Since 2009, China's auto industry has experienced the fourth quarter of the previous year. After the deceleration of the growth rate in January and February of this year, it has gradually resumed its rapid growth from March, and its automobile output continues to hit a record high. The same is true for the parts industry. On the whole, apart from the fact that exports have been greatly affected, the auto parts industry has also resumed rapid growth as the automobile domestic demand market has been booming. It is estimated that the total output value of auto parts industry will reach 1.2 billion yuan this year. Under the influence of the international financial crisis and the severe shrinking of international market demand, this year's auto parts industry has relied mainly on boosting domestic demand to achieve rapid growth. Although the market sales price is lower and the sales profit rate has decreased, the raw material prices have been relatively stable and the output has increased. The company has obtained better economic benefits. Correctly understand the current situation of the development of the auto industry at home and abroad ——The situation in the domestic auto market is excellent, but there are still uncertainties. Since the fourth quarter of 2008, the international economic situation has turned sharply, and China’s economic growth has also slowed down significantly. At the end of the year, the State Council decisively introduced a 4 trillion yuan investment plan and successively promulgated plans for the revitalization of the top ten industries such as autos. By the second half of this year, China's economy has begun to stabilize and the economy has recovered significantly, especially for the automotive industry. This year's auto market has seen blowouts. Auto parts companies have been busy with their efforts to cope with the market, sighing that their production capacity is insufficient. Now people's feelings are very different from the mood of preparing for the “winter†year ago. While everyone is cheering, they are also worried about the persistence of the current car market. First, we should determine whether the reasons for the emergence of market blowouts are mainly due to external forces or the results of the company's own efforts. As far as the industry is concerned, whether its structural problems and contradictions are solved or improved; in the case of enterprises, whether it is due to improvement and improvement in the aspects of product technology, structure, quality level and cost control, and enterprise management and management level. We have won market share. If not, the market has given us such good returns. Its sustainability deserves our deep thinking. Second, the economic stabilization and upswing indicates that the prices of energy and raw materials will rise, and the pressure on enterprises to control production costs will increase. The operating conditions are not optimistic. Third, how quickly and how much will the world economy recover? The fiscal, monetary, and automobile consumption encouragement policies that the country will adopt next year and the trend of international oil prices will all increase uncertainties in the auto market. ——The world automobile industry is in a period of turbulence, adjustment and change. Although this global financial crisis has hit the automotive industry in the world, we understand from a positive perspective that we must realize that the current global automobile industry's existing structure and technology are no longer adaptable to the global environment, energy, and consumer safety. The increasingly demanding requirements in terms of price, durability, etc. This international financial crisis led auto manufacturers to reflect on the drawbacks of traditional automotive products, production methods and business models, as well as the emergence of corporate bankruptcies and global mergers and reorganizations; the global automotive industry accelerated its structural changes; New technologies, new materials, and new products in energy, safety, and security have been spawned. The world automobile industry has undergone structural adjustment and changes in this economic downturn. A new, more efficient and lower operating cost production and operation model and industry structure will emerge; it will be more environmentally friendly, more energy-efficient and more consistent with new market concepts. New automotive products will be available. We believe that after this economic crisis, the world automobile industry will take a new look at a new starting point for development. Those who have experienced severe cold are physically stronger. This is the objective law of historical development and human progress. - The international trade situation is increasingly serious. Since China's accession to the WTO, automobile products, especially parts and components, have begun to enter the international market in large numbers, and the trade volume has grown rapidly. In the past two years, trade protectionism has emerged in various ways. The number of anti-dumping and countervailing cases against Chinese auto parts products has increased. This year, the United States implemented "special protection" on auto tires exported from China, imposed high tariffs, and the European Union is conducting anti-dumping investigations on the aluminum wheels exported by China. It can be expected that in the future we will encounter more and more trade protectionist barriers in terms of technology, quality, and regulations. In addition, China will also face competition from emerging market countries. Most of the parts and components exported by local companies in China have low technological content, low prices, and thin profits. As China's labor costs gradually increase, our advantage is likely to be replaced by other developing countries. Before we had containment of trade protectionism, there was competition pressure for lower-cost products. The situation would force us to change the current product structure and increase the value-added technology and extensive management of products. - The competition in the Chinese auto market will become more intense. The outstanding performance of China's auto market in the context of the international financial crisis will intensify the competition for multinational auto companies in the Chinese market. To reduce logistics costs, the supply chain will be regionalized. Multinational auto parts companies will also increase investment in China and achieve localization of R&D, production, procurement, and sales networks, which will lower costs and meet the needs of the Chinese market. While continuing to maintain the advantages of the high-end automotive market and supporting markets, Further expand the market share in low-end and after-sale markets. - Pressure from relevant laws and regulations. The contradiction between Chinese-funded components and increasingly stringent energy, emission reduction, safety, and other regulatory requirements has become increasingly prominent. Due to the urgency of controlling greenhouse gas emissions and the tendency of oil prices to fluctuate and generally increase, many countries have formulated strict laws and regulations. The Chinese government will also impose regulatory restrictions on automotive products and will continue to raise strict levels. The technical bottleneck severely restricted the development of some parts and components companies in China and endangered the survival of some enterprises. - New energy vehicles pose new challenges to the parts and components industry and should handle the relationship between new energy auto parts and traditional energy auto parts. At present, international and domestic research and development of new energy vehicles are in full swing, and our government is vigorously promoting its industrialization. This poses three problems for China's spare parts industry. One is the breakthrough and industrialization of new energy auto parts and components technology. At present, there is no scientific conclusion on the technical route of what kind of new vehicle power is used. It also requires long-term research on basic technologies. It takes time for the maturation and mass production of dedicated key component technologies. Second, it is for traditional parts and components. The impact includes changes in product technology and structure, and the demise of certain components. The parts and components enterprises know little about how to adapt to the changes in the vehicle technology and structure, and are relatively confused. The third is how to correctly handle the technical progress of traditional parts and components. The judgment of the life cycle of traditional power vehicles by government departments and industries will affect the determination of certain traditional component manufacturing enterprises and the degree of support they receive. [next] Focus on adjusting industrial structure and accelerating industrial upgrading This year, China's auto industry has conscientiously implemented the “Regulations for the Adjustment and Revitalization of the Automobile Industry†and has achieved great results in maintaining growth and expanding domestic demand, and has maintained a high growth rate. Although we are in a period of economic crisis, people do not feel the crisis. In fact, there is a crisis, and before the outbreak of the international financial crisis, there will be a crisis in China's auto parts industry. This is a number of deep-seated problems in China's auto parts industry for many years, which affects the continuous and stable parts industry, Develop healthily. To maintain growth and expand domestic demand is to solve the immediate contradictions and to overcome the immediate crisis, and adjusting the structure is the solution to the long-term and sustainable development. Therefore, we must deal with the relationship between the short-term and the long-term. While doing a good job of maintaining growth and expanding domestic demand, we must also pay attention to solving the structural problems in the spare parts industry. The structural adjustment of the parts and components industry must closely focus on the themes of energy conservation, emission reduction, safety and the development of new energy vehicles. By adjusting and changing the current situation of small-scale, decentralized, low-level duplication, weak technological innovation capability and extensive operation, the industry can be realized. Full upgrade. -- Comprehensively improve the quality of the company. Technology is the core competitiveness of an enterprise. Its strength lies in whether it occupies the commanding heights of technology. In the past 30 years of reform and opening up, China’s auto parts and components industry has introduced advanced foreign technologies, including products, processes, and management, through the purchase of technology licenses, the establishment of cooperation, joint ventures, and wholly-owned enterprises. These technologies provide the rapid development of China’s auto industry. Support and protection. However, we should also see that foreign-funded enterprises have a high level of comprehensive management, control the high point of technology, and occupy the high-end product market. According to statistics, as of 2007, more than 40% of the production value and sales volume of the parts and components industry was created by foreign-funded enterprises accounting for 17%; the scale of Chinese-funded parts and components enterprises is small, and the added value of the production technology is low, and advanced technology has not yet been mastered. The core technology has a large gap between management levels and is at risk of being marginalized and low-end. Therefore, strengthening innovation capability is particularly important for Chinese-owned parts and components companies. First, we must increase investment. At present, the investment of Chinese-funded parts and components companies in technology research and development, the industry average level of less than 1% of sales, while multinational companies are generally about 10%, indicating that our investment in technology research and development is seriously inadequate. Second, to innovate must have its own technology accumulation. The company's ability to innovate is not formed out of thin air. It relies on the accumulation and summarization of long-term experience. Accumulation depends on long-term, solid experiments and research. In the past, we could introduce technology from abroad, but now some key technologies are strictly controlled abroad, and the long-term dependence on the introduction of technology will not work. The purchase of foreign advanced technology can only save time, shorten the gap with others, achieve a phased leap, but it is difficult to surpass others. Only by occupying the technological vantage point and achieving technological leapfrogging, this is the real leap. Therefore, regardless of whether or not we have introduced technology, we must carry out painstaking trials and studies on our own, and we must have our own accumulation. Without accumulation, we have no innovation, and eventually catch up with others and rely on our own ability to innovate. Third, we must improve the technological level of technological equipment and solve the contradiction between the advanced production equipment and the backward technological equipment. At present, many parts and components companies have high, sophisticated, and sharp production equipment, but the tooling technology such as knife, quantity, auxiliary, clamps, and molds is behind, and there are many problems in design, manufacture, use, and management, resulting in production. The efficiency and product quality have been greatly reduced, and they have not been able to play well the role of advanced equipment. Therefore, the parts and components industry must pay attention to and strengthen the research of manufacturing process equipment technology and the cultivation of talents. - Continue to improve the relationship between the vehicle and parts. The relationship between the vehicle and parts is still a problem that is reflected by the parts and components companies. The implementation of the “Three Guarantees†claim for the quality of parts and components is not standardized, and there are loopholes in the management of the 4S store or after-sales service shop. The entire process of discovering product quality problems, deciding claims, and recycling products is insufficient. Transparency and management are not strict, resulting in unclear economic losses suffered by parts and components companies. We hope that the entire vehicle company will strengthen the management of after-sales services in the future. The goals and interests of the entire vehicle and components are the same. Deviations in the value orientation of either party will cause major losses to both parties. Therefore, both the vehicle and the parts should be equal and the relationship should be harmonious. In the current situation of great cost pressures, we should take into account the interests of various supply chain links, so that the entire vehicle and parts and components companies have a reasonable and reasonable profit margins. According to statistics, Chinese auto parts companies account for more than half of auto parts OEMs, which shows that Chinese automakers have played a positive role in developing auto parts companies. With the improvement of the technical level of parts and components, we are also delighted to see that the relationship between the vehicle and parts is also constantly improving, and some vehicle companies and parts and components companies have established a strategic relationship of mutual trust. It is understood that FAW Group will send experts to assist key enterprises and help parts and components companies improve management. It should be said that this is a very good practice. The strategic cooperation between OEMs and key parts and components companies is being established. The vehicle manufacturers are sending personnel to support the parts and components companies and improving their management level. This practice is worthy of recognition and advocacy. Call for other vehicle companies to learn from FAW. By analogy, parts and components companies that produce parts and components and systems should also help second-tier companies and form strategic relationships. On the other hand, the situation of blindly lowering the prices of parts and components and arrears of purchases has greatly improved. We hope and believe that the relationship between the vehicle and parts and components companies will become better and better. —— Guide and promote the leading enterprises of parts and components to take the road of grouping and internationalization, and support medium and small parts and components companies to take the road of specialization, small enterprises, and large markets. Due to the rapid development of China's automobile industry and the highly marketization of parts and components industries, a large number of small and medium-sized parts and components enterprises have developed rapidly over the years, bringing vitality and vitality to China's parts and components industry, and at the same time, it has inevitably emerged as a company scale. Small, scattered, and repeated conditions. This situation is inconsistent with the development laws of the auto industry and should be gradually resolved during development. China's spare parts industry is a highly competitive industry. To promote its path of specialization and intensive production, it must play its role as a market mechanism. It cannot engage in administrative orders, but it must not let itself go. The state should study and encourage policies to guide the healthy development of the parts industry. In order to solve the serious problems in China's spare parts enterprises with small production batches and low-level redundant construction, the state should support leading small-sized enterprises specializing in spare parts to become bigger and stronger. Although these leading enterprises are small and their production parts are also very small, they are specialized in production. Only when they are specialized can they be refined and stronger, and they can increase their technological level, enlarge their scale, and widen the market, becoming the first in China. , even the world's first. In addition, to break the “small and complete†component industry, component systems and key assembly manufacturing companies should study the further specialized division of parts and components, rationally lengthen the industrial chain, form a fine division of labor in small industries, and a highly collaborative manufacturing system. . This can save investment and greatly reduce product production costs. -- We must persist in opening up to the outside world and strengthen foreign cooperation. In the past 30 years of reform and opening up, the strength of China's auto parts industry has greatly increased, but there is still a big gap compared with developed countries abroad, and it still cannot adapt to the overall development requirements of the auto industry. Under the new circumstances of economic globalization and the opening up of China’s auto market, we must continue to open up and strengthen foreign cooperation with a global perspective. In the current sluggish world economy, many foreign companies are willing to cooperate in technology and enterprise mergers and acquisitions in order to get out of the predicament. This is a rare historical opportunity. China's spare parts enterprises should seize this opportunity. Foreign cooperation should adhere to the principle of "mainly based on me". We must avoid blindness based on our own development strategies and needs. Through cooperation with foreign parts companies, especially small and medium-sized parts and components companies, a long-term partnership has been established to obtain technology, brand, goodwill and customer relationships, achieving the goal of complementary advantages and win-win cooperation. In order to quickly shorten the gap between China's spare parts enterprises and foreign countries and enhance innovation capabilities, the purchase of advanced foreign technology is one of the important approaches. We must actively engage in technical cooperation with powerful foreign counterparts, pay attention to respecting each other’s intellectual property rights, and conduct technology trade in a proper, mutually beneficial, and fair manner. In addition, there is also a way to purchase technology that utilizes foreign public technology service companies. In developed countries, there are many social-oriented technology consulting service companies whose business covers a wide range of areas including product and basic technology R&D, production management, logistics model, informationization, and so on. These companies are very willing to serve the Chinese automotive industry, many of which also set up branches in China, and some have joined the China Automobile Association. China's spare parts enterprises should make full use of these favorable conditions and cooperate with these companies in various ways according to their specific conditions and needs. (This article is an excerpt from the annual work report of Dong Jianping, deputy secretary-general of China Association of Automobile Manufacturers, at the annual conference of China's auto parts industry in 2009, which is abridged.) Expansion And Shrinkage Reducing Agent Shanghai Na Long Tech Co., Ltd , https://www.na-long.com