In the past few years, the monopolistic tide of one-sided parts companies began to appear "backflow." On June 5, 2014, Li Jingcheng, Deputy General Manager of Faurecia China stated in an interview: “The next step will be to promote the development of the Chinese market through joint ventures.†Before this, Johnson Controls and Yanfeng Automotive Trim Systems Co., Ltd., a wholly-owned subsidiary of Huayu Automotive, a subsidiary of SAIC, signed an agreement to jointly establish a global joint venture for automotive interiors. In early May, Beijing Automotive Group just established a joint venture with Siemens to establish Beijing Siemens Automotive Electric Drive System Co., Ltd. The National Development and Reform Commission officially canceled the share-ratio restrictions on foreign-invested parts and components in the 2004 edition of the "Automobile Industry Development Policy." In the past decade, the strategy of multinational automobile companies in China has undergone new changes. “Foreign-funded parts and components factories in China are basically based on controlling or sole proprietorship, and are rarely willing to joint ventures.†Gesellsz.com CEO Wenkai Chen stated that this also leads to high-tech and core technologies, such as automotive electronics and engine parts. In other key areas, the foreign-controlled market share is as high as 90%. Although auto parts companies represented by Faurecia, Johnson, and Siemens are leading a new round of joint venture “backflow,†the industry generally believes that: Joint ventures are still not a major trend, but only a small part of the wave of spare parts alone. The choice of "backflow" to the joint venture model is only because these multinational companies hope to use the joint venture to obtain the market, and the competitive and competitive parts and components companies that have mastered the mainstream technology still choose to expand their own capital. Joint venture is a strategy for gaining market Most of the joint ventures that multinational component companies are looking for are vehicle manufacturers. “Our aim is to achieve maximum development.†Li Jingcheng told reporters that in the Chinese market, Faurecia has formulated a new round of development plans. Faurecia’s current main business is in Europe and accounts for the total volume of business. More than 50% will increase the current Asian market from the current 13% to 15%-20%. By 2018, the number of factories in China will expand from the current 27 to 55. “Foreign-parts companies must protect their core technologies to keep their technological advancement, but at the same time they must also consider the market's expansion needs. In the end, they will combine the two to find a balanced approach. Chen Wenkai thinks. Foglia’s choice of joint ventures is largely related to its business scope. Foglia has four major business segments: car seats, emission control technology, automotive interiors and automotive exteriors. Some of the current joint ventures mainly focus on automotive seating and automotive interiors. These two services are relatively more dependent on the OEM. A joint venture is a means by which foreign companies take business in China. Although every host factory purchase is subject to public bidding, its joint venture will always be given priority under the same conditions. "If you don't join a joint venture or someone else's joint venture, you have no share. Whoever gets the order from the OEM will do a lot," said Chen Wenkai. For instance, if Johnson Controls is willing to form a joint venture with Yanfeng to share 70% of Yanfeng's shares, a very important reason is that establishing a joint venture with SAIC's subsidiary will help Johnson Controls get more orders from SAIC. Foreign and domestic parts and components start to compete “Mainly the value of the Sino-foreign joint venture to the two parties.†Chen Wenkai believes that the multinational auto parts companies can obtain a joint venture with the automakers at the same time, and joint ventures with parts and components companies do not play a significant role, which also leads to multinational auto parts companies. There are very few cases of joint ventures of domestic parts and components companies. †However, even if it is a joint venture with a vehicle manufacturer, multinational parts and components companies are mainly based on interior and exterior trim parts. It is still rare for strong parts and components companies with core technologies to choose joint venture routes. A responsible person in charge of a certain automobile group in China told the reporter that after the release of the joint venture shares of the parts and components companies, the pressure on them was very high. Some of the original joint venture companies had asked for controlling or sole proprietorship. Although the joint venture was ultimately hindrance, it had been a joint venture. The foreign parties will seldom withdraw their capital, but their newly established businesses in China will generally adopt sole proprietorship. In recent years, two factories and two test centers established by Bosch have been wholly-owned. The newly-opened companies including TRW, Mahler, Schaeffler, and ZF are all based on sole proprietorship. These parts and components companies are committed to the sole proprietorship road because they have excellent technology and have basically monopolized in some areas. Even if they do not have joint ventures with automakers, OEMs will still purchase their products. And they generally have key component technologies. This also means that even if some parts and components companies choose joint ventures, the key parts and components companies are still dominated by sole proprietorship. "The joint venture reflow phenomenon will not become the mainstream, and the gap between domestic parts and components companies and foreign-funded parts and components companies will not change as a result." Chen Wenkai analysis. At present, apart from interiors and Huaxiang, other major parts and components systems including air-conditioning systems, seat systems, safety systems, brake systems, suspension systems, steering systems, and engine control systems are all foreign-funded and even connected. Good precision castings such as cylinder heads are also foreign investment. However, this does not mean that domestic companies have no chance at all. As Chinese self-owned brand companies become more powerful, Chinese companies with more say can gain more bargaining chips with international parts companies. The self-owned brand enterprises represented by Changan have developed rapidly in recent years. In order to obtain business, some foreign-funded parts and components companies have established joint ventures with them. For example, Changan has established joint ventures with Weststone and Foglia. In addition, China's parts companies may also emerge in emerging areas. For example, Beijing Siemens Automotive Electric Drive System Co., Ltd., a joint venture between Beijing Automotive and Siemens, will mainly produce electric drive powertrains for electric motors and power electronic equipment used in new energy vehicles, and will be applied to BAIC S, C, and L series. Energy models. SAIC Motor also conducted a comprehensive layout of key technologies for new energy, “Sanpower,†and it will not rule out the possibility for Chinese companies to acquire new energy component technologies. Medical Equipment Membrane Switch Medical Equipment Membrane Switch,Silicone Touch Panel,Rubber Buttons Keypad,Metal Touch Keypad ZDX (HK) LIMITED , https://www.zdxmembranekeyboards.com