Parts Industry Should Be Compatible with China's Auto Industry Development

In the future, do you want to become a supplier of complete vehicles?
The Shaanxi Fenghang Rubber Seal Co., Ltd., which has the ability to conduct investigations and interviews with reporters, needs Zhejiang Zhejiang Chaoyang Electric Co., Ltd. to be a small Sino-foreign joint venture. It does not have the technical support of a multinational company, but it can be among the big auto companies. Among the suppliers, one important reason is that they all have the development capabilities. Hyperbolic return seals and electric sunroofs are two of the company's unique technologies.
The Anqing Emperor Bogotz Piston Ring Company did not talk about development issues when discussing a joint venture, but with the technology and strength of joint venture production, it became a supplier to many large automotive companies. In the future, the lack of development capability of the joint venture will not be effective. Toyota sought development requirements when it came to Anqing Emperor Bergs this year.
The vast majority of parts and components companies in Shanghai are joint ventures. Sources said that the parts companies there have now proposed to do "zero-tier suppliers", that is, with the means of development; with the host plant to establish a simultaneous development partnership; high degree of technical integration, modular supply and so on.
On December 11th, when the reporter interviewed the Beijing Advanced Materials and Auto Industry Development Forum, the information obtained stated that the “three major plates” of Beijing Auto’s subsidiary—Beijing Modern, Beiqi Foton and Beijing Jeep’s parts procurement range Almost not covering the Beijing-owned parts and components companies, such as Beiqi Futian's seals and other seals are provided by Shaanxi Fenghang Company. In particular, the top 20 major suppliers do not have Beijing, and more than 100 parts and components companies in Beijing do not provide local vehicle services and suffer serious losses. Taking Beijing Hyundai as an example, of the existing 50-plus supporting manufacturers, more than 40 are wholly-owned by South Korea, and the rest are Sino-Korean joint ventures, and there is no local parts or anything.
The person in charge of the Beijing Automotive Component Localization Office believes that the main reason for this phenomenon is that Beijing parts and components companies lack the development of technology. This person analyzes the main features of the Korean-owned parts and components enterprises: they have formed a partnership with the entire vehicle company so that the entire vehicle comes not only brings their own supporting suppliers, but also brings in secondary matching suppliers and even material manufacturers. Secondly, the price is low, and the profit rate of Korean-owned parts and components enterprises is only about 3%, while that of China is often about 10%. Third, the development capability is strong. Their development equipment is often tested on a non-stop basis for 24 hours, while Chinese companies basically Idle development, or simply no development equipment.
Compared with the fact that multinational companies have not yet established a complete vehicle development center in China, foreign parts companies have taken development centers one after another. For example, Visteon’s vehicle air conditioning development center has been moved from Japan to China. A Korean-owned steering gear company also established a research and development center in Miyun, Beijing.
A signal of globalization, development of spare parts According to Rong Huikang, executive deputy director of the expert committee of the China Automotive Industry Association, GM and Ford have already included China in their respective global procurement systems, but the results are not satisfactory. . GM’s procurement in China last year was rated at US$3.7 billion, and it only completed about US$180 million. GM will purchase 4.2 billion U.S. dollars in China this year, and it is estimated that less than 800 million U.S. dollars will be spent on buying.
Zhejiang Wanchao Company was included in the procurement system this year. Wan Chao, the chairman of Wanchao, finally gave up the sale. He said that at least not so much from the production capacity. Only when all aspects are foolproof, he can connect to the list.
Starting next year, Volvo will also integrate parts produced by CNHTC into its global procurement system.
Multinational companies not only regard China as the last big car consumption market, but also regard China as a big purchasing market. In recent years, the world's automobile industry structure has undergone a major adjustment, that is, parts and components from the vehicle company to become independent, become a sub-industry, and carry out global procurement business. With this adjustment, the entire vehicle will increasingly transfer development costs and development risks to parts and components. Hi-tech will be increasingly applied to moldy parts, and the entire vehicle will form partnerships with parts and components to promote each other and rely on each other.
This restructuring of the Chinese auto industry is currently underway, and the global drama of Chinese parts companies has just begun. Multinational companies' purchases in China are no longer for you. According to production, they put forward requirements and put forward standards that require your own development. This will certainly bring about a profound change. Parts companies first met the challenges of facing the world. It is reported that "the ability to develop systems and modules in key components and components, and to develop advanced product development capabilities in general parts and components" will be one of the incentive targets for the upcoming automobile industry policy.
Innovation Mechanism: The Advantages of Private Enterprise Development The reporter and the boss of the private enterprise discussed why they dared to make developments. The two bosses Wang Feng and Jia Yonghe of Shaanxi Fenghang and Zhejiang Wanchao said in unison that their mechanism was good. The second is that they respond quickly to the market and their prices are competitive.
Wang Bin said: State-owned company executives are reluctant to develop, mainly fear but risk. The success of the development was counted in the achievements of the superior; if it failed, the money was national, and individuals could not afford to be responsible. The experience of failure accumulation has also been left to the next leader and he has not obtained anything.
Wang Bin had long wanted to stare at the escape route in the development of the oil seal in case of failure. It was enough for him to spend money on the auto parts market. He wanted to take advantage of youth and do something. Unexpectedly, the oil seal market developed was far better than he predicted.
Jia Yonghe devoted his main energy to only two things, focusing on product development and quality. He has extraordinary sensitivity to various new technologies. As early as several years ago, the EFI system was still in its infancy in China. He had heard that a university had developed EFI products and planned to jointly develop and put into production EFI products. Of course, it did not succeed. However, his unique ability to foresee and dare to dare to do has to be admired. It was with this momentum that he finally seized the opportunity to develop an electric sunroof.
Some scholars have analyzed that the reason why the private entrepreneurs are indomitable in their development projects is that the ownership system of private enterprises has played a role, providing them with a very good innovation mechanism and allowing them to innovate. Motivation and motivation. The weak ability of China's auto development is not a problem of technology, but a problem with the innovation mechanism:
Faster pace of autonomous parts development In the past, it was often the case that the car broke down due to problems with parts. If the parts are not good, it will directly lead to vehicle performance and quality. In the field of cars, there have been "five major development models", namely five major brands. Serious interviews with zero-mail companies will find that the number of self-developed parts and components companies is not small, and the autonomous development of parts and components will be synchronized with the entire vehicle, even at a faster pace.
The "Five-Year Plan" of the "Automotive Industry" puts forward: "The state encourages the development of superior and self-sufficient parts and components companies and continuously enhances their competitiveness." This article is becoming a reality. Some self-developed parts and components companies have surpassed joint ventures. Air-conditioner valves produced by Zhejiang Sanhua Group not only occupy the domestic market, but also export to overseas. The two domestic foreign-funded valve companies have done nothing about it. The meaning of "three flowers" is "the flower of science and technology. The flower of management, the flower of talent".
Faced with the industry's investment in autos, these zero-minded investors do not regret it. Wang Bin is very satisfied with the current rate of return on capital. He continues to invest the money he has made and expands the scale. Someone once looked for Jia Yonghe and mobilized him to turn into a vehicle and he was pushed off. Although he sometimes regrets this, he is more optimistic about the future of spare parts. As long as he is doing well, he believes that he can do business internationally.
Of course, parts and components have their own uniqueness compared to the development of the whole vehicle. China must have a number of self-developed parts and components companies to be independent of others, but joint ventures can also contribute to the autonomous development of vehicles. The “Tenth Five-Year Plan” of the “Automotive Industry” also puts forward: “Encourage various economic elements to participate in the development of auto parts and components, and guide local, departmental, foreign, and non-governmental organizations to actively invest in parts and components industry.”

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