Not long ago, Dongfeng Motor and PSA (Peugeot Citroen) Group formally signed a global strategic alliance cooperation agreement. Thanks to this, both sides plan to launch a series of commercial cooperation. Carlos Tavares, the new CEO of PSA Group, said in an interview with China Netcom: “The two sides have begun to jointly plan and establish a new supplier system for procurement and supply, thereby effectively reducing costs.†For PSA For the group, “PSA will promote the adoption of components of Dongfeng Group and Shenlong Automobile in the global product range to reduce the procurement cost of PSA.†In other words, the current PSA plant in Europe will also purchase a large amount of products. China's spare parts are used to produce models.
By increasing the procurement and application of parts and components in China, it will also help PSA Group to effectively reduce costs. According to the previous PSA Group's procurement plan in China: PSA Group plans to spend 600 million euros (about 5.1 billion yuan) to purchase parts and components in China each year, and cooperate closely with Shenlong Motors to establish contacts with suppliers in China, Taiwan and South Korea. To supply PSA Group's plants in Europe and South America.
PSA Group is the second-largest automaker in Europe, second only to the German Volkswagen Group. Compared with the latter, which has been bullish for years, the former has been in deep trouble for several years. As the European home market has begun to shrink, the PSA Group's share in the local market has dropped from 19% in 2007 to about 13%. The loss of large amounts of cash has also made it more difficult to operate. However, thanks to the increase in capital of the French government and Dongfeng Motor, it will also help the PSA Group to gradually emerge from its predicament. Among them, reducing production costs is one of the most crucial.
For the importance of the Chinese market, Carlos Tavares also stated: "China is one of the pillars of the PSA Group's global strategy. To implement the promotion of cooperation between the two sides, we will jointly establish a global strategic alliance committee. Dongfeng will serve as a strategic alliance. The chairman of the committee "It is understood that both sides will formally announce the plans for the implementation of the procurement and supplier system.
Purchasing parts and components from China based on cost advantages is not a case, but there are not many overseas companies that plan to reduce costs and purchase components from China in large scale. Audi's headquarters had previously incorporated low-cost and reliable Chinese domestic components into its global procurement system, such as front windshields and warning signs. Mercedes-Benz and BMW have spent huge sums of money to jointly purchase large quantities of Chinese auto parts in order to reduce expenditures and investment. It is not difficult to see that the three luxury brands in Germany have increased the scale of China's spare parts purchases, thereby saving money and reducing costs.
As far as the current European automotive market is concerned, it is still weak due to the impact of the European debt crisis. Car sales in the European market still maintain this trend, and PSA Group has previously reduced its excess production capacity in Europe. The former PSA Group CEO, Mr. Walan, once said that he will reduce the current situation by increasing the international market share, European layoffs, and closing factories, and plans to regain profits in 2014 by strengthening investment in overseas markets.
Specialty Magnets Assemblies,United States Magnets,Wholesale Magnetic Signs,Magnetic Specialities Inc
Dongguan Zhenglong Magnet Co., Ltd , https://www.zlmagent.com