It's hard for the brake business to come to an end

Right now, the days of brake companies are really hard.

They had to write to the Prime Minister for help.

On September 19, 2012, the relevant person in charge of the Zhejiang Libo Hexin Auto Braking System Co., Ltd. (“Libang Hexin”) who wrote to the Prime Minister told the reporter: “As far as we know, the letter has been issued by the Ministry of Industry and Information Technology. For the China Automotive Industry Association, no specific feedback has yet been received."

The date of writing is May 28 of this year. Libang Hexin wrote a letter on the business dilemma of the company and the difficult development of the brake industry and sent it to Premier Wen Jiabao and the leaders of the National Development and Reform Commission and the Ministry of Industry and Information Technology. After receiving the letter, the Ministry of Industry and Information Technology transferred it to the China Automobile Industry Association. Gu Yifan, secretary general of the brake committee of the China Automobile Industry Association, recently sent relevant information to this newspaper.

To support: difficult!

This letter addressed to the Prime Minister was titled "Struggling Auto Parts Enterprises - Cry from Grassroots Auto Parts Enterprises".

The letter mainly wrote about the difficulties in matching the auto brake manufacturers in China's own brands. At present, the joint-venture brand vehicle companies basically use foreign or joint-venture components of their original supporting systems for parts and components, and reject self-owned brands thousands of miles away, especially for Korean and Japanese auto companies. They even have one. Screws also do not give domestic auto parts companies the opportunity to support them.

Letters from Li Bangxin to the Prime Minister soon caught the sympathy of many brake companies. The situation reflected by Libang Hexin is common in the brake industry. A person in charge of a brake company in Zhejiang told reporters that it was difficult for them to enter the supporting system for joint-venture car companies. He said: "Parts and accessories companies that can support are all deeply interested in the joint venture vehicle companies."

It is reported that in the field of automobile brake systems, the supporting companies of European car companies and other automobile companies are basically wholly-owned and joint ventures of Bosch, China, Valeo and other manufacturers in China, such as Shanghai SABS and Suzhou Bosch. U.S. cars Shanghai General Motors and Changan Ford Motor Co., Ltd. are supported by Delphi and TRW's joint ventures in China, such as Shanghai Delphi Chassis Company, Langfang Lucas, and Chongqing South Tianhe. Japanese companies such as GAC Toyota, Dongfeng Honda, etc. are mainly supported by wholly foreign-owned enterprises in China such as Japan's AIDEX, Shuguang, Hitachi, etc., such as Guangzhou Rixin, Tianjin ITECH, Guangzhou IXYX, Suzhou Dongjigong, Guangzhou. Shuguang brakes, Foshan, etc. Korean car manufacturers such as Beijing Hyundai and Dongfeng Yueda Kia are mainly supported by South Korea's MANDO's joint venture in China.

There is no way for the joint venture to complete its business, and it is becoming more and more difficult for its own branded vehicle companies to support it. It is reported that with the improvement of the quality requirements of self-owned brands, the supporting components of key brands of self-owned brands are mainly foreign-funded or joint-venture brands.

A relevant person in charge of a brake company in Shanghai told the reporter that even if the company has been involved in a complete system, the price of the product will be very low. For products with the same performance, the price of self-owned brand parts and components may be only half of the joint venture or wholly-owned products. The road for OEM support for self-owned brand brake companies has become increasingly difficult.

Push new products: blocking!

In addition to the difficulties in supporting the market, the brake companies are also struggling to promote new technologies and new products. Joint ventures and wholly-owned auto parts companies are more concerned with the new development of their own brands of brake products.

For the new products of China's own brand brake industry, foreign-funded enterprises are always concerned about and immediately suppress the development once they are found successful.

A company that successfully developed a hydraulic ABS system faced the dilemma of no product promotion. The person in charge of the company told the reporter: "The successful development of China's own brand of hydraulic ABS has brought us joy and glory. Once the news of successful development was announced, the price of foreign imported products immediately fell by two-thirds, making our products Losing the price advantage.Low cost is the eternal pursuit of the company, so we do not blame the independent brand automotive companies.But as a private enterprise, we take the power of the company to spend more than ten years to develop the product when it will come out on the day? What is clear is the dumping of self-owned branded companies in China, why no one has interfered in this behavior?”

Another company that manufactures electric parking brakes (EPB) told the reporter that in 2010, due to the consideration of industrial transformation and upgrading, the company introduced EPB product R&D team from abroad, conducted research and development of new products, and achieved good results. . The enterprises are still immersed in the joy of R&D success. The follow-up promotion has poured cold water on them: joint ventures do not recognize it, and independent brand auto companies do not trust their new products.

The person in charge of the company told reporters with a grin: "Now the status of the brake industry, if it continues, the self-owned brand will not do brakes again."

Looking for the way ahead: Which?

At present, the traditional brake products have low profits and fierce competition; there is no way to promote their own brand new brakes. Should brake companies continue to invest in research and development of new products or in the competition of traditional products?

Some self-branded automotive brake companies that have developed new products have begun to suffer. Companies invest a lot of manpower and material resources in R&D, and new products cannot be produced due to difficulties in the development of new products. The follow-up development is not continuation, and investing in R&D has become the last straw to pressure the company.

A person in charge of a brake company in Zhejiang told the reporter that as a private enterprise, the initial investment has seen a detour, who would dare to continue to invest, but not to invest is also dead, at present, the company seems to only choose how to die.

Life and death are unknown, and Libang Hexin issued such a cry: China's autonomous auto parts companies have reached a critical juncture for survival. Without taking strong measures, a few years later, most of the self-owned branded parts and components companies will find it difficult to survive.

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