"Generally speaking, a car 60% to 70% of the weight comes from the iron and steel; a net weight of 1.6 tons of motor vehicles, the weight of its steel products may be more than one tons, and steel prices to rise, certainly in a great impact on the automotive industry. "Yesterday, Australia Fu Zhuo Automotive Components Co., Ltd. in China for Mao Guo in the new" First Financial Daily "He said," Despite this the whole year of 2008 is expected to affect hard, but with all the iron and steel Automotive components business was indeed a very direct impact and challenges. "
To the parts supplier head-on blow

The same exposure to iron ore prices soared by the domino effect, as car plants generally want to steel price fluctuations major shift in the parts supplier links to digest, so long ago into the white-hot competition in the domestic and Parts suppliers, and steel prices rose no doubt to their head-on blow, and this influence than the vehicle faced by the plant, apparently to be more direct and more serious.

"Once a vehicle plant cost pressures, they may be very easy for the car prices to rise, the impact on consumers, but parts supplier to the customer price increases are relatively more difficult." Global industry consultants and experts, executive director of AlixPartners Stefano Aversa "First Financial Daily" said. There are market participants said that even to raise prices, or have their basic raw materials is less than the gains, with car plants from suppliers may not raise the purchase price, and if the car sales market can not afford car prices, the whole The depot is likely to continue to parts maker, auto parts suppliers to the brutal competition will become increasingly fierce.

Mao Guo told reporters the new, 2007, the auto parts industry has emerged a number of loss-making enterprises, for them, especially on the prices of raw material costs in the proportion of over 80% and not possible to the customer prices in the low-end requirements of the local community Suppliers, steel prices will aggravate their difficulties. If the price of raw materials continued rapid increases in the future, it may speed up the auto parts industry reshuffle in two to three years to come. In fact, if the WTO ruled China imports the United States, Canada and the European Union auto-parts tariff policy contrary to the principles of trade, tariff policy led to loosening up the case, these parts supplier may also be suffering from shock.

Beyond cost of internal and external difficulties difficulties

Maoguo new to this reporter said frankly: "We produce the seat as an example, from the skeleton to the chute can not be separated from the iron and steel, raw material price increases, we will undoubtedly have led to the increase in cost; Not only that, in recent years car a price drop, in particular, own-brand car in the pressure of market competition in the larger, and vehicle manufacturers are accustomed to pass on cost pressures suppliers. This allows auto parts suppliers felt both inside and outside pressure. "

However, the "outside pressure" parts and components industry faces the issue of universality, Maoguo new proposed a "internal and external difficulties" proposal: First, we must further reduce business operations as soon as possible in the process of producing, manufacturing and management costs and then , Listed according to Luo relevant data report and pay the customer to win in the commercial negotiations enables customers no longer have discount price space; course, in addition to the core competitiveness of the cost advantage, including core technology strength.

At the same time, AlixPartners executive director Stefano Aversa told reporters that at present many automotive products gradually began to use aluminum and other light, substitute materials, while the proportion of the use of steel is declining, which will also ease the rising prices of iron ore a direct impact.

In addition, Stefano Aversa also believe that over the past five years, the auto parts industry enjoyed high growth of China's car receipts, high tariffs, lower wages, so that the industry has maintained a high profit; encountered challenges such as rising raw material is Is a normal market turmoil, but parts of the world market have been full competition, but is in a transition period of China's auto parts market competition is not sufficient, the future growth of China's car market will slow down, car prices will continue to lower, And automotive components of the lower profits, the trend is beyond doubt. "Compared to India, Vietnam, the Philippines, and Thailand also has the advantage of low labour costs and competitive markets, the Chinese auto parts providers should provide more high-end products, improve the technological level and improve competitiveness and expand production scale and reduce costs . "Stefano Aversa said.