In the past two or three years, the European and American auto parts industry began a wave of reorganization. Many large companies have chosen to spin off part of their business to reduce the burden or exchange funds for development. Among them, Delphi Corporation sells suspension, brakes and other business units. And German Siemens sold its automotive business unit VDO as two typical cases. The former's behavior is part of its restructuring process with the aim of reducing its burden; the latter sold VDO to the Continental Group in exchange for a large amount of cash to invest in other industries and basically withdrew from the auto parts industry.
After the outbreak of the financial crisis in September 2008, it was hampered by the sharp decline in global automobile production and sales. More and more European and American spare parts companies have joined the ranks of stripped assets. This has given China and other late-developed countries certain opportunities. Geely Automobile quickly completed its shortcoming in the field of automatic transmission by acquiring Australian DSI. Weichai Power also acquired a large-horsepower diesel engine of more than 16L by acquiring a French diesel engine company, effectively complementing its existing 12L diesel engine.
The successful acquisition of the above two domestic companies has led many industry players to discuss the possibility of “going global†by using this financial crisis and acquiring parts and components companies in developed countries in order to drive the leap-forward development of the domestic parts and components industry.
In my opinion, people who hold this view, although starting point is good, have failed to recognize the nature of the restructuring of the international parts industry in recent years and have made directional errors.
What is the essence of the restructuring of the international spare parts industry in recent years? In the opinion of the author, it is a new round of industrial transfer. In other words, it is the industrial capital of developed countries that actively readjusts and consciously eliminates some of the products with low profitability or shifts them to developing countries with relatively lower costs. It is precisely because of this that there will be cases in which Chinese companies use capital instruments to control foreign parts companies. However, the above two acquisitions do not represent a trend, but are only cases.
We may take Delphi Corporation as an example for analysis.
In 2005, Steve Miller, who specializes in corporate restructuring, became the chairman and CEO of Delphi Corporation and began the company's restructuring process. After entering the bankruptcy protection procedure, Delphi quickly divided its business units into core business and non-core business. In the following years, Delphi successively sold some business units such as the interior and cab partition business units. This year, the company sold the suspension and brake system to a Chinese company.
It is worth noting that most of the company's spin-offs are in sectors where the added value of technology is relatively low and the cost requirements are relatively high. For example, in the suspension and braking systems sold by Delphi to a Chinese company, although magneto-rheological dampers are used in high-end technologies such as Cadillac and other luxury cars, they are still more commonly used in developed countries like ABS. , it is difficult to earn excess profit products. High-tech departments such as engine systems, hybrid systems, and electrical and electronic systems have all been retained.
It can be seen that even if the company needs to “sell†assets in exchange for cash and reduce the burden, Miller and its representatives’ capitalists are still cautiously choosing assets to be stripped, which will represent the future direction of the automotive industry. And because of the application of high-tech businesses that can obtain excess profits as the "seeds" for the future development of the company, they are retained.
For Chinese companies that acquire the suspension and brake system business, it is natural that they can quickly increase their own technological strength by fully accepting their intellectual property and patented products, establishing a certain technological advantage in the domestic market, and possibly even relying on The low domestic labor force, land, etc., gain cost advantages and have a place in the international market. However, the essence of this change, no matter which angle we interpret, remains the same. It can only be that Chinese companies undertake the transfer of industries from the United States, rather than seize the opportunity for a leap-forward development.
If the Chinese parts and components industry can't soberly recognize the essence of this round of international parts and components industry reorganization, after using capital to acquire certain foreign parts companies and not investing more funds in technology research and development, it will be impossible to achieve real results. Promote the development of the industry.
This point has been very obvious in the textile industry - although China's textile industry has achieved great competitive advantages globally through the transfer of international industries, this advantage is more reflected in the cost. Because there is no major innovation in the development of new materials, the Chinese textile industry is still at the low end of the global industrial chain distribution. The world of high-end textiles is still the world of multinational corporations. This is a very good illustration of this.
It can be foreseen that if China's parts industry thinks that it can quickly catch up with the giants of Europe, the United States and Japan through cross-border acquisitions, and does not earnestly carry out technological R&D and innovation, then the status of China's textile industry today is the future of China's auto parts industry.
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