Where is the way out of the auto parts industry under the economic crisis?

For more than a month, the financial crisis in the United States has swept the world and the damage to the real economy has deepened. People clearly see the risk of a global recession. At this time, as an important part of the real economy, the world auto industry is also mired in a quagmire. In September, vehicle sales in the United States fell 27% year-on-year, the largest drop in the US auto market in 50 years.

China's auto market has been affected by the financial turmoil, showing a declining trend for five consecutive months. The lukewarm auto market has caused the auto parts industry to suffer as much as the auto companies. Under the financial crisis situation, whether the global auto parts industry will undergo a regional shift, and the future development of the parts and components industry will become a topic of common concern to the industry.

â–  Global large-scale industrial transfer will not appear temporarily

Some people think that the automotive industry in Western countries is relatively mature and affected by the financial crisis. Therefore, there may be a tendency for developed countries to shift the auto parts industry to developing countries.

“I don’t think there will be a large-scale industrial shift in the parts and components industry,” said Gary Skolder, president of the International Automotive Engineers’ Asia Pacific Business Development. Affecting the company's investment decisions in the next step and rising shipping logistics costs will also affect the plans of some companies to set up factories overseas."

A representative of a foreign spare parts company that has invested in China told reporters that although developing countries still have many preferential policies for attracting foreign investment, such as water, electricity, raw material prices, etc., but with energy shortages and developing countries The emphasis on energy conservation and environmental protection, how long these preferential policies can last is the issue they have always been concerned about, and it will also affect the next investment decision.

“There will be no big industrial shifts, but it will certainly break the original investment layout and plans of the company. There will also be some cases of mergers and reorganizations and survival of the fittest.” Shi Yukuo, president of the Asia Pacific Region of the US-based Polk Automotive Consulting Company, said, “From the long-term Said that this will make the global parts and components industry more competitive."

â–  Good timing for business adjustment

“The Chinese auto market has grown at a rate of more than 20% for many years in a row, which is determined by China’s national conditions.” Xiao Song, executive vice president of Continental Group Asia Headquarters, said: “The current market adjustment is not necessarily a bad thing. This is a corporate adjustment. The timing is also the time to test the company’s real skills."

Gary Skolder believes that the original cost advantage of China's spare parts companies in the international competition is weakening and new advantages must be explored. "Parts and parts companies must not only provide customers with products, but also have the ability to provide customers with solutions. This will have the advantage in the future competition."

When talking about the financial crisis, deputy secretary-general of the China Association of Automobile Manufacturers, Dong Jianping, called on Chinese auto companies to work hard. He said: "We have experienced rapid development for many years. The financial crisis has brought us an opportunity for adjustment. Enterprises should use this opportunity to improve the management mechanism, improve the quality assurance system, and continuously carry out technological innovations until they master the core technologies."

[next] â–  will change the zero relationship

Some experts believe that the financial crisis is likely to change the current environment for the development of domestic parts and components industry.

“We are supporting buyers with only 1% of profit, and the difficult situation of the operation can be imagined.” Yang Song, deputy general manager of Beijing Kebuk Technology Development Co., Ltd. said, “In the procurement process, after multiple rounds of bidding, procurement The price is very low. We are very helpless. With such a small profit margin, it is difficult for companies to have the strength of technological innovation."

Dong Jianping believes that in the procurement process of vehicle companies, excessively lower parts procurement prices will adversely affect the development of parts and components industry in the long run and will also indirectly affect the development of vehicle companies.

Wei Jianjun, chairman of Great Wall Motors, said that in the current economic situation, he is most concerned about the parts and components industry. “Strengthening of the parts and components industry is the foundation for a stronger vehicle. In this economic crisis, the pattern of the parts and components industry is facing a reshuffle, but the companies that will survive will all be more powerful companies. This is a case for vehicle companies. The next step is very beneficial."

Chen Lixiang, chairman of the Zhejiang Wanan Group, told reporters: “We currently have some difficulties and have done a lot of work in controlling costs, but we have not reduced our R&D expenses at all. This is because we have gained an advantage in the next round of competition. fundamental."

"The financial crisis has made it difficult for a parts and components company that has survived by relying only on cost advantages such as labor and raw materials to survive. All that survive is large companies with technological capabilities. This is likely to change the structure of parts and components while also changing the whole industry. The zero relationship will give the parts and components companies more say," said an industry expert.

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