Dong Jianping: Cars can help each other by crossing the crisis

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The year 2008 that makes people happy and worrying has passed. The rapid growth of auto parts from the first half of the year to the second half of the year has experienced two days. The new year has begun and the impact of the international financial crisis continues to spread and deepen. Concerns about the prospects of the Chinese auto market this year and the expectation of the country's policy of revitalizing the auto industry are due to a number of factors, and it is difficult for experts in the industry to make a relatively confident estimate of the outlook for this year's auto market.

Although it is difficult to judge the auto market this year, the company's annual operating target is still to be determined and the production plan must be arranged. At present, each host company is holding a meeting of parts suppliers in succession to study and formulate this year's supply plans and prices. In the current situation where the market is shrinking and the economic development prospects are uncertain, the host and its parts and components should make good plans for the production of this year in accordance with the reasonable arrangement of production plans and the prices of parts and components based on the principle of win-win cooperation.

The price of parts and components is often the focus of the game between zero-filled companies. At present, the market is sluggish, and the price of the vehicle will have to go down. The pressure on the entire vehicle will bear the brunt. In the face of strong pressure, the whole and zero companies are standing in the perspective of their own companies, each accounting for their own account, or the two sides twisted into one rope to jointly deal with the market price pressure, which requires the company to have a correct understanding. If the premise is that everyone must survive, they must all have a certain profit margin, or keep the cost, which requires a good balance between the interests of the entire zero, only to ensure the interests of a party, even if the supply agreement This unfair balance is only temporary. It will not last long. It will be the two sides who are ultimately harmed. The market's pressure to reduce prices is not enough for one party's efforts. Only by working together to reduce costs can we obtain greater room for price reduction.

Therefore, when negotiating the price of parts and components, both zero-and-zero parties should increase the transparency of product costs, determine the price of parts and components objectively and reasonably, and share profit space.

The price of parts and components is based on a certain quality. The worse the market is, the better the quality of the products. If the whole vehicle only pays attention to the price of parts and components and ignores the concern for the quality of its products, the parts and components companies may be able to lower the quality standards of the products, which is fatal for the whole vehicle. When the price of parts and components is low enough to reach the bottom line of quality, complete vehicles and parts and components companies need to work closely together to improve product design and engineering standards under the premise of ensuring product quality, so as to achieve the purpose of reducing product costs. Do not change materials and processes without authorization.

After all, it is still necessary to build a strategic partnership between the vehicle and its components.

Under the current severe market environment, it is most conducive to adjusting, improving and consolidating the zero-relationship. Partners who stand the test of hardship are the most trustworthy. This global financial crisis is a comprehensive test for every company. Not only does the vehicle test parts, but also parts and components can test the vehicle. In addition to testing the market performance of products, I believe that it is more important to test the business philosophy of the company's managers, including whether there is a long-term vision and a collaborative spirit; it also affects the business ethics of its suppliers and customers. The long-term development of the company in the future.

Vehicles and parts are interdependent and have the greatest common interest. In the current economic winter, it is very important to be able to work together. People often say that it is necessary to “warm up” and be more complete for vehicles and parts. Impressive and important enough. We must all be united in the same spirit and unity. To be in harmony, we can hold tighter, produce more calories and become more resistant to wind and cold. (The author of this column is Deputy Secretary-General of China Automobile Industry Association)

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