Over the past 30 years, domestic auto parts companies have “go abroad” mainly through trade channels. However, in recent years, direct export methods have been increasingly restricted by anti-dumping, technical barriers, and green barriers. Under such an international market environment, auto parts companies are moving to overseas markets by virtue of their advantages in manufacturing, and establishing overseas production bases, sales channels, and brands through off-site construction or mergers and acquisitions becomes an inevitable choice. At present, there are more than 150 Chinese-funded enterprises that can be counted in the US state of Michigan. The proportion of auto companies is relatively large, such as Fuyao Glass, Wanxiang Group, Changan Automobile, and AVIC Automobile, etc. Trends. But in this process, what problems do parts and components companies encounter? What are the lessons? To this end, we made relevant reports and hoped to provide reference for auto parts companies to invest in the United States.

Yu Longyue Auto Parts Company went to the United States to invest in the exam “If we compare the process of Chinese auto parts companies investing in the United States to the Long March, we are still at the initial stage; if we take a rational view of Chinese auto parts companies investing in the United States, In the current situation, we are currently following people and smashing sesame seeds. Of course, this is a necessary process. The future must be picking watermelons.” Mao Haiyan, vice president of procurement of Liaoning Shuguang Automotive Group Co., Ltd. recently said in an interview.

On September 26th, Shao Ning, the chief representative of Michigan State of China in China, expressed his concern to reporters. China's auto parts companies are the "leading player" of China's auto industry to the world and have an important strategy for the development of China's auto industry. significance.

Since December 2013, Fuyao Glass, Wanxiang Group, Shanghai Changhui Industrial Development Co., Ltd., and Zhuzhou Times New Material Technology Co., Ltd. have built factories in the United States or acquired local companies. Parts suppliers in China are accelerating. Enter the US market.

Parts enterprises to invest US <br> <br> trend in recent years, China's auto parts enterprises have accelerated the pace of overseas investment. Some auto parts companies are no longer merely satisfied with the export of parts and components, but set up factories in the United States and other countries and regions or directly acquire local companies, hoping to become global auto parts suppliers.

On August 29th, Fuyao Glass and the American PPG Industry Corporation's property handover ceremony for the Mt. Zion plant in Illinois, United States, was held at the headquarters of Fuyao Group, becoming the largest investment in Chinese auto parts companies in the United States. In this regard, Mao Haiyan believes that although the acquisition of this company's investment method is the basic stage, but it is a step that must be taken. When asked about the conditions of the Aurora Axle’s investment in the United States, Mao Haiyan said: “The Twilight Axle is planning to negotiate investment in the United States. It has not been formally determined yet, and it is not convenient to disclose it.”

Chairman Cao Dewang of Fuyao Glass once stated that in recent years, although the growth rate of the global auto industry has slowed down, the United States is still the world’s largest auto consumption market, and the market space still exists, and the US’s management model can help the company grow if it’s zero. Parts companies want to be internationalized and gain access to the US market is an important symbol. Shao Ning also believes that if a company with a truly international vision and competitiveness does not develop in the US market, it will either have no confidence or no ability.

During the interview, Ning, a consultant from the China Chamber of Commerce in Detroit and chairman of the ThirdWave Group Investment Group in the United States, referred to an article entitled “Chinese companies are rooted in Detroit.” The article states: “Dozens of Chinese companies are taking root in Detroit. This is China’s spare parts. The company is steadily moving toward the US automotive industry. Chinese companies are investing in new technologies in American companies and automobiles, selling various products from seatbelts to shock absorbers in retail stores, and hiring experienced engineers and designers. In absorbing the talents and expertise of US domestic automakers and their suppliers, Chinese companies start with batteries and auto parts. Their growth and expansion are expected to eventually enable Chinese cars to be sold in the United States."

Establishing a car industry park is a way

How can auto parts companies “go out” to seek the development of the U.S. market?

Liu Ning said in an interview that although many parts and components companies have already invested in the United States, their development still encountered many problems, such as land leases, personnel recruitment, corporate culture integration, and employee care. At the same time, the bidding process for overseas investment is extremely complicated. Domestic parts and components companies are not familiar with many foreign situations, such as labor relations handling and legal disputes, lack of local support systems from business to talent, and lack of knowledge of foreign legal tax systems. It is the information and support that auto parts companies must obtain to invest in the United States.

In view of this, Liu Ning believes that the establishment of the China Automotive R&D Industrial Park overseas is an effective way to help domestic auto companies move into the world at the present stage. Through the formation of a park, the various social resources will be released. Liu Ning specifically said: "The park as a platform, can integrate local government resources at all levels, get preferential conditions; integration of local auto parts manufacturers and other supporting resources; centralized use of various local social resources, such as manpower, lawyers, accounting firms Etc.; The formation of agglomeration effect of talents; Positive publicity and guidance to the media and the public to obtain more support for Chinese auto companies; Gather various supporting life service agencies and accelerate the integration of staff stationed in local culture."

Shao Ning believes that establishing a car industry park is a good exploration. He disclosed to reporters that the Michigan State Government of the United States attaches great importance to the projects of China Automotive Industry Park. The ultimate goal of establishing an industrial park is to provide better service to Chinese auto companies. The specific form and content will be arranged according to the specific needs of Chinese companies. . At the same time, Shao Ning also said that Michigan is the “cradle” for the development of the US automotive industry. More than 70 percent of automotive R&D organizations in North America and more than 60 percent of large-scale automotive suppliers are here, and they can meet the talents and funds of auto parts companies. Technology and other comprehensive needs.

It is not only in Michigan that, for various reasons such as employment, the U.S. government has always welcomed manufacturing companies such as auto and parts companies to invest in the United States. This has created a good opportunity for domestic auto parts companies to invest in the United States. Market and policy environment.

To enhance the overall strength of the United States investment <br> <br> June this year, China Association of Automobile Manufacturers invitation of the US government and Detroit, Michigan Chamber of Commerce, the organization of domestic auto companies on the US automobile business investment environment conducted an investigation and study. Through this inspection activity, the Chinese side obtained first-hand information on US market policies, regulations, products, etc., understood the status quo and trends of the US auto market development, and has strong guidance for domestic companies investing in the United States, which is beneficial to Chinese enterprises. Learn to explore overseas markets.

Regarding the issue of “what capabilities component companies need to invest in the United States”, Liu Ning believes that auto parts companies must have the ability to integrate global resources in their investment in the United States; Shao Ning believes that investment in parts and components companies in the United States will require technology, Talents, funds and other aspects lay the foundation.

Mao Haiyan believes that auto parts companies must have comprehensive capabilities in product development, production, verification, and after-sales services. To invest in the United States must have a long-term plan and learn how foreign investment can enter the Chinese market. Specifically, one must understand as much as possible the market conditions of the investing countries, through the establishment of overseas offices, consulting companies, and the assignment of teams of experts; second, it must have its own talent strategy and employ local talents appropriately; Capital strategy; Fourth, business leaders must have overseas strategic vision and investment ideas.