New Ideas for the Development of China's Auto Parts Enterprises (2)

Development model and development strategy

Today, the rapid development of China's auto industry has enabled component companies to become bigger and bigger and achieve leapfrog development, bringing unprecedented market opportunities and room for development. In recent years, China’s auto industry has grown at an average rate of over 25% a year. In 2003, China’s auto production exceeded 4.4 million, and its output ranked 3rd in the world. In 2004, it will exceed 5 million, and the total demand in 2005 will increase. It will reach 5.93 million vehicles and it will reach 9.94 million by 2010. According to the annual automobile output value of about 300 billion yuan and the proportion of components and parts that account for about 60% of the total vehicle production value, the domestic auto parts market will have an annual output value of about 180 billion yuan or more in the next few years. Therefore, domestic large and medium-sized component companies should seize opportunities and strive to achieve by 2015. Large-scale enterprises will enter the top 50 global component companies, and medium-sized enterprises will enter the top 200, becoming the first-class internationally competitive components in the global parts and components industry. Automotive Parts (Group) Company.

Today, with opportunities and challenges coexisting, according to the development experience of foreign auto parts companies, the following conceptions can be referenced in the selection of development models and development strategies for domestic parts and components companies.

First, the choice of development model

The first is leapfrogging. The rapid development of China's entire vehicle, the rapid expansion of multinational parts and components, and the rapid development of private enterprises require that domestic parts and components companies must break the conventional development ideas, choose a leap-forward development model, and make the company’s core competitiveness and comprehensive strength in In the short term, there is a big improvement and leap.

The second is the model of market organization. Establishing market-oriented systems and mechanisms is the prerequisite for achieving leap-forward development. All companies must take advantage of the development opportunities of international joint ventures and cooperation to accelerate the re-construction of systems and mechanisms, create their own trademarks and independent brands, coordinate the development of three major functions of strategic decision-making, resource coordination and capital operation, and quickly increase the efficiency of decision-making and market adaptation. Market, rapid development capabilities.

The third is the large-scale production model. Large-scale parts and components enterprises must give full play to the “big group” advantages of modernization and production of the parent vehicle enterprises, and adjust the “small and complete” product structure according to the direction of specialization and large-scale development, and achieve specialization and economic mass production on products. In the overall realization of the scale of production and management.

The fourth is the capitalized business model. It is necessary to use capital operation as an important means to achieve leapfrog development for all parts and components companies. In accordance with the development model of “supporting capital operations with product operations and expanding product operations with capital operations,” the company’s business areas and operating scales are rapidly expanded through capital operations.

The last is a neutral business model. The neutralization of parts and components companies is the direction of future development. Domestic parts and components companies must accelerate the pace of joint ventures and cooperation with international parts and components companies and the pace of restructuring. Through international joint ventures, cooperation and restructuring, the company will gradually realize the development of neutralization and open up two markets, namely the domestic vehicle market and the international market, to do large-scale production and management.

Second, the choice of development strategy

The first is the joint strategy of the industry. As the competition pressure of vehicle companies intensifies, the pressure of competition must be transmitted to parts and components companies. This requires parts and components companies to reduce costs and do large-scale operations. The most effective way is to implement joint operations with the industry to achieve the market as far as possible. Maximization, maximization of benefits, and minimization of costs. Domestic parts and components companies should have open minds and look at international perspectives, abandon the competition methods of singles and divisions, and conduct extensive cooperation so as to achieve complementary advantages and resources sharing, and achieve leapfrog development in strength and scale.

In May 2004, when Hu Maoyuan, president of SAIC Motor Corporation, visited Dongfeng, the leaders of the two groups affirmed the results of the cooperation between Yanfeng Visteon and Dongfeng Visteon during the talks. At the same time, they proposed to cooperate extensively in parts and components. The two parties proposed to open up the parts market to each other and divide the parts and components companies into three categories. One is that there is no competition between the two companies, and the other is to merge development, sharing the two complete vehicle markets of SAIC and Dongfeng; the second is competition. For the time being, each of them develops on its own initiative; the third category is that the two parties do not have, and they cooperate and develop jointly. The two sides also proposed to join FAW in conditions of mature conditions, expand cooperation in parts and components, jointly improve industry standardization work, break down technical barriers to enterprises, and achieve market and resource sharing.

The second is to implement the merger and reorganization strategy. Make full use of the company's products, technologies and markets, and take advantage of product attributes as a link, expand the market as a precondition, use capital operations as a means, and integrate industry-wide and society-wide superior resources to conduct mergers and acquisitions and strong alliances. Through the integration of resources and mergers and acquisitions to make full use of the company's effective stock of assets, access to social resources, to achieve the expansion of capital and the formation of a strong capital strength.

The third is the implementation of international cooperation strategy. It is necessary to rapidly increase competitiveness and gain competitive advantage through international cooperation; to obtain support for the capital, technology, products, and management of the company in future development through international cooperation; to enter the supporting system of partners through international cooperation and integrate into the global system; Cooperation to reverse the development of parts and components lagging behind the passive development of vehicle development.

The last step is to implement a differentiated development strategy. It is necessary to stabilize and expand the commercial vehicle market, expand and expand the passenger vehicle market, focus on the development of product adjustment strategies for high-tech products, and development ideas of “doing something, do something wrong,” and adopt a differentiated development strategy for the development of this enterprise. . The company will expand its product range from commercial vehicle products to passenger vehicle products, gradually withdraw products that have not been achieved, and concentrate on advantageous resources to develop high-tech products with high added value and high technology content that represent future development directions.