On the one hand, domestic demand has decreased. On the other hand, multinational companies have eroded the final position of local parts and components companies with their technological advantages. In this situation, the competition of domestic parts and components companies will become more intense. Recently, Lin, an auto parts company in Shandong, could not do anything to help him. His concern was that the company’s export orders had been reduced month by month, and the arrival of the Lunar New Year had not brought him good luck. It is not uncommon to have the same experience with Mr. Lin. Since the outbreak of the financial crisis in the United States in 2008 that has swept the world, export industries that once favored domestic auto parts companies have become increasingly rampant. As the crisis has spread and worsened, the impact of such unfavorable factors on export business has not been slowed at all. Signs. Financial crisis tests the zero relationship Before the financial crisis, the strong relationship between automakers and parts factories in the United States and Japan was praised by many people. Many experts also called for Chinese auto companies and parts and components companies to establish a solid "zero-to-zero relationship." However, the sudden financial crisis proves that the "solid zero relationship" is just a lie. The financial crisis not only allows people to think about the three major ways of doing business in the United States, but also allows people to rethink the relationship they have established. Since August 2008, Chrysler’s relationship with its North American suppliers has become increasingly tense. Chrysler has complained that Johnson Controls’ product prices are too high and demanded more than US$15 million in damages; the US Dana company went to the bankruptcy court. A judge filed an application requesting the judge to approve Dana’s end of the auto parts supply relationship with Chrysler at the end of this year. According to Dana, with the rising prices of raw materials, the annual supply of Chrysler will lose 75 million US dollars or more. Germany is the world's leading supplier of automotive parts and components. In the current market crisis, auto parts manufacturers appear to be quite vulnerable. In general, 75% of the parts of a vehicle are supplied directly by the retailer. Many spare parts are dedicated to a certain model. For example, the ABS system of the General Chevrolet model cannot be applied to the Volkswagen golf cart. It is difficult to switch quickly between the two vendors. Obviously, a solid zero-to-zero relationship is not a one-time thing. The financial crisis has added to the already fragile relationship between China's already fragile vehicles and parts and components companies. Some parts suppliers in Zhejiang have begun to select vehicle manufacturers who can guarantee timely payment and reasonable pricing as their customers to ensure that they Some profits will allow you to continue to survive. Due to the decrease in demand, sales of vehicle manufacturers have dropped dramatically. In order to maintain profits, vehicle companies require parts and components companies to lower prices, thereby gradually deteriorating their relationship. “We are supporting buyers with only 1% of profit, and the difficult situation of the operation can be imagined.†Yang Song, deputy general manager of Beijing Kebuk Technology Development Co., Ltd. said, “In the procurement process, after multiple rounds of bidding, procurement The price is very low. We are very helpless. With such a small profit margin, it is difficult for companies to have the strength of technological innovation." Dance from the wolf to the wolf In the case where the zero-to-zero relationship cannot guarantee the pressure of survival, the parts and components companies must independently find a way out. Affected by the financial crisis, a large number of component manufacturers in the United States have ceased production, and demand in the United States and Europe has been insufficient. Parts companies that go out of the country to dance with wolves are now forced to think about the situation they face. Despite the adverse economic environment, the survival environment of local parts and components companies is not optimistic, and some parts and components companies are looking for opportunities in the crisis. China's spare parts prices are low, and the export market is mainly in Europe and the United States, with a small amount of OEMs. This in turn provides local companies with market opportunities. Since U.S. consumption is supported by credit, not only buying a house but also buying a car depends on credit. This year, financial institutions have repeatedly tightened loans, and auto consumption demand has naturally been curbed. The financial crisis has dispelled the enthusiasm for buying new cars, and more and more people are turning to the maintenance and repair of used cars. In the first half of 2008, the US auto service market still maintained a growth rate of about 5% in the Great Depression, which explains this problem. The auto parts market with the after-sales maintenance as its target market “became blessed with the scourgeâ€. In addition, the cost-effective advantages that Chinese auto parts companies have accumulated in recent years have also won a certain amount of market space for themselves. With the weakening of the international auto market, the profitability of bicycles has continued to decline, and auto giants have begun to increase their efforts to reduce costs in order to increase their price competitiveness. Overseas automobile purchasing giants have shifted from purchasing aftermarket supplies to purchasing spare parts. "Although there are opportunities in the crisis, the survival environment of China's spare parts enterprises in foreign markets is not optimistic. This will naturally affect the export of China's spare parts," said a researcher at the Institute of Industrial Economics at the Chinese Academy of Social Sciences. In 2008, China's automobile production and sales did not exceed the target of 10 million vehicles. However, according to the data released by the China Association of Automobile Manufacturers, the company achieved sales of 735,500 vehicles in January and surpassed the United States for global sales championship for the first time in history. In stark contrast to the good start of the domestic auto market, the US automobile market shrank by almost 40% under the impact of the financial crisis. In January, sales were only 565,881,000, which was the lowest monthly sales data of the US auto industry for 27 years. Xu Changming, director of the Information Resources Development Department of the National Information Center, pointed out that according to the United States’ sales volume in January, the US’s annual sales this year should be more than 9 million units, which will not reach 10 million; therefore, China’s auto sales may also exceed the US’s annual sales. . Under such circumstances, the domestic market has become a life-saving straw for local component companies. However, it is not. In the face of the economic crisis, many multinational component companies have increased their investment in emerging markets, and China has become an important market. In an interview with a reporter, the person in charge of China General Technology Group Europe Demaz Co., Ltd. said that an important solution to the in-depth adjustment of the German automotive industry is to face the Eastern market, which means that the relationship between German auto companies and China will inevitably become closer. On the one hand, domestic demand has decreased. On the other hand, multinational companies have eroded the final position of local parts and components companies with their technological advantages. In this situation, the competition of domestic parts and components companies will become more intense. Turn crisis into opportunity Industry experts pointed out that parts and components companies should find ways to turn crisis into opportunities. Small and medium-sized component companies should actively study the relevant policies of the state and local governments. Under such an economic situation, the state and local governments will introduce some tax cuts and tax exemptions that are beneficial to enterprises. Enterprises should study these policies in the first instance and make full use of them, so as to maximize the benefits of enterprises. Of course, some parts and components companies have taken the initiative to individually or jointly or through industry associations to the local government to provide reasonable and feasible, conducive to the development of the industry's recommendations and requirements, try their best to fight for more preferential policies. It is also a feasible way for self-protection of parts and components companies to actively establish their own industry associations. In the economic crisis, it can further reflect the coordination role of the association and limit the vicious competition within the industry to the maximum. In addition, the parts and components companies should pay more attention to product quality under the harsh economic conditions, attach importance to the research and development of new technologies, strengthen technological innovation, and continuously enhance the company's core competitiveness. Reducing costs and improving resource utilization are the directions that companies should focus on. Aerosol Cone And Dome Making Line Aerosol Making Machine,Aerosol Cone Making Line,Aerosol Can Making Machine,Aerosol Dome Making Machine Zhoushan Golden Pard Machinery Co., Ltd.  , https://www.fishprocessinglines.com