language
Where are the auto parts giants going in a sluggish market?
Release time:
2024-09-20
For the auto parts giants of the past incomparable scenery, a bloody storm is really coming. On August 27, according to foreign media reports,
For the auto parts giants of the past incomparable scenery, a bloody storm is really coming.
On August 27, according to foreign media reports, the world's second largest auto parts manufacturer German Continental Group (Continental AG) said that the company is considering whether to close factories including Germany to restructure its business. It follows reports that nine plants in the company's powertrain division could be shut down.
Continental's difficult transformation may be just a typical microcosm of the elephant turn of parts suppliers. Under the trend of electrification and intelligence, this industry is about to usher in a new round of drastic changes.
There was a cry, and the "elephants" were in deep trouble.
The German "Hannover Guangxun" quoted union sources as saying that Continental plans to close 9 of the 32 production bases in the powertrain division, which may cause 4000 people to lose their jobs. Continental is the world's second-largest auto parts supplier after Bosch, with around 244000 employees in 60 countries.
Prior to this, on August 7, Continental announced the corresponding layoff plan at the scene of its second-quarter financial report, and revealed that it may sell some of its fuel engine parts business next, seeking to further cut costs. In the past second quarter, Continental's net profit plunged 41% to 0.485 billion euros.
In 1871, Continental Group was established in Hanover. Its main products include tires, braking systems, body stability control systems, engine injection systems, tachometers and other automotive and transportation parts.
With global car sales in the doldrums and the huge costs of the transition, auto parts manufacturers are having a hard time. In early August, Bosch said it would start a layoff plan and said it might sell some of its fuel engine parts business. The company expects car production to fall by 5% this year. At that time, the industry was in an uproar, and the chairman of the group's board of directors, Volkmar? Denner (Volkmar Denner) said that due to the continued decline in demand for diesel production from major global automakers, the company had to lay off employees to cope with the downward trend in the market.
On August 2, German time, another giant ZF AG released its first-half 2019 results: sales of 18.4 billion euros and adjusted earnings before interest and tax (EBIT) of about 0.646 billion euros, lower than previously expected. ZF stated that the main reason for the lower-than-expected profit was the decline in sales in the passenger car market, the further increase in research and development expenditures and the large amount of costs required for new plants.
Electric layout
Driven by increasingly stringent global regulation, traditional automakers are keeping up with the trend to increase sales of electric vehicles, and component manufacturers are also having to adapt to this trend of electrification.
In early July, Continental said it would stop developing internal combustion engines such as gasoline and diesel engines by 2030. The company expects that by 2050, almost all of its new cars will be pure electric vehicles and fuel cell vehicles, so it will undergo business transformation. In addition, the company predicts that the internal combustion engine that will be developed in 2025 and produced in 2030 will be the last generation of internal combustion engines.
Continental said it would focus more attention and money on electric drivetrains. Its powertrain division head Andris? Wolf (Andreas Wolf) said that the company's transformation may continue for several years.
The rise of electric vehicles will bring about earth-shaking changes in the original parts system of the automobile industry. Incomplete statistics show that about 50% of the fuel auto parts market will disappear in the future.
Eikenberg, an auto industry analyst in Detroit, believes that by 2030, the world's annual production of pure electric, plug-in hybrid and light hybrid vehicles will create a battery, engine and electronics industry market with an annual output value of $213 billion.
Inventory of a number of parts giant electric layout can be found: electric business independent operation, joint with industry giants, cut into the field of vehicle manufacturing production of pure electric vehicles, etc., is the focus of these enterprises.
New business is not easy to do
In addition, attach importance to the Chinese market, seize the high ground of intelligent travel in advance, or the new business of parts and components enterprises.
Continental Group has carried out a comprehensive layout in the fields of automatic driving, intelligent network connection, automobile battery system, travel service and so on.
In March this year, Continental Group and Chinese battery supplier Chengfei Integrated set up a joint venture company through their respective subsidiaries to develop and produce 48V car battery systems. In terms of intelligent network connection, Continental Group has successively cooperated with Baidu, Avida and other enterprises to develop automatic driving, intelligent network connection vehicles, etc. to make cars intelligent.
In June, the groundbreaking ceremony of the Chongqing R & D Center of Continental Group was held in Liangjiang New District. The total investment of the R & D center is about 0.28 billion yuan. In July, Continental announced a strategic cooperation with Didi. The two parties will cooperate in the fields of smart interconnection, travel services, and customized new energy Internet vehicles to jointly promote the development of future smart travel services.
In addition, Bosch also announced the establishment of a new intelligent network business unit, focusing on the development and sales of digital transportation services.
In these new areas of traditional manufacturers, perhaps they will meet another large player. On August 9, when Huawei released the "Hongmeng Operating System", there was an equally important "system"-Huawei Smart Car Solution: HiCar. At the Shanghai Auto Show in April, Huawei boarded the booth for the first time as a world-class Tier1 supplier (Tier 1 supplier).
Previous documents clearly show that Huawei does not build cars, but wants to become a supplier of incremental ICT (information and communication integration technology) components for automobiles to help enterprises build good cars.
China Industry Information predicts that the global market size of electronic parts in 2019 will be about $228.5 billion billion, and the proportion of electronic parts in auto parts is increasing, and the market size is expanding. At present, the global Top 10 automotive electronics suppliers account for 70% of the market.
A research report by CITIC Jiantou Securities pointed out that Huawei's entry direction is to target automotive electronics companies such as Bosch and Continental. The report predicts that Huawei's sales of electronic components for smart cars are expected to reach the order of $50 billion in the next decade or so.
Xu Zhijun, the rotating chairman of Huawei, once said: "Maybe in the auto industry ten years later, Huawei will be very good again, just like the current mobile phone industry." Perhaps, with the addition of Huawei, the future automotive electronic parts industry is facing the possibility of re-ranking.
Related News
CHONGQING YONGFENG ELITE AUTO PARTS CO., LTD.
Address: No.23, Jiu'yang Rd., Nan'jin Subdistrict, He'chuan District
Tel: +86023-42815139
CHONGQING YONGFENG ELITE VALVE CO.，LTD.
Address: No.68 Ankang sub Rd.Airport Industrial parkYubei District Chongqing,401120,PRC
Tel: +86023-42815178
©2024 Chongqing Yongfeng Jingqi Auto Parts Co., Ltd.
Powered by www.300.cn | SEO [Privacy Statement]
Business License