How to Deal with the "Twelfth Five-year Plan" of Parts Enterprises

At present, China's auto parts industry still has many deficiencies, such as the poor industrial base of parts and components, irrational structure, lack of research and development, and lack of brand names. In a nutshell, these are all commonplace issues. Can we solve these problems effectively? During the “Eleventh Five-Year Plan” period, the National Development and Reform Commission has made it a major goal to guide the parts and components industry by comprehensively improving the competitiveness of the auto parts industry. Now that the " Twelfth Five-Year Plan" has been issued soon, the country will certainly give us a solid policy and support. However, from the perspective of our parts and components companies, how can we use these support to further improve our core competitiveness?

1. Accelerate mergers and acquisitions

In the face of market competition, the parts and components industry must accelerate the pace of industrial mergers and restructuring. If there are no large parts and components companies, China’s auto parts will not have the right to speak at the international level, and procurement costs will not come down. The domestic parts and components companies are small in scale, weak in strength, and lack of R&D capabilities. Under such circumstances, if the parts and components industry wants to develop rapidly, it must speed up mergers and reorganizations to form economies of scale.

During the “Eleventh Five-Year Plan” period, mergers and acquisitions of vehicle companies provide conditions and beneficial lessons for component companies to implement industrial integration, optimization and upgrading. Parts and components companies must review the situation, comply with the trend and necessity of industrial development, and consciously and actively carry out development. Various forms of cooperation and cooperation increase the level of specialization and scale.

2. Increase research and development efforts

The author was informed by related agencies that the number of Chinese parts and components companies ranked among the top in the R&D ranking of auto parts manufacturers was rare, and that of the top 44 was almost non-existent.

In the face of the huge investment in R&D of multinational parts and components companies, domestic autonomous car companies should be aware of the existence of a crisis and make up for the shortcomings in R&D as soon as possible. Of course, this is not a bad thing. The first teacher, Mencius, said more than two thousand years ago: "Invincible and foreign countries are always going to die!"

3. Systematic and modular development

In accordance with the development trend of system development and modularization, parts and components companies should establish long-term strategic partnerships with vehicle companies, first establishing and forming an auto parts supply system for auto brands. Taking commercial vehicles and economical passenger vehicles as breakthroughs, it actively participates in product development of vehicle companies, integrates related parts and components resources, continuously improves the level of development of system components, and gradually establishes and perfects parts production systems and product standard systems to form parts and components. Systematic modularization ability. In this regard, the government should give SMEs policy support.

4. Use multiple ways to "go out"

At present, some domestic automobile companies and parts and components companies have gone abroad. For example, Beijing Pacific Century Automotive Systems Co., Ltd. acquired the global steering and transmission business of General Motors of the United States, accelerating the accumulation of technology, talent, and experience, and has become a global leader in auto parts suppliers; Ningbo Lawrence Auto, a subsidiary of Ningbo Huaxiang Group The interior company signed an agreement to acquire the real wood manufacturing center of the Jaguar Land Rover in the United Kingdom; before that, BWI had purchased the Delphi brake and suspension business from the United States; Geely purchased the Australian DSI automatic transmission company; and Wanxiang purchased the US auto parts company. Axis business and a series of overseas acquisition activities. China’s domestic auto parts companies have increased their technological capabilities through overseas acquisitions, and it has become increasingly evident that foreign companies’ strategies to control key technologies and market conditions are becoming more and more obvious.

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