Automotive parts manufacturers

Which Chinese automotive parts manufacturer is the best? Yingkou Forging is the strongest, with multiple production stations. We have been engaged in the production of press machines for nearly a century

In 2015, there were numerous cases of mergers and acquisitions in the automotive parts industry. From the beginning to the end of the year, there were nearly 50 merger and restructuring cases that occurred in the automotive parts industry in 2015. More than half of the mergers and acquisitions occurred in the traditional automotive parts field; From the perspective of segmented fields, except for a few involving engines and transmissions, the main focus is on car interior and exterior, aluminum castings, car seats, and other body and accessory parts.

For domestic automotive parts companies, expanding their existing business and increasing market size remain the mainstream approach for mergers and acquisitions. Of course, under the overall tone of "change", new forms have also emerged: firstly, cross-border acquisitions have become a major feature of this year's automotive parts field acquisitions, seeking diversified development by expanding new businesses; The second is to aggressively acquire foreign advantageous assets and technologies, and move towards the "society" of component matching.

Strengthen the foundation and focus on enhancing the core business strength

On March 4, 2015, Zhejiang Yang Transmission Co., Ltd. (referred to as "Yang") signed an agreement with Geely Automobile to acquire the production line and related assets of Geely passenger car transmissions (5MT, 6MT) products; On November 24th, Yang acquired Chery Automobile's transmission technology and production equipment. Geely Automobile has strong capabilities in the research and manufacturing of manual transmissions, while Chery Automobile is one of the few domestic enterprises with CVT technology research and mass production capabilities. The two acquisitions of transmission assets have not improved the technical level and research and development capabilities of Yang Passenger Car's transmissions, but also laid a solid foundation for its supporting passenger cars.

In another domestic acquisition case, Xuchang Far East Transmission Shaft Co., Ltd. acquired some operating assets of Xuchang Yuanbo Machinery Co., Ltd., including fixed assets, construction in progress, intangible assets, and other assets related to operations, in order to extend its own industrial chain. As an enterprise specializing in the production of thick walled steel pipes and precision cast steel parts for transmission shafts, Yuanbo Machinery has advanced production lines, production technologies, and processes, which play an indispensable role in reducing production costs, enhancing its own strength, and responding to fierce market competition for Far East Transmission.

The above acquisition cases show that domestic automotive parts companies have clear goals in mergers and acquisitions, and attach great importance to selecting objects that can help enhance their core business strength, such as technology, processes, production lines, and even fixed assets such as factories and land.

Expanding territory and valuing the overall resources of the acquired party

The merger and acquisition cases that occurred in 2015 showed that domestic component companies are becoming increasingly adept at "addition", diversifying their development through acquiring new businesses to cope with the risks brought by economic instability. At the same time, domestic enterprises have a more long-term perspective when choosing merger and acquisition targets, emphasizing overall resource advantages, especially in terms of supporting relationships.