Recently, it has been reported that Jingxi Heavy Industry has successfully acquired Delphi's non-core assets, specifically the brake and suspension systems. While this move marks a significant step forward, it remains unclear whether the company will pursue Delphi's core assets in the future. In response to these developments, a reporter from the automotive industry had an exclusive conversation with Jia Xinguang, a well-known expert in the field.
According to Jia Xinguang, one of the biggest challenges facing the automotive industry in Beijing is the lack of strong supporting industries, particularly in the upstream sectors. He pointed out that while the city's automotive manufacturing is currently at a mid-level stage, its parts supply chain still faces major weaknesses. "Integrating the entire automotive industry from a commercial standpoint is extremely challenging," he said. "For example, both Hyundai and Mercedes-Benz are highly commercialized enterprises, and any integration would require extensive coordination and effort."
Looking at the current landscape, Jia believes that leveraging vehicle production to drive the development of upstream and downstream industrial chains, as well as building platforms for parts and components, should be a top priority in the group’s strategy. "It’s definitely a smart move for Beijing’s auto industry to focus on parts and components as a breakthrough point," he added. "For instance, BWI’s acquisition of part of Delphi’s non-core business makes theoretical sense, but the real test lies in how effectively it is executed."
Jia also suggested that Beijing-based auto parts companies could learn from the collaboration between Chery and JAC, which have shared procurement platforms and product planning to avoid duplication and optimize production capacity. "However, this kind of cooperation requires capital to serve as a bridge," he emphasized. "Mutual equity participation can help regulate the rights and obligations of all parties involved." He noted that cooperation between vehicle manufacturers and their suppliers tends to be smoother due to their upstream-downstream relationship and the absence of direct competition.
As the automotive industry continues to evolve, strategic moves like these could play a crucial role in strengthening Beijing’s position in the global market. With the right approach, the city has the potential to become a key player in the future of automotive manufacturing.
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