High-tech Zone in Changchun City Achieve the First Breakthrough in Auto Parts Industry


Editor's note: As the cradle of New China cars, the full use of the vehicle has been brought into full play, and the development of the auto parts industry has been a long-cherished wish of Jilin Province for many years.

In recent years, the rapid rise of the auto parts industry in the Changchun Hi-tech Zone has brought this blueprint closer to reality: Take last year as an example, Changchun Hi-tech Industrial output value and full-caliber financial revenue accounted for 41% and 46% of Changchun City respectively. The total industrial output value, total profits and taxes, and full-caliber financial revenues in the region account for more than half of the five development zones in Changchun City. Of these, 58% were created for the auto parts industry.
The automobile is the province's first pillar industry. However, in the rapid development of FAW Group, most auto parts companies in our province have not kept pace with it and become the weakness of the auto industry. Most auto parts companies are small in scale, have weak self-development capabilities, have low levels of support, and have low product technology content. The annual purchase volume of FAW is roughly 30 billion yuan each year, and many provinces are issuing "FAW Finance," while the amount of procurement achieved in our province is minimal. Without the backing of a strong parts and components industry, it is impossible to have an internationally competitive automobile industry. It can be said that the competition in the automobile manufacturing industry is largely a competition in the level of its parts and components.

The establishment of a supporting system that is compatible with the development of FAW as soon as possible, and the establishment of an auto parts industrial base with system development, system support, modular supply, and the ability to participate in domestic and foreign market competition have become the imminent goals of the automotive industry in our province. Based on the status quo of the development of auto parts industry in Changchun, Changchun City is determined to implement the strategy of the park, with the gathering of the park as a breakthrough point, and changing the distribution of spare parts industry, small scale, weak capacity and low product level. In September 2000, Changchun High-tech Zone planned 4 square kilometers of land and jointly established a car research and development park with FAW Group. In the R&D Park, there are national first-class automotive research institutes, design institutes, research institutes, educational and training centers, and many other supporting manufacturing companies. There are numerous logistics companies that are well-known throughout the country. Trial production, production, logistics, sales, and then one-stop industrialization system of information transformation. The technology of the auto parts industry in our province is weak. Only when it is integrated into the development tide of the world auto industry will there be a way out. Immediately, Changchun High-tech Zone and FAW jointly established a platform for attracting investment and vigorously implemented the development-led strategy to use foreign capital to drive the development of domestic capital.

At present, 27 foreign-funded enterprises such as FAW Kaierheese and Taiaojinhuan have settled in the High-tech Zone, of which only 5 of the world's top 500 companies have 5. The registered capital of foreign investors reached 155 million U.S. dollars and 26 key technologies were introduced. The entry of the world’s top companies has brought advanced technology and management models to the park and created a development miracle. TRW, the world’s second-largest auto parts manufacturer, made it clear that it will build the world’s highest level of auto parts parks in Changchun. At present, the production base of the automobile ABS system is being built. The output value of this project will reach 1 billion yuan. Under the guidance of the "giant", the auto parts industry in our province has shortened the gap with the world's advanced level and achieved a leap-forward development.

Driven by foreign-funded enterprises, a number of key domestic auto parts and auto parts enterprises have strengthened their capacity for independent innovation, conducted technological transformation, and established R&D institutions. Some enterprises’ technological equipment has already caught up with the international advanced level. The auto parts companies in the region have been able to produce more than 20 series of 1600 auto parts products, among which mufflers, subframes, radiators, steering gears, etc., have reached the international advanced level. Not only for domestic OEMs such as FAW, but also exported to the United States, Germany, Japan.

Jilin Automobile Brake Factory is a dazzling star in the automobile accessory enterprises in the park. They jokingly called themselves Erlang--three eyes: staring at FAW's product development plan; staring at the development of the same industry; and staring at the cutting-edge technologies of the world's auto parts industry. They regard product development and innovation as their life, and corporate R&D investment has been increasing year after year. They have accounted for 6% of sales revenue, which is much higher than the average level in the industry. They launch an average of more than 30 new varieties each year. With the development of new models of many OEMs such as FAW, the central valve master cylinder has filled the gaps in the domestic market and has become a substitute for imported products. The market share of the products has reached 30%, and it has become the most advanced technology and the largest scale of production in China. Miniature car brake system component production base.