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Alternative models for the development of auto parts industry

2018-03-30
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At present, my country's auto parts industry is generally based on the development model of vehicle matching. This structure is based on the vehicle enterprise as the core, and the spare parts enterprise is affiliated. This model is mainly formed due to the development relationship between local protection policies and group management. After my country's accession to the WTO, multinational automobile and spare parts manufacturers have accelerated their entry. The original development model has been greatly challenged, and we have to consider implementing a new model that is more suitable for domestic enterprises.
(1) Joint venture model
The joint venture model mentioned here mainly refers to the equity type cooperation method established by both Chinese and foreign parties for the common interests. With the implementation of my country's opening-up policy, as an important means of utilizing foreign capital, Sino-foreign joint ventures have become one of the main ways of my country's foreign economic cooperation.
1. Sincerity of cooperation
2. Identification of the advantages of both parties
3. Strengthening of own advantages
(2) Strategic alliance model
A cooperative relationship established by two or more enterprises to achieve a certain strategic goal is a strategic alliance model. This kind of cooperative relationship can be established by spare parts enterprises and vehicle enterprises, because spare parts enterprises must rely on vehicle enterprises to participate in synchronous development, and at the same time, vehicle enterprises also need modular supply from spare parts enterprises. Establish a relatively long-term and stable partnership, while strengthening the market competitiveness of both parties. In addition, this model can also be applied to spare parts enterprises in different regions of the country. Due to the generally small scale of domestic enterprises and poor comprehensive competitiveness, they cannot compete with foreign giants. For this unfavorable situation, domestic small and medium-sized enterprises can join forces to set up business organizations such as spare parts industry chambers of commerce, and use their own local advantages and alliance strength to resist foreigners from dividing up China's "market cake".
In short, my country's auto parts manufacturers should take strategic alliances as a feasible strategic choice for future development plans. Technological developments coupled with globalization trends require them to further consider partnerships with other partners.
(3) System company model
The so-called system company model is an auto parts company established in accordance with the system as a unit. The establishment of auto parts enterprises according to the system is conducive to the formation of specialized production of parts enterprises, achieving economic scale, and is convenient for supporting multiple models and manufacturers; it is conducive to the formation of high-level product development capabilities for parts enterprises; it is beneficial to cooperate with foreign countries. Large-scale similar companies carry out technical cooperation.

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