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According to the analysis of experts, the current automotive and parts companies are facing severe challenges. First, there is an increase in the number of wholly owned foreign companies; second, the competition in the auto and parts and components markets is becoming increasingly fierce; thirdly, auto and parts and components companies rely too heavily on the introduction of technology and over-reliance on the government phenomenon. Very prominent; Fourth, the survival environment of auto and parts companies is worrying, faced with many factory sites, large selection of mainframes, annual price reduction requirements of 5%-15%, and raw materials, energy prices continue to rise three major challenges; five is difficult to form Self-development ability; Sixthly, a large number of enterprises are facing bankruptcy and restructuring; seventh, the risks of international trade gradually appear, and will tend to deteriorate. Eighth, it lacks the soil for the development of automobiles and parts and components. From the perspective of the changes in the global economic development, in the process of the transfer of world manufacturing industries to Asian countries, how can China's auto and parts and components companies face such severe problems and challenges and how can they develop and grow? Whether or not they can seize the opportunity for development will determine whether or not a new cluster of Chinese auto companies can be formed in the global auto industry.
The author believes that for autos and parts companies to grow, they must strengthen "three kinds of consciousness" and "enhance three kinds of capabilities."
First, we should strengthen business awareness and enhance profitability. According to the China Association of Automobile Manufacturers, China’s auto market continued to maintain steady and good growth in 2005, with 5.707 million automobiles and 5.7582 million automobiles sold in the year, an increase of 12.55% and 13.54% over the first half of the year. In addition to the annual sales of about 160,000 imported cars, China’s auto market has exceeded the 5.88 million units in Japan’s mainland with a total scale of 5.92 million vehicles, ranking second in the world, second only to the United States. According to statistics released by the Ministry of Commerce at the beginning of this year, the total profits of the entire automotive industry fell by approximately RMB 17 billion in 2005. Among them, the total profit of the entire vehicle industry fell by about 12.6 billion yuan last year, accounting for 3/4 of the total decline in profits of the industry. The reasons for the decline in profit caused by the analysis are fourfold: First, the cost of passing the entire vehicle industry has led to sharp declines in the profits of parts and components companies. The entire vehicle industry has expanded its scale to stimulate consumption and has waged a price war. In recent years, the automotive industry has boosted consumption through price cuts. The auto market price war has led to the loss of profits. This loss of profits has not caused much impact on the entire vehicle industry. On the contrary, it has caused serious impact on most parts and components companies. The entire vehicle industry shifts the cost to its supporting auto parts companies. According to media reports, at the end of 2004, FAW Car adjusted the price of more than 100 parts of Mazda6, and the maximum price reduction rate reached 40%. In early 2005, Shanghai General Motors announced that the price of the parts and components of the respective models was reduced by the General Motors Corporation. A total of 505 commonly used vulnerable zeros were reported. The average decline in accessories was nearly 21%, with the highest drop of 50%. Hunan Jiangbin Machinery (Group) Co., Ltd. is a specialized company that mainly produces and operates pistons, gears, and oil pumps for automotive engines, and is also the single largest production base for military pistons in China. In the past three years, the price of pistons for leading products has dropped by 10 per year. %, the price reduction is tens of millions of yuan per year, which is the direct profit of the company. The second is that the entire automobile industry is pushing down the price of each other. You fight for me and reduce your profits. As the so-called peer is a family, in general, the entire vehicle industry in order to expand their market share, mutual price, fight technology, quality, brand and after-sales service, once which one is slightly flawed, they take various measures to crush. Third, raw material prices rose sharply and squeezed the profit margin of auto and parts companies. In recent years, various raw materials used to produce automobiles have risen sharply, adding to the cost burden of the entire vehicle industry and auto parts companies. Take steel as an example. On February 22 last year, Nippon Steel, Japan’s largest steel company, reached an agreement with the world's largest iron ore miner, Brazil’s CVRD. The two sides decided to increase the price of iron ore by 71.5%. One day later, as China, Representatives of the iron and steel enterprises' negotiations, Baosteel announced the acceptance of the fact that iron ore prices rose by 71.5 in the new year. The news came as Chinese steel companies were shocked! The soaring price of ore meant a rise in steel prices. From the second quarter, Baosteel issued The price adjustment notice is raised by 600 to 800 yuan per ton. The biggest impact on steel prices is the shipbuilding industry and the auto industry. Since steel is the most important raw material for automobile production, the impact of rising raw material prices last year on the auto industry has been unavoidable. In terms of engine parts enterprises, taking Hunan Jiangbin Machinery (Group) Co., Ltd. as an example, since 2003, the prices of aluminum ingots, copper, nickel, and magnesium used in the production of pistons have increased by a large margin. More than 30%, but the host market products not only does not rise, but the price year after year. Fourth, autos and parts companies have increased investment, expanded their scale, and squeezed profits. In recent years, major auto companies have increased investment in order to increase their scale. The most typical ones are FAW, SAIC, Dongfeng, Beiqi, Chang'an and other major automobile groups, or joint ventures or joint reorganizations, and the scale of investment has continued to expand. According to incomplete statistics, there were 18 new joint ventures and contracted joint ventures signed in 2005, and the number of joint ventures increased by 157.1% year-on-year, including 2 auto vehicle companies and 13 auto parts companies.
It is gratifying that this year's industry-wide profitability has significantly increased. In the January-February period of this year, the income from the main business of the auto vehicle industry increased by 38.2% year-on-year, the profits of the entire vehicle industry increased by 3.2 times year-on-year, the main business income of the 15 major car companies increased by 86.8%, and the profits increased by 2.2 times year-on-year. Among them, the profit growth of Shanghai Volkswagen and other mainstream companies has exceeded 100%. FAW-Volkswagen, Shenlong Auto and other companies have also begun to turn a profit. In March, the output of automobiles was 732,800, an increase of 38.76% from the previous month and a year-on-year increase of 28.52%; sales of 721,500 units, an increase of 50.31% over the previous month and a year-on-year increase of 23.92%. Among them, the production and sales of motorcycles were 499,700 and 486,000, respectively, an increase of 32.31% and 41.06% from the previous month and an increase of 41.84% and 36.72% respectively; the production and sales of commercial vehicles were 233,100 and 235,500, respectively, compared with the previous month. Growth of 54.93% and 73.82%, an increase of 6.99% and 3.86%. Summarizing the situation of the automotive market in the first quarter, although it is said that the country’s rapid economic growth, the introduction of new consumption tax policies, and the frequent listing of new models, etc., but the auto and parts companies’ own business awareness has increased significantly and has a direct relationship. Has made gratifying results. Therefore, autos and parts companies should continue to strengthen their business awareness and regard it as an important task. They should not only be bigger and stronger, but also be profitable and promote sound development.
Second, it should strengthen cost awareness and enhance management capabilities. The Fifth Plenary Session of the 16th CPC Central Committee proposed: To build a resource-saving and environment-friendly society. With the increasingly fierce competition, auto and parts companies must stand firm in the fierce competition environment. It is necessary to strengthen cost awareness and enhance management capabilities. This is a magic weapon for auto and parts companies to profit. Although China is one of the most populous and labor-intensive countries in the world, the market has great potential and the labor force is the lowest. China's manufacturing labor costs are less than 1/30 of the developed countries, less than one-fifth that of Brazil, and lower than the Philippines, Thailand, and Malaysia. However, as time goes by, the development of the times, this advantage is weakening. Many auto and parts and components companies have already seen this and are implementing cost storm actions. This is extremely important for strengthening cost awareness and enhancing management capabilities. effect. For example, in the process of rapid development, Chang'an Company attaches great importance to strengthening its internal strength through management enhancement, improvement, and innovation. It combines the flexible use of management methods and techniques with the rigidity of the management system and norms, and manages internal strength on a solid and solid foundation. Provide strong support for the development of Chang'an. Hunan Jiangbin Machinery (Group) Co., Ltd., in order to resolve the dual pressures of material price increases and product price cuts, the company vigorously implemented the “cost storm†action and formulated the “Management Program for Cost Target Management Special Projects†(hereinafter referred to as the “Procedureâ€), and the 》The project declaration, review, project establishment, project change, time limit, project acceptance, project awards and penalties, etc. are clearly defined. As stipulated in the “Procedureâ€, the application project should focus on the existing production and operation conditions, combine the actual conditions of the company, and on the basis of full investigation, after preliminary examination by various departments, it is considered that projects that can bring current or long-term economic benefits through technological innovation or management innovation Can be declared. All projects that have undergone project approval should be completed as planned. All projects implement one-off single awards and penalties, company-level projects, projects that have been verified to produce economic benefits, and that have an annual profit of (or cost savings) of more than 1 million projects, have been verified to generate economic benefits of 500,000 yuan per year. The above 1 million or less projects will be rewarded with 1.5% of the newly added profits (or cost savings) and 500,000 yuan or less of the new profits (or cost savings). In 2005, the company generated cost-effectiveness of more than RMB 6 million through implementation of a cost storm, which facilitated the rise of raw materials and reduced prices of products.
Third, we should strengthen cultural awareness and enhance service capabilities. Corporate culture, as a subconscious and unspoken rule rooted in people's thoughts and transmitted to people's blood, influences and determines the cohesiveness, competitiveness, and creativity of the company. The company's production, management, and management activities all permeate the shadow of culture. Advanced and excellent culture not only gives people the right value orientation, but also enhances the constant spiritual momentum. After conducting follow-up inspections of the 30 fastest-growing companies in the world economy, the Rand Corporation and McKinsey & Company pointed out: “The fundamental reason why the Fortune 500 wins other companies is that these companies are good at injecting vitality into their corporate culture. Cultural power, these first-rate companies have maintained their reputation for centuries.â€
An economist once said that first-class enterprises use cultural management companies and second-rate enterprises use institutional management companies. At present, auto and parts companies should do a good job in the three aspects of cultural construction: First, to develop finely. Why do Chinese cars and auto parts export to foreign countries? Foreigners say that Chinese products are rough in workmanship, parts are of poor quality, and local design is insufficient? Caused by this reason, it is still not done well in the refinement, not understanding the content of product culture, did not form a fine culture, in this regard, China's auto parts and components companies should continue to strengthen. The second is to play the role of corporate culture in improving core competitiveness. Core competitiveness is a comparative advantage, and others cannot clone and emulate it. Where does the comparative advantage come from? Comparative advantage can only come from innovation. What can best determine the level of innovation and ability? It is culture and culture that determine the ability to innovate. The ability to innovate determines the formation of comparative advantage. Comparative advantage determines the size of the core competitiveness. There is no more room for competition between the same industry in the hardware, technology, equipment, finance, and measurement methods used by companies in the industry in this era. The same business process, the same industry, and different cultures under the same product structure. It is different core competitiveness. The third is to cultivate entrepreneurial culture. In a certain sense, corporate culture is the culture of entrepreneurs. This is true. For example, without Watson, the general manager, there is no IBM culture; without Crocker, the founder, there is no McDonald's culture; without Zhang Ruimin, Haier culture is not in this form; there is no Liu Chuanzhi, Lenovo culture This is not the case. This we have to admit. So entrepreneurs in the corporate culture construction, his status is very critical.