Local companies are threatened by capital, foreign investors want to dominate the auto parts industry
Editor's Note: In recent years, leading companies in some important domestic industries have been gradually acquired by foreign investors. Foreign capital infiltration has shifted from large-scale enterprises to small and medium-sized parts and components companies. A large number of foreign capital intrusions are threatening the development of independent brands, and Chinese auto parts companies have encountered capital threats. “Once the product development of a multinational company is successfully put into the Chinese market,†the person said pessimistically, “the original component companies that had grown up together with the self-owned brand automobile manufacturers will also die.
“Unione di Banche Italiane Scpa (UBI, for short) is being commissioned by customers to find tyre acquisitions and joint ventures in China. Market research has found that large and small tire companies have already established joint ventures or acquisitions with foreign companies.†Industry friends told reporters.
A statistical data shows that by the end of 2007, foreign multinational corporations had almost completely purchased domestic semi-steel tires for cars and accounted for nearly 80% of the production share.
In recent years, leading companies in some important industries in China have been gradually acquired by foreign investors. Foreign capital infiltration has shifted from large enterprises to small and medium-sized parts and components companies. A large number of foreign capital intrusions are threatening the development of independent brands, and Chinese auto parts companies have encountered capital threats.
Multinational companies seek their own brand support
"Now, multinational companies are preparing to enter the Chinese automaker's own brand car companies, they are developing low-end industries, with excellent prices and comprehensive technology, etc., will certainly have a huge impact on China's original low-end accessories." One does not want to disclose The name of the person revealed to reporters.
It is understood that the world's spare parts giants Delphi, Bosch, China and Denso have such plans, and focus on developing low-cost, low-cost and highly-usable products to attract their own brand car companies.
According to reports, this part of the company's R & D is a global product development platform, according to different needs for research and development and production, research and development of new products within the company called economic products, and the previous high-end products, the price is expected to be slightly higher than the current domestic Low-end product prices, but higher in technology and quality than domestic accessories, "this is a lethal."
Analysts believe that in the past, multinational manufacturers of parts and components believed that China’s own-brand automobile companies had no scale, their products were low-end, and they were sensitive to price. Now that China’s auto market is so huge and the number of exports has increased, multinational giants have begun to re-examine their own brands for their development. importance.
“Once the product development of a multinational company has successfully entered the Chinese market,†the person said pessimistically, “the original component companies that had grown up together with the self-owned brand automobile manufacturers will also die.â€
In addition, the lethality of foreign parts is reflected in its technical monopoly. “Now the auto parts all talk about modules. Once a part is used with this corporate part, the whole part must use the whole company. Other companies cannot support it. These are all high-end technological products in the upstream, and domestic self-owned brand parts and components companies cannot do this. A little.†The person analyzed this way.
Li Qiang divides tire manufacturing
The competition among multinational giants in the Chinese market is reflected in their tireless investment in China. As of now, the world's tire giants have all settled in Shanghai. According to the latest news, the world’s top 500 German Continental Group’s first factory in China and an approximately 185 million Euro horse brand tire factory have entered the preparatory stage of construction after the site has passed the environmental assessment.
At the same time, other tire manufacturers have followed suit. US Goodyear Tire & Rubber Co., Ltd. announced that it will start nearly 500 million U.S. dollars as its initial investment and build a new plant that will adopt the most advanced international technology equipment; Italian engineering tire manufacturer MAI Group has acquired Shandong Jinyu Tire Co., Ltd. to support the MAI Group. Strategy for Asian market development; Rhodia announced plans to build a second world-scale white carbon plant in Qingdao, China, to meet the growing demand for eco-friendly tire products.
Industry analysts believe that, in addition to the large demand for parts and components in the domestic auto industry, with the global rise in raw materials, low labor costs in China, advanced new plant equipment, and a favorable domestic investment environment have caused multinational tire companies to increase Reasons for China's investment.
Observers worried that as of the end of 2007, foreign multinational companies had almost fully acquired domestic semi-steel tires for cars and accounted for nearly 80% of the production share. The entry of foreign capital will accelerate the shrinking of the self-owned brand market.
Multinational companies madly swallow parts industry
In recent years, multinational corporations have shown the momentum of “great snakes†in China, and the survival status of China's spare parts enterprises is in jeopardy. In August 2004, Wuxi Weifu, the largest manufacturer of diesel fuel injection systems in the country, was acquired by Germany’s Bosch Corporation, the world’s second-largest auto parts manufacturer, and the foreign party’s holdings were 67%. In addition, German Bosch has established a nationwide scaled parts distribution network in China and has 153 after-sales service stations in China.
Delphi Automotive Systems, the world's largest auto parts manufacturer, has so far established 13 wholly-owned and joint ventures, a technology center and a training center in China, with a total investment of more than 400 million U.S. dollars. The total business sales in China is nearly 500 million U.S. dollars. One-third of the products of Chinese companies are exported.
Visteon has established five joint ventures in China to produce automotive parts. Yanfeng Visteon Automotive Trim Systems Co., Ltd. was established in 1994 with Shanghai Automotive Industry Corporation (Group) Corporation.
The world’s fourth-ranked auto parts supplier, Denso Corporation, has also set up several wholly-owned and joint ventures in Tianjin, Yantai, and Chongqing, China, and has its spark plugs, wiper rocker arms, refurbished parts and other products in Chinese autos. The aftermarket has been fully promoted.
According to statistics, there are nearly 500 parts and components companies that foreign investors have invested in China. Most of the world’s leading auto parts companies have established joint ventures or wholly-owned enterprises in China.
In key enterprises in the auto parts field, a group of leading enterprises such as Weifang Diesel Engine Factory, West Blower (Group) Co., Ltd., and Hangzhou Advance Gearbox Group Co., Ltd. are closely watched by multinational companies. Among them, the world-famous transmission giant Germany's "ZF" company is seeking to acquire Hangzhou Advance Gearbox Group Co., Ltd.
Under the dual pressure of foreign monopoly forces and domestic auto manufacturers' annual reduction of procurement costs, mergers and acquisitions are an inevitable choice for the development of China's spare parts industry. However, the malaise of indigenous parts companies is too numerous, their scale is too small, and their ability to independently develop is still severe. This point has also been clearly confirmed in the income of the top 100 companies. In 2005, the sales revenue of domestic top 100 parts and components enterprises was less than 1/10 of the top 100 companies in the world.
Shen Ningwu, deputy secretary-general of the China Association of Automobile Manufacturers, stated: “The integration and merger of local parts and components companies is a complex subject that is difficult to operate. In the domestic auto parts leading enterprises, there are few 'powerful' companies. The road to restructuring is unrealistic."
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