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The global procurement of parts and components of multinational automobile companies is determined by the development trend of the global auto parts industry. The current development trend of the auto parts industry in the world is as follows: ———The development direction of parts and components companies will follow the global procurement of the vehicle, system development, Modular delivery is maturing and joint reorganization is taking place. ———The scale of parts and components companies will form a large auto parts group through strategic joint reorganization. --- Components supply channels will be supplied in accordance with the scale and strength of the company to form a "pago pagoda" structure. ———The focus of development of parts and components companies has been to strengthen the construction of R&D platforms and the ability to modularize and systematically supply them. ——The management and upgrading of parts and components companies will become the competitiveness of the parts companies and even the core sustainable competitiveness. Therefore, the global procurement of multinational auto companies can be attributed to three main reasons: the intensified competition of auto companies and the wave of mergers and acquisitions; the global procurement—reducing the cost of automobile production and sales; and the specialization—the lean development and production of automobiles. Intensified competition and merger wave of vehicle companies In the past 40 years, the global automotive industry has been accelerating and the number of independent automakers worldwide has decreased from 52 in 1964 to 10 in 2000. Since the 1990s, the global automobile industry has basically formed a "6+3" competition. Someone predicted that only 5-6 homes will be left. In order to survive and develop, the vehicle companies are constantly looking for the source of competition. Price is one of their competition magic. Global Purchasing—Reducing the Cost of Automobile Production and Sales Since Lopez, the “cost killerâ€, successfully implemented a cost-reduction-based procurement strategy for General Motors in the early 1990s, nearly 10 percent of the world’s automotive industry has developed. In the middle of the year, it seems that there is a law that whenever the auto maker's market profits begin to decline, its “standard†approach tends to exert pressure on upstream suppliers to “squeeze†the profits of component suppliers. For overseas OEMs, the procurement cost reduction of 10% to 15% for OEM global purchase price targets is attractive. For domestic suppliers, the ex-factory price should be about 30% lower than the foreign suppliers' supply price to be more competitive. In order to reduce the cost of production and sales of complete vehicles, vehicle companies adopt global procurement methods. The purpose of global procurement is to reduce the procurement costs of parts and components, and procurement costs account for 60% of the total vehicle cost. Therefore, Battenberger, chairman of the Delphi Automotive Systems Board, said more than once: “The automaker’s request for price cuts by component companies is an eternal theme of the automotive industryâ€. Specialization—Lean automotive R&D and production The development model of auto parts companies in various countries is summarized as traditional vertical integration, traditional independent development and new cooperation-based subcontracting model and other emerging modularization. Global supply model. In the past 20 years, the automotive industry has experienced unprecedented historic changes. The three major automotive companies in the United States (General Motors, Ford, and Chrysler) are gradually shifting their traditional vertical management and pursuit of a large and complete production model to a specialized production model that focuses on streamlining organizations and developing complete vehicle projects. While expanding the scale of production, major auto companies have gradually reduced the auto parts production rate and implemented lean production methods. Parts companies owned by the original large auto companies have come out on their own to become independent companies. For example, GM-Delphi and Ford-Visteon have successively separated from their parent company and developed into an international parts and components group. The demand of auto parts manufacturers for auto parts increasingly depends on external independent parts and components supporting plants. The responsibility of parts and components supporting plants no longer only stays in the traditional sample or drawing processing state, but also bears the responsibility. From the product design and development, manufacturing inspection, quality assurance, system supply and market services a full set of responsibilities. Source: Auto Accessories
May 24, 2024