Financial crisis China's parts companies want to bargain overseas

“At present, China’s spare parts companies have not yet “diverted” their overseas strengths. By using the financial crisis, overseas technology purchases are more secure.” On the 27th, at the annual meeting of the 2008 China auto parts industry held in Neijiang, Sichuan Province, the China Automobile Association deputy Secretary-General Dong Jianping has thrown a bowl of cold water at the Chinese auto parts and components company, which is trying to sway the global financial crisis.

Bargain-hunting buys wind Sichuan companies are low-key

Due to no order, on October 14th, Germany’s Daimler Automotive, the world’s largest truck manufacturer, announced that it will abandon its truck brand in March next year and close two factories in Canada and the United States. Subsequently, the company announced that it would suspend production for three months starting in December.

The German Daimler company's move seemed to have knocked out the first "domino". Since then, a large number of overseas automakers and auto parts companies have joined the production cuts and production cuts.

At this time, Chinese companies that had always wanted to do "the world NO1" seemed to see the hope of "reaching the top," and many plans to buy overseas companies began to implement. Not long ago, Ningbo Huaxiang, a well-known domestic component manufacturer, announced that it will launch a global strategic plan by the end of this year and continue to promote the acquisition and merger of foreign companies. While laying out the European and American markets as quickly as possible, the company will use its advantages in China to steadily expand the Asian market, and ultimately achieve the global layout of R&D, market and production of the three major automobile centers in Asia, Europe and the Americas.

The decision of Ningbo Huaxiang Company further strengthened the confidence of the domestic enterprises in making a bid. Therefore, more and more companies are interested in joining the bargain-hunting army.

At the same time, local auto parts companies in Sichuan appear to be “low-key,” and Tian Bin, general manager of Sichuan Neijiang Co., Ltd., which occupies 1/4 of the domestic crankshaft market, told reporters that domestic companies that are interested in diverting overseas are mainly concentrated in the coastal developed regions. Their strength is strong. Compared with them, there are still gaps in Sichuan's enterprises, and all aspects of technology, capital, and management are lagging behind. At present, the main goal of Sichuan enterprises is to strive to “repair internal strength” and follow them step by step.

Bargain-hunting overseas should be careful to buy technology without risk

Dong Jianping, deputy secretary-general of the China Automobile Association, told reporters that the impact of the financial crisis on the real economy began to be significant, and domestic auto products have been implicated in going abroad. According to the statistics of the General Administration of Customs, the total vehicle exports were 557,500 units in the first nine months of this year, a year-on-year increase. 34.71%, but compared with the same period of last year; 29.3 percentage points, it now appears that the target of tens of millions of cars that will be estimated at the beginning of the year will be difficult to achieve. Fortunately, the crisis has little impact on domestic auto parts exports, and some companies still maintain a 30-40% growth.

For more and more plans and ideas for making a bargain abroad, Dong Jianping is quite worried. “Although domestic auto parts companies have not been hit by the financial crisis, they must not blindly buy overseas. Making blind purchases will eventually lead to the acquisition of only bamboo. The result is that many domestic companies do not have the core technology and the management level is low. Even though they hold a certain amount of funds in their hands, and overseas companies are in urgent need of funds, this point of funding is far from the economic market in the overseas recession. Not enough, it is very likely that you have made a mistake.

Dong Jianping also said that Chinese companies do not necessarily have to acquire these overseas industrial assets. It is better for powerful companies to take this opportunity to purchase overseas core technologies or carry out R&D cooperation on innovative technologies. “In the past, given more money, they did not sell, and now they are different. Overseas companies that are in urgent need of funds and have advanced technology have to be sold. In a word, squeezing overseas must be cautious and there is no risk in buying technology.”

In an interview with reporters, Dong Jianping also gave advice and suggestions to the relatively backward auto parts manufacturers in Sichuan. He said that the development of the western region is getting faster and faster, and there is a large auto market. Local companies must firmly grasp the advantages of national policies and relax their monetary policy. Raw materials will be worthy of great opportunities, and will try hard to improve their internal strength and catch up.

Sichuan will build a western vehicle manufacturing base in the next five years

At the 2008 China Auto Parts Industry Conference held today, Wang Shaoxiong, member of the Standing Committee of Sichuan Provincial Party Committee and Secretary of the Provincial State-owned Assets Supervision and Administration Commission, said that in the next five years, Sichuan Province will focus on creating a western region with Chengdu as the center and Ziyang and Mianyang as the two wings. Car manufacturing base, focusing on the development of mid-to-high-end passenger cars, light and heavy-duty trucks, off-road vehicles and key automotive parts, and strive to achieve a total output value of 50 billion yuan by 2010.

From the perspective of the development of the automobile of the Sichuan Provincial Party Committee, Neijiang City saw the opportunity to create a Western auto parts base. Tang Limin, Secretary of the Neijiang City Party Committee, said in an interview with reporters that Neijiang is located in the center of Chengdu-Chongqing Economic Belt. Within a radius of 100 kilometers, there are 12 large and medium cities such as Chongqing, Chengdu and Ziyang. In addition, Neijiang has a very good auto parts industry base, as well as superior supporting conditions and abundant human resources.

Jiang Xuedong, chief of the Neijiang Economic and Trade Commission, said that at present, Neijiang has two auto parts industrial parks of 10 square kilometers each, and 40 auto parts manufacturers and one auto manufacturing company have settled down. It is estimated that by 2010, auto parts will be The output value will reach 5 billion yuan.