Rapidly growing multinational component giant accelerates into China 2
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Rapid growth of multinational component giants Accelerated Cai Yong, general manager of China Dongfeng Components Business Unit, said that the current development trend of China's auto parts industry and global auto parts industry is the global procurement of parts, which will make the competition more cruel. Flocking into the Chinese market is far more than just a gambling game. Chen Jinya, chairman of Delphi Automotive Systems China, said that the competition has been driving down the prices of local auto parts and gradually abandon the closed doors that are controlled by Chinese partners of joint venture companies and their suppliers. “Foreign manufacturers are exerting tremendous pressure to reduce prices. At the same time, the government is actually reducing the protection of the local automobile manufacturing industry.†According to statistics, in 2002, the total sales of the domestic auto parts industry was 75 billion yuan, of which, Delphi, Denso, Germany, Bosch and other three companies in China accounted for 14% of the market share in China (350 million U.S. dollars and 150 million U.S. dollars for Bosch). However, the number of their sole proprietorships and joint ventures in China is not enough. The total number of domestic auto parts companies is 1%. The surge in purchases of multinational corporations If these factors have become an important factor in attracting foreign parts and components companies to come to China, then China's policy restrictions can also be another objective factor in the influx of foreign parts and components companies into China. Over the years, China’s industrial policy has always required joint ventures to achieve a certain percentage of the procurement of spare parts, and in a certain period of time, the government will also give enterprises certain tax incentives based on the localization rate. Therefore, the entire vehicle company will increase the procurement of local parts and components as much as possible on the premise of ensuring the outsourcing of core components. It is reported that the forthcoming automobile industry policy will still propose some new requirements and guidance for the localization of parts and components procurement. It is precisely for this reason that foreign-branded vehicle companies have increased their procurement tasks from parts and components companies established in China with foreign brands, not only bypassing the policy barriers to outsourcing parts and components, but also greatly satisfying themselves with regard to quality and branding. Aspects of the request. The giants of foreign-invested parts began to increasingly shape China into their own manufacturing center in the Asia-Pacific region. In this way, not only foreign-funded enterprises can integrate their own global procurement systems, but Chinese companies also find that they can buy inexpensive world-famous branded parts and components in China. When many aspects of goodwill are concentrated in one place, To a certain extent, the global procurement of spare parts for Chinese automotive companies is quietly evolving into another form of “Chinese procurementâ€. This “China procurement†comes not only from China but also from the world. A sales manager of Kumho Tire Co., Ltd., who is not a big fan of the business, said to reporters that the opportunities for these local automakers to shop around have greatly increased. Foreign brands that do not have local production companies are not only in terms of price. Can not suppress opponents, and often lose a lot of opponents in China's interpersonal contacts. In September of this year, Ford Motor (China) Co., Ltd. confirmed from outside that from July 2002 to mid-2003, Ford Motor Company will purchase more than one billion US dollars of auto parts and components in China within one year. Nick Scheele, president and chief operating officer of Ford Motor Co., said expanding the procurement of auto parts in China will increase Ford’s visibility in the Chinese mainland market. It will also save costs for Ford and keep Ford’s global competitiveness. One of the leading strategies. Insiders believe that the reason for the rapid expansion of Ford’s auto parts purchases in China is not only the cost-saving needs of Ford Motors, but also the strongest support for Ford China’s joint venture and its atomic company, American Visteon. Therefore, this is also the reason. Ford Motors is expanding its business in China. As early as April of this year, Visteon’s joint venture with Dongfeng Group and SAIC Group established a Dongfeng Visteon joint venture in Shanghai. Dongfeng has also become the second large-scale automobile group that Visteon successfully bundled after entering China. After this, in addition to SAIC's subordinate vehicle companies, Dongfeng Group's subsidiaries will also directly purchase a variety of spare parts through this newly established local joint venture company, which will greatly save cost and time.