Recently, it was reported that Jingxi Heavy Industry has successfully acquired Delphi's non-core assets, specifically the brake and suspension systems. However, whether or not the company will go on to acquire Delphi’s core assets in the future remains uncertain. In response to this development, a reporter sat down with industry expert Jia Xinguang for an exclusive discussion.
"The biggest challenge facing the automotive industry in Beijing is its supporting industries, particularly the front-end manufacturing facilities. Currently, the vehicle production of the Beijing auto industry is still in the second tier, and the lack of strong parts suppliers is a major weakness," Jia Xinguang said. He added that integrating the automotive industry from a commercial standpoint is extremely challenging. "For example, both Hyundai and Mercedes-Benz are highly commercialized companies. Integration would require significant effort and coordination."
From the current situation, it seems that leveraging vehicle production to drive upstream and downstream industrial chains and building a platform for parts and components has become a top priority in advancing group strategies. Jia believes that it is indeed a smart move for the Beijing auto industry to focus on parts and components as a starting point. "For instance, BWI’s acquisition of part of Delphi’s non-core business is theoretically sound. The real test will be how well it is executed in practice."
Jia also suggested that Beijing-based auto parts companies could learn from the collaboration between Chery and JAC, such as sharing procurement platforms and product planning to avoid duplication and better utilize their respective production capacities. However, he emphasized that capital must serve as the key link. "Mutual equity participation can help regulate the rights and obligations between partners, making cooperation more sustainable." He further noted that cooperation between vehicle manufacturers and parts suppliers tends to be easier due to their upstream-downstream relationship and the absence of direct competition.
As the automotive industry continues to evolve, strategic partnerships and smart acquisitions will play a crucial role in strengthening Beijing's position in the global market. With the right approach, the city's auto industry could take a significant step forward in becoming more competitive and self-reliant.
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