Ronas Chemicals Ind. Co.,Ltd. , https://www.ronaschemical-cn.com
In recent years, the tendency of foreign auto parts companies to infiltrate the monopoly of the auto parts market in China has become increasingly clear: direct wholly-owned construction or eating out Chinese shares from joint ventures to sole proprietorships.
Industry experts said that in the face of the current unfavorable situation, the relevant government departments should support local auto parts companies in many ways, and at the same time, the relevant companies must form a “joint force†so that they can resist the monopoly of foreign auto parts giants.
At the end of 2013, WABCO’s acquisition of the Shandong Weiming Chinese equities to transform it into a sole proprietorship was not a single case. In recent years, such incidents have occurred from time to time. For example, in 2010, Bosch Auto Parts Co., Ltd. and the two parties completed the equity conversion. The joint venture company became a wholly owned subsidiary of Bosch. In 2013, Remy International acquired a 49% stake in Remy Electric Hubei Co., Ltd., which is held by the Chinese company, to achieve full control over the joint venture company. Wait. This fully shows that the foreign investment "invasion" of the domestic auto parts market has changed the form, from the initial form of a joint venture into the Chinese market into a joint venture into a wholly-owned or directly owned form.
The joint venture company's transformation into a sole proprietorship and the establishment of a wholly-owned company have become a trend for foreign investors to “invade†the domestic auto parts market. Gu Yifan, secretary general of the brake committee of the China Automobile Industry Association, said: "Now in the auto parts industry, all profitable auto parts and components have this kind of situation. We must either invest in joint ventures or become sole proprietors in this direction. "Development. Profitability refers to those auto parts that are lucrative, technically demanding, and high-end value chain. Although we understand that this is eroding domestic auto parts companies, it is very helpless for this trend."
Industry insiders stated that after many years of joint ventures, China has slowly hollowed out its specialized management of technology, quality control, and team operations, and the value of the joint venture company is getting weaker; while the localization experience of foreign capital is maturing, there is no Due to the necessity of joint ventures, joint ventures may become sole proprietors.
Liu Houfu, general manager of Shandong Mingshui Auto Parts Co., Ltd., said that foreign investment in seeking joint ventures is a huge market in China. Once the market is occupied and the industry is established, China will not be able to abandon the value, and it will not really promote the upgrading of Chinese auto parts technology. And independent innovation.
Through the joint-venture approach of "saving the country through curves," domestic auto parts companies have also lost ground in the competition with foreign capital, and the positive battle has always surpassed them. Although the development of China's auto industry is booming, the key and core technologies for auto parts are in the hands of foreign investors, and the development of independent brands is still struggling.
Chen Qisheng, executive vice president of Zhejiang Libang Axone Automotive Brake Systems Co., Ltd., stated: “With strong foreign investment, China’s brakes are falling back and the real core is controlled by foreign capital. Once brakes are combined with electronics and related technologies, many domestic Brake companies will be unable to hold back."
When talking about how to deal with the "invasion" of foreign investment, Gu Yifan said that there is no power to stop this trend. Because the auto parts industry does not attach importance to and limit the joint-venture ratio and sole proprietorship from the beginning. Although the industry is aware of the consequences and seriousness of this problem early on, the auto parts companies themselves cannot stop it. They need to be controlled by national policies or other means on a large scale, and support local auto parts companies in many ways. The ability of foreign capital to resist.
Experts said that "synergy" is not only between auto parts companies, but also between vehicle companies and parts and components companies. The market is a stage for component companies to play, so vehicle companies need to provide opportunities for domestic component companies to cooperate. Only the cooperation between the parts and components companies and the parts and components companies, and between the vehicle companies and the parts and components companies will form mutual cooperation and common development. This "synergy" will have the greatest effect, and it will be possible to break through the foreign capital.