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    Automotive components industry mergers and acquisitions trend that gradually

    Loss of world manufacturing centre, parts and components industry in China is able to withstand the risk? «As China's labor cost growth, as well as logistics and shipping costs increase, India and Vietnam will be more advantages and lower labor costs, many multinational corporations industry Indonesia is considering a production base in the Asia-Pacific region.

    As soon as possible in order to develop and grow, to avoid risks, China's parts industry has emerged M & A trend. Investigation Department data showed, 80 percent of Chinese enterprises in parts acquisition intentions, 50 percent of the enterprises with the international trend of mergers and acquisitions. 2008 will be China's acquisition of parts and components industry Petani.

    For most parts of domestic enterprises, in 2008 the biggest business risks China's vehicle sales growth is slowing down and vehicle prices continue to decline in profitability caused by gradually decline. The future price of imported parts and components will decline further, China's domestic automobile manufacturers are more likely to choose imported products, after all, foreign technology is mature, have price advantages.

    Since the implementation of the parts tariff policy, China has been the local parts industry has more and more foreign capital into the giant's OEM suppliers system, to improve their own quality, technology, production processes are very useful, but at this time A development vision and the strength of the relatively strong domestic suppliers will take advantage of this trend, we must open up to transnational enterprises to enter the global procurement system of channels, then the international mergers and acquisitions will be a good way.


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