AIAG: China's emergence of a core supplier still needs time

During the Auto Parts Expo, the reporter interviewed Mr. Scot Sharland, CEO of the American Automotive Industry Action Group (AIAG).

According to ScotSharland, the purpose of AIAG's participation in this exhibition is to hope that the OEMs can find opportunities for cooperation with local first- and second-tier suppliers in China. These partners can provide some equipment and skills to achieve a win-win situation together.

“Automotive is a global industry. The purpose of AIAG is to cooperate with Chinese suppliers and hope they can enter the US market. We provide Chinese suppliers with these resources and relationships and encourage them to find cooperation opportunities in Detroit, USA.” Talking about AIAG Specific cooperation with Chinese companies, ScotSharland said, “Chinese companies should go global, and Detroit is a global automobile manufacturing center that can give Chinese companies some creative resources. AIAG can provide Chinese suppliers with more innovative needs and help. They have some skills on a global scale and encourage them to go to Detroit to do business and help them establish rules that fit in with some of the business operations."

According to the information provided by the United States, since 2005, at least 60 Chinese companies such as Yanfeng Group, SAIC Group, and Chang'an Group have established sales centers, R&D centers, and manufacturing bases in Detroit; 100 small suppliers have already established business contacts in Detroit. Among them, AIAG can not be overlooked.

Talking about the differences between Chinese and American companies, ScotSharland stated that both China and the US are part of the global automotive industry. The vast majority of automotive design styles, including the types of automobiles, are basically similar, and the biggest difference between China and the United States is that The development stages of their respective automotive industries are different. In China, the automotive industry is developing very rapidly. The biggest challenge is how to manage it well, for example, using some robust operating procedures to ensure the operation of the business.

ScotSharland particularly emphasized the role of SMEs in the market. He believes that SMEs are a very important economic factor. One reason is that small and medium-sized enterprises have solved many jobs; the second is that small and medium-sized enterprises pay taxes to the government; and third, small and medium-sized enterprises provide opportunities for innovation. This is the most important. Pivotal.

In the process of China's auto industry from big to strong, is it necessary or when it will be able to emerge as a core component supplier? For this reporter's question, ScotSharland made it clear that if we use time to talk about this topic after 20 years, we will find that many of the core component suppliers will be local. In this regard, he analyzed that the development of the Chinese auto industry in the past 10 years is incredible, but there is still a lot of work to do, because the scale of the auto industry is bigger, but the overall level of the industry is still at an early stage.

“It takes time to make further investments in personnel training, technology and plant equipment, and it takes time from the beginning to the global strong parts industry chain. If China’s automobile industry chain can establish a long-term vision, It will continue to develop in the long-term, and will eventually adopt the same model with Japan and Europe.” For the Chinese automotive industry chain and suppliers, ScotSharland put forward his views, “Although China has become the largest in the world in less than 20 years. The automotive market, but considering that the automotive industry has a variety of different components, the Chinese auto industry has a long way to go in terms of development."

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