"Auto Empire" lies in the parts
Recently, the Chinese Huayu Automotive Systems Company then acquired its joint venture Yanfeng Visteon Automotive Trim 50% stake, making it a wholly owned subsidiary. According to reports, Yanfeng company car interiors business already has autonomous technology development system, independent of the market system and improves customer operations management system. So after the outside shareholders exiting, it can continue in accordance with the "zero-based, neutral, international" strategic objectives. It can further accelerate the car decoration business and expand domestic and foreign markets and also can accelerate into the global supply system. It also shows that the local parts industry chain in-depth development.
Meanwhile, Wanxiang Qianchao has recently announced that it plans to increase the capacity expansion, implementation of the "add an annual output 8.4 million constant velocity drive shaft assembly fixed asset investment projects" in the part of the expansion plan. The project has been initially achieved an annual production capacity of 1.2 million with constant velocity drive shaft assembly production capacity is expected in October the company into small batch trial production. Pursuant to the investment schedule, Wanxiang Qianchao plans to use to raise funds by way of cash capital increase 110 million Yuan for the company to carry out the project plan in order to accelerate the construction of second investment funds to raise the overall progress of the implementation of investment projects. Wanxiang Qianchao said that will accelerate the "Building a world-class auto parts system supplier."
It is preparing the introduction of the “Strategy for Powerful Car Country", and the local parts and car security system to become a core part. Automobile Association executive vice president of Dong Yang believes that the current China's automobile accessories industry is the lack of key technology areas, and relatively high levels of spare parts are mostly foreign-owned or controlling production, while the Chinese capital parts production level is still relatively low. Therefore, to promote the automobile Strategy for Powerful Country, we must improve the industrial chain through the development of components, hoping to form a group of world-class parts suppliers, including both Chinese brand components and foreign brands of components.
"China's auto industry can become a selling country which is the key to the parts." Yao Yiming, deputy general manager of Guangzhou Automobile Group had told the Nanfang Daily reporter said, and now the Chinese auto industry already has annual sales of 20 million of the body amount, the real development of local parts to catch a crucial moment.