Enterprise reorganization

　　The world's major automobile companies have reformed the supply system, the implementation of global production, global procurement, i.e., from the procurement of multiple auto parts manufacturers to a small number of system suppliers; from the procurement of individual auto parts to the modular procurement; from the implementation of the domestic procurement to the global procurement. Vehicle manufacturers procurement system changes, auto parts manufacturers are required to continuously adapt to it, not only require auto parts manufacturers to expand their own strength, improve product development capabilities, system development, system supply, but also requires it to shorten the development cycle, to provide high-quality and inexpensive products. This change has pushed forward the process of mergers and acquisitions and reorganization of auto parts industry all over the world.

　　Chain development

　　The market concentration is higher relative to the previous years, OEMs tend to modularize and systematic procurement day by day, and the collaboration between suppliers is closer, thus making the global auto parts supplier system gradually evolve to a pagoda-type structure, with one-tier vendors being responsible for the management of the whole supply chain, making the cooperation between the supply chain more standardized. Enterprises like this development are top in their respective markets, and they occupy 80% of the market, monopolizing the high-end market. The boss of a parts company said: “Along with the high-speed growth of vehicle production and sales, parts and components enterprises have encountered a once-in-a-lifetime opportunity, did not catch this express train to fall behind, will be eliminated from the game.”

　　Technological progress

　　Major auto parts manufacturers have been aerospace, aviation and electronics technology applied to automotive parts and assemblies, safety technology, electronic technology, energy-saving technology and environmental protection technology has been widely used in automobiles. In particular, electronic information technology as a representative of the new technology, not only in the automotive products can be widely used, but also extends to the development and design, trial production, production and management of various aspects; not only applied to individual automotive parts and components, but also has been applied to the system assembly.

　　Parts and components enterprises to set up R & D centers, can be “fast” to meet the urgent needs of the market, rapid development of products; can be “accurate”, close to the market, to achieve “localization”; can be “New”, more new technologies applied to the production, that is, to ensure quality and reduce costs. In fact, some of the new technology, parts and components companies are leading the OEMs to run.

　　Globalization

　　In order to reduce costs and capture the market, many auto parts multinational companies have to the international development. European auto parts manufacturers have to overseas investment, internationalized production; North American auto parts manufacturers have invested in Europe, but also want to expand the Eastern European market; Japanese automotive companies have also continued to establish their own branch of the global production institutions. The emerging Asian market is the focus of competition among major auto parts multinationals, and China is the place to be.