Deadly "Ignition Switch" Domestic Auto Parts Face Test


The auto industry is booming. In the entire automotive industry system, the auto parts industry is an important part of this.

Compared to self-owned brands, the degree of “internationalization” of Chinese auto parts companies is much higher than that of entire vehicle companies. However, the issue of manufacturing levels of Chinese parts and components companies reflected in the recent GM recall incident is China’s auto zero. The development of components has cast a shadow.

Since the restart of the IPO in the capital market this year, a large number of auto parts companies have been listed in order to solve the problem of capital shortage through listing. How can capital entry solve the “urgent” of auto parts companies? How can the long-term problems plaguing auto parts companies have weaknesses in core competitiveness and low gross profit margins? Please see this issue.

GM’s recent recalls have once again pushed the “Made in China” parts to the cusp.

Recently, GM announced that it had recalled more than 340 million vehicles worldwide due to ignition problems. Subsequently, General Motors provided a report to the U.S. traffic regulatory agency. The report showed that the "culprit" that led to its recall was the ignition switch supplied by China Auto Parts Corporation.

In fact, prior to this, Aston Martin, a British luxury car brand, had a similar explanation in the February recall. In spite of these global recalls, the accusations of “Made in China” were ultimately considered to be recalled by companies seeking “enumeration”, but it is undeniable that with the gradual integration of Chinese auto parts companies into global auto parts Systems, domestic auto parts and components are facing many challenges.

"scapegoat"?

Data show that since 2001, GM's ignition switch defects on millions of cars have caused at least 13 fatal accidents. In response to GM’s long-term inaction on this defect, the National Highway Traffic Safety Administration (NHTSA) issued a $35 million fine for it this year.

On June 16, General Motors announced that it had recalled more than 340 million vehicles worldwide. In a document submitted to the U.S. safety regulatory authority, General Motors stated that the ignition switch used in the recalled vehicles was manufactured by Dalian Alps Electronic Company of China.

For a time, the public's focus on torture in the GM quality system once again shifted to "Made in China," and the reputation of Chinese-made components has once again been pushed to the forefront of public opinion.

“From the GM's final investigation, in the recall incident, there was no quality problem in the ignition switch made in China itself.” An insider of Shanghai GM said that the causes of GM’s recall of the vehicle in this round caused a safety hazard. Because the key hole of the car key is relatively large, if the weight of the suspension is too heavy, it may cause the ignition switch to enter the A/C state. To be precise, the "culprit" of this recall is GM's design flaw, not the quality of the parts.

It is understood that the NHTSA's recall application has mandatory requirements to fill in the suppliers of related parts and components, which is the reason why Dalian Alps Electronics Co., Ltd. “lays a gun”. However, the size of the key accessory hole was manufactured according to the specifications given by General Motors at the time. The problem was not quality.

Coincidentally, in February this year, the British luxury car brand Aston Martin announced the recall of nearly 18,000 sports cars. After the recall incident, Aston Martin’s statement that “will dispose of the faulty parts and components provided by Chinese suppliers and transfer the production of the accelerator pedal lever from China to the UK as soon as possible” also makes international public opinion zero for Chinese manufacturing. The quality of the parts expressed more skepticism.

“Chinese parts and components can enter the global procurement system of multinational car companies, first of all to meet the global procurement standards of multinational car companies, and the subsequent supply will be manufactured according to the selection standards and process standards of multinational car companies. Therefore, It is unreasonable to impose the cause of the recall on China's spare parts suppliers.” A company official responsible for exporting engine-related parts in Jiaxing, Zhejiang Province, said in an interview with a reporter from China Business.

External and internal <br> <br> In fact, the ultimate reason for the recall survey, either general recall occurred or whether the previous round of Aston Martin recalls, and OEMs are design flaws in someone's vehicle related links And due to sparse quality inspections and other factors, "the culprit" is not a problem with the quality of Chinese parts. However, it is undeniable that Chinese auto parts companies are facing many challenges after gradually integrating into the global auto supporting system.

In recent years, the export volume of Chinese auto parts has been steadily rising. According to the statistics released by the China Association of Automobile Manufacturers, in 2013, China’s auto parts exports amounted to US$59.821 billion, an increase of 8.13% year-on-year, accounting for 76.28% of total auto exports.

“In recent years, Chinese-funded parts and components companies have made great progress in equipment, quality, and process management. The opportunities for participating in the cooperation of multinational car companies are gradually increasing. This requires Chinese parts and components companies to meet the requirements of multinational car companies. At the same time as the cost control, we will strengthen control over the selection of raw materials, production processes, and quality control.” said Dong Jianping, deputy secretary-general of the China Automobile Industry Association, who has long paid attention to the Chinese auto parts industry.

According to Dong Jianping, the excessive involvement of large-scale car companies in the recall incident will undoubtedly challenge the globalization of the Chinese-funded parts and components that are already weak.

In addition, high value-added, high-tech products are less, and have always been the weakness of domestic auto parts exports. In the past few years, exports of Chinese-funded parts and components have remained concentrated in high-energy, high-consumption, and low-tech value-added products such as tires, brake pads, and wheels. For products with higher technological content such as airbags, EFI systems, ESPs and other body chassis electronics, 80% to 90% of the profits are concentrated on foreign brands.

Zhang Zhiyong, a well-known commentator in the automotive industry, said that in recent years, more and more foreign-funded parts and components companies have begun to set up factories in China to strengthen their localization. This also requires Chinese parts and components to maintain their cost advantages that they previously had to rely on. Need to further enhance the strength in research and development, technology and craftsmanship.

Judging from the current situation, the situation of “domestic and diplomatic difficulties” in Chinese-funded parts and components continues to deteriorate – foreign capital is frequently transferred to local manufacturing, making the cost advantages of previous Chinese suppliers gradually lost; eager to transform and upgrade, but it is facing the “no-mast”. Hey. In the current gradual integration into global matching and foreign-made spare parts, the "accidents" in the "manufacturing and quality" link of "Made in China" parts are best not to appear too much.


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