A plan to build an aircraft carrier's aircraft carrier was released at Dongfeng Motor Company. Behind it was a long-planned international layout. In the future, the strong rise of a number of large-scale parts and components will hopefully change the long-term weakness of China's parts and components industry.
On February 8, Dongfeng Automotive Components (Group) Co., Ltd. (hereinafter referred to as “Dongfeng Componentsâ€) was announced to be established in Shiyan City, Hubei Province. It is understood that Dongfeng Parts will be set up by the components business division of Dongfeng Motor Co., Ltd. and will be transformed from the original separate parts management department into a legal person company with industrial assets. Dongfeng Components has 15 subsidiaries including Dongfeng Technology, a listed company, and is located in Shiyan, Xiangfan, Wuhan, Suzhou and Shanghai. It employs more than 16,000 employees and registered capital of 2.23 billion yuan. According to Weng Yunzhong, general manager of Dongfeng Components, the establishment of the company is another major transition from the division's model to an independent, self-operated, corporatization model. It is an important symbol of Dongfeng's auto parts business going to the market. The company is striving to achieve this year. The main business income was 4.95 billion yuan and the operating profit was 65 million yuan.
As a future aircraft carrier-grade parts and components company, Dongfeng Components' vision is "to be the most competitive automotive parts and components group providing value-added services to customers." In the speech of Xu Ping, the general manager of Dongfeng Motor Co., Ltd. and chairman of Dongfeng Motor Co., Ltd., there appeared more words related to "internationalization." Obviously, Dongfeng Components has begun to target the global seats, with the aim of laying the foundation for Dongfeng Group's future international competition.
From the perspective of Dongfeng's business operations, there are a number of core technology businesses such as suspended load bearing systems, air brake systems, steering systems, engine thermal systems, intake and fuel filtration modules, automotive electronic control modules, and meter sensing. Components and so on. In addition to supporting Dongfeng Group's auto companies, Dongfeng Components also supplies other auto companies with more than two-thirds of its external business. Many companies such as Zhengzhou Yutong, Beiqi Foton, China National Heavy Duty Truck and Chongqing Hongyan have business contacts with Dongfeng parts.
In China's automobile industry to the mid-to-high end today, China's parts and components companies are still at the bottom of the supply chain. For a long time, the fact that intensive labor and cheap costs are the main competitiveness has caused the slow development of China's spare parts enterprises, and there have been few dialogues with multinational giants. It is understood that the total number of auto parts manufacturers in China is nearly 20,000, but according to statistics, there are only 6,000 companies with an annual output value of more than 5 million yuan. 80% of companies in the industry have sales revenues of less than 100 million yuan. Only 43% of companies have patents, and less than 20% of companies have patents for inventions. In addition, the market share of the top 100 parts and components companies only accounts for 50% of the entire industry, far below the concentration of other countries.
In recent years, with the overseas spare parts giants entering China, China’s domestic parts and components companies have become more marginalized. Delphi, Bosch, Wescast, Cummins and other multinational component manufacturers have built multiple production bases in China. Up to now, foreign auto parts and components have occupied three quarters of China's market share, and the share of some core components has even reached more than 90%.
For China's parts and components industry, grasping the core component technologies and key supporting resources to achieve large-scale integration or joining forces is a necessary way. The company that builds its core component business to enhance its overall competitive strength is now not only Dongfeng, but also FAW and SAIC have plans to integrate component resources. An important background is that "the autonomy of key components and technologies has been incorporated into the automotive industry revitalization plan. The central government will also invest 10 billion yuan in three years as a special fund for technological progress and technological transformation. China's spare parts companies have reached a point where they need to grow and must grow.
Not long ago, the Deloitte Global Manufacturing Group, an international professional services agency, predicted that by 2020, China's auto parts suppliers will rise strongly, along with suppliers from emerging markets such as India, to completely change existing Western Europe, the United States, Japan and other places. 15 major suppliers control the pattern of the automotive industry. For Dongfeng Group, the revitalization of parts and components business and the enhancement of core technology competitiveness are already necessary means for it to win an international seat. Among the three major groups, Dongfeng, which is the most understated and slightly disadvantaged, has begun to show its long-term strength.
According to Hong Ting'an, head of the Deloitte China Manufacturing Group, “Detroit’s influence is gradually declining and it has lost its global leadership. China will rise to the world’s leading automobile production country, but the prerequisite is that China must have a global leading vehicle. Giants.†In the end, who is responsible for this important task? For Chinese auto companies, this will be a life and death game related to future rights and interests.
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