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The rapid growth of multinational component giants accelerating into China Many indicators have shown that the Chinese automobile industry is rampant. However, attentive people will find that few indicators can be compared with the speed of foreign capital infiltration in China. At an auto industry seminar recently held, relevant experts pointed out that while the Chinese auto market is booming, the rate of foreign parts companies entering China is also growing at an unprecedented rate, especially this year, the number of foreign-funded joint-venture parts companies is increasing. It is almost twice as much as last year. On September 1 this year, Visteon, a world-renowned auto parts supplier, announced in Yokohama, Japan that its Asia Pacific headquarters had been relocated to Shanghai, China. Visteon stated that the move was mainly focused on improving its ability to support customer service in the region; and on November 8th. , Japan's Denso, which ranks fourth in the world's auto parts industry, announced that "Tianjin Foo Electric Installation Air Conditioning Co., Ltd.", which is cooperating with the China FAW Group's spare parts division, Fu Ao, has been established in Tianjin and will be put into production in February 2005, specializing in production. Car air-conditioning, so far the company's production base in China has reached 9. In fact, in the past one or two years, with the rapid development of the Chinese auto industry, foreign-funded parts companies are advancing toward China at an unprecedented rate. In line with the entire vehicle industry, in general, 70% of the added value of the automotive industry is created by parts and components. The quality of parts and components directly affects the level of profitability of the automotive industry. The parts and components industry plays a decisive role in the automotive industry. Therefore, when the in-line analysis company makes predictions about the future, the vehicle part and the automobile parts part must be half of each other. As the world’s automobile giants marched into China, the parts and components companies that depended on the entire vehicle companies also followed suit. In the world, the world-renowned major automobile factories all have their own supporting plants. In the United States, Delphi Corporation is a major supplier of General Motors, Visteon is the largest supplier of Ford Motor Company; in Germany, Bosch Corporation is the largest supplier of German Volkswagen; and Japan Electric Co., Ltd., the world’s fourth largest auto parts supplier. The loading company is the largest component manufacturing company affiliated to Toyota Motor Corporation, and France’s largest auto group PSA Group also has its own stable supplier. Visteon is the world's second-largest auto parts supplier. It was independent from Ford Motor Company on June 28, 2000 and is a global Fortune 500 company. In 1994, SAIC and Visteon jointly invested 223 million U.S. dollars in the establishment of a joint venture company, Yanfeng Visteon Automotive Trim Systems Co., Ltd., which is tied with the local leading auto group and is the first step for most foreign investors to enter China. At present, this 50%-owned company in China and abroad not only has a strong production base in Shanghai Anting, but also owns a wholly-owned subsidiary Yanfeng Visteon (Chongqing) Automotive Trim Systems Co., Ltd. in Chongqing, and also holds Shanghai Yanfeng Johnson Controls. Co., Ltd., Yanfeng Visteon Automotive Electronics Co., Ltd., Yanfeng Visteon (Beijing) Automotive Trim Systems Co., Ltd., Dongfeng Visteon Automotive Trim Systems Co., Ltd. The company's cockpit system, interior and exterior systems, seating systems, and interior electronics products are mainly supplied to Shanghai Volkswagen, Shanghai GM, FAW-Volkswagen, Dongfeng Shenlong, Changan Ford, Beijing Hyundai, Beijing Jeep, Aeolus and other large vehicles. enterprise. As the former president of Yanfeng Visteon, Tayyig, who currently serves as president of Changan Ford, is very optimistic about the future of China's spare parts market. He said that the parts and components companies will be an industry that cannot be overlooked in the future of China's future market. Therefore, as a foreign manager, he currently has a major task of cultivating people who can take over his position to truly realize the localization of talents. This is an important part of the internationalization of international companies. Bosch, the world’s second-largest auto parts manufacturer, has established a nationwide scaled parts distribution network in China and has 153 after-sales service stations in China. ArvinMeritor, an auto parts company that is one of the top 500 companies in the United States, has set up three joint ventures in mainland China to provide supporting services to major domestic automobile manufacturers. Arvin Meritor’s annual global sales are 7.5 billion U.S. dollars. Its customers in China include Shanghai GM, FAW Group, Volvo, and Xiamen Golden Dragon. According to statistics, there are currently nearly 500 parts and components companies that foreign investors have invested in China. Most of the world’s leading auto parts companies have established joint ventures or wholly-owned enterprises in China. The Chinese market has the highest profits in China. Since the price of cars is much higher than that of foreign countries, the Chinese market is now the most profitable market for manufacturers. Delphi Automotive Systems, the world's largest auto parts manufacturer, has so far established 13 wholly-owned and joint ventures, a technology center and a training center, with a total investment of more than 400 million U.S. dollars. The total business sales in China are nearly 500 million U.S. dollars, and one-third of the Chinese enterprises' products are used for export. Delphi’s global sales volume declined slightly in 2000, but the Chinese market has maintained a strong growth momentum. In recent years, Delphi's annual sales volume in China has maintained an increase of over 10%. This is Delphi's unique business in more than 40 countries and regions around the world. Batumberg, chairman and chief executive officer of Delphi Automotive Systems, said: “The entire vehicle companies in the world are almost all coming to China to establish a base, so Delphi will undoubtedly regard this as their 'main battlefield'.†Just last month , When General Motors was suspected of infringing on its own joint venture company, Wuling Spark Intellectual Property, by QQ of Anhui Chery Automobile, it had passed information internally to its alliance company Delphi, hoping Delphi could stop supplying parts of Chery and related future cooperation. plan. However, Delphi did not listen to his own partner's words, but when outsiders had guessed that Delphi was about to withdraw from Chery, he officially released news to the outside world, saying that he was not only not intending to withdraw from Chery, but will continue to continue with Chery in the future. Multi-faceted cooperation. Multinational giants have “checked out†around. According to reports, as early as last March, Nissan and Dongfeng had not formally signed an agreement before the Japanese auto parts company led by Masahiro Ohno, president of the Japan Auto Parts Industry Association, and vice president of Toyoda Toshihiko. 28 The team went deep into Shiyan, Xiangfan, Wuhan and other places in Hubei Province. After the marriage of Dongfeng and Nissan, the auto parts companies that were formerly associated with Nissan also moved to Hubei Province and other provinces in the mainland of China to participate in the competition of the new Dongfeng Auto Parts Market of more than 320 million yuan.