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Half of the fever, half of the cold - China's parts industry seems to be a bit of a stunner.
When Ford Motor Co. CEO Bill Billy invested 2.6 billion U.S. purchase orders into China; when Chrysler announced in North America that it would
The cost of the car is reduced by 1,000 US dollars and it is necessary to shift production; Chinese parts and components companies with excellent cost are distressed, and opportunities are in front of us. How much can we grasp?
Spacetime distortion
“Mexico, a parts and components company that makes automotive suspensions, recently came to us and hopes that we will find suitable suppliers for its spare parts in China. A chain distributor in the US after-sales service market is also prepared to negotiate with us for related cooperation.†According to a source from Shanghai Kewei Automotive Parts Co., Ltd., a parts procurement company, when they were still negotiating with a U.S. website to build a B2B platform for communicating Chinese and foreign auto parts suppliers, they unexpectedly discovered that business opportunities continued to flood the door. Come.
"These foreign buyers understand the potential of Chinese parts companies, but they are very aware of the difficulty of purchasing in China, so they need us," said the head of Kewei Automotive. At the same time, a senior person who has been responsible for global procurement work in the United States for 25 years also told reporters that he is also ready to join this field.
How difficult is this internal and external communication? If you look at the embarrassing situation of GM and Ford, you know: The two giants of the industry shouted as early as three years ago that they would need to purchase one billion US dollars of auto parts in China each year to reduce the cost of vehicle manufacturing, but until now, they have The purchase amount did not meet expectations.
“A European commercial vehicle company had to spend 8 million yuan to commission a consulting company to help them search for parts suppliers that meet the standards in China.†Xinhua letter car consulting company Sun Muzi said that the current time and space have been greatly distorted: On the one hand, there are more and more international buyers who are looking for suppliers in China, but they are all domestic suppliers of spare parts who are participating in various procurement meetings and looking for business opportunities.
Supporting follow-up
The drop in reality is due to the poor communication of information, but the bigger problem lies in the unsatisfactory matching of parts and components companies.
Perhaps the deepest feelings are those domestic OEMs who are eager to "localize." They need to constantly challenge themselves to balance the limits of supporting costs and product quality to meet the needs of the entire automobile market. Some parts companies find it difficult to satisfy the quality of the mainframe plant after they eventually squeeze into the OEM camp with price advantage. The requirements of sexuality and timely delivery appear clumsy.
“This phenomenon is generally reflected in the second and third-tier domestic parts and components supporting enterprises.†An example of a car, consulting company, such as: FAW - Volkswagen Sagitar recently "out of flame" is caused by the quality of the electrical harness; Fox recalled There are quality problems caused by the insulation material of the fuel pump wires; however, the Beijing Hyundai Elantra and Sonata cars are caused by the discrepancies in the internal parts sizes of some vehicle ignition switches.
“Mainly there is a problem with the quality stability of ancillary products. This is also the biggest challenge faced by local component companies in the OEM support process for OEMs.†Zhang Yong, head of Sichuan Zhangzhou Changjiang Machinery Co., Ltd., acknowledged that he could enter the OEM camp. The local parts and components companies have no problems in terms of quality and manufacturing process, but they have frequent loopholes in subsequent supporting processes. According to an industry source, a well-known hub supplier in China has suffered tremendous losses due to quality stability problems after entering the OEM system of General North America.
Group operations
"Sometimes it may be due to the problem of a certain accessory that causes the entire host plant production line to be delayed." Business people are worried about this. But in reality, this has not become a reason to hinder them from choosing Chinese-funded facilities.
Taking Beijing Hyundai as an example, of the 69 first-class supporting companies, there are 10 local parts and components companies, accounting for 14%; while in the second-tier supporting enterprises, local companies account for 50%. “Under the pressure of price competition and the constraints of industrial policies, the supporting structure of domestic OEMs will be fine-tuned for local companies,†said Sun Muzi.
Recently, the intention of promoting "group development" has also been revealed from the official level. Feng Fei, head of the Industrial Economic Research Department of the Development Research Center of the State Council, said: “In the past 20 years, the main engine plant has made some progress, but parts and components are still weak. The Chinese auto industry must have the concept of group operations if it wants to develop.†Wang Zhigang, director of the Research and Development Department of the State-owned Assets Supervision and Administration Commission’s Research Center for Enterprise Reform and Development, clearly stated that: “Everyone is talking about corporate social responsibility. The growth of the parts factory is closely related to the OEM. Whether the OEM should support the development of the local parts factory. Aspects of active exploration."
In this regard, the technical responsible person of the independent brand enterprise told the reporter that under the background of the country’s promotion of local support, its own brand products have increased the local parts and components matching rate to 80%, and more than half have chosen Chinese-funded facilities, “although China’s Parts factories are not mature, but they can meet the requirements for cost control in non-critical parts."
McKinsey recently issued a new consulting report, pointing out that China has all five major advantages in the development of the automotive industry (including parts and components): the domestic market itself has a rapid growth in demand, has low-cost manufacturing capabilities, and competition in various value chains is extremely fierce. , rapid technological advancement and government support. “This is unimaginable in foreign countries.†The head of Kewei Automotive said that if the Group's operational thinking is feasible, it will help powerful Chinese parts and components companies to clarify their position as soon as possible.
April 03, 2021