China increases the integration of auto parts

In recent years, many automobile manufacturing companies have begun to require parts and components companies to supply parts and components systematically in order to simplify the automotive manufacturing process and save equipment time, and to modularize the assembly. At present, the auto parts production rate of major automobile manufacturers in the world is about 30%, for example, Ford Motor Company is 38%, Chrysler Corporation is 34%. The rest of the parts and components of the major automobile manufacturers are oriented toward international procurement with product quality, price, and supply conditions. However, only a large number of large-scale, advanced technologies and parts companies capable of producing system modules can provide direct supply to vehicle manufacturers. Manufacturers producing component modules can only supply system module companies and become secondary or tertiary suppliers. In terms of component product development, multinational auto parts companies have continued to innovate in product development in order to adapt to the increasing trend of automakers launching models, and have been synchronizing with vehicle companies during vehicle development. Development, and even began to develop in advance.

Due to the formation of a new competitive environment, the global automobile industry chain represented by Europe, the US and Japan is gradually forming a new type of relationship between the automotive industry. We can clearly see that the auto parts companies in the world are increasingly pursuing independence from vehicle companies. Out of this, this has drastically changed the vertical integration and division of labor and collaboration model of the original automobile industry. The parts and components companies and the vehicle companies have formed the cooperation of reciprocal cooperation and strategic partnership.

According to the latest research from Ward's AutoWorld, the Japanese automobile industry, represented by Honda, Toyota, and Nissan, has strengthened its supply and use of strategic alliances or outsourcing by establishing a team spirit and coordination awareness in recent years. The new zero-setting system of cooperation between commercial and underwriters is particularly fruitful. Through careful comparison of functions and costs, to study their own strengths, or to establish competitive advantages, and to concentrate on the development of this advantage; at the same time, from the perspective of maintaining the corporate brand, we must study the core aspects of the company, and retain and enhance these links. Ability to separate some of the non-advantageous or non-core links, while continuing to seek partners that can achieve synergy with them, and jointly complete the entire process of the value chain. The practice of Japanese companies has shaken off the negative effects of “vertical integration”, expanded resources, and used the resources of parts and components companies to achieve rapid market response. This new “horizontal integration” model emerged.

At present, the relationship between China's auto parts companies and vehicle companies cannot meet the requirements of the development of China's entire vehicle industry, nor can it meet the requirements of China's auto parts industry. Now, vehicle companies and parts and components companies are basically passive cooperative relationships in product development. The flow of information from one vehicle company to parts companies is one-way, and the degree of cooperation is very low. This kind of passive cooperation is a waste of resources for both parties. Therefore, in order for China's autonomous auto industry to be able to become bigger and stronger and able to continue to develop in an increasingly fierce market competition, it is necessary to build a new zero-to-zero relationship.

The more direct reflection of this unfavorable situation of foreign capital’s absolute status is that China’s spare parts industry has always been controlled by foreign component manufacturers.

"Actively participating in the product development work of the main engine plant" means that auto parts enterprises must have strong development capabilities and can keep up with the development level of the entire vehicle technology. The foreign auto industry has already adopted the method of “proactively purchasing” or “simultaneously developing”, that is, at the initial stage of vehicle development, parts suppliers participate in the development of parts and components, and the developed products are synchronized with the entire vehicle, improved, and authenticated. , put into production. For the domestic parts and components manufacturers, it is very difficult to participate in the development process of the whole vehicle plant and enter the supporting system of the whole vehicle, especially the imported vehicle.

On the one hand, in order to reduce costs and increase the degree of localization when investing in China, foreign vehicle companies have also driven domestic companies such as Delphi, Bosch, Eaton, Michelin and other world-renowned spare parts companies to invest in China. With the vehicle factory has many years of fixed matching relationship.

On the other hand, China's spare parts companies and products have a big gap with foreign countries. At present, the most important parts of automobiles, such as engines, transmissions, fuel injection systems, and other products with high added value, are provided by foreign manufacturers. Over 90% of the domestic high-end parts and components market share is held in foreign-owned spare parts. Business hands. China's component manufacturers can only provide low-value products such as audio and interiors.

In this case, the Chinese manufacturers can only be the second- or third-tier suppliers of foreign automakers, and can not enter the complete vehicle support system. Since it is impossible to support multiple independent vehicle manufacturers and enter the international auto parts procurement system, corresponding priority support will not exist.

At present, the marginalization of auto parts companies in China is very serious. Foreign auto companies are very clear that the entire vehicle joint venture has policy provisions that the foreign capital ratio cannot exceed 50%, but parts and components have no provisions in this regard, so now foreign-funded enterprises In order to obtain greater profits through the controlling or wholly-owned parts and components factories, the foreign party controls the core technologies of parts and components, and controls the key technologies and profits of the entire vehicle.

At present, the largest domestic sales of spare parts are car front suspension and rear axles, universal joints, transmission shafts, and bearings. The technical content of these products is mostly international in the 1980s and does not include electronic control technology. , not competitive in quality and price.

With the entry of multinational auto parts companies into China, they have mastered the core technologies of some of the key components and products and have basically monopolized the market for OEMs.

At present, foreign-funded enterprises already occupy more than 60% of the market share in the Chinese auto parts market. Some people even estimate that foreign companies’ share of the auto parts market has reached more than 80%; in the high-tech areas such as automotive electronics and engine parts, the market share controlled by foreign companies is as high as 90%.

Policy neglect is the main reason for the promulgation of the new "Automobile Industry Development Policy" in June 2004. From this we can still see traces of "heavily weighted components". For example, Article 4 states: “Improve the adjustment and restructuring of the automobile industry, increase the scale of the company’s benefits, increase the degree of industrial concentration, and avoid scattered, chaotic, and low-level redundant construction. Through the market competition, form several large-scale automobile companies with international competitiveness. The Group strives to be one of the top 500 companies in the world by 2010. Encourage auto manufacturers to form alliances according to market rules to achieve complementary advantages and resource sharing, and to expand the scale of operations.Cultivate a group of parts companies with comparative advantages to achieve scale production And entered the international auto parts procurement system, and actively participate in international competition.” There are also mentioned in Article 17: “Establish an exit mechanism for auto and motorcycle manufacturers, and for auto manufacturers that cannot maintain normal production and operation (including The existing modified-vehicle manufacturing enterprises shall implement special public notices. Such enterprises shall not transfer their qualifications for the production of automobiles and motorcycles to non-automobile and motorcycle production enterprises and individuals. The state encourages such enterprises to convert special vehicles, auto parts or other automobiles. Vehicle manufacturers restructure their assets."

From the fourth article, we can see that for the entire vehicle company, it is mentioned that “a few companies are formed through competition in the market...” and for the parts and components companies use “cultivation”, that is, parts and components for the car. For enterprise groups, they are still subordinate. In the exit mechanism of Article 17, traces of parts and components that are underestimated can also be found.

Although in the new "Automotive Industry Development Policy", the independent research and development capabilities of the parts and components industry were mentioned to a very important position. Chapter XXX of Article VIII states that "Auto parts enterprises should actively adapt to the development trend of international industries and actively participate in the product development work of the main engine plant. The system development capability must be gradually formed in the key auto parts area." Article 31 To: “... directing social capital to invest in the production of auto parts and components, and promote the development of specialized, mass-produced, and modular supply capabilities for parts and components companies with comparative advantages. It can support multiple independent vehicle manufacturers. As for the parts and components manufacturing enterprises that have entered the international auto parts procurement system, the state will give priority to technology import, technological transformation, financing, mergers and acquisitions, etc.. But for auto parts companies in China, it is a bit out of reach. feel.

An old expert in the auto parts industry once pointed out: "As a programmatic document of the auto industry, the neglect of the industrial sector by the industrial policy is a very dangerous act and has led to the current unfavorable situation."