In the harsh economic environment, the North American market released heartbreaking September sales data on October 2. All North American auto company sales fell, and the world’s largest auto market’s sales fell by an average of 26.6% in September. The most amazing record in 50 years. As far as the automotive industry is concerned, the fact that traditional manufacturing industries have shifted to low-cost developing countries a few years ago has become a fact. The financial crisis will accelerate this trend, and it will be China’s earlier internationalization than vehicle companies. Auto parts production companies. In the case of shortage of funds, the United States’ auto parts companies will conduct deeper integration in order to improve their financial status. The result of the integration will be the reduction in the number of companies, the relative increase in the number of customers in auto plants, and the overall prosperity of the auto industry. The impact on the operating status of parts and components companies will grow. The plight of US auto parts companies has also created opportunities for Chinese auto parts companies. On the one hand, American auto parts companies have begun to look for new subordinate suppliers in low-cost countries. Chinese companies can seize this opportunity to improve product quality. Optimize the cost structure and become their supplier; on the other hand, some outstanding Chinese companies can also directly go to the US to acquire companies with poor financial status, but have the advantage of technology and market. Overseas M&A is also an important way for Chinese companies to quickly internationalize. . The financial turmoil will prompt more developed-market parts and components companies to seek overseas OEMs to reduce costs, while forcing them to transfer relevant technologies in search of profit margins. However, Chinese enterprises can still guarantee cost advantages for a long period of time. They only need to make further efforts in terms of quality, delivery time, technology, and cost optimization. Compared to Japan in the mid-1980s, China's situation is very similar. It is the appreciation of the national currency, the strong domestic market demand, and strong government support. But the biggest difference is that the current global market is more open, and China’s cost advantage will not disappear in the short term. Compared to the 1980s, Japan has become the largest auto exporter, and China should increase its auto parts products in the current environment. The export, the establishment of a truly competitive auto parts company, out of the development of China's auto industry is different from Japan's development model. Motorcycle Switch,Motorcycle Ignition Switch,Switch Motorcycles,Motorcycle Turn Signal Switch Wenzhou Howshine Auto&Motor Fitting Co.,Ltd. , https://www.howshine-motor.com
The internationalization of Chinese car companies should begin with parts and components companies