Globalization of the auto parts industry chain

- Apr 02, 2021-

The globalization of the automotive industry chain has accelerated the merger and reorganization of vehicle companies, broke the original global supporting system, and promoted the merger and reorganization of parts and components companies.


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The global development trend of the automotive supply chain is obvious to all. Due to the globalization of the consumer market, OEMs are bound to use different means such as sole proprietorship and joint ventures to enter various consumer hot spots around the world, and this global distribution of OEMs will cause component manufacturers to follow. This global trend The following challenges are presented to component manufacturers:


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The global demand trend of the supporting market and the aftermarket requires component manufacturers to meet the ability of global delivery. In order to achieve timely delivery, more consideration needs to be given to various delivery issues, and even the global supply of raw materials.

In order to ensure 100% DIFOT, and based on certain tax issues, component manufacturers may adopt a strategy of following the global distribution of automakers. However, the conflict between this decentralized organizational model and the original centralized management, and how to reduce operating costs while improving the balance of organizational efficiency pose challenges to the shared service capabilities of enterprises.