Parts suppliers are expected to leapfrog into global procurement

In Europe, there have been more than 300 auto parts suppliers closing down, and 2009 will be an important adjustment period for the international auto giants supply chain. Chinese parts suppliers have the opportunity to be leapfrogged into the joint venture brand's global procurement system.

Recently, local auto companies and joint ventures have revealed "slimming" plans to reduce the number of suppliers. For local suppliers, there is no doubt that "probationary exam." However, innovative parts and components companies are expected to become dangerous opportunities, and thus stepped into the joint venture brand global procurement system.

In the current financial crisis, auto companies face many unfavorable factors such as reduced orders, shortage of funds, and decline in profits. A “storm” of supply chain adjustment that is sweeping the industry is quietly coming. At the 2009 supplier conference held recently, Chery stated that this year the supplier system will be adjusted and the direction of adjustment is to “enhance the quality of spare parts procurement by reducing the number of suppliers”. Jac and Volkswagen also made the same voice.

Some analysts believe that from the drastic reduction of overseas orders and the “cleaning” of parts suppliers by domestic vehicle manufacturers, many local suppliers will fall into the “frontline” situation in 2009.

The news from Gasgoo.com indicates that in Europe, there have already been more than 300 suppliers closing down, and 2009 will be an important adjustment period for the international auto giants supply chain, and the Chinese market is obviously the top priority.

Chen Wenkai, the president of Gasgoo.com, stated that the international buyers’ strategic adjustment to China and the selection of a group of Chinese suppliers with strong strengths are the top priorities for replacing or supplementing local suppliers. Secondly, the proportion of purchases in the aftermarket will increase. About 20% or more.

At present, for local suppliers, it is "dangerous" and "agreement" coexist, and only the "examination pass" suppliers can seize this opportunity to leapfrog.

The parts and components companies cannot only serve one or two whole vehicles. The products must be able to satisfy multiple users. At the same time, the varieties cannot be too single, and they are more favorable in the face of the current situation. Jia Xinguang, chief analyst of China Automotive Industry Consulting Development Corporation, said in an interview with reporters.

For those parts suppliers with strong independence and a certain strength, it will undoubtedly usher in a new opportunity. They will not be attached to any large-scale vehicle companies on a daily basis, and will also supply a number of vehicle companies at the same time. There will be more opportunities to leapfrog into the joint-brand global procurement system.

“Innovation is the core competitiveness of a company. Whoever can produce a product with superior cost performance will be able to capture the market. The most fundamental business survival is the market and R&D capabilities. Having these two points is a magic weapon to win.” Beijing Tianyuan Auto Li Bao, general manager of Rubber & Plastics Co., Ltd., confidently told reporters.

The reporter learned from the interview that Beijing Tianyuan Aote Rubber & Plastic Co., Ltd., with its core R&D capabilities and the use of a number of self-developed automotive rubber hose products, has produced ancillary products for more than 20 automakers in China.

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