Where is the difference between Chinese parts and foreign parts?

With the international parts giants building factories in China, domestic enterprises have begun to go global. However, compared with foreign parts manufacturers in domestic production plants, domestic auto parts companies and international companies in research and development technology. There is still a big gap and needs continuous improvement. According to industry analysts, domestic component companies should work together to identify market space and enhance competitiveness.

At present, most foreign component suppliers have independent development capabilities:

Japanese parts pay attention to quality
The Japanese automobile industry developed rapidly from 1955 to an annual output of 11.04 million vehicles in 1980, surpassing the United States as the world's largest automobile producer and remained for 14 years. The Japanese auto industry produces a large number of high-quality cars on a relatively small scale, which has a lot to do with its unique quality structure model. It is based on this that the Japanese auto industry has created lean production methods and on-time production systems. High-quality technologies such as zero inventory and kanban management are inseparable.

German parts focus on research and development
The European model represented by Germany is a contractual relationship between vehicle manufacturers and component companies. Independent and independent development, vehicle companies can use drawings to bid to parts companies, and promote parts companies to follow the drawings. Production; at the same time, parts companies can also independently develop new products for the choice of vehicle manufacturers, achieve their own development, and promote the development of the automotive industry in the competition.

The United States has created a world-class component production group
The organizational structure model of the US auto parts industry has undergone three major changes. After the third change, it has made significant breakthroughs in quality and R&D, and finally created a world-class parts production group. For example, in 1994, General Motors removed its parts division from the parent and established Delphi Automotive Systems to operate in the global market. Delphi re-integrated its business in six systems, including chassis systems, electrical systems, and steering systems. Developed into the world's number one auto parts business group.

The situation of the above-mentioned national auto parts has made China have to worry about the current situation. Therefore, China needs to increase its support for R&D of parts and components. At present, foreign large parts suppliers have independent development capabilities, and R&D expenses generally account for 5% of sales revenue. More than 7%, while domestic companies mostly lack product development capabilities, research and development costs generally only account for 1% to 2% of sales revenue. The lack of independent research and development capabilities has resulted in domestic component companies having no market voice and being vulnerable to vehicle manufacturers. Therefore, China's auto parts and components must be bigger and stronger, and must break through the two major problems of R&D and quality. Then China's high-volume parts and components in the country will never be guaranteed.

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