China's vehicle and parts relationship development series

First of all, it shows that the comprehensive capacity of enterprises under market protection is insufficient. The vertical capital-related parts and components companies have been severely criticized by public opinion. Criticism focuses on two aspects. One is to criticize the host company for "protecting backwardness," and the other is to criticize parts companies for "do not push forward."

"Protecting backwardness" was the language around the 1990s. This phenomenon is not much at this stage through joint ventures, cooperation, and technology introduction. At this stage, it is not protection that “backwards” but protection of the “market”.

However, enterprises under the protection of the "domestic demand" market have basically maintained synchronization with the parent company in terms of product technology input, and management capabilities, research and development capabilities, and market adaptability have been insufficient.

Second, the improvement of independent research and development capabilities is severely constrained. In the short term, it is difficult for the parts and components industry to develop its own development capabilities and lack the technical support to establish a "strategic alliance partnership."

On the one hand, mainstream vehicle companies mainly rely on imported technologies, and host companies rely on joint venture foreign technology. Components do not have any independent market demand. Host enterprises require matching companies to have imitation capabilities, and require companies to have the ability to test, self-certify, and improve design capabilities at most. , far from "autonomy".

On the other hand, spare parts do not have the ability to pursue autonomy The disorderly competition and excessive competition cause the parts and components companies to remain in a low-profit, unprofitable operating state for a long period of time. They are unable to invest large sums of money in the R&D of hardware, software, and talents. They can gradually expand their production and protect the market. The production capacity is already a better-run company, and basically there is no excessive capital to pursue autonomy.

At the same time, parts and components companies do not want to dare to invest too much money and energy in research and development. The parts and components industry under excessive competition, disorderly competition, and lack of intellectual property protection measures has become one of the important means of competition in violation of intellectual property rights. Inadequate protection of intellectual property rights has caused the development results of enterprises to be infringed upon by other component manufacturers and even host companies. For parts and components companies, instead of being interested in counterfeiting, plagiarism and illegal acquisition of new technologies are the most direct and cheapest ways.

In this kind of macro-competitive state, the initiative of the parts and components companies to invest in research and development capabilities is naturally insufficient. Choose a joint venture, or choose to take the risk of development? The conclusion is self-evident.

At present, the host companies have fully realized the importance and urgency of establishing a “zero-strength strategic partnership”. The host companies have established their own R&D institutions, handing over the OEM's first-order choice to the R&D department (in the past, the procurement department), and selecting suppliers with simultaneous development and synchronization capabilities. In fact, most of the suppliers with this capability are foreign-owned enterprises and joint ventures, and the vast majority of domestic-funded enterprises still lack the technical foundation needed to establish a "strategic alliance partnership."