Localization of auto parts into the deep water area
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Recently, Volkswagen FAW Engine (Dalian) Co., Ltd. Changchun Base has been put into production. At the same time, it is reported that FAW and Volkswagen will integrate the powertrain segment and form a joint venture to form the North Power Company. This shows that the multinational auto giants have further expanded their spare parts layout in China. In addition, SAIC’s Huayu Automotive acquired a 50% stake in the joint venture company Yanfeng Visteon Automotive, making it a wholly-owned subsidiary. Universal Qiang Chao announced capital increase. This series of recent events has promoted the further localization of auto parts. This will have a positive impact on the implementation of the automobile power strategy.
Joint venture to strengthen localization of parts
The first-phase production capacity of the Volkswagen FAW Engine (Dalian) Co., Ltd.'s Changchun Branch is planned to reach 300,000 units in the first phase, and the second phase will have an annual production capacity of 450,000 units. The second phase of the planning goal will be achieved by mid-2014. This is the first of seven new factories announced by Volkswagen Group in China. Changchun Branch has a flexible production line of the first multi-type EA888 engine in China. The EA888's third-generation engines have 1.8L and 2.0L displacements, respectively, and the products can match FAW-Volkswagen's various Volkswagen and Audi brand models.
Volkswagen FAW Engine (Dalian) Co., Ltd. is a joint venture between Volkswagen (China) Investment Co., Ltd. and China FAW Group Corporation. The EA888 turbocharged direct injection gasoline engine was put into production in 2007. After the first engine product went offline, the annual production capacity of Volkswagen FAW Engine (Dalian) Co., Ltd. achieved rapid growth. As of July 2012, the company produced a total of 1 million engine products.
In addition, according to sources, FAW will form North Power Co., Ltd. with Volkswagen, and it is expected to integrate Volkswagen’s multiple engine and transmission companies in the north and strengthen the layout of Volkswagen’s powertrain in China. In addition to the FAW joint venture engine company, FAW-Volkswagen also has its own launch company. Currently, it has the latest EA211 engine production projects in Chengdu and Changchun bases, including 1.6L naturally aspirated and 1.4LTSI. The Volkswagen's dual-clutch gearbox is produced by its own company in Dalian. It is expected that these major power boards will be integrated.
Industry analysts believe that the integration of Volkswagen and FAW's core components is a good model for strengthening the external control of large auto companies, and is conducive to the in-depth development of high-quality parts systems.
With the need of large-scale production and market competition, the joint venture auto companies will further strengthen their localization in China.
Chang An Mazda's president Aihara Shinji told the Nanfang Daily reporter that some joint ventures had paid more attention to the introduction of suppliers from Japan. Changan Mazda's parts supply system is mostly Chinese local suppliers. “Changan Mazda actively uses local Chinese suppliers to grow local suppliers with Changan Mazda. In this sense, the localization and localization of Changan Mazda Motors can be truly localized and localized. ."
Now the auto joint ventures are all paying more attention to integrating the local supply chain into the vehicle development process. For instance, the new mid-level Che Lingpai, which was recently launched by Guangzhou Automobile's Honda, has also achieved deep localization of parts and components while realizing domestic development. Since the start of planning, it has been connecting with local suppliers and has completely changed the practice of introducing Honda models. According to reports, in the future, each model of the vehicle will be localized from the beginning of development. This is a new vehicle development model that has never been seen in the history of Guangben.
"Car Power" is the key to spare parts
Recently, Huayu Automotive purchased a 50% stake in its Yanfeng Visteon Automotive joint venture, making it a wholly-owned subsidiary. According to reports, Yanfeng Automotive interior business has an independent technology development system, an independent market customer system and a sound operation management system. Therefore, after the foreign shareholders withdraw, they will continue to expand the domestic and international market for automotive interiors and accelerate their entry into the global supply system in accordance with the “zero-level, neutral, and international†strategic goals. This also shows the in-depth development of the local parts industry chain.
At the same time, Wanxiang Qianchao announced the expansion of its capital in recent days, and implemented part of the expansion plan for the “annual output of 8.4 million fixed-speed axle assembly fixed-asset investment projects.†The project has initially achieved a production capacity of 1.2 million constant speed driveshaft assemblies in the first phase and it is expected that the company will enter trial production in small batches in October. According to the progress of the investment, Wanxiang Qianchao planned to use the raised funds to increase the capital of the company by RMB 110 million to carry out the second phase of investment construction in the project plan to speed up the implementation of the overall raised capital investment project. Wanxiang Qianchao stated that it will speed up its "building into a world-class supplier of automotive parts systems."
In the "Strengthening the Strategy for Cars" that is being brewed, local component development has become a core link. Dong Yang, executive vice president of China National Automobile Association, believes that at present, China's auto industry also lacks key technologies in parts and components. Most of the relatively high-level parts and components are wholly foreign-owned or controlled production, while China's capital components production. The level is still relatively low. Therefore, in order to promote the strategy of building a strong country in automobiles, it is necessary to improve the industrial chain through the development of parts and components, hoping to form a group of world-class component suppliers, including parts and components of Chinese brands as well as parts and components of foreign brands.
"China's auto industry can become a big country for sales to a country with strong sales, and the key lies in parts and components." Yao Yiming, deputy general manager of Guangzhou Automobile Group, said in an interview with the Nanfang Daily reporter that the Chinese auto industry now has an annual output of 20 million vehicles. The amount of time has really reached the critical moment of grasping the development of local components. 