The zero relationship in the automotive industry needs to be adjusted

Dong Jianping, deputy secretary-general of the China Association of Automobile Manufacturers, appealed at the 2008 China Auto Parts Industry Conference held recently that vehicle companies must combine their own circumstances to learn from the experiences of foreign models, strengthen communication with parts and components companies, and adjust The relationship between parts and components companies, the two sides establish a stable, mutual trust and strategic cooperation relationship, work together to cope with the Chinese automobile industry is experiencing the "winter."

In his report, Dong Jianping summed up the three types of matching relations that currently exist in the automotive industry in China: the European and American model, the Japan-Korea model, and the China model. He believes that in the European and American model, there are many parts and components multinational companies, and the overall strength is strong. Although it has strong independence, it maintains a close strategic cooperation relationship with the vehicle company. In the Japan-Korea model, the parts and components companies have almost no independence, and they maintain a close relationship with a single vehicle company. Although there are differences between these two models, one thing is common: there is a very close relationship between parts and vehicle companies. In the so-called China model, the supporting relationship between the vehicle and the spare parts is not stable. Both parties are often in a game state and have not yet formed a stable strategic partnership. The parts and components companies have always been in a weak position.

He said that the reasons for the formation of the Chinese model are relatively complex, mainly related to the long-term business concept of Chinese enterprises. Some auto companies in China have strong self-awareness. They do not allocate supporting parts and components according to their production volume. Its approach is to control prices and avoid supply risks, and to sell and sell goods in multiple locations. It does not consider the recovery of investment costs of parts and components companies in R&D and tooling and abrasives, and allows component companies to independently suspend production due to vehicle models. The investment losses caused by the change of type; unilaterally lower the purchase price of parts and components, forcing parts suppliers to often choose between price and quality. Many parts and components companies have reported that some large auto companies have made parts and components purchase prices extremely low, resulting in very small sales profit margins for parts and components. However, due to the large automobile production of these large companies, parts and components companies are not willing to discard orders. .

In addition, in the treatment of "problem" parts and components claims, some vehicle manufacturers do not specifically analyze the causes of the problems, which are paid by the parts and components companies, and include the transportation, communications and other expenses of the entire vehicle company personnel. The claim amount is as much as 3 times the price of the parts. Sometimes parts and components companies do not see “problem” parts. In addition, due to management loopholes, some 4S repair shops took the opportunity to falsely report claims of parts and components to claim profits. Although the parts are small and the losses are large, some parts companies are claimed for up to 4% to 5% of sales each year. The above-listed phenomena show that China's zero-sum relationship is still in the elementary and naive stage. It is an unavoidable problem in development and requires a gradual understanding, summary and improvement process.

He believes that the Europe and the United States model and the Japan-South Korea model have existed for many years and have their own cultural reasons, but they are more of a summary of experience and the facts have proved its rationality. At present, the three supporting models are all operating in the Chinese automobile market and are undergoing market inspections. Which model is competitive and may not be seen when the market is growing at a high rate. Once the market experiences a major decline, the superiority of the reasonable model is Can be fully reflected. Although parts and components rely on vehicles to develop, but today's energy and environmental laws and regulations require more and more automobiles, many technological innovations need to be completed by parts. If there is no stable relationship, parts companies will It will not invest a lot of money for R&D, which in turn will constrain the development of the vehicle. So, to some extent, parts and components determine the fate of the vehicle.

Dong Jianping called for vehicles and parts companies to join hands in the “winter” that the Chinese auto industry is experiencing. This view of him was enthusiastically responded to by more than 100 parts and components companies attending the meeting.

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