The China International Auto Parts Expo opens in Beijing Friday.
Several automakers have shifted their purchase and production patterns recently, greatly benefiting the domestic parts industry, automotive companies said at a forum held Friday.
"While we were [building] some models here 10 years ago, we used to source most parts, especially those with high technical difficulties, from foreign auto parts suppliers appointed by Chrysler’s headquarters in the US," said Zeng Shuxiang, General Manager of NEA Purchasing Chrysler Northeast Asia Region.
"Chrysler did source some parts locally in China, but mostly we asked them to make parts according to the specs we gave them," said Zeng at the 2009 AIAG Auto Parts Purchasing Leadership & Supplier Forum Friday in Beijing.
But things are quite different now. More than 50 percent of parts are bought in China including some key parts such as engines, steering boxes and electronic components, he added.
The company had only seven purchasers working in China in 2008 who were authorized to place orders to suppliers across the world. The annual purchasing value was $400 million, 1.2 percent of Chrysler’s overall purchasing value. Now its staff has nearly doubled, and purchase orders are valued at $560 million, 3 percent of the American carmaker’s global total.
"China’s auto parts makers are quick learners. In the past several years, we’ve seen progress from many of our suppliers in design, production and after sales service," said Zhou Qiang, General Manager of NEA Supplier Quality Chrysler Northeast Asia Region.
Zhou said that the quality of China’s auto parts makers is on par with that in North America, Europe and Japan, adding many Chryslers are equipped with Chinese auto parts.
Top officials of Fiat, Changan Ford Mazda, Magna and Delphi are also looking to localize part production.
Cheng Xiancong, vice president of Fiat Group China, said the Italian automaker raised their China annual purchasing value target from 200 million euros ($ 29.29 million) in 2007 to 1200 million euros ($175.76 million)in 2010.
Fiat announced a project in Changsha, Hunan Province, would purchase 80 to 90 percent of its auto parts in China.
Du Min, executive director of global purchasing at China for Magna International, said the quality of China’s products had improved over the past several years.
Magna, the world’s third largest auto parts maker, has three global purchasing centers around the world, one of which is located in Shanghai, China. The company spent $262 million on domestic auto parts in 2006 and $407 million in 2008. That amount will soar to $1 billion in 2012.
But the industry still faces problems ranging from quality to logistics.
Du said Chinese suppliers must have backgrounds in the automotive and export industries, the ability to communicate in English and German, and the ability to set up warehouse services abroad.Du said many Chinese parts suppliers do not provide adequate after sales service and technical support.
Fiat’s Cheng hopes Chinese auto parts makers with upgrade their products and market them worldwide instead of simply making copycats.
责任编辑：mman
