miles of the supply chain plus the last 1 mile of the installation. Even though Fuyao has made the best products, the best products may not be able to play its due role. So we need to finish the last 1 mile, qualified car glass installation. This is like good pain will eventually fall out if the bottom of wall putty is not brushed well. Therefore, it is terrible that the product is not installed correctly. But what is the correct installation? First of all, to select an eligible automotive glass technician to complete the glass disassembly and replacement according to the standard installation process. Secondly, to select qualified glass glue and other sticking excipients. There are glues for windows and special glues for automobiles, and the price for the latter one is almost 20 times higher than the former one. This is because the automobile moves at a high speed, and its performance requirements for the glue are completely different. Therefore, after loading the car glass, even though there seems to be no problem at a glance, once the car encounters a crash, glass flying off, airbag valgus, people falling forward and so on may occur, which are likely to cause serious personal safety problems. Based on this, in addition to providing consumers with a piece of qualified automotive glass, Fuyao also cooperates with the automotive glass after-sales market service expert Yidao Daka. Through Yidao Daka, the standard of automobile glass installation service can be formulated, so does the qualification of automobile glass technician training and certification. All of these can ensure the quality of automotive installation, and further protect consumers.

Interviewer:
At present, many fake and shoddy products are flooding the automobile glass market, doing great harms to consumers. So, what has Fuyao automotive glass done in the post-market service ? What benefits can be brought to consumers by choosing Fuyao’s glass ?

Curie Chen:
Whether it is the Chinese national standard or the standards of other countries, all require the trademark information printed on automobile glass to be permanently non-removable. The information should include the manufacturer’s trademark, certification number, production date and batch, so that the manufacturer can be identified and responsibility for permanent traceability of manufacturing defects can be established.

 In order to evade supervision, some illegal manufacturers use low-temperature removable black ink to print trademarks in glass during such process as production, supply chain circulation, warehouse storage and when glass comes to stores, before installation, they will arrange technicians to erase the trademarks with alcohol and disguise their glass as Fuyao’s glass or other original glass to deceive consumers and deceive insurance companies. In this way, they can extract high illegal profits. These illegal manufacturers include many 4S stores.

Fuyao adds an unique and permanent anti-counterfeiting traceability code to every accessories front windshield in the Chinese market, and uses a tracking number containing human-machine material information to monitor Fuyao’s production process. In these two ways, wholesalers and store consumers can be connected. Once the replacement is completed, technicians can lock the traceability code on Fuyao’s digital platform. If it reappears in the market, consumers can know it is counterfeiting. So no one can make fake and shoddy glass. This is a major feature of the digital identification of Fuyao’s glass. This traceability code further binds the auto glass installation store certification number and the certified technician number. Then, 100 miles are completely closed-loop and traceable.

In this way, consumers can identify whether it is Fuyao’s authentic automobile glass as long as they scan the anti-counterfeiting traceability code with Wechat. Insurance companies can find stores, technicians or glass suppliers only by referring to the traceability code in claims records, by which whether it is a service issue or product issue can be defined without omission. Some insurance companies take pains to do product certification but there are more than 4000 kinds of cars on the road, and every car has tens of thousands of parts, each of which has dozens to thousands of suppliers. Product certification is impossible to carry on and take effects. For Fuyao, it will be responsible for life for every manufacturing defect of its glass.

Consumers are not familiar with the product attribute and quality of automotive glass, resulting in their dependence on original parts, giving illegal manufacturers of counterfeit glass an opportunity. Fuyao is committed to making high-quality automotive glass, which is to tell the whole market that this is the brand they should trust.

After more than 30 years of development, together with the abundant experience and powerful strength for large-scale original new car matching, Fuyao Group provides after-service markets for cars with automobile glass products with the same quality, and implements the same management system as the new car matching supply for the raw material source, production technology and manufacturing equipment, process control and quality control of automobile glass. Fuyao carefully do a good job of each piece of glass. For the last 1 mile, the installation of automotive, Fuyao cooperate with Yidao Daka, promoting the installation and service management of the store side normalization, standardization and digitization, determined to send the car owners and passengers to home safely and help insurance companies control risk.

Fuyao accessories replacement glass implements a one-code anti-counterfeiting traceability system, making production, circulation and installation are permanently traceable. Fuyao is also responsible for manufacturing defects for life, so that fake and shoddy glass has nowhere to hide.
 

Advancing the Digitalization and Standardization of the Supply Chain,  Aiding the Industry in Reducing Costs and Enhancing Efficiency

By Reporter
What kind of measures Fuyao Glass has taken to promote the digitalization and standardization of its supply chain?

Curie CHEN
Firstly, CARG is the identity card system for Chinese automotive glass parts. 

The CARG system integrates over thirty years of product technical data from Fuyao, creating a unique "identity card" for each piece of automotive glass, covering all standard vehicle models nationwide. 

From product development, production material lists, production process management and tracking, to inventory management and store-side distribution, it achieves end-to-end management of the entire supply chain with a unique code for each item. 

This establishes the CARG coding system as the foundation for the digital management of China's automotive glass supply chain.

This foundation further extends to assisting in digital management of insurance claims. Due to data barriers between various car manufacturers and insurance companies, 4S stores do not share data with insurance companies. 

CARG provides a one-stop complete data foundation that covers all aspects.

Secondly, CARG also serves as the "United Nations Identity System" for global automotive glass. 

Fuyao has linked U.S. and European numbering with Chinese codes, which means that the CARG system covers the glass numbers for over 80% of the world's automobile models. 

The CARG system is unique in the global automotive aftermarket. Any supply chain software system or global automotive glass installer that aims to claim a global presence cannot be considered as such without the CARG system. 

This is where the value of the CARG system lies.

Once again, before a CARG code is installed on a vehicle, it is merely a code that does not require supply chain participants to pay excessive attention to a piece of glass in circulation and its application, thus enhancing the efficiency of the supply chain. 

However, this glass will eventually return to its practical use, that is, being installed on a vehicle. At this point, CARG helps facilitate the connection between stores, TPA call centers, and the vehicle owners' cars, greatly improving efficiency. 

The CARG system includes information such as vehicle images, glass images, glass shape and size, glass color, installation position on the vehicle, and functional accessories. Vehicle owners can determine the exact glass they need by providing part or all of their vehicle information. With an accuracy rate exceeding 97%, 

this significantly reduces the waiting time for service for vehicle owners and also lowers various hidden losses in the supply chain caused by misidentification of glass leading to redelivery, replacement, recalibration, and compensation. 

We are also actively following the development of AI technology; in the near future, it may be possible to identify the glass simply by scanning the vehicle and the glass itself.

Furthermore, product identification is the starting point of supply chain operations. The efficiency and accuracy of product identification lead to a decrease in operational costs, benefiting insurance companies as well. 

In the past, for automotive glass claims, insurance companies had to maintain databases for tens of thousands of parts and their corresponding databases for different vehicle brands.

They had to deploy large-scale survey teams nationwide. 

When faced with uncertain product configurations, surveyors had to engage in complex communication and verification before making a final confirmation. 

Incorrect judgments could affect subsequent claims assessments and even lead to insurance fraud. 

Now, the CARG database covers all brands and models, making product identification simple and efficient through intelligent analysis. 

Each piece of automotive glass replaced by Fuyao in the aftermarket is labeled with a CARG code, establishing a one-to-one correspondence between the system and the physical item to prevent insurance fraud. 

In addition, with the involvement of third-party professional automotive glass TPAs (Third Party Administrators), which undertake tasks such as surveying, assessing losses, and handling repair claims on behalf of insurance companies, the operating costs of insurance companies will be significantly reduced.

Finally, the unification of CARG product codes and the construction of information systems facilitate the standardization, transparency, and efficiency of product pricing.

One code identifies the product, and one code reveals the price. 

Do you know how we used to quote prices in this industry? Stores would send text or photos to dealers asking for quotes. 

Dealers had to spend time decoding, communicating, and confirming. Many customers were lost during this waiting process. Now, they place an order with just a CARG code, and the system can immediately retrieve the standard price. 

For example, in the past, when insurance companies handled cases, they had to inquire about prices from different service providers across the country. Tens of thousands of glass part codes and tens of thousands of automotive glass service providers lacked a unified coding system; this was a massive task of comparing prices.

To address this, our partner YiDao DaKa has established a unified service price for stores nationwide based on CARG codes and achieved systematized instant quoting. 

In fact, this model has existed in North America for 70 years already. We have already made some breakthroughs domestically and will continue to drive transformative improvements.

In conclusion, the CARG coding and its system serve as the foundation of the supply chain and are an indispensable basis for business operations. 

We are promoting this system to our industry partners, including insurance companies, dealers, stores, and even our peers, enabling the entire industry to collectively enhance digital management efficiency and drive the development and progress of the industry.

Fuyao Automotive Glass Smart Factory has established digital channels at various levels, achieving customized products, automated manufacturing, and intelligent operation models. 

The project has been selected as one of the first batch of smart manufacturing pilot demonstration projects by the Ministry of Industry and Information Technology of China.

By Reporter:
In this 2023 CARG & AGTS AGRRR Competition for the first time, "ADAS calibration" has been included in the evaluation criteria for glass installation. However, in reality, when it comes to glass replacement and repair, ordinary car owners have seldom heard of this item. What is the significance of this innovation in the competition format?

Curie CHEN
We have observed that in the newly launched car models this year, over 70% of them are equipped with front-facing cameras. 

This means that at least 70% of new vehicles are equipped with Advanced Driver Assistance Systems (ADAS). It is expected that in the next 5-10 years, almost all new vehicles will be equipped with this feature.

The ADAS system is the precursor to fully autonomous driving. 

Currently, consumers are more familiar with features such as forward collision warnings, lane-keeping assistance, and lane departure warnings. These functions mainly rely on cameras mounted on the car's windshield to gather information from the vehicle's external environment. This data is then analyzed by the onboard computer to make decisions and issue warnings to the driver and passengers when danger arises. 

This requires that the automotive glass installed ensures that the signals captured are not weakened or distorted when passing through the glass, which could lead to misjudgments by the onboard computer.

This poses more stringent requirements for automotive glass manufacturers and replacement professionals. On one hand, glass manufacturers need to have the capability to produce original equipment, using the float glass formula, and producing glass shapes and optical properties that meet the design requirements for ADAS functionality. 

The glass should also come equipped with camera brackets that adhere to the original equipment design, ensuring the precision and fit of camera installation by automotive manufacturers or glass replacement service providers.

On the other hand, when the front windshield is replaced, the camera needs to be removed and reinstalled after the glass replacement, which alters the original factory reference plane for the camera. Since these devices have been removed, ADAS systems must be recalibrated, similar to zeroing an electronic scale before use.

Otherwise, if an ADAS system measures a distance of 50 meters from an obstacle but in reality, only 10 meters remain, the onboard computer may not apply immediate braking as it believes there is no need to do so, leading to accidents. The risks of an uncalibrated ADAS system for vehicle owners are evident.

In the maturation process of ADAS technology, corresponding revisions and updates are needed for the supporting traffic regulations, insurance regulations, and manufacturing and repair standards for automobiles and parts.

In the more mature automotive after-service markets of Europe and America, after the replacement of the front windshield, to ensure driving safety, insurance companies not only mandate 100% that service shops perform ADAS recalibration but also have established a reasonable compensation price for recalibration (about $150-250 per instance). 

The insurance claims responsibility is not just to compensate the car owner with a new windshield, which is product liability; essentially, it must recommend qualified service providers to the car owner and restore the vehicle to its original factory quality state. On this point, insurance companies are the primary legal responsible party.

In China, since the auto insurance reform in 2020, automotive glass coverage has been incorporated into the main vehicle damage insurance, making insurance companies 100% responsible for automotive glass claims.

However, currently, Chinese insurance companies have not yet recognized the important connection between automotive glass replacement and ADAS calibration, nor have they realized the legal responsibilities associated with ADAS calibration. Some insurance companies have not included the cost of ADAS calibration in their standard compensation items. Consequently, consumers, relying on their insurance providers, remain unaware of this safety risk. 

For the hundreds of millions of car owners nationwide, this represents a significant safety vulnerability! We hope to leverage the national automotive glass installation and repair competition organized by CARG to call for industry attention to include ADAS calibration as part of insurance claims.

By adding a mandatory ADAS calibration component to the competition, we aim to encourage automotive glass service providers across the country to equip themselves with qualified ADAS facilities and continuously improve their ADAS calibration capabilities, thus providing consumers with a final layer of safety assurance.

Through comprehensive supply chain communication,

We practice social responsibility and highlight corporate commitment.

By Reporter:
The CARG automotive glass event not only includes competitions in automotive glass installation and repair and ADAS calibration but also features an automotive glass forum and product exhibitions from upstream and downstream supply chain participants. 

In addition to automotive glass dealers and stores, attendees include insurance companies, OEMs, and suppliers. What kind of concept do you wish to convey to the market through this event?

Curie CHEN
The problems we talked about earlier are the pain points of the whole industry, and standardization and digital change are the general trend of the industry, which also makes the whole supply chain benefit significantly.

This change cannot be accomplished by one party alone, but requires the participation and joint efforts of all, and the practice of social responsibility by all people to join hands in reforming and creating a model.

Therefore, the CARG & AGTS AGRRR Competition creates a good platform for communication and exhibition, so that the relevant parties can know enough about us and see the efforts we have made for so many years; 

and the community can understand that consumer safety requires qualified auto glass manufacturers, auto glass installation service providers, installation auxiliary material suppliers, and installation equipment suppliers, as well as the proper guidance of insurance companies and automobile manufacturers.

Our event is held every two years. From the initial exploration in the first session to the maturation in this session, it has gained increasing recognition from the industry and end markets. 

The participating units this time include not only our thousands of dealers and store managers, technicians, but also Fortune 500 material and equipment suppliers, our overseas partners, the most professional international automotive glass installation service providers, 

as well as insurance companies that occupy over 80% of the domestic auto insurance market and automobile manufacturers. Their presence greatly enhances our confidence and determination in reform, while also promoting the exchange of advanced ideas, models, technologies, and experiences at home and abroad. This accelerates the process of innovation and reform in China.

I firmly believe that this industry will become better and better. I am confident about it!