In 2006, at the same time as the vehicle price reduction, the price reduction of parts and components has also become a promotional weapon frequently used by vehicle manufacturers. In the ever-deepening downward spiral of price cuts, vehicle manufacturers continue to demand that parts and components manufacturers reduce supply prices. It seems that this has become the theme of the relationship between OEMs and parts factories in these two years. Under the strong influence of vehicle manufacturers, upstream component manufacturers began to feel the pain of passive price cuts.
Although parts and components manufacturers generally reflect an unequal position with the main engine plant and lack of an effective dialogue mechanism, the main engine plant will pass the pressure on the vehicle price cut to the parts factory. Parts factories are facing the dual pressures of OEM prices and raw material prices, and the profit margins are getting smaller and smaller. However, most manufacturers are still ambiguous, dare not speak out, and even dare not to supply, worrying about losing their qualifications and the future. market.
The Hamburger Effect of Parts Enterprises
"It should be said that all spare parts manufacturers are very sad at the time." A company general manager Lu Lu told the author that the profits of spare parts in previous years were still very substantial. Now, the automaker's price is very heavy, he has to force his company to strengthen management and improve technology. "Anyway, if foreigners can withstand it, we must also hold it back. Perhaps after this round of price wars, we will eliminate a batch of bad parts factories, and naturally we will train a number of factories that can stand up."
With a price reduction of several tens of thousands of yuan, vehicle manufacturers play a leading role in the market because they control market access, product brands and technical standards. Therefore, once the car prices drop, the component manufacturers naturally have to actively follow-up, otherwise, wait until the vehicle factory proposes to change the supporting factory, and then it will be too late to act.
In fact, the reduction of product prices by component manufacturers is not active, but they are forced to lower prices at the request of vehicle manufacturers. In the past, it was normal for automakers to request component prices to drop by several percentage points each year when purchasing parts and components. However, the continuous decline in vehicle prices last year caused the entire vehicle company to shift some of its pressure to parts suppliers. For example, the price of a certain brand of pistons was 110 yuan in May last year, but it has dropped by nearly 20%.
Recently, the prices of raw materials such as steel, oil and coal continue to rise. Taking steel as an example, the current domestic market price of hot-rolled sheet has reached 3,800 yuan/ton (including tax), and the medium-plate price has also reached 4,100 yuan/ton. Under normal circumstances, the steel used in large trucks can reach more than 90% of the vehicle weight, and steel used in cars is also more than 50% of the vehicle weight. The increase in steel prices has a detrimental effect on the automotive industry. In addition, price fluctuations in aluminum and other raw materials also affect automotive and parts companies. Transport costs are rising. The situation of power shortage may also cause the price of electricity to rise further. At the same time, there is limited room for other cost reductions. The space for various cost reductions to ensure the quality system operates is negligible and at the expense of the quality of the product. Therefore, the company is under two pressures. The price of the main engine factory and the price of raw materials are the same as the hamburger. We call it the "hamburger effect."
A circle of parts companies
Most auto parts companies in China rely on vehicle production plants and are themselves in a passive and service position. In foreign countries, the parts factory has its own development capabilities. When OEMs develop new vehicles, they have to rely on parts and components companies. This is the main gap between domestic and foreign parts companies. It is understood that cooperation between internationally renowned parts manufacturers and vehicle manufacturers will generally sign a framework agreement for three or four years or even longer. Both parties sign a contract each year. According to the reduction in the cost of parts and components, the expansion of scale and the improvement of production efficiency, zero Each year, the component companies have three to five percent reductions in the prices of their products. The number of points to be reduced is agreed by both parties. However, as the owner of the plant, the contractor will often request a renegotiation of the supply price each year, and it will even force the parts and components companies to substantially reduce the price. At present, vehicle manufacturers (mainframes) often do not comply with the requirements of the contract and frequently request to reduce the price of parts and components. It is worth noting that many companies have made a fuss about raw materials and processes to reduce costs, which has led to a decline in the quality of parts and components.
Parts companies should pay attention to independent development
The weak development capability is a big problem for Chinese auto parts companies. In the absence of development capabilities, most Chinese parts and components companies lack intellectual property rights and can only rely on processing plans to earn some hard-won money, resulting in lower value-added products and low profits.
An expert believes that parts suppliers can enter into a complete process from the market to manufacturing, from manufacturing to development, form an independent development system and independent development capability in the process of transformation, and form an independent development team in order to form a competitive edge. In the introduction, digestion, absorption of foreign advanced technology, Hunan Jiangbin Machinery (Group) Co., Ltd. may be a successful model. The company is a specialized company that produces and operates pistons for automotive engines. In the 1980s, the company introduced a full set of piston processing technology from the German Mahler company. Through more than 20 years of digestion, absorption, and exploration, it has made bold innovations and achieved initial results. Now, the company has domestic first-class piston processing technology, and some of the technologies have reached the international advanced level, and the ability to participate in market competition has been significantly enhanced. Therefore, the domestic automobile industry must be good at digesting, introducing, and absorbing advanced foreign technology, and use it for my own sake. We must constantly innovate and form independent intellectual property rights so as to improve the overall core technology level of China's auto industry and improve the competitiveness of the international market.
Internationally, automakers and auto parts suppliers are equal partners, and this kind of relationship in China is currently expressed as a "parent-child" relationship. The prosperity of the entire vehicle company must be supported by the parts factory, and the price reduction of the car cannot be at the expense of the interest of the parts and components companies. The automaker and the parts factory take the “win-win†road and build a strong strategic cooperation partnership. ,deep meaning.
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