Parts companies should stick to their own development

A year ago, Delphi made a strategic move by divesting six non-core businesses, including brakes and chassis, catalytic converters, dashboards, door modules, steering systems, and axle bearings. Ford Motor Company also sold off its auto glass manufacturing assets, drawing interest from several Chinese companies such as Dongfeng, Wanxiang, Weichai, and Fuyao. Although none of these Chinese firms managed to secure major deals in the end, Jia Xinguang, a well-known automotive analyst in China, pointed out that the American auto industry, despite its arrogance, is now forced to accept the growing influence of Chinese companies. This trend isn't just about the strength of Chinese firms—it reflects a broader global shift. Mergers and acquisitions have become increasingly common across the manufacturing sector, particularly in the automotive parts industry. For domestic companies, acquiring specialized firms related to their core business has become a standard strategy to deepen technological expertise and enhance competitive advantage. For example, BorgWarner acquired the French company Moss, strengthening its position in powertrain technology. PPG expanded its coating business by acquiring Dutch-based companies like Macarons. A more impressive case is IAC, which was founded in 2005 and quickly grew into a $5.6 billion car interior and exterior parts giant through a series of strategic acquisitions, including Collins & Aikman’s European assets and Lear Europe's interior division. Given this context, Weichai could explore similar opportunities, such as acquiring Hunan Torch and its subsidiaries like Fast Transmission, Hande Axle, and Zhuzhou Gear, or even pursuing Delphi’s abandoned non-core assets to strengthen its competitive edge. In addition to acquisition strategies, many Chinese companies are focusing on independent innovation and entering new markets. Rather than simply buying foreign assets, they are investing in R&D, introducing new technologies, and improving existing ones through integration and adaptation. This approach has become increasingly visible in the commercial vehicle parts sector over the past year. Take engine manufacturers, for instance. Despite unclear national policies, several major diesel engine companies launched Euro IV emission engines in 2007. Yuchai was the first in China to introduce a Euro V engine, showcasing strong R&D capabilities. Similarly, FAW’s sixth-generation J6 model features advanced components like 12-speed and 16-speed transmissions, while Dongjukyu developed patented ABS systems and airbags. The Dongfeng Fengshi SUV, which won a top science and technology award in China’s automotive industry, further highlights the rising technical standards of domestic components. These developments signal that Chinese companies are no longer just following global trends—they are actively shaping them.

NISSAN Turbocharger

GT2052V TURBOCHARGER,GT1752S,GT2052V,GT2056V,GT1849V TURBO

Fengcheng Fire Turbocharger Manufacturing Co; Ltd. , https://www.fireturbocharger.com