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Multinational Bosch in China: From "Sharing" to "Everything"
This strategic deployment of multinational corporations is understandable. This is a manifestation of the principle of maximizing the interests of enterprises. The key lies in why you can travel in China without any obstacles
The whole process is actually very simple. At the beginning of China’s reform and opening up, Bosch, which has not yet entered the Chinese market, once sold technology licenses to Chinese companies.
When Bosch enters the Chinese market, Chinese companies can only form joint ventures with Bosch's "technology introduction." With the deepening of the openness of the Chinese market, and with the increasing reliance of Chinese companies on the introduction of technology through joint ventures, and with Bosch’s increasing understanding of the Chinese market, Bosch’s strategic objectives in the Chinese market will "It became a "take it all."
Bosch did not hide its strategic intentions. Bosch chairman Fehrenbach believes that in China's auto parts market, the diesel system will gradually become the dominant product. "Bosch's concern for China is extraordinary. We believe that China is the core of the entire Asia Pacific region."
This strategic deployment of multinational corporations is understandable. The key point is that it is almost a trick for recruiting and seeing blood and why it can be done in China.
Increase investment in China
As early as 1909, Bosch products had entered the Chinese market. Bosch's first repair service station in China was established in Shanghai in 1926.
The Bosch Group, headquartered in Stuttgart, Germany, started from a humble "precision machinery and electrical engineering workshop" and has now developed into a highly international multinational group: 270 branches are established globally, with 230 outside Germany. . In 2004, it generated sales revenue of 40 billion euros and has 240,000 employees worldwide. Bosch entered China again, in the mid-1980s.
Since 1927, Bosch's name has been associated with all major technological innovations in the entire diesel system field, from electronically controlled fuel injection technology to exhaust gas treatment. Bosch claims that only diesel systems have employed more than 58,000 employees worldwide, and no other company has such a large number of diesel professionals. In 2004, Bosch became the world's largest supplier of automotive parts for the first time thanks to its 25.3 billion euro sales revenue from its automotive technology department.
After a technological revolution that has an important influence on the industry, it is the time when the market structure is re-divided. After the revolution in the electronic control injection system in the last century, the application range of diesel engines has been expanding step by step. The original car industry dominated by gasoline engines has shown a clear trend of "dieselization." Foreign companies like Bosch are trying to dominate the amazing Chinese market.
The chairman of Bosch recently stated that from 2005 to 2007, Bosch's investment in China will reach 650 million euros, of which Bosch will invest 200 million euros in the production and development of diesel injection systems.
According to reports, in the past five years, the total number of Bosch factories in China has grown from 10 to 20. Established three technology centers in Shanghai, Suzhou and Wuxi, with 8 sales branches and more than 430 in the country. Home auto repair service stations, and strive to develop to 1500 in 2013, when its network will cover the entire Chinese market. In 2005, Bosch's sales in China are expected to exceed 1.2 billion euros, an increase of 20% over the same period of last year. As planned, by 2007, Bosch's sales in China will rise to 2.5 billion euros. At the same time, Bosch’s number of employees in China will increase from the current 14,000 to 18,000.
Trying to control the Chinese market
The most important step taken by Bosch in China is the Bosch Automotive Diesel System project completed in the Wuxi New District on November 19, 2005. The project was jointly established by the Bosch Group and Weifu Group. Because China has no restrictions on the proportion of foreign investment in the auto parts industry, Bosch easily achieved 67% of the shares in the new company. Therefore, Weifu Group, the largest and most important manufacturer of diesel fuel injection systems in China, is completely Bosch. Controlled. Weifu owns more than 50% of the domestic automotive diesel engine market share and a complete after-sales service network, which will also be controlled by Bosch.
It is reported that Bosch's newly completed factory in Wuxi has an area of ​​300,000 square meters. By 2007, Bosch will invest approximately 200 million euros in the development and manufacture of diesel fuel injection systems and components. This is Bosch's largest investment in the Asia-Pacific region.
On the same day, Bosch also held the completion of the diesel technology center in the new district of Wuxi. The completed diesel technology center has invested 50 million Euros. It is Bosch's largest and most fully functional diesel system technology R&D center in the Asia-Pacific region. It has the most advanced R&D facilities and 250 elite Chinese and foreign engineers.
The facts have shown that the Bosch Group has not only seen the Chinese government's determination to keep up with the global trend of environmental protection, and the resulting huge market, but also cleverly used the morbid hunger and thirst of local governments to attract diesel oil. The inferiority of the major technical changes in the fuel injection system has led to the successful control of Wuxi Weifu Group, the leader of China's oil pump nozzle industry. With this joint venture, Bosch will be able to divide the product market of China Euro III and above standards to the maximum extent possible.
Bosch aims to obtain high monopoly profits. A diesel engine factory that is trialing the Euro III engine once purchased 10 sets of common rail systems from Bosch. Bosch quoted 25,000 euros/set, while a domestic machine-injection system costs only a few thousand dollars, and an engine has only 50,000 yuan. Although the prototype is not equal to the bulk purchase, it shows that the problem is sufficient.
Complete diesel system integration
Today, Bosch is not only involved in the field of diesel technology, has extended to the basic development of materials and manufacturing processes. Bosch declared: We are paying more attention to the perfect integration of diesel systems when developing diesel components.
Bosch is implementing this integration in China.
In the aspect of gasoline engine management system, in 1995, Bosch and China United Automotive Electronics Co., Ltd. jointly established Joint Automotive Electronics Co., Ltd. The company mainly produces and sells gasoline engine management systems for precise control of gasoline engine injection and ignition, and also has a research and development center in Shanghai that can conduct Euro IV emission standards testing.
In spark plug products, in 1996, Bosch and Nanjing Thunderbolt Group jointly established Nanjing Huade Spark Plug Co., Ltd. Spark plug products for manufacturers, such as cars, trucks, buses, motorcycles, and aftermarkets.
In terms of steering gears, steering pumps and steering valve products, Shanghai Automotive Co., Ltd. and German ZF Steering Systems Co., Ltd. jointly established Shanghai ZF Steering Co., Ltd. in 1994. This joint venture company is mainly engaged in the production of all kinds of passenger cars, light passenger car steering machines, steering pumps and steering valves. It is currently the largest specialized production base for steering gears in China.
In order to professionally produce steering pumps for cars and light vehicles, in 1994, ZF Steering Pumps Jincheng (Nanjing) Co., Ltd. was established jointly by German ZF Steering Systems Co., Ltd. and Jincheng Group Co., Ltd., with an annual production capacity of 700,000~80. Million. (Yang Zhaomin)
June 13, 2024