Auto parts multinational companies in China will continue to tighten the government

Abstract It is reported that this year the Chinese government may make a comprehensive revision of the "Automobile Industry Development Policy." The author believes that whether it is the opening of the auto industry joint-stock ratio, the merger and reorganization of car companies, new energy policies, etc., if compared with the foreign-invested parts industry joint venture (or sole proprietorship), the new version...
It is reported that this year the Chinese government may make a comprehensive revision of the "Automobile Industry Development Policy." The author believes that whether it is the liberalization of the auto industry joint-stock ratio, the merger and reorganization of auto companies, the new energy policy, etc., if compared with the foreign-funded parts industry joint venture (or sole proprietorship), the new version of the "Automobile Industry Development Policy" should first Adding control over the "virus" of overseas auto parts and multinational companies in China, and putting them on the "tightening curse", otherwise the Chinese auto industry will die due to "parts and components", and local auto brands will have full The army was destroyed and destroyed, and will continue to act as a multinational auto company's overseas colony factory. It can only be big and never be strong.

Since China entered the WTO WTO terms in 2001, it only limited the joint venture ratio of automobile auto joint ventures, and did not involve restrictions on the share ratio of auto parts joint ventures. What is even more incredible and puzzling is that in 2004, the National Development and Reform Commission issued the "Automotive Industry Development Policy", which officially canceled the share-based ratio limit for foreign-invested parts and components. Overseas auto parts capitalists can freely joint ventures in China without restriction. Or sole proprietorship, the Chinese auto parts industry and the huge market will be unconditionally handed over to overseas auto parts predators.

According to data from the Ministry of Commerce of the People's Republic of China, overseas capital controls most of the market share of domestic auto parts sales. In 2012, domestically produced domestically produced parts and components accounted for only 20%-25% of the industry's total sales, while auto parts manufacturers with foreign investment background accounted for more than 75% of the industry. Among these foreign-owned component suppliers, the wholly-owned enterprises account for 55%, and the Sino-foreign joint ventures account for 45%. The independent domestic-funded parts and components enterprises are basically in a marginalized situation, and the market share is shrinking rapidly year by year, and their living conditions are not optimistic.

At this stage, China's independent auto parts enterprises are mostly in the low-end of the value chain, and have a limited share in key core components such as brake systems, transmission systems, steering systems, air-conditioning systems, and electronic control. In the lucrative, core technology and high-end and profitable auto parts in the value chain, foreign investors are in full control, not joint ventures or sole proprietorships, and China cannot be targeted.

The so-called joint venture is only a means for multinational auto parts companies to obtain orders in China, and is a paving and "knocking block" for the current or future multinational auto parts companies. At the beginning, the overseas capitalists chose the joint venture model only to use the joint venture to obtain the market. After winning a certain market share, they would still choose a sole proprietorship to carry out larger-scale business expansion.

In recent years, China's surge in the vehicle market will inevitably lead to a huge parts industry market and extend to the upstream of the industry chain. Therefore, for a long time to come, sole proprietorships and joint ventures will become China's auto parts market. Leading force. Foreign-owned parts and components factories in China are mainly controlled or wholly-owned. At present, they are rarely willing or refused joint ventures. The cases of joint ventures between multinational parts companies and domestic parts companies are very few until they disappear. Previously, multinational parts companies hoped to obtain a market through joint ventures with OEMs. At present, foreign-funded parts companies with mastery of mainstream technology and competitiveness still choose a sole proprietorship expansion strategy. The choice of joint venture was only a tactic to gain market. Newly opened companies such as Bosch, Faurecia, TRW, Mahler, Schaeffler, and ZF are all wholly-owned. Even if some parts and components companies choose joint ventures, key component companies are still dominated by sole proprietorship, which directly leads to a market share of foreign-controlled in the key areas of high-tech and core technologies such as automotive electronics and engine parts.

Since the first day of the entry of foreign auto parts giants into the Chinese market, they have monopolized and controlled all aspects of high-tech and core technologies in China. Nowadays, overseas parts also rely on China's consumption to upgrade the demand for foreign-made parts and components. While maintaining the original high-end product market, they continue to expand into the low-end and mid-end markets, such as joint ventures with local automakers and independent mid- to high-end products. Joint venture brands share parts supply channels. It can be seen that the multinational automobile company has undergone new changes in its strategy in China. In the field of non-core parts and components, the proportion of foreign capital is also gradually increasing rapidly, and the large-scale production of streamlined production has been realized. "Can not resist and compete against it and decline and die, one after another quickly fell into the vassal of foreign capitalists and overseas colonial workshops.

At the same time, due to the lack of independent research and development capabilities and core technologies, China's independent parts and components companies mainly focus on the low-end and mid-end, especially in the high-tech automotive electronics and electronic control machinery parts and new products. There are serious shortcomings in R&D and innovation. Therefore, the joint venture method of recruiting Anna has become the only preferred way for local independent parts companies to seek survival. This has also laid the foundation for squeezing the living space of independent brands.

The production cost advantage is bound to ensure that overseas giants will seize the Chinese market and cultivate their own joint-venture parts and components enterprises in the Chinese market. For a long time, the joint venture foreign party has brought in the parts and components system, and the local parts and components enterprises have been excluded. There is no opportunity to participate in the competition. The procurement rights of parts and components are basically in the hands of the joint venture foreign parties. With the dominant position, the foreign party obtains huge profits by controlling the parts procurement system.

The deep development of multinational foreign-funded auto parts enterprises in the Chinese market not only squeezes the living space of independent brands, but also becomes a magic weapon for obtaining profits. China's independent parts and components enterprises can only maintain market share with limited resources and cheap labor, and their living conditions are in the river. It is extremely difficult to maintain, and it is not because of the merger and acquisition of foreign capital, it is bankruptcy, and development is not optimistic.

Take Japan's Toyota and Nissan Motor Co., for example, before entering China, first part of the parts companies that they own shares will be placed in the domestic market, thus forming a full-time supply. Most of these suppliers belong to the "institutional" partners of the two companies. Japanese automakers brought Denso, Aisin, etc.; Korean automakers brought Mobis, etc.; German automakers, Mercedes-Benz, BMW brought Bosch, etc.; American GM and Ford vehicle companies Bringing Cummins and others, local parts companies are basically excluded from the system.

Although most of China's vehicle manufacturers have formed a change in the understanding of parts and components from the purchase to the establishment of the supply chain system, but also lack the ability to integrate supply chain resources, including core component development, system matching capabilities, standards for supplier evaluation and The lack of these capabilities, such as the system and the ability to control costs, is also a very important factor in the slow growth of China's component companies.

However, it is undeniable that there is indeed a difference in quality and gap between the products of local parts and components and the products of parts and components enterprises in the foreign-funded system. For domestic automobile OEMs, the use of domestic parts brands is indeed cheap, but domestic Consumers do not recognize. With the components of these international brands, the international technology and regulations are stricter and more regulated than domestic ones. Although the price is higher, this cost is worthwhile. Domestic automakers have also begun to leave the domestic parts suppliers. The reason why local automakers dare not use their own parts, mainly because these parts can't be done in terms of workmanship, refinement or intrinsic performance. fulfil requirements. Nowadays, it is a joint venture or wholly-owned enterprise that occupies and dominates China's auto parts. These international parts represent the direction of world technology development. Whether it is technological advancement or consistency of quality, it is stronger than internal capital parts enterprises. . In addition, the general mentality of the Chinese people is arrogant, and these internal and external factors have led to the massive invasion and dominance of foreign investment in the Chinese parts market.

Throughout China's reform and opening up and the automobile industry policy has been "a good situation", multinational auto parts companies are committed to infiltrating and expanding China's market share through joint ventures or joint ventures. Such as ZF ZF, Cummins, BASF, Bosch, Delphi, Siemens, Continental, Denso, Lear, Deutz, BorgWarner, Goodyear, Dana, Cooper, Federal-Mogul, Meritor, Dana , TRW (Tianhe), Visteon, Autoliv and other international parts giants, in addition to establishing their own one or N R & D centers in China, and in the marketing channels throughout the country, and rooted in the penetration of localized markets, foreign investment This strategy and tactics of the parts giants have made their penetration rate in China's auto industry more and more high, and the influence of comprehensive control and control is also growing. The Chinese auto industry is getting deeper and deeper into the control of overseas parts and components. The world's largest automobile production and sales country is not expected to become a world automobile power.

In 1992, Faurecia entered the Chinese market. In 1994, it began to provide automotive emission control technology products to Shenlong Automobile through its joint venture with Hubei Tongda Co., Ltd. Over the next 20 years, Faurecia's other three business systems – seat systems, interior systems and exterior systems – have entered the Chinese market, and Faurecia's business in six major automotive production areas continues to expand. At present, Faurecia has 36 factories, 4 R&D centers and nearly 10,000 employees in China. Faurecia mainly has four business segments: car seats, emission control technology, automotive interiors and automotive exteriors. At present, its joint venture mainly focuses on car seats and car interiors, and these two businesses are for the whole vehicle. The dependence of production enterprises is relatively large.

In 1996, WABCO cooperated with Mingshui Auto Parts Co., Ltd., a well-known automobile brake system manufacturer in China, to jointly establish a joint venture company, Shandong Weiming Automobile Products Co., Ltd., in Jinan. Among them, WABCO has 70% of the joint venture company, and Mingshui Auto Parts holds 30% of the shares. The joint venture mainly produces conventional brake products, including foot brake valves, hand brake valves, air handling units, air dryers, four-circuit protection valves, pressure regulating valves, trailer control valves, and brake chambers.

In 2012, Bosch's sales in China reached 41.7 billion yuan, accounting for more than 10% of its global sales. In the past 10 years, Bosch has achieved a compound annual growth rate of 25-30% in China. Now China has become the largest overseas market for Bosch. Bosch also plans to continue to increase investment in the Chinese market. In 2013, it plans to be in automotive technology and after-sales. The market and other aspects increased investment by 3 billion yuan. Xu Daquan, executive vice president of Bosch (China), said that China's parts and components enterprises have also achieved certain development in the past ten years since the accession to the WTO. However, China's society is relatively impetuous, it is difficult to engage in basic research work, and even university professors are busy looking for projects to make money. This is also a big obstacle for China's parts and components.

At the end of 2013, WABCO announced the acquisition of a 30% stake in Shandong Mingshui Auto Parts Co., Ltd. in Shandong Weiming Automotive Products Co., Ltd., making Weiming the third wholly-owned subsidiary of WABCO in China. As a global supplier of commercial vehicle safety and control systems, WABCO manufactures and sells commercial vehicle air management systems, brake stabilization systems, suspension control systems and transmission control systems and their components in trucks, trailers and buses.

In 2013, Remy International and WABCO successively acquired the Chinese shares in their respective joint ventures, thereby turning them into wholly-owned companies. Regarding the acquisition of all the shares of China, the relevant person in charge of Remy International said that this is an important milestone in Remy International's global strategic planning. Remy Motors Hubei Co., Ltd. was originally funded by Delphi Automotive Systems China Investment Co., Ltd. and Hubei Shendian Automobile Motor Co., Ltd., mainly engaged in the design, production and sale of main components such as starters and generators for cars, buses and trucks;

In May 2014, Johnson Controls and Yanfeng Automotive Trim Systems Co., Ltd. (a wholly-owned subsidiary of SAIC Motor, a subsidiary company of SAIC), signed an agreement to form a global joint venture for automotive interiors. BAIC Group has just established a joint venture with Siemens to form “Beijing Siemens Automotive Electric Drive System Co., Ltd.”. France's Faurecia, the world's sixth-largest auto parts supplier, will promote its business development in the Chinese market through joint ventures...

On June 5, 2014, Toyota, Nissan and Honda, eight Japanese passenger car companies, Hino Motors and other four truck companies, motorcycle companies Yamaha engine and Kawasaki Heavy Industries will jointly establish an "International Standards Symposium" in versatility. High-level components, such as body steel plates, steel, resin materials, and automotive semiconductors. Prior to this, various car companies in Japan have been designing parts and components according to their specifications and ordering from suppliers. However, as Japanese car companies go global, they participate in more intense international competition, reduce production costs, promote standardization, and achieve the effect of reducing parts procurement costs by about 5%. Reduce the development and production costs of components, reduce duplication of investment, and standardize against European companies that are leading the development of international standards for automotive-related technologies.

TRW Automotive Holdings Corp., one of the world's top ten auto parts suppliers, has established more than 20 OE joint ventures in different parts of China to segment and occupy various markets. Delphi Packard Electric Company It is the world's largest manufacturer of automotive wire harness systems, a Fortune 500 company, and a company listed on the New York Stock Exchange. Currently, the Delphi subsidiary's supporting parts system is spread across China's major automotive OEMs, almost all of the country's major Car manufacturers supply, including FAW-Volkswagen, General Motors, Shanghai Volkswagen, Dongfeng Nissan, Chery and so on.

The key core components of automobiles are also the key to the survival of independent brands, the foundation of the development of the automobile industry, and the weakness and shortcomings of our automobile power. Chinese enterprise products are still concentrated on labor-intensive products with low added value, high energy consumption and low technology content. The research and development capabilities are weak and the products are not competitive. Enterprises have to occupy the market by reducing costs.

In terms of product structure, taking the gearbox as an example, the current status of foreign-owned automatic transmissions cannot be replaced in the Chinese market. The market share of China-developed automatic transmissions is very low, and the dependence on foreign investment will continue for a long time. . In addition, major zeros in air conditioning systems, airbags, ABS systems, automatic sunroofs, seating systems, safety systems, brake systems, lighting systems, automatic transmissions, suspension systems, steering systems, engine control systems, and precision castings The component systems are all made by foreign capital in fine production, and the market share is increasing year by year. Its technology research and development and talent allocation are slightly better than local parts companies.

Foreign-funded foreign-funded wholly-owned or joint ventures have increased their localization of the Chinese market, and the current situation of China's existing parts and components enterprises has been completely changed. Foreign-funded parts and components companies further suppressed and squeezed the living space of local auto parts companies and became the main culprits in destroying China's domestic parts and components industry. Chinese comprador officials became accomplices, and China's auto industry policy, which has long since passed, has acted as a catalyst. Pushing the waves.

Since the reform and opening up and the accession to the WTO, China's auto parts industry has not grown, and it has increasingly fallen into foreign-funded overseas colonial factories. This is not unrelated to China's auto industry policy's lack of support for the local auto parts industry. For example, in recent years, due to the achievements of China and the international demand, the emission process of China’s motor vehicles from the national I to the national V has been more than ten years ahead of the European, American and Japanese developed countries, but Passenger car from carburetor to electronic injection control, the key parts of the EFI system that determines the high-pressure common rail emission of the commercial vehicle emissions of the compression-ignition diesel engine are all controlled by joint ventures or wholly-owned foreign companies such as Bosch, Delphi and Denso. And monopoly, China can not be involved in this high-tech field, and even more regrettable is that it can not be cloned and surpassed in materials and manufacturing processes. Domestic automakers can only buy at a high price with real gold and silver. It’s full of pots.

Undoubtedly, the overseas capitalist parts and components industry has fully controlled the life movements of the "brains", "gastrointestinal" and "anal" of Chinese cars. Under such circumstances, what about the self-owned brand cars and the world car powers? ! Self-owned brands are the guarantee for the safety of China's auto industry. Without strong independent brand power support, China's auto industry's profits are seriously outflowing, and the bubble of China's auto industry's false prosperity will always be shattered.

As the scale of China's auto industry continues to expand, the impact of the lag of parts development on the development of the auto industry is more prominent. Automobile manufacturing is the embodiment of the overall manufacturing level of a country. Parts and components are the basis for the development of the automobile industry. The development of the automobile parts industry plays an important role in the development of the entire automobile industry. Most of the current auto industry policies are aimed at vehicle manufacturers, and the support for the parts industry is relatively small, which directly leads to the high degree of “hollowing” of China's auto parts industry, which in turn leads to weak market competitiveness and serious impact. The level of profit.

China's auto parts industry needs to be bigger and stronger, and it needs the country's strategy as a guide. It must reorganize and formulate and control the foreign-owned wholly-owned parts and components company's virus-like blind development, and whether it can also be a joint venture like a vehicle. The parts company sets the stock ratio requirement, and implements policy support for the local independent brand policy parts and components enterprises, such as the reduction and exemption of tax collection and collection, and the increase of capital investment in research and development, etc., forming a favorable self-owned brand. The environment for car development.

At present, in the face of the expansion pressure of multinational auto parts enterprises, in the process of development of energy-saving and new-energy vehicles in the automobile industry, can China's auto parts manufacturers keep up with the pace of industrial transformation and upgrading, and promote relevant intellectual resources to help enhance the innovation capability of the auto industry? Promoting the strategic cooperation of the whole zero and enhancing the competition of enterprises is the "life and death" in front of China's auto parts industry.

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