Are auto parts companies going out or staying?

On March 24, Dongfeng Auto Parts (Group) Co., Ltd. signed an employment contract with Nissan expert Sanyefeng to formally hire Sanye Fengwei as the general manager of Dongfeng Parts Company. After the establishment of the group company on February 8, 2010, this is the first international talent introduced by Dongfeng Parts.

Starting from May 1, 2010, Sanyefeng will work for Dongfeng parts for two years, mainly providing consulting and technical guidance and support for the business of auto parts in Dongfeng parts, and identifying other foreign experts for Dongfeng parts.

Among the large automakers in China, Dongfeng is the last to independently develop its parts and components companies. It has been in the form of parts and components business, and it exists under the Dongfeng limited. Like other companies, the Dongfeng parts and components of the whole package also take internationalization as one of their visions. The only thing that is better than other companies is that Dongfeng knows how to use international talents to enhance the international content and corporate reputation. As they set in February this year, they became "China's most well-known international auto parts group."

But this one-size-fits-all vision goal has forced people to reflect on the development model of China's parts companies from the source of strategy. Should they go out?

Compared with other companies such as FAW and SAIC, Dongfeng's integration of components can make fewer detours. It leaves the core business such as axles to commercial vehicle companies to avoid multiple management in the future. But for the future business model, this newly formed group company needs to be seriously explored.

The independence of parts companies in the global automotive industry is mostly the mission of finding international business and looking for business outside the group. This development trend is like the journey of the European and American markets for decades. In the past 20 years, the global automotive industry has experienced a process from concentration to dispersion. The concentration and grouping of automakers first divested the parts business and then set up more assembly plants around the world, forcing parts companies to follow internationalization.

The internationalization of Delphi and so on, in a sense, is following the internationalization of the OEMs. These companies do not have their own good business model. They only need to serve their original customers (and are the main customers). However, until recently, the OEM encountered a development bottleneck, which caused the supporting enterprises to cut off the non-core business in the loss, and this non-core business should be abandoned at the beginning of development.

Today, the term strategy is well known, but its development has only been 25 years. Enterprises learn to analyze their competitive environment, define their position, develop their competitive advantage, identify weaknesses and threats, and seek sustainable competitiveness in competition.

In fact, the Automotive Business Review believes that most component companies can choose a simple profit model to supply the Group and seek external business. Some companies have developed good strategies on top of this model, such as those with their own core competencies, like the US Trina or BorgWarner, while others are in the business model, in the form of loose holding companies. Flexible tactics to develop, such as Beijing Hainachuan.

The first day of development of China's auto industry was internal support, which was the result of the national plan. The reform and opening up failed to break this structure. Although internal support is easy to discourage progress, there are also plenty of examples of progress to follow. Two foreign examples from Toyota and Nissan can also be corroborated. Toyota coexisted with its own parts and components companies, and Nissan was stripped of the equity-related parts and components company by the savior Ghosn.

It can be seen from this fact that going out is not necessarily a good choice for component companies. It is not a mistake not to go out.

The component companies choose to use the group as their main customer. Because they have equity links with the group, they can have long-term cooperative development, can easily cooperate and win-win, and the parent company customers will have more cooperation and convenience. Because the parent company is still bound by the market mechanism, although the pressure on the body is relatively small, in the era of economic transparency and fierce competition, the parts and components companies are more likely to think of the term "sweet teeth."

From the data point of view, in January and February of this year, Dongfeng parts and components realized sales income of 1.3 billion yuan, a year-on-year increase of 237%, a record high. Among them, Dongfeng parts internal market sales revenue increased by 852.47%, external market increased by 148.81%. . If we can advance along with Dongfeng Group and seek technological breakthroughs, the future prospects of Dongfeng components are very promising.

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