Looking for opportunities in the competition

Foreign vehicle supporting ring threshold high

At the annual meeting of Chinese auto parts companies held recently, Tian Yushi, general manager of FAW-Fuzhou Automotive Parts Co., Ltd., said: “The so-called global procurement is a kind of “one-sided theory.” Emphasis on theory is possible, but Really it is not easy, because it involves the interests of nationalities and enterprises. When these two fundamental interests are affected, they will put the so-called global purchasing theory aside. People will use this theory to fight. We, and some of us still don't know the secrets, we use it to fight our own people."

I'm afraid Tian Yu is the point where I have to say it. As China's largest component manufacturer, FUO is usually better than other parts companies.

Speaking of this issue, the relevant personage of Oceanic Air-Conditioning Engineering (Dalian) Co., Ltd. is very low-spoken: "This year's market situation is very bad. Due to the decline in the sales volume of the supporting vehicle companies, our sales volume has been reduced. In addition, the country has imported spare parts. In many cases, many companies are implementing SKD production methods. For companies like Beijing Hyundai, we cannot get in."

The parts and components companies generally use the geographical advantages to support the entire vehicle. Adjacent to each other can reduce inventory, facilitate service, and save costs. Not long ago, relevant persons of Beiqi Motor Company told reporters that the auto parts factory under Beiqi Motor Co. wanted to support Beijing Hyundai, but the situation was not clear.

"Now, if you want to enter Toyota's procurement system, you can't get in because Toyota already has its own supply system. If you have to go in, you must pay more than 10% of the cost. The prospect of doing so is 'destroying the entire army.' Tian Yushi said, "Delphi, Denso and other companies have all been spun off from their original OEMs. Every year, 67 million vehicles are capable of supporting them, and our automaker has only a few markets. , of course, can not support the spare parts business. This is like a 2-year-old child playing a boxing match with a 20-year-old young man, how could win.”

Know the customer first and then move the customer

The reporter called the Delphi Automotive Systems (China) Investment Co., Ltd. to find out what they thought of the supporting circle.

Reporter: Is there a relatively closed supporting system in Europe, America, Japan, and South Korea that has shut out Chinese suppliers?

Delphi related persons: It should be said that the automotive companies in the United States, Germany, Japan, and South Korea have their own characteristics and have different requirements for suppliers, quality, and management systems. In reality, Chinese companies have a feeling that they can't go in, but in fact they may not understand their requirements. As suppliers, they must understand the characteristics of customers, production organization, product quality, technology, and services. Japanese automakers have very high demands on suppliers, and that kind of trust is fostered over a long period of time.

Reporter: Is there a lot of supporting systems that give Chinese companies opportunities, but their ability cannot be achieved?

Delphi related parties: This is the case. Delphi has developed many Chinese suppliers, but it cannot be said that all goods are good. For the OEM, if the supplier's products have problems in use, the consequences will be very serious. In the traditional sense, if it is not to consider the price factor, it is rather conservative for the OEM to adopt the supplier. Now, because of the considerations of cost, logistics, etc., they have begun to select products that can provide lower prices, but they have also shown considerable caution. The process of selecting a supplier is very long. The OEM will not choose the product until it guarantees that the supplier's product will not cause any problems and it will have a price advantage.

Reporter: Is it difficult for Delphi to enter Japan's supporting system?

Delphi stakeholders: Europe and the United States, Japan and South Korea companies have product concepts, concepts or differences. We are indeed more accustomed to vehicle manufacturers in Europe and the United States. We feel that Japanese and Korean companies are more meticulous and meticulous in management and lean production. This has caused Japanese companies to look at us differently.

We believe that Japanese companies have a lot of room for growth in China and hope to supply them to companies that have a very strong growth. We now have some products for them, but we have made great efforts. Delphi supplies Japanese companies in the United States with certain experience. Japanese companies know about us, which provides some facilities for delivery in China. However, we see a difference in the concept of Japanese companies and American companies. Japanese companies are more conservative. They are more inclined to the original suppliers and suppliers whose products have been produced in China.

Reporter: Are there any opportunities for China's spare parts companies?

Delphi related people: great opportunities. Asian automakers do have such a tradition. Because trust has already formed with suppliers or the relationship between assets has made them more closely related to suppliers, Chinese companies are less likely to enter, but Chinese companies have a cost advantage. .

Looking for opportunities in the challenge

Industry experts said that in the face of global procurement, some parts and components companies in China appear to be at a loss, for many reasons, but the key is that the standards implemented are inconsistent. The standards of various countries and automobile plants are different. This supporting plant requires this standard. The supporting plant requires another standard. China's parts and components companies are qualified for US companies, and the supporting companies in Japan are not necessarily qualified. This undoubtedly divided the supporting factories in China. For example, a cooling cycle test, Chinese companies to do 300 times, while foreign companies only do 3 times.

There are also industry insiders who say that the entire vehicle price reduction directly reduces the procurement costs of parts and components, but does not reduce the procurement costs of foreign suppliers, because the foreign OEMs have also brought the supporting system to China while they enter China. These suppliers and vehicles Businesses come to China to make money and benefit communities.

Of course, the reporter also noticed that some Chinese-foreign joint venture vehicle companies and procurement department ministers are mostly foreign, and the vice minister of procurement is the Chinese. As a result, China naturally lacks the right to speak in the procurement of parts and components.

Regardless of the fact that nearly one-third of China's major auto parts companies are foreign-invested companies, or that the solid ice of 40 percent of the parts' localization rate has been broken, we can all feel that the global procurement slogan is even more challenging. Some people say that Chinese suppliers can only be willing to do secondary and tertiary suppliers. Big foreign suppliers also say that many of our products are also second-class facilities.

It seems that the problem now is not only how to form a scale, system, modular supply problem, but how to set a good position and gain a firm foothold for the next opportunity. A person in charge of an auto parts company with a great ambition or confidence in China said that there are many positions in the supporting value chain, and we first occupy a position even on the periphery. It is difficult to enter foreign OEM facilities at present, but we can only go forward.