Daqing refining acrylamide device energy-saving indicators to the team

After five months of production shutdown, Du You Automotive Mold Co., Ltd. finally resumed operations and secured a significant number of orders. This small company based in Xuhang Town, Jiading District, Shanghai, became one of the early beneficiaries of the recovery in China's auto market. In contrast, international giants like Delphi, Bosch, Honeywell, and Schaeffler faced even greater challenges. Global demand has declined, forcing companies like Delphi to sell off parts of their business just to survive. Other multinational firms also saw their global performance drop by over 30%. While this creates an opportunity for local auto parts manufacturers to rise, Chinese engineers working in foreign-owned companies warn that these local suppliers still lack the strength to compete with industry leaders who control core technologies and the upper end of the supply chain. What makes things worse is that as the Chinese market rebounds, companies like Delphi, Honeywell, and WABCO have launched ambitious expansion plans, posing even greater threats to domestic suppliers. **A Sudden Turnaround** Compared to the end of 2008, Hu Zhizhi now looks much more at ease. His first opportunity came at a matchmaking event hosted by Gass Net, where he stood in line with suppliers from Shanghai and Ningbo, hoping to meet buyers. Anxiety occasionally crossed his face — since August 2008, his injection molding business had been completely halted, and for five months, there were no orders. As a last resort, Hu shifted his focus to plastic parts for home appliances, moving from automotive interior components to general plastic parts. But this meant scrapping most of the over 6 million yuan worth of molding equipment previously purchased. While national manufacturers and parts suppliers were extremely pessimistic about 2009, the situation turned out to be even worse. “Honestly, when we set our sales targets at the end of 2008, they were slightly lower than the previous year. No one expected this,” said Li Xiangxiang, brand manager at Shanghai GM Chevrolet. Hu was surprised when, in March, he only supplied 19,000 plastic pieces to Beijing Hyundai. However, due to the popularity of Beijing Hyundai and Dongfeng Yueda Kia, Shanghai Dayou Plastic Molding achieved sales of 4 million RMB in the first quarter — far exceeding his expectations. But Hu clearly saw the root cause of his 2008 struggles: an overly concentrated customer base. Shi Wenkai, president of Gasgoo.com, shared the same view. “Most Chinese auto parts companies are dependent on foreign markets. When a crisis hits, if the customer stops production, the supplier follows.” To reduce risk, Hu’s next step is to become a Tier 1 supplier for steering wheels. Instead of relying on incoming parts, he will take responsibility for the steel frame, surface plastics, and integrated electronic components like function keys and airbags. This way, during a crisis, he can shift pressure to secondary and tertiary suppliers, improving his resilience. “Foreignization” is another survival strategy. He hired a South Korean production manager, who played a key role in his previous experience with a Korean-invested car manufacturer. “Our management styles are different. Chinese people often find it hard to cooperate, but Koreans get things done quickly.” Additionally, some clients mistakenly believe his company is Korean, which has helped him gain trust. **Struggling to Survive** Wu Chuanjuan, purchasing manager at Delphi (Shanghai) Power Propulsion Systems Co., Ltd., explained that due to the tight control of upstream steel mills and downstream automakers, Chinese auto parts suppliers are essentially at the mercy of larger players. The pressure is widespread across the industry. Wu’s colleague, engineering manager Zhang Liangsheng, said, “Shanghai General Motors told us to cut prices by 30%. What could we do?” While Delphi can reduce costs by pressuring second- and third-tier suppliers, those at the bottom are left with little choice but to cut labor costs through layoffs or salary reductions. According to internal data, foreign auto parts suppliers hold as much as 80% of the market share in China. For auto electronics and engine parts, that figure rises to 90%. Core technologies such as high-pressure common rail systems, ABS, and automatic transmissions are firmly controlled by companies like Bosch and Delphi. Despite ongoing efforts to develop local parts businesses, few have succeeded. In 2004, Wuxi Weifu partnered with Bosch to gain access to advanced technology and management expertise, but ultimately became a supplier to Bosch and lost its dominant position in the domestic market. According to Alix Partners, a global business intelligence firm, over 40% of China’s auto parts suppliers faced liquidity issues since the financial crisis. Many are at risk of closure in the next one to one and a half years. In April, Bu Ai'an, president of Honeywell Transportation Group, visited Shanghai and demanded higher performance from the general manager of the turbocharger and automotive consumer goods division. “Automotive consumer goods will grow by over 50% in China this year,” he said. Meanwhile, North American and European operations are declining, so Honeywell needs to boost its China business. WABCO has also increased investments to strengthen its position in the commercial vehicle market. Other major players like GKN, BorgWarner, and Johnson Controls have established new factories or joint ventures in China, aiming to capture market share with aggressive expansion. All of these developments pose new challenges for local suppliers. “As a local parts supplier, it's tough to build up from such a low starting point,” said Hu Guoliang, chief engineer at Taimike (Shanghai) Automotive Systems Co., Ltd. He advised local companies to develop reasonable strategic plans and aim to become direct partners with vehicle manufacturers.

Traction Sprayer

Traction Sprayer,Traction Pneumatic Sprayer,Traction Compound Sprayer,Sprayer Traction Control

Gongzhuling Huaxi Agricultural Machinery Manufacturing Co.LTD , https://www.hxzbjx.com