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China's auto parts industry is worrying foreign control of the development

China's auto parts industry is facing increased costs due to external competition and the benefits arising from decreased, but this is not the worst of the State Council Development Research Center June 30 release of "car blue book", the large number of detailed data, In almost monopolized by foreign core components technology, domestic enterprises are difficult to achieve major breakthrough, industry cause for concern.
The Blue Book of the State Council Development Research Center of Industrial Economics Research Department, Society of Automotive Engineers of China and co-edited by the Chinese public. According to statistical data book, the current domestic large number of auto parts companies in the industry for less than 1%, less than 15% of medium-sized enterprises, and domestic auto parts enterprises 90% market share and manufacturing capabilities are concentrated In the low-end products, while the remaining 10% involved high-end products of domestic companies with foreign majority also carried out joint venture.

"This is our lack of auto parts industries, the direction and policy of upgrading the systematic planning for." "Car Blue Book" Editorial Board deputy director of the Society of Automotive Engineers of China to pay to the Secretary-General Wu said.

For the previous 12 domestic enterprises in the Development and Reform Commission under the guidance of the vehicle, jointly developed with the United States Borg Warner to break the bottleneck of domestic automatic transmission technologies try to pay in the military, said that this is not a good model, " Borg Warner shares which accounted for 66%, and is the only source of technology, it is difficult to imagine what Chinese companies from which access to key technologies. "

Strengthen control of foreign capital

Financial Crisis huge impact on the world auto industry directly led to a lot of auto parts suppliers worsening financial situation. According to Roland Berger Strategy Consultants in March of this year's forecast, in 2009 the global automotive supplier profit margins will drop substantially, EBIT margin may be zero.

The harsh reality of a foreign component to accelerate the strong business expansion in China, since the fourth quarter of last year, including GKN, BorgWarner, Johnson Controls and other parts the world-renowned companies in China, a new wholly owned or joint-venture factory.

Although China's auto parts industry, increasing the total index, the rapid growth of export volume, but the development of domestic auto parts enterprises with foreign investment is still lagging far behind the background of enterprises, production is concentrated in low value-added, low technology content and high energy consumption labor-intensive products, and profitability is clearly insufficient.

Data show that in China, with foreign background auto parts suppliers accounted for 72% of the entire industry, and these foreign suppliers, 55% owned enterprises, joint ventures accounted for 45%, at the same time, foreign investment must also control Most of the market share of domestic parts and components industry-wide sales of only 20% to 25%.

The tendency of capital increase and wholly owned foreign enterprises are also becoming increasingly clear that only a Bosch to fully owned or controlled on the way invested in 18 companies in China, formed from the R & D, production, sales to the service of a complete industrial chain. Established in 2007, 19 new foreign-invested enterprises in the components, select the account is also owned 74%.
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