According to customs statistics, the declining trend of China's vehicle exports in the first quarter of this year continues, but parts and components exports have shown signs of recovery. In March, exports of engines and parts and components and other commodities rebounded, and the increase was significantly higher than that of the same period. Among them, the engine exported a total of 161,200 units, an increase of 37.55% compared with the previous period, and the export value of auto parts, accessories, and auto bodies was 1.048 billion US dollars, a month-on-month increase of 59.92%.
The impact of the international financial crisis has caused the European, U.S., and Japanese auto markets to shrink, and the sales of new cars have fallen drastically. Consumers have had to extend the time to renew their cars. Therefore, they can only rely on maintenance and replacement parts to maintain the service. This brings with it zero sales. Parts market. Some parts and components companies in the United States, Europe and other places have closed down due to the impact of the financial crisis. Some orders will find suppliers in low-cost production areas, and China is thus an ideal supply place.
Industrial adjustment will also bring opportunities to parts and components companies. In January-April this year, as a result of policies, sales of domestic minibuses increased by 43.36% year-on-year, and cars under 1.0 liters rose by 18.62%. Micro-cabs and micro-offers are low-priced vehicles, bringing new growth opportunities for domestic parts and components.
According to media reports, in Germany, the joint procurement of components with Mercedes-Benz has saved BMW 15% of the cost. Under the current economic crisis, the cooperation between the two parties will be further deepened. BMW and Mercedes-Benz have begun to share parts in China. Since both parties have mostly overlapping mainstream suppliers such as Delphi and Bosch, and they are also facing the high cost of parts and components for luxury car manufacturers, joint procurement is a very reasonable measure. Recently, Hu Maoyuan, chairman of SAIC, has also urged domestic auto manufacturers to strengthen cooperation in R&D, platforms, and parts procurement. However, the respondent is embarrassed, but from a global perspective, this will surely become a new trend.
China's parts companies are indeed facing very good growth opportunities, but if they do not solve internal problems, such as cost structure, product structure, and research and development capabilities, it is still difficult to withstand global competition. According to South Korea’s “Korean Daily†article on May 7, the company’s vice president, General Merchandise for Global Purchasing and Supply Chain, which is undergoing a large-scale structural adjustment, has expressed candidly that although Korean parts and components companies are located in China and Japan, In the cracks, but it can do better than competitors.
Anderson said that from the perspective of China, there is no supply chain system that connects various parts and components, and many products do not have economies of scale, so they need to invest more. Although Japan has technological advantages, it does not have price competitiveness in the global market because it seeks a closed structure of all resources internally.
Anderson said that unlike Korean companies, Korean companies have an advantage in terms of price because they purchase goods from around the world. In the list of the best parts and components companies selected by GM every year, the number of South Korean parts companies has increased from 5 in 2005 to 20 this year. General Motors plans to increase its purchases in South Korea this year from US$1.4 billion last year to US$2.1 billion.
Another report in the “Korean Daily†stated that Hyundai Mobis is in talks with BMW and Volkswagen. Hyundai Mobis plans to provide 50,000 vehicle axle modules annually to BMW China before 2010, and to supply 160,000 auto parts assemblies to VW USA before 2011. General Motors Corp. recently announced that the company will purchase auto parts worth US$400 million from South Korean component companies. Representatives from Daimler and Renault attended the meeting of the European Union Chamber of Commerce in Korea, and Hyundai Mobis has stated earlier that in order to achieve a diversified customer strategy, the company is trying to find new buyers outside the Hyundai Group. Buyers include BMW, Mercedes-Benz, Chrysler and some Chinese automakers.
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