China has the world's major powers car

     "15" during China's automotive and high-speed development of the automotive industry, from 2000's 2.068 million in 2005 to the development of 5.708 million, increased at an average rate 22.5%; into the "11th Five-Year Plan" remains rapid development of 2006 production 7280000 Vehicles, an increase of 27.3 percent in 2007, production of 8.883 million, an increase to 22.0 percent, basically, "11th Five-Year Plan" goals, second only to the United States has become the world's second largest auto production and marketing power.

     We have built a more complete system of motor vehicles and parts manufacturing, manufacturing technology and management closer to the world's advanced level.

     Energy saving, environmental protection, security and other fields with the international advanced level of technology to further narrow the gap; commercial vehicles, in the low-priced passenger cars and parts formed part of stronger competitiveness, own-brand cars domestic market share of 30 percent in volume car Exports, "15" average export growth rate of 40 percent in 2005, total exports reached 16.77 billion U.S. dollars, 2007 exports rose to 40.9 billion U.S. dollars, an increase of 45.3 percent, export growth of 613,000 cars 133.2 percent; cars have become residents The importance of consumer goods, private cars have become the mainstream market and a substantial increase year after year, is rapidly into the car community.

     But there are still below those issues: irrational industrial structure, enterprise groups, not obvious competitive advantages, the arduous task of restructuring products, cars started too late, technological progress, the tasks are arduous and weak independent development capabilities, parts and components development still lags behind the whole Vehicles.
    Automobile parts and components into the high-speed development period under the 2006 Yearbook data, in the automotive industry and rising prices requires courage and strength needed.

Rising raw materials, appreciation of the renminbi, as well as increased labor costs has repeatedly cut export tax rebates, and other background, prices rose or not, every business dilemma.

However, China's domestic parts and components enterprises, rising prices may mean the loss of orders: As the lack of core technology products, if the loss of the traditional cost advantage, who will for such a "Made in China" pay »

Rose up and this is not a problem

"The export business more difficult." Just "2008 Shanghai International Auto Parts Exhibition" to return to the days of Wenzhou some setbacks, he obviously felt the pressure from the international market. He specialized in a vehicle matching the market for the sale of pumps and pump suppliers in the Wenzhou Foreign Trade, a few years ago profitability of the company's products were good, in raw materials prices and the appreciation of the renminbi under the dual role, profit margins have been lost .

"The company exports more thin profits. Supporting the domestic automobile market and the increasingly fierce competition, so after-sales market supporting the continued decline in gross profit enterprises, the average level of about 10 percent." He recalls that in 2002, 2005 In the so-called "golden stage", the company's gross profit margins of domestic exports were more than 30 percent,˭֪to 2006, the situation came, basically in.

He told reporters that the company's production is not high technological content of products, many competing products. In this so-called Chinese automobile and motorcycle with the city of Wenzhou in Zhejiang, there are many parts enterprises are also facing the moment of life and death. "Machinery plant it is very difficult to sell, investors can not Transferring other products, the only hope is to wait for raw materials prices fall," said Mr. Li frustration.

Michelin such as the large parts enterprises, with the industrial chain on the lower reaches of the bargain, can transfer some of the pressure of rising costs, in comparison, "Mr. Li were" on the strength of the rival, especially those who face Exports to the mainland market and after-sales service providers, the reality is very worrying situation.

From the global business consulting firm Alix Partners of the latest research results show that in less than a year's time as a result of the appreciation of the renminbi, rising raw material prices and other factors, some Chinese exports of parts and components production costs increased 16 percent.

Once the provider to target due to cost control, vehicle plant eliminated, affecting more than one order, to some extent it will be seen as being "completely Darulenggong."

Hollow of 20 worry

And the local parts and components suppliers increasingly difficult period compared with transnational components suppliers in China have lead Fengshengshuiqi days. Japan's Denso, South Korea's Mobis, Delphi and the United States, such as BorgWarner, a wholly foreign owned or controlled enterprises, their business with strong growth in the Chinese market are rapidly soaring.

Visteon's Asia-Pacific marketing director Wei-Hua Yang told reporters that rising raw material suppliers to the local community no longer low-cost advantages, but Visteon's business in China will grow substantially. "Directly affected will be the local Chinese suppliers, although the impact may have to appear before 12," said Wei-Hua Yang case.

BorgWarner (China) related to the procurement of the same people told reporters that from 2006 to 2010, BorgWarner turnover in China will achieve "five-year growth of five times," the grand objective. BorgWarner currently in China on the one hand to support the local community Zhuji Chang, the other to China as a production base for global exports.
Automobile parts, "15" during the period increased at an average rate 33.9 percent, according to Automotive Industry Association statistics, 2006 4657 parts company 479.7 billion yuan of industrial output value, up 33.1 percent.

     Automotive components development lags behind the situation began to change, the degree of concentration to improve production, improve product quality, a car matching the production capacity to increase a large number of key parts and components enterprises, including joint ventures and foreign-owned enterprises to become market-oriented domestic and international , For a variety of models supporting parts backbone enterprises; auto parts to the engine, transmission, axles and other key components of development, such as the 50 engine companies in 2007 production engine 7847000, up 25.1 percent; most of the major Automotive Group Will be separate parts enterprises, development of specialized production and auto parts to further enhance the degree of specialization; parts-funded enterprises and the introduction of technology companies on the 1000, the past two years, the newly established joint venture and wholly foreign-owned enterprises, many around International and domestic markets to establish the vehicle after the repair parts market on the 10,000 plants, especially Zhejiang, Shandong, Jiangsu, Guangdong and Fujian provinces and cities in a large number of small and medium-sized parts factory, is also the hope that the problem lies.

     The vigorous development of automotive supplies is also a big market, especially the massive consumer electronics into vehicles, except for socket, but also a modification of such products industry, automotive safety and management problems worth noting.

     International auto industry is in a era of technological innovation: automotive electronics information technology and raw materials technology at the core of technological innovation, invention emergence vehicle scientific and technological progress by the quantitative change to qualitative change, a new technological revolution; Hyundai Motor has been from traditional mechanical and electrical products Development of high-tech products, the automotive industry has become used high-tech equipment to the industry; vehicle Intelligent Transport (ITS) are rising rapidly; autonomous vehicle driving (AutonomousDriving) is developing.

     The car driven by scientific and technological progress of science and technology development of automotive components, and parts of the technological development of the automobile and promote the scientific and technological progress and scientific and technological innovation.

     Vehicle powertrain technology innovation and more stalls (six-over) is the development trend of transmission. Electronically controlled automatic transmission will replace the mechanical hydraulic automatic transmission, and greatly enhance the efficiency of transmission, electronically controlled manually, the manual transmission of rapid development, are universal. Electronic control of the continuous shift of the CVT transmission, by the displacement of small cars to the development of the Chinese University of displacement. Double-clutch gearbox will be rapid development, because the respective control 1,3,5 and 2,4,6 stalls, 50 per cent reduction in transmission time, up to 100 milliseconds, improve efficiency and reduce emissions, can easily make manual transmission plant Realize modernization, China has a practical significance.
According to BorgWarner forecast, the European transmission technology, dual-clutch gearbox in 2009 will reach 4 percent in 2014 will reach 25 percent line drive (x-by-wire) will be rapid development of electronic control electric implementing agencies to replace The traditional mechanical linkage and the hydraulic mechanism to achieve consciousness, rapid transmission, this innovation will lead to vehicle chassis of the major changes in the structure; electric power steering is promoting not only facilitate the operation can save energy consumption; electric power steering is also developing rapidly ; Electric braking technology has matured and began to use in some cars.

     Motor vehicles and electronic transformation of the auto industry

     Many automotive electronics category, control systems and automotive systems widely used. Key control system for the engine and powertrain, increasing the size of the microprocessor, an increasing number, used CAN, LIN bus and network control; long-distance communications Telematics, inside the rapid development of Bluetooth wireless communications; Active The safety of electronic stability control (ESC) or Electronic Stability Program (ESP), will be widely used in ordinary cars a year could save thousands of lives.

     Bosch (Suzhou) Co., Ltd. to promote electronic stability program ESP, is now China's application and will be included in laws and regulations; U.S. mainland companies are developing active safety and passive safety integration trend APIA, Bosch is also the main development, a combination of passive Security technology, when the accident symptoms appear, all the main passive safety devices have been activated, the first active safety devices do everything possible to eliminate and prevent accidents, such as to the time of the accident, the passive safety devices to protect the role of crew members.

     Entertainment will be a revolution in automotive electronics in the consumer electronics, home and car digital revolution will be linked together, MP3, MP4, the coffee shop Wi-Fi will enter a car.

     The automotive industry and the electronic information industry must work closely with the development of automotive electronics as a priority, otherwise all the scientific and technological innovation are impossible to realize.

     Automobile high-tech products and gradually become part of daily life. Adequately meet the needs of automotive individuality, and humanity has become the primary problems, first of all signed contracts for the supply and manufacturing organizations-to-order (BTO) is a major trend. More varieties and more flexible production and assembly technology development varieties Francis to the extreme level, modular procurement and supply on time to change the supply and demand relations between the two sides, namely the promotion of the multi-level one, two, three suppliers to the formation of modern logistics and distribution system Is the rapid development of a new social division of labor, on-line transactions (BtoB, BtoC) and online services are also being carried out.

     The development trend of automotive components

     In the car driven by the technological innovation of automotive components, in particular the automotive electronics is booming: the new gasoline engine electronically controlled direct injection technology and devices, dual spark plugs, ignition control, electronically controlled variable-valve-up phase and technical devices, No camshaft electronically controlled doors into the exhaust system, exhaust turbocharger, integrated starter generator and the engine stopped automatically open systems, vehicle emissions for the diagnosis (OBD) and the variable engine compression ratio, variable displacement, variable-cylinder And the number of part-cylinder dormant systems; new type of diesel engine high-pressure pump nozzle, single pump and common rail fuel injection system, the new nozzle and piezoelectric (piezo) rapid nozzle, a fuel injection process can be divided into five times as many times 7 times Fuel injection, turbochargers and the variable geometry turbo, in the cold, exhaust gas recirculation device (EGR) and electronically controlled exhaust gas recirculation device (e-EGR), particulate emissions, or filter Puzhuo , Etc.

     Formation of active and passive safety integration trends and new control systems and implementing agencies. Remote Information Processing System (Telematics), for the SOS, scheduling management, vehicle diagnosis, information consultation, the use of existing wireless communications, satellite navigation than the lower cost, but also the transition to intelligent transportation; vehicle wireless communications, Bluetooth high-speed Secure wireless communications technology, voice and digital transmission, reducing vehicle lines, and mobile phone connections; vehicle internal communications systems, CAN, LIN, such as bus network system, information display system for the driver and passengers in all kinds of information; Body Systems , Lights, door locks, adjustable glass windows, smart seat belts, smart air bags, car airbags, reversing radar.

     To sum up, China's auto parts and great development of the new era has arrived. We will certainly be able to successfully realize the "11th Five-Year Plan", China's automobile industry to build into an innovation-based industries, from cars to become the country's development vehicle power.

"RMB against the U.S. dollar exchange rate changes, it will only affect exports to the United States, were not sufficient to affect BorgWarner overall business in China, the strong growth." Even the disclosure to reporters, in order to cater to China's market demand for new technology , Following the Volkswagen Passat B6 (and a step-teng) 1.8 TSI engine to provide technical support, BorgWarner plan within two years will be the most advanced DCT (dual-clutch gearbox) the introduction of Chinese production, and first applied to the China-made Audi On a certain models.

Delphi (China) public relations manager Liu Xiaohong optimistic estimates, this year in China will increase performance in more than 40 percent. According to Delphi (China) Jiang Jian, vice president had learned that its business in the Asia-Pacific region to 26 percent annually at the rate of growth, while business in China is more, 30 percent in increments. "It is precisely because such rapid growth, Delphi China decided to set up its Asia-Pacific region's fifth Technology Center, the work is intense preparation."

Related statistics show that the current foreign investment in China's nearly 500 parts and components enterprises, including Visteon, Delphi, such as BorgWarner and the world's top 500 transnational enterprises, parts and components suppliers, all without exception China established a joint venture or wholly owned enterprises.

Marginalization of the knockout opening

, The trial of strength in foreign investment, mostly from local suppliers in China, has become increasingly marginalized.

A typical example is that almost all the domestic components of the core businesses, multinational corporations are wholly owned or controlled by the form of monopoly. According to statistics, foreign investment in Chinese auto parts market has accounted for more than 60 percent of the share, and in the car parts industry, some experts have estimated will reach over 80 percent. In addition, automotive electronics, and other high-tech products as well as engine, gearbox and other core components, and other key areas, foreign control of the market share even as high as 90 percent.

Some experts have even warned that the auto industry chain as the upper reaches of the parts supplier, once lost the dominant position of the market, the local automotive industry is likely to mean being "hollowed out."

China's Auto Industry Advisory Committee that Chen Guangzu, China's auto parts industry has seriously lagged behind in the vehicle's development. "China's auto parts enterprises overall competitiveness was declining trend, because (in charge of industry sectors) 're-host light components' thinking seriously, lag behind as the development of China's auto parts industry and the biggest obstacle."

"Although China's rapidly growing supplier, but the lack of core technology products, and basic industries (such as iron and steel manufacturing and industrial plastics) is weak, we are the local parts business of the reasons for the lack of sufficient confidence." BorgWarner (China ) Purchasing Department minced no words in the official said, BorgWarner nearly 70% of suppliers from mainland China, but only 30 percent of the suppliers may suppliers shortlisted core ranks of other "should be eliminated sooner or later . "

According to parts and components industry stakeholders, in the parts supplier's ecosystem, according to the size and strength of the general division of labour can be divided into three different levels: Tier1 (level) for the automotive systems supplier, Tier2 for automotive assembly / Module providers, Tier3 is auto parts / components suppliers. "Most of the local parts and components of domestic enterprises, are Tier2 and Tier3 camp, nominated almost no Tier1."

The official told reporters that the current Tier1 camp is almost Bosch, WEI Shi-Tong, Delphi and other transnational enterprises parts of the world, and the local enterprises most of the production of raw materials, low technology content, labour-intensive mode of production of small parts supplier Tier3 . Is insufficient competition in the domestic market, or encourage or protect the policy is not in place before the local parts and components today's "passive" situation »

"Total copied someone else's work it is not possible to graduate." China Automobile Industry Association Dong Jianping, deputy secretary general pointed out that China's auto parts manufacturing enterprises only to technological innovation, developing high value-added products, can be completely out of "production, technical, R & D have been increasingly marginalized "the situation.