Daimler-Chrysler (hereinafter referred to as Dai-ke) has been working in Jiangsu and Zhejiang provinces for months in order to cooperate in finding suitable parts and components companies in China.

According to a person familiar with the matter, Dai-ke could not disclose his identity to the other party in the process of finding a partner, which made it more difficult for the process, but Dai Ke's pace of entry into the Chinese auto parts industry has not stopped. .

For the sake of reducing manufacturing costs, auto giants such as Ford, General Motors, and Dai-Ke have continued to expand the procurement of spare parts in China in recent years. According to the plan, in the next three to five years, the total value of GM parts purchased in China will reach 10 billion U.S. dollars each year. In 2002, this figure was 1.1 billion U.S. dollars; while Daikook is in the process of implementing Hyundai with Hyundai. Motor Corp. and Japan's Mitsubishi Motors Corp. plan to purchase parts from China.

"As the major automobile companies in the world invest in China, they are urging their related manufacturers to invest in China," said David Nielsen, vice president of global supply management at Delphi, in an interview with this newspaper. "In 2003, Delphi was China's purchase volume is 225 million U.S. dollars, and by 2007 this figure will reach 1 billion U.S. dollars."

There is still Germany behind the others. According to Gothic, president of the German Automobile Industry Association, in the next few years, 30% of the newly-built factories in the German auto parts industry will establish bases in Asia, mainly in China. A multinational company’s wave of Chinese gold parts is surging.

Made in China

In the past two years, the price war in the North American auto market has caused the three major American auto companies to try their best. In order to cut costs, the three major US auto companies had to look at low-priced Chinese parts and components companies when they purchased parts and components.

Another reason for multinational auto companies to increase their spare parts purchases in China is that since 1999, GM, Ford, and Volkswagen have all accelerated their entry into the Chinese market. Due to the launch of new models, many accessories cannot be supplied domestically, but the import quota for parts and components is far from meeting the needs of the joint-venture vehicle manufacturers, especially for high-end models such as Audi.

In 2003, the allocation plan for automobile import quota jointly formulated by the Economic and Trade Commission and the General Administration of Customs, etc., put forward the requirement of “firstly meeting the domestic automobile industry’s need for import of key spare parts and complete spare parts needed for production and supporting, and the import quota Gradually increase the "distribution principle. In addition to this, the National Development and Reform Commission will allocate 60,000 sets of imported parts for the default large parts assembly vehicle to ease the demand of some new car plants to keep up with orders.

However, this is only a temporary strategy. According to sources, this year, the state will formulate more stringent policies on the import of spare parts: foreign parts suppliers must localize production if they want to share the cake of the Chinese parts market.

According to Xu Zheng's research, European and American auto manufacturers usually use tenders to select suppliers, and they mainly consider components such as price and quality.

Low labor costs and huge market demand, Delphi, Visteon, Asian strategic investment companies and other manufacturers have established factories in China.

As the world's number one supplier, Delphi has set up 13 wholly-owned and joint ventures, a technology center and a training center in China. At present, Delphi's global parts factory manufacturing costs account for 30% of its cost, and China is currently floating at this level. However, the level of Chinese parts and components companies is still in the early stages of the development of this industry, so there is room for further decline in China's manufacturing costs.

In 2002, Visteon, the world’s second-largest parts and components supplier, had sales revenue of US$550 million in China, and currently has factories in Nanchang, Beijing, Changchun, and Shanghai. Another component giant Bosch also has 153 auto aftermarket service stations in China. "The total production of Chinese cars last year was about 1/3 of that of the United States. China's huge market space will attract more entrants." Xu Zheng said.

Beijing Jeep is a vehicle company of DaimlerChrysler in China. The localization rates of the three models produced range from 45% to 90%. Dai Ke-related people said that "Beijing Jeep's supporting principle in China is to first use the United States components supporting factories in China joint ventures, if the original factory did not invest in China, it will be used in the industry's top three Chinese companies' products ."

Luo Jingming, editor-in-chief of Automotive and Accessories, has long paid attention to China's spare parts industry. He disclosed to reporters: “Now Delphi, Visteon and other manufacturers are mainly supporting Ford and GM’s vehicle joint venture plants in China, and a small part of them are exported to the North American market. ."

According to AUTONEWS, a Chinese engineer receives about $5,500 a year in salary, and an American mold company employee's annual health care cost is $7,000. In China, the cost is 30% lower than in North America, Europe and Japan. In order to reduce costs, some mold companies are planning to follow the OEM to build factories in China to avoid risks.

Luo Jingming introduced that about 70% of the total automobile parts and components are labor-intensive components. At present, compared with overseas products, China's auto parts products, although generally not enough to form a competitive advantage, but some labor-intensive products do not have high technical content has become a strong competitive edge. An analogy on the price, if the domestic production cost in the United States needs one US dollar, the same product and some of the same as in China only 1 yuan. The price advantage of Chinese parts and components is obvious.

Seamless stitching

In May 2002, Ford China Procurement Center was established in Shanghai. Since then, Ford’s vast procurement research team has travelled back and forth between major auto parts manufacturers in China and quietly completed a new round of procurement arrangements in China.

At present, Ford’s procurement process in China is divided into three processes: First, the Boston Consulting Group conducts rough selections of Chinese suppliers; then, the selected suppliers submit formal bids for quotation; Finally, in accordance with strict time and quality and quantity restrictions, Lean production requirements, small-scale trial purchases. Each of the three sub-processes is regulated by 23 steps: From procurement decisions, component design, design failure experiments, process failure experiments, and a series of elaborate processes, to final product prototypes and reliability of prototypes. Test and guarantee.

After such rigorous screening, the Ford Shanghai Procurement Center has formed a supplier echelon consisting of 75 to 100 suppliers. There are both contract manufacturers and subcontracted secondary suppliers. Most of the network suppliers of these Ford China Procurement Centers are located near the assembly plant of the Changan Ford Fiesta. More than 70% of the companies are Sino-foreign joint ventures or wholly foreign-owned companies, and only 30% are local Chinese suppliers.

In order to further integrate into the auto parts factory procurement system in China, in June 2003, Visteon’s Board of Directors decided to relocate its Asian headquarters from Tokyo, Japan, to Shanghai. In 2002, Visteon’s “One Platform” development in China was proposed. strategy. First, the Visteon Shanghai office was withdrawn, Yanfeng Visteon was used as the Visteon China headquarters, and the technology center was relocated to Shanghai to become the Asia Pacific technology development center.

With the move of the Asian headquarters to Shanghai, Visteon’s principle adopted a large investment plan for the Chinese market. According to the plan, Visteon will increase its number of factories in China to double digits in order to maintain a competitive balance with rivals Delphi Automotive Systems and Bosch.



 1.Metal Stamping, cold stamping,hot stamping 
 2.OEM,can be customized 
 3.Alloy, Aluminum,Brass,steel ,copper,stainless steel,mild steel,carbon steel.
 4.Durable
 5.Tolerance Control: from +,-0.003MM 

 6.After-sales-service: take 100% responsibility for any quality issues!



Steel Stamping

Steel Stamping,Precision Stamping,Steel Part,Metal Stamping

Baoding Henglian Mechanical Co.,Ltd , https://www.hengliancasting.com