It is reported that by 2007, Delphi's total annual purchases in China will reach 1 billion US dollars. Nowadays, more and more people are paying attention to the entire vehicle market, and they do not hesitate to invest billions of yuan to start “wading,†but they are indifferent to the “cheese†that make up parts of automobiles. Who can really shake this "cheese"? How to shake? David Nilsson, who has been supplying auto parts for decades, gave his opinion. Inciting "cheese" 3 tools In the past, domestic auto parts manufacturers had been stuck in auto parts with relatively low technological content such as glass, gaskets, and screws. The relatively high technological content of engines and electronic integrated circuits mostly relied on imports. With the development of the Chinese auto market, the technical content of domestic auto parts supply has been continuously improved. Jiang Jian, deputy general manager of Delphi China, introduced that Delphi invested US$50 million in establishing a Delphi China Technology R&D Center in Pudong in December last year; this year, it invested US$40.5 million in Suzhou to produce integrated electronic products. In addition, David Nielsen said that Chinese auto parts companies must at least learn to use three kinds of tools to incite the "cheese". Lean production. Lean production is also a “smart calculationâ€. By eliminating unnecessary costs through lean production, the whole process will tell us that “provincial one point†is easier than “one pointâ€. Technology development. At present, there are 16,000 engineers and technicians in the world. There are 10 inventions every working day. China is relatively weak in this respect. know yourself. Understand your own market positioning and understand your technical capabilities so that you can use your resources best. Three Steps to Move "Cheese" When a reporter asked David Nielsen to predict how much potential China’s auto parts industry had, he laughed and said that China will play an increasingly important role in global sourcing, and specific figures are difficult to give. Last year, Delphi's global procurement totaled US$14 billion a year. Relatively speaking, China’s US$250 million still has considerable room for growth. By 2007, China’s procurement in China will reach US$1 billion. China's auto parts supplier system is still early. Since entering in 1993, Delphi has made great progress in China. Now, Delphi is planning to achieve "win-win" with domestic component manufacturers and jointly promote this "cheese". Now that China's entire vehicle market is developing so fast, the demand for parts and components for the development of the domestic market is quite large. This is a good development opportunity in itself. Delphi will conduct inspections and screening among some of China's major auto parts suppliers, establish a number of long-term partnerships, and deploy procurement personnel and actuarial personnel to work closely together to improve the management and technical level of these domestic auto parts manufacturers. Long-term supply for Delphi China's first step. David Nielsen said, “We always hope that suppliers can meet our requirements and show their strength. They should be the best and strongest among similar products. Our challenge is to find such things in China. Suppliers, they are able to do the best quality and have a very strong strength." Once these companies establish a supply channel with Delphi, through long-term cooperation, they will further rise to Delphi's supply system in the world, and thus reach the second stage. At this time, some new companies will run more maturely in China, especially if they have high-tech new product lines, they can localize some of the original imported high-end components, such as Cadillac and other high-end cars. Parts and so on. In this sense, starting at the beginning of global procurement does not mean going out. There may be even more coming in the early stages, and it will gradually re-export after mature in the later period. Finally, China's parts and components companies have gradually entered a global supply system that can supply globally, such as North America, Europe, and other parts of Asia. However, not all parts and components are manufactured. With the principle of "survival of the fittest," the market may only be a part of China's spare parts manufacturers that are particularly good at producing particularly good parts and components and exporting large quantities of goods to the world. 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A few days ago, Delphi's highest-level global supply conference was held in Shanghai for a period of three weeks. For the first time in its history as the world's largest automotive parts supplier.