Magna Interior is planned for sale to Antonglin, Trina will sell its suspension business to Amtek, India, Delphi will transfer the sole proprietorship of the heat exchange system, and Johnson Electric will sell it to Wisdom... Recently, the international parts market has been frequently transmitted. A parts giant sells some of its parts and components business, as Liu Weidong, deputy general manager of Dongfeng Motor Corporation said, this is a new change in the international auto parts market in recent years. Then, what are the considerations for international auto parts companies to actively divest non-core businesses? What are the implications of these new changes for the development of China's auto parts companies?
Focusing on the development of core business and strengthening competitive advantage "Currently, international auto parts companies actively sell non-core businesses in order to concentrate on cultivating the competitive advantages of core businesses and become a strong enterprise in a single industry." Liu Weidong said. Zhu Guangwei, vice president of China's Bosch Automotive Multimedia Division, said in an interview that international companies are very focused on their leading position in the industry and hope to remain in the top three positions.
In 2013, Johnson Controls plans to sell its automotive electronics business to Visteon, which will be completed in July 2014. Data show that in fiscal year 2012 (October 2011 to September 2012), Johnson Controls Automotive Electronics' sales of sales of $1.4 billion, while sales of automotive interiors reached $4.1 billion. It is obvious that the profitability of Johnson Electric's electronic business is far from the car interior of its main products. As a result, Johnson has divested its automotive electronics business and focused on developing its automotive interior core business to better consolidate Johnson's leadership in the automotive seat industry.
In this regard, Zhu Guangwei believes that although Johnson Electric's electronic business is relatively strong internationally, Johnson believes that this is not their development focus, so the car electronics business is sold to Visteon. For Visteon, its main business is automotive electronics, which will strengthen Visteon's market competitiveness in the automotive electronics field after the acquisition. This is a typical case, and the two sides reached a win-win situation.
In fact, Bosch has also divested some non-core businesses. For example, on September 24, 2009, Bosch sold some of its brakes in North America to Japan’s Shuguang Brake and sold Sapphire Car Audio, because these businesses are not Bosch’s current and future. Development focus.
In addition, Magna intends to sell automotive interiors in order to concentrate more resources on the development of electronics, powertrains and batteries; Delphi sells its wholly-owned business in the Heat Exchange Systems Division to MAHLE for approximately US$727 million. It is also to focus on green, safe, and interconnected automotive electronics trends and highly designed automotive parts products to enhance its market competitiveness.
Wu Kaiyuan, managing director of Delphi Packard Electric Systems Co., Ltd., said that the international auto parts company has taken the initiative to divest some non-core businesses. Pursuing the high-end value chain market." Zhu Guangwei said in an interview that this is mostly due to corporate strategic considerations and pre-judgment of the future development of the industry. Ni Wei, vice president of ASIMCO Group, also agreed, in addition, he also believes that research and development resources constraints, internationalization and environmental protection requirements of European and American countries also have an impact.
The divestiture decision needs to be considered from the long-term development strategy. “What is important for a company, What not to do is more important.” Ni Wei told reporters that the divestiture needs “forward-looking” research, and corporate executives must have at least 5 After the year, the business development has gained insight and research and can make effective trade-offs. Qiu Jianping, general manager of Changzhou Far East Linkage Group, also said that the ratio between core business and non-core business needs to reach 7:3 or above before the divestiture can be implemented, otherwise the company will have great losses.
But for Chinese auto parts companies, many companies are good at doing "addition" and rarely doing "subtraction." Zhai Zhongchao, vice president of Zhejiang Shibao Co., Ltd. said in an interview: "China's vehicle companies also have to do subtraction, such as Geely, but there are relatively few parts and components companies. Many Chinese companies do addition because of difficulties in their main business. Diversification can reduce the risk of a single business."
In this regard, Qiu Jianping’s view is that Chinese companies like multi-business development and believe that “the East is not bright in the West”, although the field is wide but not prominent, it is difficult to make corporate characteristics and brands, and it is difficult to upgrade enterprises. Competitiveness. "At present, China's parts and components companies hope to raise funds through listing, and seek sales, and pursue sales." Wu Kaiyuan believes that listing financing also affects companies' decision to divest non-core businesses.
On the whole, China's auto parts companies are driven by short-sighted interests, and there are few long-term strategies, especially private auto parts companies. However, international auto parts companies have long-term strategic plans. They are very clear about the strategic focus of a certain stage, and will be stripped away from the inconsistency of strategic development. Moreover, international component companies will also consider the development trend of the entire automotive industry when formulating strategies. They often use their R&D capabilities and manufacturing capabilities to seize the high-end value chain market.