Multinational auto parts giants compete for China Express


In 2005, when China’s auto parts exports exceeded imports for the first time, the US “Wall Street Journal” published a special article stating: A few years ago, parts produced in China were still of low quality, but through cooperation with foreign companies and through introductions Technology and R&D innovations have resulted in the rapid improvement of the quality of auto parts manufactured in China, and China is rapidly becoming a global power producer of auto parts.

Indeed, in 2006 China's auto parts and components not only changed in quantity and quality, but also changed in the enterprise's competitive landscape and industrial structure.

Industrial chain security has been valued by more and more companies

It is not difficult to find out the memorabilia of some domestic large-scale parts and components companies. The alliance with upstream and downstream companies in the industrial chain has become a unique "scenery" in the automotive industry in 2006.

Established an international strategic alliance with Beiqi Foton, Bosch in Germany, and AVL in Austria to form a “product research and development community” with dozens of powerful component suppliers. It is even a joint venture with Shaanxi Heavy Duty Truck and Chongqing Hongyan. The FAW Group has reached a strategic partnership, which has given Weichai, an independent engine supplier that has been separated from China National Heavy Duty Truck Group, a more secure industrial chain relationship and a broader market space.

From an international perspective, since September 2005, Ford Motor Company has partnered with close to 30 global first-tier suppliers such as Bosch, TRW and ZF as its strategic partner for the long-term development of the company in its global supplier team. Further focus on resources, reduce costs, improve quality, in order to form a sustainable business operation mode.

Purchasing more than $1 billion in China is no longer a legend

According to statistics from the China Customs Tianjin Port, from January to July 2006, the value of automobile parts exported from Tianjin Port increased by 61.1% over the same period of 2005. The same exciting news came from different directions: Ford’s auto parts purchased in China grew from US$1.6 billion to US$1.7 billion in 2005 to US$2.5 billion to US$3.0 billion in 2006; VW’s procurement in China The number of auto parts increased by 10 times from $100 million in 2005 to $1 billion in 2006. At the same time, multinational companies such as Dai Ke and General Motors have also expanded their procurement in China. Correspondingly, the export of parts and components in some domestic provinces and cities has also grown rapidly.

Two or three years ago, there are still legends in the industry: General Motors and Ford and other world giants are planning to purchase more than US$1 billion worth of auto parts in China each year. They are signed every year because they cannot find a suitable number of components that meet quality standards. Bad check." After 2006, this paragraph disappeared.

From the interviews with reporters of multinational companies encountered by reporters when visiting enterprises, some of the world-class companies such as Peugeot Citroën, Cummins, Caterpillar, and TRW could no longer sit still. Can often meet their purchasing staff.

A former world leader is moving to China

Delphi, the company that had been ranked first in Fortune 500 auto parts category before 2004, has been declining in the United States since it declared its entry into bankruptcy protection in North America in 2005 and has been seeking for more than a year. Selling its non-core assets in order to successfully weather the storm. Unlike the situation in our hometown, we see a brand new Delphi in China. In April 2006 Delphi Corp.’s Delphi Plc Electrical Systems Co., Ltd. announced that it has officially opened a new electronic/electrical distribution system factory in Yantai, Shandong, China; in the same month, the Delphi China Science and Technology Research Center officially opened in Shanghai; In April, Delphi announced the signing of an agreement with Guangxi Yuchai and Jiangling Motors. Two Chinese companies have selected their diesel injection systems to deploy cars; in June 2006, Delphi announced that they had increased their stakes in its joint venture in China's auto air-conditioning production. And in July 2006, Delphi officially established a trading company in China to provide a variety of Delphi original supporting quality auto parts products to China's auto aftermarket, which blew into the Chinese auto aftermarket. The horn. The above only intercepted some of Delphi’s business operations in China between April and July 2006. It is clear from this that the former “boss” has not been affected by its hometown disaster. In order to achieve a globally balanced development strategy, Delphi is continuing to transfer business to China’s high-growth market.

Catch the China Express is the guarantee for the future development of multinational companies

If we want to analyze the phenomenon of multinational companies sourcing in China and setting up factories in China, it is clear that they have taken root in China for a long time.

The reason why this is said is that there are two evidences that can best explain the problem: one is that there are continuously world-class companies setting up R&D centers in China, and the other is that foreign companies are continuously infiltrating the Chinese auto aftermarket.

In addition to Delphi’s R&D center in Shanghai, in January 2006, DuPont Performance Elastomers Co., Ltd. established a technology center in Shanghai, becoming another integrated R&D center besides the United States and Japan; in July 2006, Reo set up its second R&D center in Shanghai; in August 2006, Cummins East Asia R&D Center jointly established by Cummins and Dongfeng was launched in Wuhan. At the end of 2006, another component giant, the Schaeffler Group's Asia Pacific R&D center was also under construction.

In another battlefield in the development of the Chinese market, an "off the court" match that is no less than a formal confrontation has been fully carried out. Bosch, Delphi, AC Deco, Honeywell, Denso, Mahles, Federal-Mogul, and Tenneco have all worked hard to quickly expand their aftermarket in China. Another ASIMCO company, a native of China, also showed its determination to advance to the Chinese aftermarket in the fall of 2006. The two giant tire giants, Michelin and Goodyear, staged a battle of cyberspace in China with their powerful strength. What is particularly noteworthy is that Napa, the top-notch auto distributor in the United States who returned eight years ago, has re-raised the Blue Banner with Shanghai as a bridgehead.




machinery refers to the general term of machinery and organization. Machinery is a tool that can help people to reduce the work difficulty or effort. Items like chopsticks, brooms and tweezers can all be called machines and they are simple machines.

 Complex machinery is composed of two or more simple machines. These more complicated machines are often called machines. From the point of view of structure and movement, there is no difference between the mechanism and the machine, generally referred to as machinery.


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