Parts industry accelerates the pace of shuffling

AVIC Automotive and Beijing Yizhuang International formally jointly acquired Nexteer Automotive Systems on the 8th. The company's China headquarters also settled in Beijing. This is the largest overseas acquisition of China's auto parts industry and the largest merger of auto parts between China and the United States. According to officials, this indicates that China’s auto parts companies have internationally advanced core technologies, products, quality customers, mature talents and management teams in key component systems.

Speaking of Nexteer, during the financial crisis, Nexteer, a wholly-owned subsidiary of General Motors, once fell into the dilemma of insufficient funds, and General Motors later resolved to focus on the development of automotive core business, and in January 2010. The plan to sell Nexteer was announced to the public, which gave AVIC a chance to succeed and eventually won the bid of more than 30 Chinese and foreign companies.

There are countless auto parts suppliers in China, which have penetrated into almost everything related to automobiles. However, it mainly focuses on non-core components such as air conditioners, glass, batteries, and seats. With the higher technological content, many domestic enterprises are at a disadvantage, and they are allowed to be located in wholly foreign-owned or joint ventures such as airbags, gearboxes, and electronic control systems. When foreign brands enter China, they also bring along the relevant core component manufacturers to settle in the country together. The foreign brands then attack the city. The land brands are often not rivals, nor are they the first targets to be considered by the joint venture.

What is worrying here is that the low technology and cheap prices mean that in addition to solving employment problems, there is not much improvement effect on the domestic auto industry. China's domestic auto parts companies still lack the ability to develop in parallel with the main plant. The long-established brand prefers to choose its own country's partners, and there is not much interest in looking for new faces.

In the past year or two, joint ventures have started to build their own brands. One of the successes of self-owned brands is that they rely on low-cost components purchased to reduce the redundant value of components. This gave local brands a chance to a certain extent. It is not impossible for a local supplier brand to grow into an internationalized company as long as it is developed with this express train. Roland Berger, a world-renowned consultancy and management company, predicts that in 2010, the global demand for auto parts will reach 1100.4 billion U.S. dollars, and the international procurement group's China procurement trend will continue to grow, which will inject long-term growth for the development of China's auto parts industry. power. The strength of local auto parts companies has grown by leaps and bounds, and they are gradually entering the supporting system of internationally renowned vehicle manufacturers and parts suppliers.

Opportunities and challenges coexist. As consumers demand more and more vehicles, parts and components companies must also increase their own production standards and technical content, especially some high-tech electronic configurations. If a company's R&D investment is insufficient, it will certainly not be able to keep up with the ideas and requirements of the entire vehicle manufacturer. In order to quickly enter the market and occupy a more favorable market position, it is inevitable for the entire vehicle company to acquire some core spare parts and lead manufacturers. This is worth thinking deeply of local companies. On the one hand, it is a fast-changing automobile trend, while the more stringent one is the recall system. In the future, there will be more frequent shuffling for the part-manager.

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