Recently, according to the Huidian industry research report, the total output value of China's auto parts industry, which is closely related to the development of the entire vehicle, will reach 2 trillion yuan in 2011.
Although the Chinese auto market is booming in 2010, this does not mean that China's auto parts companies will be able to sail smoothly. In 2011, from the perspective of the survival status of auto parts companies, it is still a difficult situation: raw material prices, OEMs shifting cost pressures to parts suppliers, and vicious competition in prices.
“The solution to our cost is to improve our product quality and product technology, and to focus on the mid- to high-end market to maintain the competitiveness of our products. Only in this way can we avoid vicious competition in the industry.†Weng Weibo, vice president of engineering at Federal-Mogul China, told reporters Indicated.
Federal-Mogul, as one of the world’s largest multinational parts and components companies, recently announced its third-quarter 2011 performance report, showing that its third-quarter sales and net income grew rapidly compared to the same period in 2010, with sales in the third quarter at US$1.7 billion. Compared with the same period of the previous year, it increased by 12%. This is the highest third-quarter sales of Federal-Mogul. Federal-Mogul's sales growth was attributed to strong sales of powertrain products and favorable currency factors.
How to maintain the growth rate of Federal-Mogul at home, Weng Weibo said that today's Chinese auto market, the relationship between OEMs and suppliers and distributors is not so much “primarily†as “brothers†or “iron trianglesâ€. "Community", and market competition also showed an unprecedented "chain win-win situation."
The cause of this change is the market. It is the ability and attitude of the auto manufacturer to respond to the market. The automotive products are made up of tens of thousands of parts to ensure excellent quality. From raw materials to spare parts and vehicle assembly, every link must be absolutely safe. The "chain" determines the success or failure of the company.
The polarization of the market and the higher degree of industrial concentration all contribute to the emergence of a win-win era. In the "chain" era, life and death, prosperity and weakness are reflected in the situation of the chain. What motivates the era of a win-win situation in the chain? market! Today's consumers are more individualized and their demands for automobiles are more three-dimensional. They not only pursue quality, but also pursue beauty and comfort, so that large-scale and intensive enterprises show unprecedented advantages, and thus require a stronger "chain" of enterprises. Production and development capabilities, establish a stronger quality assurance system, and provide more humane products and services.
“In terms of R&D funding, Federal-Mogul can be described as a huge investment. In the past five years, R&D investment has reached 800 million U.S. dollars, which is more than 4% of sales; investment in raising engineering and manufacturing levels is 1.3 billion U.S. dollars, exceeding the sales figure of 6.6 million. %.†Weng Weibo said that in 1995, Federal-Mogul Group began to enter the Chinese market. In 2005-2011, the average growth rate of China's auto market was 30%, but the sales growth rate of Federal-Mogul reached 41%.
The growth of Federal-Mogul’s growth is the growth of China’s auto parts industry, not only in the expansion of industrial scale, but also in the improvement of soft environment and the enhancement of soft power. In addition, the level of production management of auto parts companies is also increasing. At present, many domestic parts and components companies are learning the advanced production management experience of multinational companies. From the zero inventory, lean production to achieve the lowest cost, the largest, most efficient and other advanced management concepts have been applied in practice.
China's auto and parts industry will also have a stable growth period of 10 to 20 years. There are still a lot of opportunities for China's auto parts industry to have a long way to go in terms of technology and market. In the future development of auto parts companies, they should focus on the high-tech market, maintain sustainable development, and grow from small to large.
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