Modularity means that the parts factory can directly carry out production assembly and package. If domestic manufacturers can provide modules directly in their own R&D, they will reduce the cost of the entire vehicle plant and increase their own level. However, the supporting suppliers in Beijing and Shanghai have different views. The foreign procurement centers in Shanghai and the joint-venture component factories also have different requirements.
The head of the joint-venture component plant that Beiqi gave to the modern company clearly stated that Beijing’s supporting capabilities are not strong, so it is necessary for Hyundai to bring in the most advanced modularity. The Shanghai-based companies with the best supporting capabilities are not interested in advanced modularity. Jiang Jian, deputy general manager of Delphi Automotive Systems (China) Investment Co., Ltd., said: "Chinese parts and components companies do not necessarily have to supply modular products like European and American companies." He believes that Europe and the United States are keen on modular supply because Their labor costs are too high, and OEMs can reduce labor costs through modular supply; Japanese OEMs are not enthusiastic about modular supply, because modular supply may be due to the high concentration of suppliers to the vehicle. Plants pose risks. China's labor costs are low, and modular supply is not the best choice for automakers and parts companies.
Ford and GM have set up procurement centers in Shanghai, with purchases of billions of dollars. They hope that Shanghai will provide cheaper modular products. Chongqing Changan Ford will build No. 2 Plant in Nanjing and produce almost 90% of Ford brand cars. Its original intention was to approach Shanghai and use procurement centers to reduce component costs and shorten lead times. Therefore, they believe that China's production of parts and components has already had an advantage in manpower cost. Based on this, further reductions in costs through modularization are not the icing on the cake? Xu Guojun, vice president of Ford China Co., Ltd., said: "Simple parts and components are outdated and modularization is the trend."
It seems that whether or not to engage in the modular plant parts, independent research and development should not directly engage in modular? Or should return to the principle of combining local characteristics, in Shanghai, even large enterprises such as Yanfeng, still need more two or three supporting companies to rely on to achieve modularity, Shanghai parts and components must be achieved as their own brand Supporting, but also to find ways to reduce costs, modularization can only be considered as a train of thought.