More than 70 companies wait in line
Stimulated by the signal of expansion of Shenlong Motors, more than 70 domestic and foreign small and medium-sized auto parts enterprises have registered and lined up factories to build plants. The scene has been in Wuhan Economic and Technological Development Zone for several months.
In order to enter the "Strategic Supplier" procurement list of Shenlong's 30 billion yuan, high-level domestic and foreign manufacturers, including major multinational component manufacturers, have visited Wuhan frequently.
"Visteon, Faurecia, Lear, and Stilton and other auto parts multinational companies have sent senior executives to Shenlong to visit and have clearly expressed their plans to invest or expand capital." September 21, just from the supplier reception Ning Xiaoyang, the head of Shenlong's purchasing department, told reporters.
As the layout of the Wuhan Development Zone has basically taken shape, there is not much land supply. At present, Wuhan City has already transferred 102 square kilometers of land on Junshan Street of Caidian District to the Wuhan Development Zone for trusteeship, and the problem of tight enterprise land will be alleviated to some extent.
According to the Shenlong Capacity Planning Arrangement, in 2010, the annual production capacity of Shenlong will increase from 300,000 to 500,000, and the purchase of spare parts will also increase from the current RMB 15 billion to 30 billion. Prior to this, Shenlong Company needed to purchase nearly 10,000 kinds of auto parts and industrial products every year. There were more than 300 major auto parts suppliers and nearly 500 suppliers of industrial products.
In order to meet the requirements for expansion, Shenlong has already decided to establish a global procurement and supply system, establish a strategic partnership with more powerful suppliers, and build two large dragon industrial parks in Wuhan and Xiangfan.
According to the new standard formulated by Shenlong: Strategic suppliers must meet the requirements for the long-term development of Shenlong, achieving first-class quality and being competitive globally, and being able to supply new products in a shorter time. In addition, suppliers also need to master core technologies, and their production capabilities and product quality have irreplaceable advantages in the long run.
Valeo is the world's top ten auto parts supplier with annual sales of more than 10 billion euros. As early as 1995, he entered the Wuhan Development Zone to manufacture headlights for companies such as Shenlong. "Our 3,600 square meter extension plant has been basically completed and we are using globally synchronized equipment," said general manager of Valeo Lighting Co., Ltd. In early 2007, the company added 100 million yuan to start the second phase of the project, precisely for the sake of waiting. The starting gun for expansion of Shenlong was sounded.
Dongfeng Visteon, a joint venture between Dongfeng Group, SAIC Group and Visteon USA, is the main manufacturer of dashboards and interior and exterior trim parts of Shenlong. It was established in Wuhan Development Zone in 2003. Prior to this, the company had sales of 400 million yuan a year, of which 250 million yuan came from supporting Shenlong. As a prophet, Dongfeng Visteon is also preparing for expansion.
Many suppliers will not get new orders
According to the PSA dual-brand strategy, by the end of 2010, Shenlong will launch 12 new models, and there will be 3-4 models available each year.
With the PSA giant bet China kicked off, Shenlong's weaknesses have been exposed for many years: On the one hand, the localization of spare parts supply is insufficient, and logistics costs remain high; on the other hand, the domestic suppliers of spare parts in strategic suppliers have independently developed and The management ability is weak.
Data show that in 2006, Wuhan's total automobile output value was 42.7 billion, of which 31.5 billion were for vehicles and 10.5 billion for parts and components. Last year, Wuhan's automakers issued orders for 15 billion yuan for parts and components, local orders were less than 4 billion yuan, and companies such as Shenlong and Dongfeng often needed to find manufacturers of parts and components in Jiangsu and Zhejiang. Therefore, the cultivation of strong local suppliers has become a top priority for Shenlong.
In addition, Ning Xiaoyang stated that the main problem existing in the existing parts and components suppliers of Shenlong is that the production efficiency is not high, and the ability to develop synchronously with new models is relatively poor. "Since the product cannot be synchronized with the new models launched in France in the future, many parts suppliers will find it difficult to get new orders."
Shenlong-related sources said that the domestic parts and components companies are not far from the advanced international companies in terms of independent research and development capabilities, production capacity supply, and corporate management. Therefore, multinational auto parts giants have quietly occupied the upper hand in this dragon battle.
Haibo Machinery Co., Ltd. , http://www.embroiderymachine-manufacturer.com