Chinese auto majors may go for joint purchase of steel
According to insiders five China's auto makers namely, JAC, Geely, GWM, FAW Haima Motors and Lifan Motors are inclined to jointly purchase car making steel and wheels, they have reached this intention at a meeting in Beijing recently.
If the plan bears out, it will be the first time that home auto makers cooperate in the purchase chain. It is just an initial project now.
Insiders said it is just an initial project now and there are still lots of work to do. But the five enterprises regard this project with full prospect which would be successfully operated.
Amid financial crisis, domestic motors firms shoulder heavier and heavier pressure of liquidity and cost, and even a finance crunch happens in some enterprises. Therefore, auto makers hope to reduce producing cost and enhance competitive ability through cooperative buying way.
Mr Dong Jianping Deputy Secretary General of China Association of Automobile Manufacturers said it is positive for home car makers to jointly purchase steel and wheels. Cooperative buying will promote their pricing capability and achieve lower purchase price.
Mr Dong Jianping Analyzed that "Different from Japanese cars and Germany cars using various plates that would be hardly to purchase, most of China's motors are small - displacement vehicles which use similar plates and wheels, so cooperative buying can be realized."
Strategic - buyer game is worth to popularize in the auto industries.
In Mr Stephenson Klaus eye, Volkswagen senior manager in China, the strategic buyer method will help car makers maintain competitive power in the market and will also improve suppliers' manufacturing strength and efficiency.
If the joint buying carries out, it will force auto enterprises to integrate and perfect supply system at length.
(Source : China Auto News)
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