Survival pressure on component manufacturers has increased

The cold market in the auto market affects the upstream industry—

Dismissal of cleaners, reduction of travel expenses, and cancellation of orders for deposits were abolished...At the time when the American automotive industry has maintained its strength and the global auto market has been in a sluggish situation; When the entire vehicle company lacks funds, it has to shrink its expenditures to reduce production and lay off employees, and it is in the upstream of the production chain. The parts manufacturers have realized more deeply the coldness brought by the cold weather in the auto market.

● No production tasks started in November

The rapid acceleration of the auto giants puts pressure on parts manufacturers and even globally renowned parts manufacturers cannot afford to stay out of the way. The manufacturer C, famous for producing clean, efficient engines, also feels a bit of chill. Mr. Q, a middle-level manager of Company C, told reporters that due to the economic crisis, the company’s production volume has shrunk rapidly, and production tasks have decreased and decreased. Taking Shaanxi Auto's heavy truck, the company's largest customer, as an example, the output in January was 10,000 units, and it fell to 3,000 units in September, compared with only 1,000 units in November. What is even more chilling is that customers who have already made advance payments also want to cancel production orders. A Russian customer has already paid a few million deposits, but he has firmly notified that all orders for November were cancelled, the goods were no longer needed, and the deposit was not required. In fact, since November, all production tasks have been cancelled, and orders will not be available until March next year.

Ma Jianfang, Marketing Manager of Beijing Hainachuan Marketing, also expressed concern about the company's declining business. She told reporters that overall, the situation of the company is also OK. This year's sales also reached the established target of 4 billion yuan, but at present this Under the global economic crisis, it is impossible for any company to want to be unaffected. The company’s orders are decreasing and the pressure for survival is increasing.

● Staff part-time company cleaning

Without production tasks, the funds of retail component companies suddenly become tight. Mr. Q told reporters that the company had already dismissed all the cleaning and the cleaning work was undertaken by the employees themselves. The original parts and components were produced, all of which required special rust-proof companies to remove rust and send them to customers. Now that the rust-removing company has also quit, the company’s employees went into battle personally, and Mr. Q’s annual travel expenses of more than 2 million yuan were cut in half. All departments are reducing costs and reducing costs.

Faced with this situation, all parts and components manufacturers are actively considering ways to deal with it. The headquarters of Company C urgently mobilized 4 billion yuan to cope with it, and quickly adjust its strategy, change its expansion strategy, reduce its budget by 30%, and increase the localization process. The countermeasure of Beijing Hainachuan is to reduce expenditures, eliminate waste, and actively seek out partners to share risks.

● The crisis of multinational companies is the heaviest

In the global automotive industry crisis, multinational corporations have suffered serious damages due to their large market size, while independent companies have less influence because their markets are mainly concentrated in the local market.

A recent survey from HypoVereinsbank and Oliver Wyman indicated that some European auto parts suppliers are facing bankruptcy. The total annual sales of all parts and components companies visited during the survey reached 145 billion euros (US$2,155). Because many of these parts and components companies are doing business in Europe and North America at the same time, this survey has a corresponding result in North America. North American parts companies and their European counterparts have faced similar problems for several years. Jan Dannenberg, president of International Automotive Research at Oliver Wyman, said: “The price that OEMs require for parts and components companies has surpassed the cost savings they can achieve, and parts companies almost without exception expect this pressure to continue. Further increase." European suppliers of parts and components cut prices between 2.4% and 4% each year.

Another person in charge of the investigation, Guido Schacht of HypoVereinsbank, said: “Many companies simply have no room to deal with anomalies.” This means that once automakers freeze their assets due to bankruptcy, part companies will not be able to recover their payables. Fragile parts and components companies are simply unable to cope with the cash flow problems. Not long ago, Delphi, the world's leading auto parts maker, filed for bankruptcy and reorganization, and has already sounded a warning bell for component manufacturers.

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Oil Seal

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