Explore the New Path to Strengthen China's Auto Parts Industry

As China's auto industry continues to grow, the auto parts industry continues to improve. However, in the areas of key components with high technological content, such as EMS engine control systems, airbags, ABS systems and other systems and components, the competitiveness of local parts and components companies is still not strong.

If there is no strong supply of parts and components, the scale of the automobile industry will be even greater, and it will not form a sustained growth. How to change the status quo of China's spare parts industry, many companies are actively exploring.

Recently, the largest overseas merger and acquisition in China's auto parts sector has been successfully completed. China National Automotive Industry Holding Co., Ltd. and Beijing Yizhuang International Investment Development Co., Ltd. jointly acquired a 100% stake in Nexteer Automotive Systems, a wholly-owned subsidiary of General Motors Corporation of the United States. The acquisition amounted to more than US$400 million.

According to Lin Zuoming, general manager of China Aviation Industry Corporation, based on the status quo of the domestic auto parts industry, AVIC puts forward the “rebound” strategic concept and promotes the development of China’s auto parts industry by acquiring overseas high-end auto parts companies. .

Nexteer is a multinational company with a history of more than 100 years. It has 20 factories, 3 R&D centers, 2 testing centers and 11 technical and customer service centers in 7 countries. The products include steering systems and transmission systems. The sales revenue of steering systems ranks fourth in the world and third in the sales revenue of transmission systems. It has 1200 patents, intellectual property rights, etc. and has world-leading core technologies in electric power steering (EPS).

Industry experts said that this acquisition marks that China's auto parts companies have the world's leading core technology, products, quality customers, mature talents and management team in key components systems. In addition, it will also help Chinese companies quickly integrate into the mainstream of the international auto parts industry and participate in global competition as a multinational company.

Zhao Guibin, Chairman of China Aerospace Automotive Industry Holdings Co., Ltd., stated that AVIC Automotive is a wholly-owned subsidiary of AVIC. It is a platform for the development of AVIC's auto parts and automotive extension industry, and clearly clarifies the steering system, transmission system, and automotive electronics. , auto accessories and high value-added components are the key points for the recent development, and strive to challenge sales revenue of 100 billion yuan in 2020, turning the company into a leading domestic and globally renowned automotive parts supplier. "This acquisition has laid a solid foundation for AVIC Automotive to become a leading and globally renowned parts supplier in China."