Multinational Parts Enterprises Accelerate Localization of Independent Brand Benefits

After the Chinese auto market entered the “micro-growth” era, not only did the entire vehicle company recognize the truth that “who can more resolutely implement the localization strategy, who can win development in the fiercely competitive Chinese market”, multinational auto parts The company also accelerates the layout of China and increases its localization operations. The automakers of the independent brands who had previously suffered from a lack of core technology are expected to benefit from this.

Intensification of localization of parts and components

“The strategy of BorgWarner is to close customers and localize the production of high-tech products.” On November 28 at the official opening ceremony of Ningbo Engineering Center and the new plant of Moss Systems, BorgWarner CEO Mr. Tim Manganello faced the public. , GM, SAIC, Great Wall, Chery, Geely and other business representatives said.

This year, giants of foreign parts companies have accelerated their localization in China. In early September, Honeywell established a turbocharger plant in Wuhan. In the same month, Continental Group, following Shanghai Jiading and Wuhu, put Changchun into production of three new production lines as its third investment project in China. On October 10, Delphi Pike Electric Systems Co., Ltd. Chongqing Branch officially launched, mainly supplying Changan Ford Mazda, Volvo and Jiangling Ford. Just one day apart, on the 11th, the foundation of the Yantai production base of Delphi's diesel engine management system was laid.

In fact, in addition to establishing a production base, foreign parts giants have also accelerated the pace of localized R&D in China. The BorgWarner Ningbo Engineering Center, which opened on November 28th, will be equipped with state-of-the-art test equipment for many BorgWarner engine products such as turbochargers, timing chains of engines, EGR exhaust emissions, and Belu ignition coils.

The vast market prospects are due to the fact that component giants cannot refuse to localize. The data shows that in 2011 Bosch China Automotive sales reached 24.9 billion yuan, an increase of 7% year-on-year, far higher than the overall growth rate of China's auto market in 2011. According to Dapeng Jie, vice president and general manager of Honeywell Transportation Systems Group China and India, the Chinese turbocharger market will double from 4 million units in 2011 to 8 million units in 2016 in the next five years. At the same time, in the past, 55% of BorgWarner's business came from Europe. In recent years, due to the impact of the European debt crisis, the European business fell by about 8% last year alone.

Autonomous car companies find shortcuts to technology breakthroughs

After clarifying the direction, the international parts giants are faced with the problem of how to quickly and effectively advance localization. It has become a common choice to strengthen cooperation with domestic auto makers, especially autonomous auto makers.

On December 3, Honeywell announced that it will provide Great Wall Motor with diesel variable-section turbocharging technology. The Great Wall Haval H5 and H6 SUVs that use this technology will benefit from the superior fuel economy and enhanced engine performance brought about by Honeywell's latest technology.

"Compared with vehicle companies, domestic auto makers have acquired core technology by deepening cooperation with international parts companies. This is a shortcut," Zhang Zhiyong, an automotive analyst, told reporters. In fact, a series of problems caused by the lack of core technologies are plaguing domestic car manufacturers. Through the strengthening of cooperation among international parts and components companies, independent car companies can not only obtain the latest technology products, but also can grasp the corresponding technology and production process.

In fact, domestic automakers have begun to seek closer cooperation with international parts and components companies. On October 22, Dongfeng Motors signed a joint venture contract with the world's largest independent supplier of passenger car and light commercial vehicle gearbox, GETRAK. In the future, apart from supplying Dongfeng brand passenger vehicles, East-style Trakla products will also serve Dongfeng’s joint venture companies, other domestic automaker brands, and overseas markets.

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