Whether the Supply Chain Can Wear "Overwinter Cotton Quilts" for Truck Enterprises

In 2008, the global auto industry seemed to be in a situation where it was “unrequited”. In November, European car sales continued to decline by 25%. Volkswagen, Daimler, and Volvo have announced production cuts. JP Morgan expects car sales in the European market to shrink by 15% in 2009. Oceanside, the White House’s $14 billion "help money" was rejected by the Senate, and Ford, GM and Chrysler's "Money King" was once again bleak. It is the first priority for the global automotive industry to tide over the difficulties.

China: Auto companies and parts suppliers "Icefire two days"

China's auto industry, which is increasingly linked to the global market, cannot be left alone in this crisis. According to the data from the China Association of Automobile Manufacturers, sales of passenger cars in the domestic market have seen negative growth year-on-year in two consecutive months since August, while commercial vehicles have experienced double year-on-year declines in production and sales for the third consecutive month. In the first 11 months, the sales volume of the domestic automobile market totaled 8.6298 million units, an increase of nearly 15 percentage points, and the monthly sales volume in November decreased by 14.56%.

The downturn in the auto market also affected the supply chain, but parts and components companies did not immediately feel "chill." At the beginning of November, Liao Zeyi, general manager of Shanghai Dongfu Cold Forging Manufacturing Co., Ltd. went to France and the United States to conduct market research on some locally closed car processing plants. “Once there are indeed good factories in the local area, we do not rule out the possibility of acquisition.” Indicated. At the beginning of the year, Ningbo Huaxiang, a well-known company in the industry, also announced that it will launch a global strategic plan before the end of this year and continue to promote the acquisition and merger of foreign companies.

"The news that automakers in Europe and America have stopped production or cut production may be a good thing for China, because some parts manufacturers can take this opportunity to go overseas and make bail-outs for companies that are on the brink of bankruptcy." Deputy Secretary-General, China Association of Automobile Manufacturers Dong Jianping said.

Car enterprises are anxious to find "winter jackets"

Compared with the auto industry, China's auto parts companies are "low-key" but their strength is not bad. Statistics show that the parts and components industry grew at a compound annual growth rate of 31% from 2004 to 2007. In 2007, the industry's average profit rate reached 7%, which is much higher than the 4.5% level of auto manufacturing companies. In the automotive industry's crisis, parts and components have also become the best "winter cotton jacket" in the eyes of car companies.

On December 8, China National Heavy Duty Truck and Baosteel also signed a strategic cooperation agreement to conduct more in-depth cooperation in steel supply and use. Prior to this, in September, Foton had signed a strategic cooperation agreement with ZF and will carry out simultaneous development on truck transmissions. The connection between car enterprises and parts and components companies has become more and more close. However, Wang Shengtang, vice president of the China Gear Professional Association and secretary general, has expressed his concern. "Rising raw material prices, vehicle companies continue to drive down the prices of parts and components for their own interests, so parts and components companies have become thinner and more and more thin."

It is precisely for this reason that Nanjing Iveco's idea of ​​“building a strategic partnership with suppliers for effective collaboration” has been recognized by the industry. "To benefit from the supply chain is a general trend, but 'benefit' does not mean 'cost reduction'. We must establish closer collaboration with suppliers, optimize our industrial chain, and seize opportunities in the global market crisis. Zhou Liang, general manager of Nanjing Iveco said.

Nanjing Iveco: "wear cotton jacket" is better to "do cotton jacket" together

The reporter learned from Nanjing Iveco Purchasing Department that this year Nanjing Iveco introduced a total of 16 new suppliers and eliminated 11 unqualified suppliers. Even more eye-catching is that Nanjing Iveco helped 27 suppliers achieve technology upgrades. "We provide Iveco's technology to suppliers, who also support us in terms of quality, price, and product development, so as to increase the competitiveness of the industry chain. Rather than treating the supply chain as a 'cotton jacket' for the winter, it is not as good as we all. Get up and do 'cotton jackets' to meet challenges together." Zhou Liang said.

Nanjing Iveco's approach has also been recognized by the industry. A person from the China Association of Automobile Manufacturers told the reporter that through the joint support of vehicle companies, it is of great practical significance to enhance the supporting capabilities, collaborative development capabilities and independent innovation capabilities of component companies. “Our neighboring Japan, for example, has jointly supported a group of powerful parts and components companies by several of its major automotive companies, and ultimately achieved an improvement in the international competitiveness of the Japanese auto industry. We must know that there are no supporting companies supporting automakers. It is impossible to survive."

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