The auto parts companies in Changchun City, Jilin Province are accelerating the pace of mergers and acquisitions in North America. In the next five to ten years, Changchun, China’s famous “automobile city†will make every effort to build auto parts R&D and sales in the United States, with a new production base in Changchun. Business model.
The reporter learned from the Department of Commerce of Jilin Province today that Changchun City will select two or three companies with competitive strength to break through and enter the supporting systems of the three major automobile companies in the United States. In three to five years, the market will be fully promoted, and a batch of small and medium-sized auto parts companies suitable for the aftermarket in the United States will be cultivated to form an after-market product line with Changchun characteristics.
As for the Changchun City plan to establish the Changchun US R&D Center in the United States for five to ten years, to achieve R&D and sales in the United States, and to have a production base in Changchun’s auto export base business model, it is seen as the ultimate goal of Changchun’s establishment of a service center in the United States.
To achieve this goal, the Changchun municipal government launched a number of initiatives to support Changchun auto parts companies in the United States to carry out mergers and acquisitions. According to briefings, Changchun City will establish venture capital companies with local finance companies in the United States at an appropriate time to provide support for Changchun enterprises in North American mergers and acquisitions, and realize the internationalization of Changchun parts and components companies through mergers and acquisitions.
The Changchun auto parts company's aggressive expansion into North America began at the end of 2009. On November 2, 2009, the “North American Service Center for Changchun Auto Parts Export Base†was formally established in Detroit, the “automobile city†in the United States. This is an important measure for the construction of Changchun’s national auto and auto parts export base. According to reports, the North American Service Center of Changchun Automobile Parts Export Base serves as a window for the government’s foreign exchanges. It will provide products for Chinese enterprises in many aspects such as product display, investment promotion, technical exchanges and cooperation, corporate mutual visits, product exports, and personnel training. Provide services.
In 2009, the total vehicle production capacity in Changchun will reach 1.22 million units, and it will reach 2 million by 2012. Along with the increase in vehicle production capacity, there is also the auto parts industry. In the "Five First" project of the automotive industry development plan recently introduced in Changchun, it includes 1 million new engines, 1 million new transmissions, and new cars. The output value of parts and components is 100 billion yuan.
Yang Junliang, deputy secretary-general of the Changchun municipal government, said that the establishment of the North American service center is an important measure for the construction of Changchun’s national auto and auto parts export base, which opened the prelude to Chinese auto parts companies entering the North American market.
The establishment of a service center has aroused the attention of the American auto industry. Some industry insiders believe that when the impact of the economic crisis has not been completely eliminated, Changchun City has set up a North American service center in Detroit, which is the largest contributor to the automobile industry in the United States affected by the crisis. It will bring Changchun and Detroit together. The "automobile city" is closely linked, bringing new opportunities for the development of the Chinese and American auto industries.
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