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The first phase of the Delphi China Science and Technology R&D Center with a total investment of US$50 million has been completed and put into use in Pudong, Shanghai. Just two weeks ago, Visteon also announced the “Visteon China Technology Center†and “Yanfeng Visteon Technology Center†built in Shanghai. "It has also begun to put into use.
At the same time, more multinational parts and components companies such as Bosch, BorgWarner and others began to set up research centers in China. What is the reason why the world’s recognized “manufacturing base†in China is spending huge sums to build R&D centers?
"Now, more than 70% of a car is developed and produced by component manufacturers," said Shen Hui, president of global auto parts maker giant BorgWarner China. A car has evolved from more than 10,000 parts in its early stages to now consisting of 20,000 to 30,000 parts. High integration has put forward corresponding requirements for shortening the development cycle.
The rapid development of China's auto market, the increase in the number of competing models in the market, resulting in reduced production of a single model, the model life cycle shortened. These two changes require parts and components companies to provide low-volume, diversified complementary products, and parts companies must adapt to changes in delivery speed and flexibility.
At the same time, Chinese car companies such as Chery and Geely are entering the overseas market. The technical standards and regulations of the relevant market require the vehicle manufacturers to make corresponding changes to the matching of vehicles. This is also the “Tang Hao Meat†that parts and components companies would not let go. .
"All parts suppliers recognize the great potential of the Chinese market and have reached a consensus: To succeed in this market, local design must be developed," said Jeffrey Owens, Delphi's global vice president.
Using U.S. funds to set up global headquarters and factories in China, and relying on Jack Perkowski, president of Asimco, a Chinese automaker’s component manufacturer, to bluntly say: “Considering the hugeness of the Chinese market, technology is once The possibility of becoming a worldwide standard in the Chinese market is also increasing."
This statement may point to the deeper consideration of the global component giants rushing to set up R&D centers in China: they cannot easily give up the Chinese market, and perhaps the Chinese market will become the key to their success in determining technology and standards.