Abstract:

1. Industrial Introduction

Since establishment of China, China's automotive industry has fast and sound development, especially in two decades of reforming and open-up period, it became faster, in which automotive components industry played very important role. In recent years, with the development of China 's economics, China 's automotive components industry keeps faster development. At present, there are around 5,000 larger-size automotive components enterprises, and 15% of them can reach 50million RMB saleroom per month. In total costs of automobile, components hold above 70%. The development of automotive components industry can guarantee that of automobile; and increasing of saleroom in automotive components year by year results into boom of China 's automobile industry.

Sales income of vehicle's spare parts industry form 2003 to 2005 Unit： 100million

Since 2005, profit and saleroom of automobiles are decreasing, especially sedan, thus, some automotive magnates have put their attention on the components industry with high profit, such as auto-electronics, which also pushed the development of automobile components industry, but the speed of growth is decreasing.

Exports of vehicle's spare parts industry form 2000 to 2005 Unit： 100millionUSD

China's automotive components enterprises include components factories under automobile groups, which backing on state-owned enterprises, they are experienced in plan production, so their price mechanism and other aspects are out of time; state-owned automotive parts enterprises are facing situation of being merged for their unsound management; according to the analysis of us , owing to growing of private enterprises, they will be main force in China's automotive parts industry; and some small-size plants are difficult to strengthen themselves in competition because of they are weak in mechanisms of management and quality guarantee, so that they only can survive or be merged.

Sine the entrance into WTO, China 's automobile industry has been shocked to some extent. Meanwhile, overseas automotive parts corporations have put attention on China 's market, so they quicken their pace of market expansion in China . Currently, there are over 500 overseas corporations are investing on automotive parts in China , and their share in China is above 20%. According to analysis of us , due to fierce competition, the structure of China 's automotive parts will be changed.

2. Merger and Acquisition purposes of China 's automotive parts industry

In recent years, there are some features in China 's automotive enterprises, such as fast development, small size and low concentration. Under double pressures, China 's local automotive parts enterprises are not strong enough to compete with overseas ones. In these two years, merging and restructuring events are more common in China's automotive parts industry, so that We analyzes that it will be a way for China local parts enterprises to develop.

With development of China 's economics and market opening up, there are some reasons in merging and restructuring in China 's automotive parts industry.

First, profit decreasing resulted into merging and restructuring. In the first season of 2005, profit of China 's automobile industry has decreased to 10billion RMB (60%) comparing to the same term of last year. Owing to depression of automobile industry and increasing of steel price, automotive parts industry has firstly decreased in 10 years. In the first half of 2005, many automotive parts enterprises began to lower their prices, 50% at most. Due to increasing in price of raw materials, cost of each economic sedan has increased around 1,000RMB, which brought a lot of pressure to automotive parts enterprises, and the competition between automobile manufacturers and automotive parts enterprises. According to analysis of us , owing to double pressures from price increasing in raw materials and lowering in parts which was caused by auto-manufacturers, most of local parts enterprises are in the hard time. But overseas parts companies in China have not been influenced by raw material increasing, because of they own patents and technologies, plus their large production scale and wide selling network, so they can be in the initiative role when they negotiate with suppliers and automobile manufacturers. So according to analysis us , home enterprises is to relieve pressure via adjusting and optimizing resources distribution. However, the basic problems can not be solved, so there must be merging and restructuring among automotive parts enterprises.

Second, home automotive parts enterprises are threatened by enclosure of overseas corporations. Overseas passenger vehicles companies have held large market share in China, so that We analyzes that currently in China, they hold 60% market share in China's passenger vehicle market, 80% in sedan market. Also, China 's high-end electronic control, fuel injection system, sensors, braking system and steering system are almost in overseas companies' hands. According to analysis of us , 90% of high-end products manufacturer are overseas companies or their holding enterprises, and some home enterprises who can earn large volume of profit are OEM of overseas brands. With growth in automobile retaining volume, parts market will have further development, so that China's home enterprises will be facing more pressure, even in crisis, thus We thinks that merging and restructuring will be the main trend.

Third, We analyzes that the features of China home enterprises decide that it must merge and restructure in automotive parts enterprises. According to analysis of us , only increased support efforts to increase research and development, production and the freedom of intellectual property products, Meanwhile, under the guidance of enterprises in the market for integration, complementary strengths, the rational allocation of resources in order to compete for China 's current foreign-funded enterprises with strength and market share.

3. Analysis on merging and restructuring trend in China 's automotive parts industry

With the intensification of competitive pressures along with enterprise, the pressure of competition has to comply with the transfer. To harness the scattered parts industry, economic chaos and worse, so parts enterprises to reduce costs, the size of the market will have to rely on the strength of the economy, and make full use of economies of scale effect. Therefore, the future will be in the auto parts industry will be under the guidance of macro policies. Implementation of reorganization or between different trades and industries with mergers and acquisitions, and try to achieve the maximum market. Maximize efficiency and lowest cost, in order to achieve large-scale, foreign-funded enterprises with the aim to counter.

Along with the development of China 's automobile industry, according to analysis of us , parts industry in the future, mergers and reorganizations that China will adhere to the following categories broadly. The first is the merger and reorganization of enterprises in different regions, the sharing of resources between different regions, such as the First Automobile Works, SAIC and Dongfeng Automobile and other ancillary markets, avoid unfair competition and avoid wastage of resources. The second is a joint vehicle manufacturing and auto parts manufacturing industry group to promote the formation of actively promote regional auto parts enterprise restructuring and form has the geographical advantage in the manufacturing of motor vehicles and parts. Marketing service system. For example, the Dragon, Dongfeng Automobile Industry Cluster. The second is the merger and reorganization of different sectors, such as steel merger and reorganization of enterprises auto parts enterprises, different sectors which have the strength of auto-parts enterprises in the merger and reorganization of enterprises is a future trend. Third, the development of private enterprises has grown auto parts. auto parts enterprises will boost the development process of mergers and reorganizations. IBM century along with the analysis and separation of the car matching the trend has accelerated, but even closer collaboration between the suppliers of components, Research In merger and reorganization of enterprises separated from the other parts enterprise groups the opportunity to continue to grow. For example, Torch on mergers and acquisitions and other means of capital operation, merger and reorganization of other auto-parts enterprises. The rapid expansion of the size and strength to bring parts Group. Fourth, the full liberalization of auto parts market, some foreign leaders see the Chinese market contains great business opportunities; We analyzes those foreign enterprises to enter China to seize parts market and greater cost savings. To capture the market share, most of them take the form of auto parts to operate profitably through mergers and acquisitions or through its own funds of enterprises malicious purchasing power to achieve the objective of the occupation of the market share.

Thus, according to analysis of us , in the future years, the merger, cooperation, and acquisition will be higher frequency. With development of home parts enterprises, they will expand their market into other countries.

Catalogue 
Chapter one   Research Summary 
Section one   Background 
Section two   Content 
Section three  Methods 
Section four   Team 
Section five    Conclusion 
Chapter two   Developing Actualities in Global Automotive Parts Industry 
Section one   Developing features 
Section two   Supply and demand structure 
1、Analysis on global production structure 
2、Analysis on industrial demand 
1、European 
2、North America 
3、South America 
4、Asia 
3、Analysis on global demand trend from 2007 to 2010
4、Analysis on industrial competition structure from 2006 to 2007 
5、Analysis on competition concentration 
6、Analysis on regional competition concentration 
Chapter three  Analysis on Actualities of China’s Automotive Parts Industry 
Section one   Industrial current features 
Section two   Analysis on current investment 
Section three  Analysis on supply and demand relationship 
7、Overall supply 
1、Scale of investment and output 
2、Production Concentration 
8、Demand 
1、Analysis on demand features 
2、Analysis on demand scale 
Section four  Analysis on import and export 
3、Import 
4、Export 
Section five  Forecast on supply and demand 
Chapter four  Subdivided Market of China’s Automotive Parts Industry 
Section one   Analysis on automotive engine industry 
9、Survey and features 
10、Competition 
11、Investment and future development 
Section two   Analysis on automotive electronics industry 
12、Survey and features 
13、Competition 
14、Investment and future development 
Section three  Analysis on automotive axletree industry 
15、Survey and features 
16、Competition 
17、Investment and future development 
Section four  Analysis on tyre industry 
18、Survey and features 
19、Competition 
20、Investment and future development 
Section five  Analysis on automotive glass industry 
21、Survey and features 
22、Competition 
23、Investment and future development 
Chapter five   Analysis on Main Industry Clusters of China’s Automotive Parts Industry 
24、Jiangsu 
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
25、Zhejiang 
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
26、Hunan 
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
27、Hubei 
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
28、Hebei 
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
29、Shanxi
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
30、Shandong 
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
31、Liaoning 
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
32、Fujian 
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
33、Hei Longjiang 
1、Analysis on regional supply and demand scale from 2007 to 2010
2、Analysis on regional development features and industrial structure 
3、Analysis on regional industrial competition structure and main part 
4、Analysis on trend of merging and restructuring and feasibility 
Chapter six  Analysis on Investing Policy Environment of China’s Automotive Parts Industry 
Section one   Effect of macro-economic policy on automotive parts industry 
Section two   Effect of industrial policy on automotive parts industry
Section three  Trade policy of China’s automotive parts industry 
Chapter Seven   Analysis on Factors Affecting on Development of Automotive Parts Industry 
Section one   Analysis on risks 
1、	Material craftwork 
2、	Purchasing policy of automobile manufacturer 
3、	Quality control 
Section two   Problems in development of China’s automotive parts industry 
Chapter Eight   Analysis on Background of Merging and Restructuring in China’s Automotive
 Parts Enterprises 
Section one   Analysis on background 
Section two   Analysis on features 
Section three  Obstacles 
34、Political obstacle 
1.1、	Industrial policy 
1.2、	Requirements of Environmental protecting policy to technology of automotive parts 
1.3、	Requirements of Eleventh-Five-Year Plan to automotive parts industry 
35、Capital obstacle 
2.1、	Limitation in automotive finance 
2.2、	Limitation in capacity of international capital financing
2.3、	Financing problems of automotive parts listed companies 
2.4、	Investment on products’ research and development 
36、Technical obstacle 
3.1	Command of core technology; ownership of intellectual property rights  
3.2	Establishment of products’ research team 
Chapter Nine   Analysis on Merging and Restructuring Cases in Overseas Automotive Parts
 Industry 
Section one   Visteon and SAIC acquired Jiangsu Tianbao Technology Co. Ltd 
37、Analysis on motive and value of merging and restructuring 
38、Analysis on merging and restructuring process 
39、Analysis on cases and experience of merging and restructuring 
40、Analysis on integrating strategy of merging and restructuring 
Section two   Vieston purchases Zhejiang Shaoxing Yidong Instrument Co. Ltd 
41、Analysis on motive and value of merging and restructuring 
42、Analysis on merging and restructuring process 
43、Analysis on cases and experience of merging and restructuring 
44、Analysis on integrating strategy of merging and restructuring 
Section three  Bosch acquired Jiangsu Wuxi Weifu Co. Ltd. 
45、Analysis on motive and value of merging and restructuring 
46、Analysis on merging and restructuring process 
47、Analysis on cases and experience of merging and restructuring 
48、Analysis on integrating strategy of merging and restructuring 
Section four   Kevin acquired Delphi Hubei Engine Company 
49、Analysis on motive and value of merging and restructuring 
50、Analysis on merging and restructuring process 
51、Analysis on cases and experience of merging and restructuring 
52、Analysis on integrating strategy of merging and restructuring 
Section five   Bosch purchased automotive engine and generator businesses of 
Zhongqi Changdian Co. Ltd
53、Analysis on motive and value of merging and restructuring 
54、Analysis on merging and restructuring process 
55、Analysis on cases and experience of merging and restructuring 
56、Analysis on integrating strategy of merging and restructuring 
Section six   Joint-venture between Pirelli and Shandong Roadone Tyre 
57、Analysis on motive and value of merging and restructuring 
58、Analysis on merging and restructuring process 
59、Analysis on cases and experience of merging and restructuring 
60、Analysis on integrating strategy of merging and restructuring 
Chapter Ten   Merging and Restructuring Trend of Foreign Capital and Hong Kong and Taiwan
 Capital Automotive Parts Enterprises 
Section one   Analysis on development of China’s foreign trade automotive parts industry 
61、Investment features 
62、Investment regions 
63、Market performance 
64、Investment product structure
65、Investment trend 
Section two   Bosch 
66、Current investment in China 
67、Core competitivity 
68、Trend of merging and restructuring 
Section three   TRW Automotive
69、Current investment in China
70、Core competitivity
71、Trend of merging and restructuring 
Section four   Denso 
72、Current investment in China
73、Core competitivity
74、Trend of merging and restructuring
Section five   Valeo 
75、Current investment in China
76、Core competitivity
77、Trend of merging and restructuring
Section six   Remy 
78、Current investment in China
79、Core competitivity
80、Trend of merging and restructuring
Section seven   Michelin 
81、Current investment in China
82、Core competitivity
83、Trend of merging and restructuring
Chapter Eleven   Analysis on Merging and Restructuring Cases in China’s
 Automotive Parts Industry 
Section one   Legend Holdings restructure Jinan Automotive Parts Company 
84、Motive and value 
85、Process 
86、Plans and experience 
87、Integrating strategy  
Section two   Huaxiang Group integrate Fuxi Automobile Company 
88、Motive and value 
89、Process 
90、Plans and experience 
91、Integrating strategy
Section three Weichai Power acquired Porch 
92、Motive and value 
93、Process 
94、Plans and experience 
95、Integrating strategy
Section four   Baosteel purchased two companies of Canadian Automotive Parts Company, Court
96、Motive and value 
97、Process 
98、Plans and experience 
99、Integrating strategy
Section five   Wanxiang Company acquired Henan Automotive Stopper Company 
100、Motive and value 
101、Process 
102、Plans and experience 
103、Integrating strategy
Section six   Wanxiang acquired UAI 
104、Motive and value 
105、Process 
106、Plans and experience 
107、Integrating strategy
Section seven   Wanxiang purchased Hubei Tongda 
108、Motive and value 
109、Process 
110、Plans and experience 
111、Integrating strategy
PS Section eight   Wanxiang purchased PS 
112、Motive and value 
113、Process 
114、Plans and experience 
115、Integrating strategy
Section nine   Shenzhen Hangsheng Electronics purchased Joint-venture company of Jilin 
Hongyu and Korean AUTONET 
116、Motive and value 
117、Process 
118、Plans and experience 
119、Integrating strategy
Section ten   FAW Sihuang purchased joint-venture company- Changchun Fawer-Johnson Controls 
Automotive Systems CO.,LTD
120、Motive and value 
121、Process 
122、Plans and experience 
123、Integrating strategy
Chapter Twelve   Analysis on Merging and Restructuring Main Competitivities of China’s 
Automotive Parts Enterprises 
Section one   Zhejiang Wanxiang 
124、Analysis on product structure 
125、Capital operation 
126、Analysis on competitivity of production technology 
127、Marketing network and key clients 
128、Capability of logistics 
129、Competitivity of informationization establishment 
130、Company’s developing strategy 
131、Merging and restructuring trend and feasibility 
Section two   Fuyao Glass Company 
132、Analysis on product structure 
133、Capital operation 
134、Analysis on competitivity of production technology 
135、Marketing network and key clients 
136、Capability of logistics 
137、Competitivity of informationization establishment 
138、Company’s developing strategy 
139、Merging and restructuring trend and feasibility 
Section three   FAWER Automotive Parts Company 
140、Analysis on product structure 
141、Capital operation 
142、Analysis on competitivity of production technology 
143、Marketing network and key clients 
144、Capability of logistics 
145、Competitivity of informationization establishment 
146、Company’s developing strategy 
147、Merging and restructuring trend and feasibility 
Section four   Faw Sihuang 
148、Analysis on product structure 
149、Capital operation 
150、Analysis on competitivity of production technology 
151、Marketing network and key clients 
152、Capability of logistics 
153、Competitivity of informationization establishment 
154、Company’s developing strategy 
155、Merging and restructuring trend and feasibility 
Section five   Wuxi Weifu 
156、Analysis on product structure 
157、Capital operation 
158、Analysis on competitivity of production technology 
159、Marketing network and key clients 
160、Capability of logistics 
161、Competitivity of informationization establishment 
162、Company’s developing strategy 
163、Merging and restructuring trend and feasibility 
Section six   Porch Automobile Group 
164、Analysis on product structure 
165、Capital operation 
166、Analysis on competitivity of production technology 
167、Marketing network and key clients 
168、Capability of logistics 
169、Competitivity of informationization establishment 
170、Company’s developing strategy 
171、Merging and restructuring trend and feasibility 
Section seven   Weichan Power 
172、Analysis on product structure 
173、Capital operation 
174、Analysis on competitivity of production technology 
175、Marketing network and key clients 
176、Capability of logistics 
177、Competitivity of informationization establishment 
178、Company’s developing strategy 
179、Merging and restructuring trend and feasibility 
Chapter Thirteen   Analysis on Regional Merging and Restructuring Opportunity in China’s 
Automotive Parts Industry 
Section one   North 
180、Purchase of Hebei Lingyun Industry Group 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
181、Purchase of Qin Huangdao Daica Wheel Manufacturing Company 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
Section two   East 
182、Purchase of Wangfeng Aote Holdings Group 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
183、Purchase of Jiangxi Changli Automobile Spring Company 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
184、Purchase of Qingdao Qingte Group 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
Section three   South 
185、Purchase of Liuzhou Wuling Atuomobile Company 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
186、Purchase of Jiangmen Hualing Precision Machining Company 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
Section four   Inner Mongolia 
187、Purchase of Liaoning Shuguang Automobile Group 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
Section five   Northwest 
188、Purchase of UAES
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
Section six   Southwest 
189、Purchase of Chongqing Zhongshen Engine Manufacturing Company 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
190、Purchase of Chongqing Dajiang Industry Group 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
Section seven   Central part 
191、Purchase of Hubei Qixing Automotive Body Company 
1、Production and Selling 
2、Financial operation 
3、Merging and restructuring value 
4、Obstacles 
Chapter Fourteen   Industry Chain and Merging and Restructuring Opportunity in China’s 
Automotive Parts Industry 
Section one   Industry Chain 
Merging and Restructuring Opportunity 
Chapter Fifteen   Analysis on Merging and Restructuring Risks on China’s Automotive Parts
 Industry 
Section one   Technological change 
Section two   Capital restructuring 
Section three  Production integration 
Section four   Selling management 
Chapter Sixteen   Suggestions on Merging and Restructuring in China’s Automotive
 Parts Industry 

Contact Us: