General Manager of China Auto Parts Manufacturing Company Tian Yamei
Not long ago, I attended a conference on the Big Three in Detroit, USA. During the meeting, many local parts and components companies expressed their intention to cooperate with China. I felt that the crisis had caused many changes to them. In addition to timely overseas acquisitions, parts and components companies in China are undergoing tremendous changes.
In a nutshell, some are transforming companies that begin to transfer their markets and purchases in domestic and foreign markets; there are also defensive-type companies that look for opportunities from trade protection and product lines; and there are growth-oriented companies that use technological innovation and strive for the country’s Breakthroughs in technological innovation projects; the final is a diversified enterprise, seeking development from the combination of strategic alliances for science and technology, especially corporate alliances. Among them, diversified companies have the most obvious influence on the industrial layout and development of many parts and components companies through geographical alliances.
Recently, Geely signed an agreement to acquire Delphi brake systems and automatic systems in the United States, and then acquired Australia’s second-largest transmission company in the world. This is partly due to the poor basis of components in Beijing; the same is true for Foton, despite the establishment of the headquarters. In Beijing, but parts suppliers throughout the country, the local supply only reached about 20%; GAC Group in the process of developing their own brands, local production support even less than 10%; Shenyang Brilliance and BMW, local production also Only 20% to 30% of these dispersive layouts are expected to accumulate in the area. In fact, since this time, on behalf of the company, I have been introducing the second- and third-tier suppliers to GAC Group in Guangzhou to expand its local supply system.
In April, I learned from Chongqing Chang’an that its local production reached about 45%. Even so, they still hope that some companies will build factories at their bases, reduce transportation costs, stabilize supporting relationships, and promote joint development. In this regard, the development of localized production of Tianqi Group, FAW Toyota and Tianjin Xiali is relatively fast, with localized supply of around 30% to 50%, and the large-scale parts base under construction in Tianjin is also forming a larger industrial cluster. .
Of the 10 million vehicles planned in China this year, 5 million are self-owned brands, and this part needs zero-based development and local production is necessary. Not only that, in addition to promoting industrialization, the geographical concentration is also conducive to exerting geographical advantages and forming distinctive local industries.
Taking the development of the post-market in Shanxi Province as an example, in the environment with a large number of trucks, a large-scale auto parts market is established, and then through logistics, an extended industrial chain is formed. In my opinion, Shanxi can also use local specialty products such as local magnesium alloys and aluminum alloys. Because the amount of magnesium alloys and aluminum alloys used in foreign auto parts is very large, there are 28 kinds of parts in the United States that cannot be separated from magnesium alloys, but there are currently only two kinds in China. As a place of production of magnesium alloys, Shanxi can make full use of this local advantage and develop related industries including parts and components, and this will be a good promotion for the development of auto parts and components.
According to the National Ministry of Commerce's survey of OEM parts throughout the country, there are more than 7,000 OEM supporting companies, more than 10,000 after-sales companies, and more than 10,000 export companies. For the current more than 30,000 parts and components companies, China Auto Parts Corporation, which is planning and managing the distribution of auto parts throughout the country, has been promoting the establishment of industrial bases throughout the country in a regional manner, using derivative companies to form industries. On the basis of the determination of the direction of industry extension by the local government, the upstream and downstream industrial chain links are achieved.
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