Now the streets are full of vehicle prices, but they do not see the simultaneous price reduction of accessories. In addition to the “substantial decline in the prices of more than half of Nanjing Fiat parts” and “an average of 25% reduction in parts and components of BYD vehicles,” Almost silent. The vast number of consumers have reported that the situation of “affordable, unrepairable” automobiles is becoming more and more prominent, and people are eager to become “years of vehicle price cuts” in 2004, which has also become a year of diving for auto parts prices.

However, we rarely see which companies take the initiative to drastically reduce the price of parts. We must know that parts and components companies have a hard time.

At the annual meeting of the 2003 parts and components industry organized by the China Association of Automobile Manufacturers recently held, a person in charge of a seal company spoke bluntly, and the core of the topic was how to reduce the negative impact of downstream auto manufacturers on them. Since then, seal companies have signed "industry self-regulation" clauses under the leadership of industry associations. "Non-violent competition does not push prices down each other." These clauses can be seen to some extent as the "offensive and defensive alliances" that seal companies have established for vehicle manufacturers.

"If you follow the requirements of the automaker, the company simply can't make a profit, and it may have an opportunity to survive." League companies think so.

It is understood that in 2003, the price of plastics, the main raw material for seals, rose rapidly, resulting in a 4% to 6% increase in corporate costs. However, due to fierce market competition, prices of automakers have become commonplace. To ensure its own profit, OEMs are required to reduce their prices by 8% to 10% each year.

At present, OEMs have issued a “double regulation” notice to the upstream parts and components companies: they are required to reduce the price of the parts and components to the specified range within a specified period of time. If the upstream manufacturers refuse to implement it, the vehicle manufacturer will cancel its supporting qualifications. In 2003, this price was particularly severe in the seal industry, with the highest price cuts reaching 10% to 15%. “Our general profit is between 5% and 10%. If the internal management controls are in place, we can save about 5%.” The “particulation, chaos, and difference” of Chinese parts and components companies is obvious to all, plus the domestic vehicle manufacturers are Non-technical barriers to manufacturing, domestic parts manufacturers seem to have been too much.

One of the magic weapons of reducing the cost of the parts and components industry is to form a large-scale economic scale. However, the fragmented supporting market has caused the parts and components companies to become bigger and stronger. When the vehicle market is profitable, it can still conceal the structural defects of the parts and components industry. However, when the entire vehicle market is in a fiercely competitive period, as it is now, the pressure of squeezed profit moisture is transmitted to the parts and components companies, and the innate structural problems Began to be exposed.

Although China has abundant cheap labor resources, the low management level offsets the advantage of low labor costs. At present, the labor productivity of China's auto parts companies is only one-eighth that of Japan's parts companies. In addition, no matter whether it is raw material procurement, product process control, or sales, distribution and service of finished products, Chinese auto parts companies have not yet formed a large-scale cost advantage; in addition to the unreasonable product structure, many parts and components companies produce There is a serious overcapacity, a large number of assets are idle, and fixed costs increase.

Or because new product development cannot be developed, or because the development of new products is restricted by capital and technology, China's auto parts companies cannot form mass production capacity. "Low productivity and high product costs" is the fundamental reason why China's auto parts are difficult to cut prices.

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