Opportunities and Challenges of Chinese and Foreign Auto Parts Enterprises

Recently, the Antai College of Economics and Management of Shanghai Jiao Tong University, the MBA program of the Marseille School of Business in France (hereinafter referred to as AEMBA), organized an alumni seminar for the automotive and parts industry. The seminar was organized by Dr. Wang Hua, the head of China Marseille Business School. The AEMBA alumni who participated in the seminar were professionals in procurement, technology, and marketing of multinational well-known automobile companies and primary and secondary suppliers.

Participants exchanged views on the development process and strategic adjustments of the Chinese auto market and multinational vehicle companies in this market in a rigorous and humorous form of the college. Cost pressures faced by foreign tier one suppliers in China, and local Chinese supply The opportunities and challenges faced by the business, the opinions of foreign-level suppliers on how to develop China's domestic second-tier and third-tier suppliers, and also talked about the Tata Nano and new energy vehicle routes.

Regarding how to coordinate the relationship between cost and quality, some alumni believe that it is possible to control costs and ensure quality by helping suppliers improve their capabilities. In terms of how to help suppliers improve, an alumni said that first of all, it is necessary to make suppliers have a stable quality, and to achieve JIT timely delivery.

An alumni also put forward their own ideas on how Chinese local suppliers grow and expand – for Chinese domestic suppliers that are more advanced but take the form of joint ventures with foreign companies, they can choose to gradually abandon their joint ventures and they will also be joint ventures. Experiences in management, technology, and so on are invested in new companies. For the stronger suppliers of products that produce lower-end products, they can gradually enter the mid-range products under the support of multinational buyers. She believes that the development of local Chinese suppliers should be segmented, but it should have its own development model.

For how to establish a more stable medium-long-term cooperation relationship with OEMs, an alumnus who is responsible for engineering technology in the company put forward their own opinions, such as carefully selecting potential Winners to establish strategic partnerships, and earnestly understanding the real and in-depth needs of customers; There must be subjective enthusiasm for human and resource input for long-term strategic cooperation, and so on.