Overseas Acquisitions Achieved By China Auto Parts Private Enterprises Is No Doubt Correct
Recently a sensational event happened again in China's auto industry: Beijing Pacific
Century Automotive Systems Co., Ltd has took over NEXTEER, which is a subsidiary company under General Motors, and it is 100% acquisition. This is the second Chinese-style overseas impact after a series of Chinese action such as Beijing Jingxi Heavy Industry Co., Ltd purchasing Delphi, Geely purchasing Volvo and Beijing Auto Manufacture Co., Ltd. purchasing Saab technology.What this acquisition first brings to Chinese electric bike market is surprise: after all, it is Chinese weak auto industry acquiring strong multinational company once again. When we still sigh about the backward technology and short core technology of China's national automobile industry, this kind of acquisition has no doubt improved the overall brand value of China's auto parts industry once again. Through purchasing overseas auto enterprises, especially the core business of components can graft advanced technology, human resources, management and experience of operating international market. Of course, the acquisition will not succeed necessarily, but it is a necessary choice, and the key is how to do after the acquisition.
Historically, Chinese car accessories enterprises have the characteristics of great compatibility and openness, which will provide certain culture foundation to China's auto enterprises. Perhaps some of the acquisitions, or a number of acquisitions will fail, but as time goes by and with the acquisition experience increasing, Chinese car parts enterprises will necessarily acquire helpful support from this acquisition.
As for this acquisition, why GM skyrunner sold its NEXTEER also need to garment steam consider. GM has no strength to operate? NEXTEER's business comes to the end of the market? However, GM sold NEXTEER is absolutely not for other auto companies to do better. In those years, Delphi fitness went away from GM, which although helped GM out of the parts business losses, but the powerful union always brought all kinds of bother to GM. Therefore, this time GM getting rid of such a business will definitely learn from the lessons of Delphi's case, they will throw the worker problems all to Beijing.
Although now we don't know the dirt bike future prospects after acquisition, but after acquiring this U.S. company, Beijing Pacific Century Automotive Systems Co., Ltd. will face more difficult problem than what Shanghai electric bike faces after acquiring Ssangyong, that is the union electric bikes problem. The essential of the union problem is not they fight against with you deliberately, but how to reduce the tremendous burden of union members' salaries and benefits and even whether it can be eradicated completely.
Above provided by SelectChina.com, and find more information on China Auto Parts Manufacturers / China Auto Parts Products.
by: Deland Selectchina