Chinese auto parts manufacturers are facing new opportunities for development. Some multinational auto companies, such as Ford, PSA Peugeot, and General Motors, all set up procurement centers in China. At the same time, some large procurement suppliers, such as Delphi, Visteon, Valeo, have also set up procurement offices in China. Chinese suppliers are constantly receiving requests for quotation.
In 2004, the import value of spare parts surged from 3.4 billion U.S. dollars in 2002 to 11.3 billion U.S. dollars. However, this trend reversed in 2005. Although car sales have increased by 14%, the import value of spare parts has dropped to 10.4 billion U.S. dollars, and the export volume has soared from 10.6 billion U.S. dollars to 15.8 billion U.S. dollars. The two statistics show that China's spare parts industry is equal to the world-class technology. The gap is narrowing.
ASIMCO Chairman and Chief Executive Officer Jack Perkowski told reporters that this gap will disappear completely in the next four to five years.
Since 1993, Chinese policy has allowed foreign manufacturers to hold a majority stake in China's spare parts companies, but overseas suppliers have been reluctant to bring the latest technology to China. A company with advanced technology parts and components found that it can no longer ignore the Chinese market. Concerns about the possible loss of technology due to intellectual property infringement will give rise to the recognition that it will face greater threats without entering China. Parts companies with advanced technology have come to China to support their old partners, those multinational car companies.
The intensified competition in China's auto industry has led almost all multinational car companies to realize that if they do not accelerate the procurement of spare parts in China, they will lose ground in the increasingly fierce price wars of cars, and because parts come from abroad, it A series of indicators, such as after-sales services, that are related to consumer satisfaction may be affected by the inability to supply components in time. Under this circumstance, transnational auto companies have put their eyes on parts procurement into China.
However, new trends show that foreign parts and components entering China do not always have an impact on local parts and components suppliers. For example, the cost of manufacturing parts and components in the United States into China is lower than that of its own factories in China, but it is higher than that of local parts companies in China. Therefore, foreign parts companies may not be able to compete with Chinese parts and components when they come to China. enterprise.
ASIMCO, a well-known local component company that grew up in China, has only been a secondary supplier to multinational car companies in China since it was founded in 1997. Now it has begun supplying directly to Ford and other joint venture car companies.
Although foreign parts companies have core technologies, they do not understand China. Unlike ASIMCO, its managers and workers are Chinese and they have a better understanding of China. The disadvantage of this company is the lack of technical accumulation, but this problem can be solved through cooperation with customers and joint ventures with foreign parts companies.
The cost of China's purely local parts and components companies is low to understand, but the cost alone is not enough. Multinational companies also need reliable quality assurance. Therefore, they tend to directly cooperate with the management of excellent pure local parts companies. As for the technical defects of these companies, multinational companies can even teach them with hands.
ASIMCO CEO Jack said: “The best foreign companies entering China are working with companies like ours. Because compared to pure local companies, our advantage over ten years ago was capital. Now the advantage is management and Technology.I once participated in Yuchai's year-end supplier conference. After the meeting, a purely local supplier came to me and said that capital is not his problem. His biggest problem is management and technology."
Therefore, although the share of China's domestic parts and components companies is very small compared to the world's leading companies, it also allows them more room to develop.
Things are not always smooth. In Europe and other countries, component suppliers often occupy the vast majority of product technology, that is to say, the automaker or its purchasing department will provide their own drawings to suppliers, suppliers look at the drawings to produce. But the automaker does not own the technology. The core stuff is still in the hands of suppliers. Now that multinational car companies are going to China or other countries to purchase, the original parts suppliers are certainly not willing to give their core drawings to these multinational companies.
This poses another problem because Chinese domestic parts and components companies have not yet mastered so many technologies. Multinational auto companies as buyers can only provide a relatively rough drawing. Chinese new suppliers can't make it out, or after they do it. If the quality of the product cannot be achieved, then you can only miss the opportunity.
Ford had previously purchased the hubs from Ford Motor Company in Germany. Later, a factory in China began production, but when Ford really needed them, the quality of the products that the factory had made could not be achieved. Therefore, multinational car companies are very cautious when choosing a supporting plant. They only give you a very small part of the project, and this opportunity is not immediately available.
preventive solution
How to deal with China's domestic parts suppliers? The correct strategy is to take the lead in domestic small-motor companies and accumulate point capabilities before going into the supply chain of big manufacturers. The kind of argument that “take orders from the big manufacturers first, and small factories’ orders will not be lost†actually fell into a misunderstanding.
On the other hand, Chinese component companies should also think about going out. In response to this situation, industry experts said: "Do not wait for multinational companies to come to you to purchase. You may not be able to support large foreign OEMs, but you can become their first-tier supplier, you can also become their maintenance Parts suppliers to the market. In this way, you can slowly grow up like a snowball.â€
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