Chinese Auto Parts Industry Standing A Chance Of Leapfrog Into The Global Purchase

In Europe, more than 300 auto parts suppliers have closed down, the year 2009 would be an important adjustment period for international auto supply chain. Chinese component suppliers have the opportunity to leapfrog into the global procurement system of joint venture.

Recently, not only joint ventures, but the local auto companies have shown the ‘downsizing’ plan, to cut the suppliers number. It seems like the ‘final exam’ for local suppliers. However, among them the innovative parts suppliers are expected to change adversity into opportunity to join in the global procurement system of joint venture.

Under the current crisis, the auto enterprises have faced lots of negative factors like decrease of orders, shortage of funds and reduced profits. In this case, an ‘adjustment storm’ has coming quietly for the whole industry supply chain.

Some analysts believe that, since there was a substantial reduction in orders from overseas, together with the domestic car enterprises began to cut their list of local parts suppliers, the local auto parts industry would be in a ‘enemy surrounding’ situation in 2009.

Vehicle website informations display that the global buyers have adjusted their strategies. First of all, to get the preferred powerful suppliers from China to replace or fill the vacancy for their domestic supply; secondly, to increase the proportion of after-market purchases at 20% or even more.

At present, the local supplier is facing both danger and chance, only ‘pass the final exam’, the suppliers could hold the opportunity to leapfrog.