What happens when China, one of the world’s
most fiercely competitive manufacturing countries, goes up against Tesla, an American super-company
devoted to revolutionising the way we think about personal transportation? While the Chinese government is renowned for
imposing strict import regulations on other countries and companies, its deal with Tesla
hits just that little bit more different. The company’s third Gigafactory is the result,
but what lies within? Join us on this adventure 90 minutes’ drive
outside of Shanghai’s city centre to a once barren plot of wasteland. Giga 3 is big news, not only for Tesla, but
in Chinese, and global, history. Upon completion, it became the first fully
foreign-owned factory in China, marking the country’s change in attitude towards imports,
further testified by the government’s involvement in re-opening the facility’s doors following
a temporary ban on all business at the start of the coronavirus pandemic, including the
distribution of PPE and the organisation of transport to and from the site, as well as
accommodation for workers. Before we open the doors on what’s inside,
let’s first get to grips on how Musk and his team transformed this plot of land. The first step was to secure the 86-acre plot
of land in a 50-year agreement at the cost of 973 million yuan, approximately $150 USD,
in July 2018. By the end of Summer 2019, all building work
had been completed in a timeframe half that of the Nevada factory, which took around 2
years from start to finish. After a few more months of moving machinery
in, the first ‘Made in China’ Model 3 rolled off the production line in December
2019 in its non-standard blue colour. Tasked with eventually producing 300,000 Model
3s and 250,000 Model Ys from its Shanghai factory, Tesla will export only one fifth,
with the rest destined for customers in the world’s largest car market. Of the 21 million cars sold in China in 2019,
between 1 and 1.5 million were EVs. The first look we had of the factory was in
a YouTube video posted by Tesla China themselves, consisting of less than 50 seconds of shots
of the assembly line, including robotic arms many times the size of the human body, as
well as harmonious work between robots and humans. Recent tours of the Shanghai-based manufacturing
plant compare with what we know of the company’s first-born, the Fremont factory based in California. Videos of Giga 3 show tens upon tens of truck
ports which allow for multiple deliveries and collections to take place simultaneously. This type of timed manufacturing based on
a Toyota model known as ‘lean manufacturing’ means that the right parts arrive at the right
time, making the process both cheaper and more efficient by minimising waste and maximising
productivity. Inside the four walls, machines do the hard
work while humans perform the tasks that cannot be replicated by machinery. Both work in harmony, often on the same production
line, to ensure that quality is delivered at every step. Robot-only areas are strictly monitored by
the staff, who occupy miniature booths inside the building with windows and viewing platforms
to overlook their area of responsibility, while cameras cover areas that cannot be seen
by the naked eye. An array of sensors and sophisticated machinery
is backed up by intense programming and machine learning - any mistake will be rectified,
making the artificial intelligence stronger day by day. While Musk emphasises the importance of technology
for the company for cost-saving purposes and precision that cannot be matched by the human
eye, the factory continues to employ around 2,000 workers who stagger their shift patterns
throughout the day. Workers travel on vast, open corridors and
networks of internal paths, which are strategically and carefully positioned so as not to disrupt
the assembly line’s flow. Timelapse footage shows the cars moving down
the line while humans and machines interject at varying stages to complete the work. Upon completion, it’s time for testing. This is when the car’s infotainment system
is booted into factory mode, allowing workers to test all of the cars’ functions such
as headlights, media control and drive systems. Moving parts like the wheels and charging
ports are also inspected at this stage. Just like inside, a network of roads forms
the area just outside the factory, used not only by truck drivers, but also to transport
the assembled Teslas to their final place of resting on the site. The parking lot. Drone footage shows hundreds of spaces, filled
over numerous days, full of Made in China Model 3s awaiting transportation to their
customers. A space so vast, at over 860,000 square metres,
is vital for the company to be able to ship such numbers of finished components and goods. Videos of the site show it to be an oasis
in the middle of barren wasteland. While this may not be overly pleasing to the
eye, it means one thing for sure. If needed, there is room for the company to
expand operations and to outgrow the assembly process outside of the current four walls. CEO Elon Musk believes that one day Giga 3
alone could produce more than 1 million cars each year. To put that in perspective, America’s best-selling
car, the Ford F-Series, is estimated ot have been sold around 40 million times in a life
spanning 73 years. The total cost of the Shanghai factory is
estimated to be between $2-5 billion, however the figure is hard to place firmly because
the site is under constant expansion. Despite the virus’ impact on all businesses
worldwide, early 2021 saw rumours surface about Tesla’s plans to acquire a 114-acre
plot of land adjacent to the existing site. While Musk’s company wasn’t directly named,
we knew that a ‘new energy vehicle manufacturer’ had plans to use the land. We also knew that Musk had plans to outgrow
the site. The rapid growth of Giga 3 can’t give credit
entirely to Tesla’s huge global success, though. Elon Musk has been working closely with Chinese
officials in a mission that has truly paid off, with the company gaining approvals and
permissions, and even loans and support such as those offered during the pandemic. These have helped the company cut the cost
for the production of the Made in China Model 3, which as well as going on somewhat to benefit
the customer, also allows the company to reinvest and develop quicker. This, along with the company’s commitment
to use locally sources products for all of its factories, will help Tesla turn a higher
profit and secure its place in the future of personal transportation, and the wider
automotive industry. The Chinese operations have since been dubbed
as a “template for future growth” by CEO Elon Musk, who will duplicate everything that
works well in the factory to future factories in other continents. In fact, the success of Giga 3 can be measured
and quantified in its Made in China Model 3, which has been exported to many European
countries as well as the Chinese mainland. Owners and reviewers have testified to improved
build quality, which could be linked to the country’s expansive experience in manufacturing
which has been shoehorned into Giga 3. Furthermore, the plant has enhanced the sound
insulation and sealing in the Model 3 to help create a more refined, relaxed drive. With an improvement in quality and a strong
foothold in the door, Tesla’s future seems reliant on China for both exploring manufacturing
and exploiting new customers. This is why, according to rumours, a research
and development centre is set to be established in the country to focus on Chinese customers,
who are notably different to those in Europe and the US. China, for example, has previously been a
fan of long-wheelbase saloons, which begs the question whether the automaker will introduce
such a Model there? MIC Model 3s destined for Chinese ownership
get one tiny hardware upgrade - Chinese characters placed on the left of the trunk which are
there to represent the sound translation of ‘Tesla.’ The English ‘Model 3’ badge remains unchanged
on the right hand side. In summary, Giga 3’s hybrid workforce of
human and machine has resulted in improved quality and faster production. The company’s blueprint approach means expansion
needn’t be complicated, and can even be duplicated for future gigafactories around
the world. Cutting costs and improving customer satisfaction
can only be a good thing, but we’re keen to find out whether it has all worked out
this way. Have you received your Made in China Model
3, or maybe you’re able to share information on your US-built Model? Whatever your scenario, let us know what you
think in the comments section below.
