Corporate restructuring
Major automotive companies around the world have reformed their supply systems and implemented global production and procurement, that is, from purchasing from multiple automotive component manufacturers to purchasing from a few system suppliers; Change from single car parts procurement to module procurement; Transform from domestic procurement to global procurement. The transformation of the procurement system of vehicle manufacturers requires that auto parts manufacturers continuously adapt to it. Not only do they require auto parts manufacturers to expand their own strength, improve product development capabilities, achieve system development and supply, but also require them to shorten the development cycle and provide high-quality and low-cost products. This transformation has promoted the process of mergers and acquisitions and restructuring of the automotive parts industry worldwide.
Chain development
The market concentration has increased compared to previous years, and vehicle manufacturers are increasingly tending to modular and systematic procurement, with closer collaboration between suppliers. This has led to the gradual evolution of the global automotive parts supplier system towards a pagoda structure, with primary manufacturers responsible for managing the entire supply chain, making cooperation between supply chains more standardized. Enterprises that develop like this occupy 80% of the market and dominate the high-end market. The boss of a parts company said, "With the rapid growth in the production and sales of finished vehicles, parts companies have encountered a once-in-a-lifetime opportunity. Without this express, they will fall behind and be eliminated."
technical progress
Major automotive component manufacturers have applied aerospace, aviation, and electronics technologies to automotive components and assemblies. Safety, electronic, energy-saving, and environmental protection technologies have been widely used in automobiles. In particular, new technologies represented by electronic information technology are not only widely used in automotive products, but also extend to various aspects such as development and design, trial production, production, and management; It is not only applied to individual automotive components, but also to system assemblies.
The establishment of R&D centers by component companies can "quickly" meet the urgent needs of the market and quickly develop products; Can be "accurate", close to the market, achieve "localization"; "New" can be used to apply more new technologies to production, ensuring quality and reducing costs. In fact, some new technologies are being led by parts and components companies.
globalization
In order to reduce costs and occupy the market, many multinational automotive parts companies have been developing towards internationalization. European auto parts manufacturers have invested overseas to carry out international production; North American auto parts manufacturers have invested in Europe and also want to expand the Eastern European market; Japanese auto companies are also continuously establishing their own branch production organizations worldwide. The emerging Asian market is the focus of competition among major automotive component multinational companies, and China is even more a must for it.