Beijing Automotive Wants Auto Parts Industry to Build a Parts Base

“The revitalization of Beijing's parts and components industry is expected.” The person in charge of a Beijing parts and components company recently told reporters. In the past, he complained more than once that Beijing's spare parts industry is disappearing.

Recently, Beijing Automotive Industry Holding Co., Ltd. and Beijing State-owned Assets Management Co., Ltd. signed a framework agreement, announcing that they will jointly invest nearly 1 billion yuan in the establishment of Beijing Automotive Components Co., Ltd. and build a Beijing auto parts industrial base.

“The establishment of this company will have a huge boost to the Beijing parts and components industry. In the future, the Beijing auto parts industry will enter a rapid development track,” said a senior person from Beijing Auto Holding.

Beiqi "real life"

During the "10th Five-Year Plan" period, Beijing's auto industry seized the opportunity of history and achieved rapid development. Beijing Hyundai, Beijing Benz-Dike, Beiqi Foton and Beijing Auto Manufacturing have all achieved some results. However, the overall auto parts industry in Beijing has been scattered, small, and chaotic. There is a lack of unified planning and layout. This situation will soon become "the past."

People of Beijing Auto Parts Company have been very busy lately and are busy discussing joint ventures and cooperation. The reporter contacted the manager of the company, Chen Weimin. He did not go to Shandong and went on a business trip to Shanghai. It was almost half a month before he had time to be interviewed by reporters.

On the morning of September 14, the preparatory group of Beijing Auto Parts Co., Ltd. held a meeting and basically confirmed the organization and personnel of the company. Now, the preparatory group is inviting audit and evaluation agencies to evaluate Beijing's existing parts and components companies and select good assets to join the new company. It is expected that the new company will be listed in October.

“Beijing's spare parts industry started late, but the starting point is high. We only cooperate with the top 500 foreign companies or the top 3 companies in the domestic industry. There are currently 12 companies coming in, followed by another 5 or 6, including Lear and Johnson. Delphi, Bosch, etc. Some companies are also preparing to put R&D institutions in Beijing," said Chen Weimin.

Vehicle production

For Beijing's parts industry, it is weak to pull

Since the beginning of this year, Beijing Hyundai, which has been admiring China’s auto industry with “modern speed,” has suddenly decelerated, and its sales have declined rapidly. A few days ago, Beijing Hyundai told this reporter: "In 2007, the sales target of 310,000 vehicles will certainly not be completed."

Beijing’s modern sales are poor for many reasons. Even Beijing Hyundai admits that the high cost of parts and components is one of the important reasons. According to insiders, Hyundai entered Beijing and brought in a large number of original parts and components suppliers. Most of these companies have set up wholly-owned enterprises in Beijing. Although most of them seem to have achieved localization, these companies are basically first-tier suppliers. Most of their secondary and tertiary suppliers are in South Korea, and key components are imported from South Korea. .

“It was originally thought that the development of vehicle production could lead to the prosperity of Beijing's spare parts industry. However, we were excluded from the supporting system of joint ventures,” said a person in charge of a parts and components company in Beijing.

A staff member from the Automobile Department of the Beijing Municipal Bureau of Industry said: “From the current situation, the development of Beijing Hyundai, Beijing Benz-Dike and other vehicle companies has a very weak driving effect on the Beijing parts and components industry. The supporting rate of the depot is low, and the added value of the matched products is also low. Now, the backwardness of the parts and components industry has also constrained the development of vehicle production.”

In view of this, this year BAIC Motors has listed building parts development platforms as its priorities, and proposed the development strategy for Beijing auto parts that combines both industrial development and capital operation: “Utilize the high-quality resources of parts and components companies in the system, introduce strategic investment, and establish The parts company will build a unified development platform for the Beijing auto parts industry and explore the development of a part with Beijing characteristics.

According to reports, Beijing’s Hyundai’s sales have declined, and its Korean representative is also anxious. China and South Korea basically reached a consensus through consultations: They should not only consider the interest of one party, but also take the interests of joint venture companies as the starting point. A few days ago, Beijing Hyundai’s senior officials stated that it is necessary to turn the monopolistic support into a competitive support and increase the proportion of procurement in China’s domestic market.

Optimistic while keeping a clear head

Experts of the auto parts industry reminded that Beijing is now revitalizing the parts and components industry very quickly. However, Beijing's spare parts industry is weak and prone to poverty. To achieve rapid growth, there is still much work to be done. It should be optimistic while maintaining a clear head.

On the eve of the establishment of the new company, relevant personnel from Beijing Hyundai, Beijing Benz-Dike and Beiqi Foton often met with the Preparatory Committee to discuss procurement of spare parts.

“Beiqi Holding’s opinion is 'equal priority', that is, under the same conditions of product quality, priority will be given to the parts and components of subsidiaries of Beijing Automotive Components Co., Ltd. Beijing’s parts and components companies can enter Beijing only if they really do a good job of the product. The supporting system of the four major automakers, said Beiqi Holdings.

Beijing Modern Public Relations said: "Our procurement standards are unified. The quality, cost, and supply capacity of parts and components companies must meet certain requirements before they can enter our supporting system."

In addition, Bosch's acquisition of Wei Fu and other incidents has shown that multinational companies cannot transfer their core technologies to Chinese companies. Beiqi Holdings is also aware of this: “We will build our own parts R&D and manufacturing platform while we are conducting joint ventures and cooperation. In the joint venture company, our personnel will participate in the product development stage and jointly develop products.”