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 Under the dual pressure of rising raw material prices and price cuts by stumbling mills, domestic parts and components companies are finding it difficult to breathe. The "particulate, defective, and poor" components of China's spare parts companies are obvious to all. In addition, domestic domestic vehicle manufacturers have artificially created non-technical obstacles, and domestic component manufacturers seem to have been overwhelmed.
One sigh: it is difficult to establish "offensive and defensive alliance"
At the annual meeting of the 2003 parts and components industry organized by the China Association of Automobile Manufacturers, a person in charge of seals business talked about it. The main core of the topic was how to reduce the negative impact of the downstream automakers on them. Since then, seal companies have signed "industry self-regulation" clauses under the leadership of industry associations. "Non-vicious competition, not to push down each other's price", these terms can be seen as a certain extent, that seal companies have established an "offensive and defensive alliance" for vehicle manufacturers.
"If you follow the requirements of a vehicle manufacturer, companies simply can't make profits. What opportunities do you have for living?" all the league companies think so.
It is understood that. In 2003, the price of plastics, the main raw material for seals, rose rapidly, leading to a 4% to 6% increase in corporate costs. However, due to fierce market competition, prices of automakers have become commonplace. To ensure its own profit, OEMs are required to reduce their prices by 8% to 10% each year.
In the recent period, the OEMs have reduced the prices to a certain extent within the period specified by the upstream component manufacturers. If the upstream manufacturers refuse to implement the products, the automaker will cancel its supporting qualifications. In 2003, this price was particularly severe in the seal industry, with the highest price cuts reaching 10% to 15%.
“Our general profit is between 5% and 10%. If the internal management controls are in place, we can save about 5%. Now that raw material prices have risen and the automaker's price cuts have been demanded, serious overdrafts have already occurred.†A seal Business executives complain.
However, the relevant individuals are not optimistic about the "offensive and defensive alliance" of seal companies. "The loss of the production of automobile bush component manufacturers alliance is a lesson from the past." said Zhou Shengmin, chairman of Sichuan Zhongsheng Bearing Co., Ltd. As chairman of the China Automotive Industry Association's Automotive Bushing Committee, they once discussed with Wuxi, a relatively large bearing company, that the total price cuts of vehicle manufacturers are controlled at 8%. But soon the alliance was destroyed by the automakers, and the final price cuts reached 13%. "The strength of the two sides is far too different", and Zhou Shengmin is very helpless.
Second sigh: Foreign parties have control over procurement rights. The problems encountered by parts and components companies do not stop there. When people are guilty of having no independent research and development capabilities for China's spare parts manufacturing companies, parts and components companies are worrying about the difficulty of opening up new markets for their newly developed products.
Cao Jianyong, general manager of Chongqing Magnesium Science and Technology Co., Ltd., said that compared with his peers, their magnesium alloy technology is completely inexplicable, but they have yet to enter the domestic vehicle market. "Some foreign companies' magnesium alloy models have been replaced with other materials since they entered China." The use of magnesium alloys is the only way for cars to be lightweight. American Automobile Manufacturers Association regulations. In 2008, at least 12 kilograms of magnesium alloy was used in every car. Nowadays, some new models of high-grade cars have begun to use magnesium alloy materials.
For the reasons why China's magnesium alloy companies are unable to open up the domestic vehicle market, Dr. Chen Xiaoyang of Qinghua Lijin High-Pressure High-Tech Research Center thinks: “First of all, China’s joint-venture vehicle manufacturers have no autonomy, and the adoption of raw materials is determined by the foreign party. Second, China's current emission standards are still not too stringent, and domestic automakers are not under pressure to use magnesium alloys."
“Chongqing Magnesium Industry has received strong support from the Ministry of Science and Technology. At present, it is a relatively good enterprise in China, but its main market is still in the motorcycle field. We currently have magnesium alloy products, but basically all of them are exported abroad, although we very much hope to develop the domestic market. Market, but the resistance is too great." Chen Xiaoyang said.
San Tan: It is still in follow-up relationship with OEMs
As for the current plight of parts and components companies, Chen Bingyan, deputy chief economist of Dongfeng Motor Corporation, also expressed his opinion that China's auto factories have not yet reached the level of supplier management in international auto manufacturers. One product, one supply Business; a series of multiple suppliers, so offensive and defensive alliances are not reliable.
It is understood that there are currently three cooperative development methods for parts and components companies and OEMs: First, the advancement of parts and components companies relative to vehicle manufacturers. The developed parts are more advanced than the existing complete vehicle parts, and they occupy an active position in the cooperation with the vehicle manufacturers. The second is the simultaneous development and simultaneous design of the parts companies and the vehicle manufacturers. Third, the relationship between parts and components companies and automakers is follow-up, and such parts and components companies can only be used as affiliates of the vehicle manufacturer and subject to human control.
At present, few domestically-funded enterprises can achieve simultaneous development and synchronous design with an OEM. However, joint ventures have an advantage over this point. They own technology and basically monopolize the parts and components market with relatively high technical requirements in China. “In the future, after the domestic parts and components market becomes larger, they will gradually transition to sole proprietorship, and they will further strengthen the exclusive position of the automaker.†This is what Chen Bingyan is most worried about.
"Removing raw material price increases and other uncontrollable factors, auto manufacturers do not have independent supporting rights are also obstacles to the development of domestic parts and components companies." Chen Bingyan believes that the current difficulties faced by parts and components companies need to grasp from the macro level, on the one hand give full play to The role of industry associations, on the other hand, companies should also identify the market positioning and further enhance their own competitiveness.
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