As we all know, automotive parts are the basis of the automotive industry, and parts and components account for more than 60% of vehicle costs. With the reorganization of large vehicle companies and joint ventures, global procurement has become increasingly fashionable. After systemization, modular supply, and joint ventures with foreign auto giants, foreign companies bring their original supporting systems to China and bring in new ones. Technical standards, access conditions, and rules of the game, etc., have made China's component manufacturers face new challenges once again. Relevant information shows that after the restructuring of the international auto parts industry, the world will only have 25 multinational suppliers of parts and components, mainly in the four major areas of power, chassis, body and interior production and sales, each supplier's year Sales should be at least US$7 billion and sales of 750 million.
A $2 billion component company can only become a regional strategic partner for global suppliers, responsible for the development and production of subsystems. Under this new pattern, the domestic auto parts industry has undergone large-scale integration, and the overall number will decrease by 70% by 2010, eventually forming 20 to 30 first-tier suppliers, 250 to 350 second-tier suppliers, and 1250 ~ 1500 three-tier suppliers. At that time, the domestic auto parts industry will also form several "giant" parts companies.In the face of opportunities and challenges, it is of far-reaching significance to seriously analyze the procurement rules of vehicle companies for parts and components companies. This is precisely the CEO of domestic and international auto parts companies that was recently held in Beijing in the 203 First China Auto Parts Industry Development Conference. Their central theme.
Reorganization of vehicle companies and rewriting of procurement rules
The current reorganization of auto companies has become a major trend. Due to the increasingly frequent mergers and acquisitions of multinational corporations and joint reorganizations, domestic companies have also embarked on a new wave of joint and restructuring. In the face of the current new situation, the person in charge of the Dongfeng Limited Parts Business Unit stated that “the parts with the lowest capital procurement quality, the most advanced technology, the shortest delivery time, and the best service? The new procurement rules will break the long-standing group association, protection barriers and local protectionism of auto parts companies and OEMs, and parts and components companies will be under fair competition in terms of quality, cost, delivery, and service. Conducting open contests, the once prevalent relations and the advantages of the Red Top officials will be the trend of “going out of the water,†and this will inevitably lead our parts manufacturers to jump out of traditional production and business models. The pursuit of top quality, cutting-edge technology, shortest delivery time, and humane full-service under internationalized procurement rules leaves no room for success.
Creating a part brand through a joint venture
Shi Ao of Fu Ao Auto Parts Co., Ltd. believes that brands should be synonymous with excellent products recognized by the market and users, such as Delphi and Visteon in the United States, Bosch in Germany, and Denso in Japan, regardless of OEM matching or aftermarket. No matter whether it is within the system or the competition, everyone agrees that there is no doubt. Faced with the backlog of foreign companies, we must admit that China's auto parts production, including Fuao, has started late and has a low starting point, and there is still a wide gap between it and foreign modern companies. Therefore, FoO's important strategy for the implementation of its brand strategy is a joint venture, that is, through joint ventures and cooperation with internationally renowned parts and components companies, to achieve the most convenient way and the fastest speed, one step to achieve convergence with the international community, so that their companies are basically close to The horizontal line of similar foreign companies. According to the reporter's understanding, although there are still a considerable number of manufacturers still adopting a wait-and-see attitude, it is not just the Fuao family that the parts and components manufacturers who have similar views or have begun to put into practice are similar.
System design and modular supply will become new trends
In the world automotive industry, the first module appeared in the 1985 OpelOmega car - cockpit module. At present, only a few companies in China use systematic design and modular supply methods on some models. Yan Feng, Minister of Visteon Yang made a systematic explanation of this.
He said that modularization has obvious advantages in the process of large-volume and multi-product production of products. First, it can effectively shorten the production cycle, increase production, and reduce costs. Second, it can simplify complex products (systems); , Can realize the personalized service; Fourth, shorten the design cycle. Yanfeng Visteon has adopted JI S method to provide seat modules for Shanghai Volkswagen and Shanghai GM, and will soon provide cockpit module assembly services for Shanghai GM and Shanghai Volkswagen. In the future, it will implement system development and module supply for the five core businesses. Minister Yang said that due to the huge market space for enterprise systematic design and modular supply, the cost of retrofitting using this supply method is relatively low. He also predicted that this approach will become a new trend in the development of the future parts industry.
OEMs raise new standards for suppliers
The selection of a good supplier is the basis and prerequisite for the OEM to ensure product quality and timely delivery. Dongfeng Automobile Co., Ltd., who has just completed reorganization with Nissan, said that the Dongfeng Motor Co., Ltd. head of commercial vehicle procurement department said: In order to achieve steady growth in fierce competition, Dongfeng will give priority to suppliers who have performed outstandingly in QCD (Quality/Cost/Delivery). Put forward a cooperation plan and sign the long-term cooperation contract or intention as far as possible. Dongfeng is expected to convene a supplier conference around mid-December this year to conduct specific deployment of this piece of work at the supplier conference.
As a subsidiary of Dongfeng, Shenlong is doing its utmost to make four demands on suppliers. First, it has made clear provisions on the supplier's new product development capabilities and quality assurance system. Second, it controls the supplier's products and processes. To achieve quality assurance; third is to conduct an economic analysis of supplier prices at the same time to determine the target price of domestically produced parts and price targets in the next few years; Fourth, through the planning of target prices in the next few years, suppliers can increase labor productivity. , On the premise of ensuring quality, continuously reduce costs. The company frankly stated that if domestic manufacturers fail to meet our requirements for price and quality, Shenlong will instead choose direct suppliers from foreign suppliers.
Improve core competitiveness is the key
The core competitiveness is formed by a series of marketing processes and decision-making in the production and management, new product development, and after-sales service, and the huge capital energy and operating strength determined by the technology, culture or mechanism with its own unique advantages. In this regard, Shenlong Procurement Minister looks this way: in the short term, the quality and performance of products determine the competitiveness of enterprises; but in the long run, the OEM's product development capabilities, quality assurance capabilities, lower costs and With perfect after-sales service, the four elements complement each other to form a company's core competitiveness. To sum up, there are mainly seven: mainly including price and productivity, quality, R&D, logistics, industrialization, and sustainable development. These seven aspects of competitiveness are the basis for strategic cooperation between OEMs and suppliers, and they are also a reliable guarantee for the continuous development of OEMs and suppliers, and they should also be the core targets that suppliers determine.
OEMs must form strategic partnerships with suppliers
For the relationship between supporting plants and OEMs, Minister Li of the Dongfeng Limited Commercial Vehicles Purchasing Department believes that the market is now internationalized, and this trend will become more apparent in the next two years. Based on this idea, Dongfeng believes that both parties must Strengthen cooperation to improve competitiveness, and establish a solid strategic partnership with competitive suppliers. Future competition may not only be competition between OEMs but also include competition with suppliers. How do the two companies compete? Certainly it will cover suppliers. Without the support of suppliers or the lack of competitiveness of suppliers, the competitiveness of the entire company is difficult to say. Therefore, the establishment of a strong strategic alliance partnership between OEMs and OEMs is of far-reaching significance and cannot be ignored. (Liu Yang)