Compared with the merger and reorganization of vehicle companies, the merger and reorganization of auto parts companies is of greater significance to the expansion of the company's scale and technological upgrading.
Technology to be improved and scale to be expanded
At present, China's spare parts enterprises are relatively decentralized, and more of them are automotive companies that serve the region. There is a lack of competitive advantages in technology and many are regional enterprises.
Although some large-scale enterprises have gradually shaken off the status quo of heavy production, heavy production, and heavy R&D, they have also seen the fact that independent research and development capabilities of enterprises have determined the company's ability to resist risks to a certain extent, but R&D The increase in the level has been slow. In addition, some small parts and components companies tend to invest less in research and development.
A person in charge of an auto parts listed company said in an interview with this reporter: “The company attaches great importance to the research and development of new products, the improvement of design level, and the development and application of new technologies. However, the company’s current capabilities cannot meet the needs of enterprises. There are many challenges to the development needs."
In addition, the manager of a small and medium-sized private axle production company in Beijing said in an interview with reporters: “Compared with technology, we pay more attention to improving quality and expanding the sales market.â€
Car analyst Jia Xinguang said in an interview with reporters that China’s ignorance of parts and components due to its greater emphasis on the entire vehicle led to the generally small scale of such enterprises, backward technology, low production levels, and slow product replacement.
At present, sales of most parts and components companies in China are relatively low. Compared with multinational giants with sales of up to 10 billion US dollars, the scale of China's spare parts companies is obviously small. In order for domestic parts and components companies to have a place in the future international market competition, the quickest way is through mergers and reorganizations to form large-scale component enterprise groups.
Xu Changming, director of the information resource development department of the National Information Center, believes that the merger and reorganization of parts and components companies is more urgent than the entire vehicle. If there are no large parts and components companies, the costs will not come and the quality won't go. The development of the entire industry will be extremely difficult. The domestic parts and components companies are small in scale, weak in strength, and lack of R&D capabilities. Under such circumstances, if the parts and components industry wants to develop rapidly, it must speed up mergers and reorganizations to form economies of scale.
Overseas M&A opportunities
Recently, it was reported that Ningbo Huaxiang intends to acquire overseas parts and components companies. Company director Jin Liangkai admitted that the company intends to conduct international mergers and acquisitions.
In its 2009 semi-annual report, Ningbo Huaxiang pointed out that the company will continue to promote its international strategy, strive to cultivate core products with international competitiveness, strive to expand domestic and international markets, and at the same time use the opportunities of M&A in the international auto parts industry to promote the company steadily. The internationalization strategy. Informed sources disclosed that Ningbo Huaxiang's inspection of the merger and acquisition has lasted for two years or so, and preparation work is relatively complete.
At present, Ningbo Huaxiang has established a number of joint venture companies with foreign original supporting plants or vehicle manufacturers. Through mergers and acquisitions, it has controlled a number of subsidiaries and currently owns 16 holding subsidiaries.
On November 2nd, China's largest overseas acquisition of auto parts was finalized in Detroit. Jingxi Heavy Industry and the United States Delphi officially signed a contract to acquire Delphi's damping and braking business. Fang Jianyi, chairman of BWI, stated that it will purchase Delphi-related machinery and equipment, intellectual property rights, and Delphi’s customer and product supply contracts at a price of no more than US$90 million. This merger will not only enable Jingxi Heavy Industry to obtain related technologies, but also involve its supply chain.
Affected by the financial crisis, the current state of development of foreign auto parts companies is not optimistic. In Germany alone, there are nearly 100 auto parts companies that are in trouble because of the break of the capital chain, and they are looking for buyers and investment opportunities in the country. Many of them are good. Technology and stable sales channels for companies.
At the 2009 China Auto Parts Industry Conference held on November 22nd, Wang Zhile, a research fellow of the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, suggested that we should expand the opening up and draw on the experience of large-scale two-way investment in developed countries to actively promote the global automotive parts industry. Process. Should actively participate in overseas mergers and acquisitions, absorb international resources and promote the upgrading of domestic parts and components industry.
Corporate development, policy support
Zhou Zhiwei, partner of the Greater China Region of Ernst & Young's M&A consulting business, said that the global economic crisis has provided Chinese companies with good overseas M&A opportunities. He believes that a truly good M&A target is not necessarily a large-scale company, but rather a company with core technologies.
On how to determine the target of mergers and acquisitions, Ernst Consulting CEO Brian believes that many valuable foreign car companies will face bankruptcy crisis, while owning technology, their customer market is also very attractive - for Chinese companies, This is a good opportunity. It is best for a company to first look for its own core competencies, and then assess whether overseas mergers and acquisitions are the best choice and what kind of acquisition target to choose. Auto companies need to think more about quality issues, and upgrading quality requires advanced technology. This is a key part of M&A.
Indeed, acquiring advanced technology from abroad to improve research and development is an important reason for the merger and reorganization of parts and components companies. Acquisition of foreign-funded enterprises can also enable them to obtain overseas sales channels and customers. This is undoubtedly the shortest way for domestic auto parts companies to improve their overall competitiveness.
If the relevant state departments can give specific policy support, it will undoubtedly accelerate the process of mergers and reorganizations of parts and components companies. However, relevant officials of the National Development and Reform Commission have stated that it is a very complicated task to issue a policy that encourages the merger and reorganization of the domestic parts and components industry. Whether the relevant policies have been issued or when they are introduced is still unknown.
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