Company Brewing Price Increase The Market Price Of The Engine The Final Say - Engine, Construction

Recently, the international iron ore, coal prices rose sharply

. By the impact of rising raw material prices, prices of automotive engine products boom is brewing.

engine companies to seek price increases

Recently, the media interviewed several domestic-related charge of the engine companies, they have the idea that there are price increases.

"At present, the raw material prices, to bring no small pressure on the engine company, all prices are in the pipeline engine plant." FAW Automobile Co., Ltd. Dalian Diesel Engine Sales Company General Manager Tie-Zhuang told reporters. He said that different from the factory, or will be different. "Big Diesel engine prices may increase by an average of 10% to 15%."

As the main raw material for the engine of steel, iron ore prices for the engine companies certainly affects the cost of procurement, corporate pressure are increased. Shanghai Diesel Engine Co., Ltd. Marketing Vice Minister Wu Changhong said: "The production of engines used in 98% of the raw materials are steel, iron ore prices have been rising procurement costs, the engine is not a small business impact."

In iron ore and coal prices rising all the time, the auto industry can not afford some pressure on suppliers of raw materials, has increased the price. "The raw material prices, we are recognized by the engine plant. Price increases is a chain reaction, procurement costs, we hope that the engine can increase product prices to shift some of the pressure." Dongfeng Chaoyang Diesel Engine Co., Ltd. designer Jia Guiqi said. He said the engine up at least 10% of the price to the price rise in raw material prices offset the impact of the engine companies.

Jiagui Qi believes that all problems encountered engine company is the same, but the cost of the internal digestive capacity and product positioning is different from all the engine companies have different price increases. "Engine in the end price is up 10%, or up 20%, then see the situation of the enterprise itself."

Recent years, the engine prices have been relatively stable, fluctuating little. "As the market competition, lower prices and sometimes even some stealth situation." A source said.

recognition is the key vehicle factory

Engine plant as most of the products sold to OEMs, which the engine has some degree of price constraint.

"Prices can not rise up like the engine business, and we must consult and communicate with vehicle factory. Without their consent, product prices can only be the engine company's wishful thinking." Engine, a responsible corporate said. "Currently, we are working with OEMs to communicate. Carmakers are facing great pressure, they naturally do not want the engine product prices. Both sides have their own positions, have not yet reached consensus on prices." Jiagui Qi told reporters.

Tie Zhuang said: "The engine prices, faced pressure from the OEMs. At present, the wood is working with OEMs negotiations on the matter, but no results."

A large commercial enterprises in China the official told reporters: "In recent years, significant fluctuations in raw material prices, prices of even some of the material has been raised. Provisions of the engine price level could not be simply based on raw material prices, companies must learn internalize costs. "

Cost control test Rising prices of raw materials, test the engine control business costs. The cost of each engine-house capacity to digest different. Some engine companies already started the project cost control, higher prices for raw materials, performed with confidence. The other engine companies, has yet to internalize the cost of the measures introduced.

Yuchai is the early hands-on cost control and an engine company. According to sources, raw material prices, to Yuchai the pressure is not great. From 2007, Yuchai start the project cost control, there are plans to reduce costs, the establishment of an independent Ministry of the overall budget. As an independent department, the Department brought together a comprehensive budget for all departments are familiar with the situation of professionals on the business plan every aspect of cost control, cost-control. The Department also asked all units to make the program cost, strengthen supervision and control.

"2007 years, Yuchai many benefits in cost control. We have the ability to further control costs. Internal digestion is much room for cost." The people seem very emboldened.

Learned that, to control costs, Yuchai and even had to cut staff benefit scheme, thereby increasing costs within the organization. However, the work of the Ministry of the full budget has been very successful, the scheme was not implemented.

In product prices, Yuchai not raised the idea of their own. "Although our own price increases will not take the initiative, but the company may be following the market. That is, if the industry prices fluctuate widely, Yuchai may change with price."

"We are also considering the cost of internal digestion, but there is no specific way." Another person in charge of major engine companies said.

price by the market have the final say

The face of the engine prices expected, as the motor vehicle plant downstream businesses, the engine can accept the price increase? Interview of a not to be named head of a heavy truck business. For the price rise is expected, the executives at first said that, in the industry, the National car engine prices is unlikely. Possible scenarios is that the engine company to the implementation of the second half of the country standard as an opportunity for price increases.

The responsible person said, not every change in prices of raw materials, engine companies are adjusting their prices. Last year, steel prices have rallied, but fell in the second half has a certain extent. That fluctuations in raw material prices, the price does not adjust the engine. As the market increasingly competitive, companies will not easily determine product prices. The cost of each enterprise must be internalized, considering all the factors, the final decision.

In Zhangshengyipian circumstances, the engine companies and OEMs to strive to control costs, ensure product quality in the premise, to ensure that products have competitive prices. The official told reporters: "raw material cost pressures accumulated to a certain extent, companies can not cope with the engine, the price increases are inevitable, which is a kind of market behavior."

Even if the price change in the engine, vehicle prices

by: gaga

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