Behind the endless sound of vehicle production cuts and production cuts, parts and components companies are actively responding to the impact of sharp drop in supply orders.
"After many years of rapid development, the economic crisis has brought timing adjustments to parts and components companies. Enterprises should seize the opportunity to improve the management mechanism, improve the scientific and technological operating system, and constantly carry out technological innovation and improve the core competitiveness." Vice Chairman, China Automobile Industry Association Secretary-General Dong Jianping appealed.
Reinforce the industrial chain
Experts pointed out that concentrating on strengthening and expanding the main industrial clusters and controlling fine companies with large industrial correlation and technologically intensive funds, creating parts supply chains, and even extending to the entire vehicle field will all reduce costs and improve the future. Competitiveness, risk-resilience, and robust operation.
As the largest independent engine company in China, Yuchai lacks a chained relationship with OEMs such as Weichai, Shangchai, and Dachai. Therefore, stepping up the integration of industrial chains has become Yuchai's priority in reducing risks and stabilizing operations.
In mid-November, Yuchai acquired Haihong Group, a manufacturer of hydraulic components. It is said that Haihong Group is widely recognized in the industry for its ability to digest technology and reinnovate. Yuchai Group's holding hydraulic components enterprises can solve the bottleneck problem of hydraulic components supply on the one hand, and accelerate the localization of small dig engine components, reduce procurement costs, improve product competitiveness, and strengthen and expand the Yuchai Engineering Machinery Sector. The foundation for the development goals of industrial clusters.
At the same time, Yuchai Group also implemented a “slimming†plan to transfer 55% of the state-owned shares of Yuchai Daye Machinery Parts Co., Ltd. held by it.
“To expand the industrial chain around the main business operations and focus on the development of related industrial products such as engines, construction machinery, special vehicles, auto parts, automotive chemicals, and logistics.†Under the global economic turmoil and the grim situation in the domestic auto industry, Yuchai Group Chairman Luan Ping clearly positions Yuchai's development strategy.
Reserve funds
A complete and advantageous industrial chain will undoubtedly be able to deal with the economic crisis in the most powerful manner. However, in the operation and extension of the industrial chain, the role of funds is undoubtedly the key.
The enterprises that win by relying on competition in the domestic chain are none other than non-welcoming firewood. In a few short years, Weichai had a complete heavy truck gold industrial chain with “transmission + engine + axle + vehicle†with strong capital operation capabilities.
“Every industry adjustment is an opportunity for the industry to reshuffle. For powerful and advantageous companies, it is entirely possible to use sufficient cash flow for industry consolidation.†Weichai Power Chairman Tan Xuguang has a soft spot for capital operations.
A few days ago, Weichai Power announced that it would apply for the issuance of a five-year medium-term note of approximately 2.7 billion yuan. It is said that the funds to be raised this time will be used to supplement the interim operating liquidity, repay the borrowings, improve the debt structure and other expenses permitted by the provisions of the medium-term notes.
It is understood that the Weichai Group is still considering the operation of funds, and the cooperative institutions are not limited to the territory. They also allocate resources optimally on a global scale and use funds to seek the development of upstream and downstream industry chains.
[next]Absorb new technologies
“Although the production line of some parts and components companies has stopped, the cost for research and development has not only not been reduced, but has also increased.†Professor Ni Jimin of the Institute of Engine Energy Saving and Emission Control at Tongji University’s School of Automotive Technology told the reporter. According to him, despite the economic crisis, many companies are still trying to seize the opportunity to win with new technologies.
Recently, Guangzhou Automotive Group Parts Co., Ltd. and the global automotive interiors industry leader Johnson Controls announced that it will jointly establish Guangzhou Johnson Automotive Interior Systems Co., Ltd. The company will receive global resources support from Johnson Controls, fully introduce, absorb and digest Johnson Controls' automotive interior products and technologies, as well as excellent management and manufacturing management concepts. Combined with decades of Johnson Controls experience, it will provide customers with world-class Supporting services. The new factory is scheduled to be completed in 2009.
Almost at the same time, DSM Engineering Plastics announced the expansion of its partnership with its French partner Valeo to develop new technologies for reducing environmental impact in automobiles. "Our technology is constantly evolving because automakers are looking for new ways to support environmental protection," said the person in charge.
“The R&D of parts and components companies has always been insufficient. If we make use of this crisis to do some research and development of new technologies or absorb advanced foreign technologies, it is a good opportunity. And a big direction has already emerged, including many opportunities for new energy R&D and so on. "Liu Yang, an expert in the automotive industry, said.
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