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Fourth, how domestic auto parts companies can adapt to the reorganization of the entire vehicle and the adjustment of procurement rules. The auto parts industry is the foundation of the auto industry. The auto company is the leader of the auto industry. In the face of the new situation of reorganization of auto companies, global procurement, systematic R&D, and modular supply, how auto parts companies in China should develop To adapt to the development of vehicle companies is a new topic that should be carefully studied by current parts and components companies. We believe that it is imperative to adopt countermeasures in the following areas: --- --- Promote the scale of marketization, and gradually develop the parts and components companies to the direction of neutralization, and form a professional, large-scale development model. Reorganization of vehicle companies and separation from parts and components companies have created the conditions for breaking the local and group protection of the parts and components industry and creating a more open and fair market competition: Part companies, especially the leading companies in the spare parts industry Through this favorable market-based competitive environment, we will achieve product cross-regional and cross-group support and promote the scale of production. Scale refers to the future survival and development of parts and components companies. Only large-scale production can obtain the initiative of lowering costs and the price advantage of market competition, and satisfy the low-cost procurement principle of the entire vehicle. I - With the reorganization of vehicle companies as the driving force, the joint reorganization of China's spare parts enterprises has been promoted, and several large-scale auto parts and components groups have been formed in the domestic parts and components industry. Under the support and encouragement of the state, China's vehicle manufacturers have basically formed a “3+6†market structure after years of adjustment and restructuring. Similarly, the domestic parts and components industry needs to integrate, purchase, and reorganize enterprises, integrate the resources of the spare parts industry, and conduct a rational division of labor to form a “pago pagoda†component industry that is led by several large-scale auto parts and components groups. Layout to meet the needs of systematic and modular development. I. To make full use of the comparative advantages of China's auto parts industry, rationally adjust the product structure, and on this basis, increase the intensity of technical development and product development. For a certain basis, products that can be used for the introduction of models and key assemblies and components that affect the performance of the entire vehicle must focus on development: For labor-intensive products that have certain comparative advantages, they must continue to grow bigger and stronger: The domestic market is still blank or has just started. However, high-tech products with potential market demand must be focused on development; gradually, several major system development positions and platforms should be formed. —————— Actively integrate the wave of internationalization of the global automotive industry. When China joins WT0, the domestic auto parts market will become increasingly integrated with the international market. In the face of unavoidable fierce competition, domestic companies must take the initiative to participate in the international division of labor in the world auto industry in order to strengthen the competitive strength and strengthen the multinational auto parts group. The cooperation in the market for technology is a reasonable choice for China's auto parts industry. Through this division of labor and international cooperation, it acquires the advantages of multinational companies in terms of technology, capital, management, and markets, thereby greatly increasing the number of auto parts companies in China. The level of technology and economies of scale, strive to occupy a place in the international parts procurement system. --- In accordance with the new procurement rules, improve the quality of QCD management and enhance the company's core competitiveness. In the procurement of many parts and components, R&D capacity, quality, cost, and delivery time have become the most important and preferred procurement conditions, and will also become important conditions for the competition among auto parts companies. Competence will be the company's most important core competence. According to a commentator’s article in China’s Auto News, “The combined reorganization of internationally formed parts and components and multinational corporations has a much greater potential impact than the reorganization of major auto companies and has a far more profound impact. In a few years, it was not the automaker that dominated the parts plant, but the parts and components companies dominated the development of the world auto industry." This makes sense. It is a well-known fact that China’s spare parts industry lags behind the entire vehicle industry for more than a decade. If we are still heavy trucks and light parts, we will take the whole road of development driven by the whole vehicle. The gap between the whole vehicle and parts will be The bigger the company is, the more difficult it is to improve the technical level of parts and components, the difficulty in breaking quality standards, and the difficulty in mastering core technologies. Under the impact of global procurement policies, the parts and components industry will be seriously hurt. At that time, although China can become a big country for automobile production, it is a weak country for parts and components production. There are many more cars and it can only be a vehicle assembly base. This is something that everyone does not want to see. Dongfeng Auto Parts, like all major domestic parts and components companies, will make the Chinese auto parts industry stronger and bigger. It is willing to join hands with all sectors of the community to join hands in revitalizing the Chinese auto parts industry as soon as possible.