Some Excellent Parts and Components Enterprises Talk about Supporting and Developing with Multinational Corporations

In recent years, China’s auto parts companies have achieved remarkable results, not only in the continuous expansion of the supporting range of parts and components companies, but also in the coverage of many multinational automotive companies, and also in the new products, technologies and quality management of enterprises. Steps. In this process, the parts and components companies have accumulated rich experience. The consistency, stability, reliability, and timeliness of supply have won recognition from picky multinational companies, and they are gradually developed together with the main plant to increase the production of products. Synergy. Among them, some companies' valuable experience can be provided to the industry for reference.

Jointly developed with multinational OEMs

The requirements of multinational companies for parts and components are relatively high. In the past, the proportion of suppliers to Chinese parts and components companies was relatively small. With the technological progress and technological improvement of Chinese parts and components companies, the localization rate of multinational companies has been continuously increasing, and many multinational companies are increasingly It is happy to be supplied by Chinese parts companies. Because the product quality of China's spare parts companies is not only lost to foreign suppliers, but parts and local procurement can significantly reduce procurement costs.

After the plain filter company that originally produced military products was transferred to civilians, it used aviation technology for the development of automobile three-filters, and provided air cleaners, oil filters, and other accessories for engines, construction machinery, passenger cars, heavy-duty vehicles, light trucks, and cars. Fuel filters have become a well-known Chinese manufacturer of filters. After passing the global automotive industry's ISO/TS16949:2002 quality management system certification, Plain Filters participated in the localization of Cummins, Deutz, and Sophie engines, and developed in parallel with the OEM.

Zhang Yuhua, sales manager of Plain Filters, said that the products developed by Plain Filter met or exceeded the technical requirements of OEM customers. In the past few years, the plain has closely followed the pace of development of the main engine plant Euro III fuel filtration, received full trust of Qingling and Nanjing Auto in the European III fuel-filtering research, and used the AM sales network to promote the Euro III products, gained market experience, and became a Weichai. Euro III combustion filter local suppliers.

Enterprises like plain filters are not rare in China. There are many departments involved in auto parts companies, and the categories are so numerous. No matter what department or what kind of sector, Chinese auto parts companies can work hard to rank among the world's most advanced suppliers.

According to Wang Boxiang, manager of sales management department of Daica Wheels, China's top wheel supplier, the company's products have been supported by most multinational companies' joint ventures in China. Now, not only has it developed jointly with the joint venture company, but also provides professional advice on the future design of the main engine plant.

Missing key technologies

Of course, if we take the international top level as the benchmark, there is still a big gap between China's auto parts manufacturing industry and the international advanced level. This gap is even larger than the gap between self-owned brand OEMs and multinationals. The main performance is the lack of key component technologies.

In the vehicle manufacturing industry chain, key components such as automatic transmissions, engine control systems, fuel injection, anti-lock braking systems, exhaust gas treatment, sensors, airbags, electric sunroofs and other core technologies are still mostly used by foreign parts companies. Holding, which led to high profits outflow. Many local parts and components companies are concentrated in the “three low and one high” areas, namely products with low added value, low technological content, low price, and high energy consumption.

Some auto parts enterprises in China are constrained by low-level redundant construction and vicious price competition. They have a meager profit and many have to survive. They lack the necessary capital accumulation to carry out technological R&D scale operations. Because there is no core technology and sufficient capital support, many companies will soon encounter ceilings after their initial rapid development, making it difficult to become bigger and stronger.

Xia Xia, deputy general manager of Xixia Water Pump Co., Ltd. believes that to successfully achieve joint development with the vehicle factory, especially the development of key components, must meet three conditions: First, to lead the technology. To master the industry's leading technology, we can seamlessly connect with the customer's product development department; Second, we must be strong. The development cycle of new products is long and the matching tests must be repeated many times. Parts companies need sufficient manpower, material resources, and financial resources to cope with the initial investment, and seek fast on the basis of stability, in order to respond to rapidly changing market demands; Establish strategic alliances. It is necessary to form a strategic cooperation relationship with the main engine plant and a risk and benefit sharing mechanism through various means.

Call for transparency and openness

Although the above-mentioned enterprises interviewed were all the best in China's auto parts industry, and all of them had successfully entered the supporting procurement system for multinational companies, in the interview, the reporter vaguely felt that a common problem was. Although the interviewee was not willing to mention it, the reporter still had to expose it here, that is, transnational companies (including joint ventures in China) had insufficient transparency in the procurement process.

China's auto parts companies are still deeply exposed and transparent in entering the transnational supporting system. There are many reasons for this problem. Among them, the most important thing is that the degree of trust is not enough. Automobile manufacturing integrates cutting-edge research in modern industry. The level of a country's automotive industry intuitively reflects the level of industrial development in the country. Due to various reasons, international large-scale automobile manufacturers have no confidence in the R&D, manufacturing and quality control capabilities of China's local parts and components companies, causing many powerful local companies to delay entering the supporting procurement system of multinational OEMs.

In addition, the procurement system of multinational OEMs is closed. China's joint-venture vehicle companies almost all have their own parts and components manufacturers. The independent parts and components companies have to pay a huge price for entering their supporting systems and are in a quite unfavorable position.

The opaque procurement is also the cause of this problem. This phenomenon is common in the parts and components industry. Commercial vehicle companies are more serious than passenger car companies. Transnational ownership is more serious than joint ventures. On the one hand, the procurement system is not transparent, powerful companies may not be short-listed, and products with high cost performance may not be successful. On the other hand, the claim is opaque and disguised as a source of income for individual OEMs.

Leung Chung-hsing suggested that enterprises should improve their internal strengths, standardize production and operations with international standards, and increase marketing efforts. Efforts should be made to increase the technical content of products, strengthen quality control, and avoid unnecessary costs. The relevant departments regulate the procurement of parts and components for all OEMs, and create fair competition opportunities for all eligible local parts manufacturing companies.

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