Multinational Auto Parts Company Initially Completed Layout in China

Since 2010, multinational auto parts companies have exhibited new features in their investment and business activities in China. From incomplete statistics and comparative analysis, in the first half of 2010, investment projects such as the construction of a headquarters building and R&D center in China or Asia were significantly reduced, and new plant construction projects with investment scales that are still small were replaced.

The world-famous component companies, such as ZF, Eaton and Germany, which are affected by the international financial crisis, must make a difference in the great Chinese auto market. At present, localized production in China is still the goal of most multinational auto parts companies.

Looking at the overall investment situation, the total investment in the first half of 2010 has decreased compared with the same period of previous years. With the reduction of total investment and changes in investment projects, it is not difficult to see that the layout of multinational auto parts companies in China has entered a stage of gradual improvement. . In contrast, from 2008 to 2009, it was a crucial period for the strategic layout of multinational auto parts companies in China. Specific actions include the establishment of R&D centers, the search for long-term partners, and the establishment of core companies in China. During this period, transnational auto parts companies have been active in China, and there have been a number of cases involving the establishment of bases in China. In 2008 alone, more than a dozen multinational auto parts companies established technology centers and regional headquarters in Asia Pacific or China in China. These include the establishment of the China R&D center of the German Continental Group, the establishment of the China Technology Center of the US Borg Warner, and the establishment of an Asian R&D center in China, Fiat Power Technologies AG.

In the first half of 2010, major investment projects of multinational corporations in China are still dominated by labor-intensive products. At the same time, high-pollution, high-energy-consuming chemical products occupy a large proportion. Although such investments have a certain contribution to GDP, the negative effects of high energy consumption and high pollution cannot be ignored. In the first half of the year, according to incomplete statistics, overseas tire and rubber companies have invested in six projects in China, and two Japanese steel pipe manufacturing companies have further invested in China, all of which have significantly increased their output. Multinational companies have increased their production capacity in China, and their original intention of using China's low-cost resources to maximize their commercial interests has become more apparent.

In the first half of 2010, multinational auto parts companies invested in China, there is still no engine production factory. As a key component of a car, the engine largely determines the grade and performance of the vehicle. It is the key component with the highest technological content and the most complex components. Its price and profit are also high. Multinational vehicle manufacturers and independent engine manufacturers will still It retains production abroad to achieve high returns and prevent technological spillovers.

The transmission project is worthy of attention is that the internationally renowned automatic transmission manufacturers ZF and the Magneti Marelli Group have a joint venture plant in China production or business development plans, indicating that China's transmission enterprises in this area have achieved certain technological breakthroughs and The market advantage has attracted the attention of multinational giants.

In the context of China’s push for new energy vehicles, multinational companies have also stepped up their efforts to arrange R&D centers and production plants for electric vehicle-related parts and components in an attempt to occupy the commanding heights in this field as soon as possible. In addition to the relatively complex major auto parts projects, other related auto parts fields also have manufacturers continuously entering China, such as automotive carpets and car lights.

In terms of geographical distribution, the Yangtze River Delta region, as one of the most economically developed regions in the country, has concentrated a large number of advantageous human resources. Investment projects are generally highly valued by the local government and have laid a good foundation for the development of enterprises in China. Many internationally renowned companies have made Shanghai the best place to stay. Overall, the scope of activities of multinational component giants in China has expanded from the first-tier cities such as Shanghai, Beijing and Tianjin to the broader inland regions.

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