Foreign Investment on Spare Parts Change Mode I
2008-01-31 Source：english.chinabuses.com
Foreign spare part firms have been very keen on the Chinese market, but facts show these foreign companies are shifting their focus from sole investment to joint ventures. Bosch, one of the world's largest spare part suppliers, plans to invest 620 million more euros (US$836.94 million) into the Chinese market in recent years, and Delphi, a world leader in mobile electronics, said it would build another two joint venture plants in China.
In 2005, 68 percent of foreign auto parts companies chose to invest wholly in China, but in 2007, more firms prefer joint ventures (JV). Mahle Tri-Ring Valve Train (Hubei) Co Ltd, a Sino-German JV, was set up in January last year, with Mahle holding 60 percent and Hubei Tri-Ring Valve Train Co Ltd holding the remainder. QTires (Qingdao) Technology Co Ltd is another JV worth US$12 million between American QTires and a Chinese partner also in January. And Getrag (Jiangxi) Transmission Co Ltd, a China-Germany JV between Getrag Corporate Group (Germany) and Jiangling Motor Group (China), was founded in Nanchang City, East China's Jiangxi Province in February, each holding 66.7 and 33.3 percent respectively.
In addition, Spain's NB-BECO and America's Lear also set up JVs in 2007. Only Honda will build a solely invested factory in Foushan City, South China's Guangdong Province. It is said the JV between Honda and Dongfeng Motor Corporation can not produce a higher level auto parts. Experts said those foreign auto parts companies have realized the importance to cooperate with local brands after two years of operations in China.
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