chinese supplier competitiveness -...
TRANSCRIPT
Chinese Supplier Competitiveness UM Inside China Auto Conference
Claire Wang
SG Automotive Group Nov 7, 2012
Always Driving Performance
SG Group Overview
Our Point of View
Always Driving Performance
SG Group Overview
Always Driving Performance
Committed to be a centennial SG, Global SG with open mind, and together with our customers and partners, striving for better future.
Founded in 1984, headquartered in Dandong, Liaoning Province, northeast China, with 13 subsidiaries including US office;
A non-state owned public traded company, listed in Shanghai Stock Exchange (Code: 600303) since year 2000;
Leading bus manufacturer in mid-large bus industry in China;
Leading Drive Axle and Suspension supplier in China;
The 22nd largest Automotive Enterprise in China;
(List of Top 30 Auto Enterprises in China of 2011 by CAAM)
Over 9,000 employees
Note: CAAM _ China Association of Automotive Manufacturers
Always Driving Performance
Always Driving Performance
Always Driving Performance
• Product range from 7.8m to 18m • Official Beijing Olympic Bus • #1 in City Bus • 12,000 units capacity
Full Line of SUVs & Pickups
• Military • Airport Ground Support • Tanker • Rescue
Always Driving Performance
Light Duty Axle
• Steer Axle
• Drive Axle
Medium & Heavy Duty Axles
•Steer Axle : 4.2T – 7T
•Single Drive Axle : 6T – 13T
•Trailer Axle : 10T – 16T
Light Duty Suspensions
• Front Suspension
• Rear Suspension
Established in Aug, 2002;
Officially opened in Jan 2003, based in Troy, MI;
Milestones in NA OE business development ◦ 1st Production shipment to NA in 2003;
◦ Achieved 5 major OE customers in 2005;
◦ 2 times Premier Supplier Award winner honored customer’s global supply base;
◦ Technical center acquisition in 2008.
Long-term and sustainable growth ◦ Market presence
◦ Brand recognition/reputation
◦ Technology innovation and knowhow
Always Driving Performance
Our Point of View
Always Driving Performance
The opportunities for suppliers who move from “being good to becoming great” are many, and can be achieved by “New China” thinking about playing in Global markets.
Always Driving Performance
China auto industry is big but not strong;
China auto industry remains extremely fragmented;
Challenges remain for domestic design and R&D;
Incentives in R&D and Hi-Tech by government;
Quality control and Safety regulations.
Always Driving Performance
Domestic Suppliers
Low-end of value chain
•Fabric for seats/interior •Floor mats •Aluminum die casting •Rubber bumpers •Harness •Speakers •Eclectic starters
Foreign Suppliers
High-end of value chain
•Engines •Transmissions •Electronic control systems •Safety systems
VS.
Domestics 30%
Foreign & JVs 70%
Auto Supply Market
Always Driving Performance
32%
20% 10%
5%
4%
5%
24%
China's Auto Component Import Breakdown
Driveline system components
Auto bodies, accessories and parts
Engine products
Steering system components
Brake system components
Drive system components
Other components
Always Driving Performance
Good
Low cost Make to print
Timely delivery Supplier
Great
Effective cost Value added Market pull (not push)
Strategic partner
•Engineering and Technology Innovation •Manufacturing productivity and efficiency •Access to Capital •HR Practices; Employee training and Development
Performance Metrics
Always Driving Performance
Technology & Innovation
Pro
du
ct S
trate
gy
Present 2015 2020
Make to prints
High-end of Value Chain
Technology licensing & transfer
Benchmark – do what works
Design and R&D capabilities
Human resource Engineering Manufacturing Quality control Capital investment Marketing & Branding
Always Driving Performance