Fasteners are the key factors that truly determine the success or failure of a country’s automotive industry. At present, the situation that is inconsistent with the situation of vehicle companies is that the domestic automotive fastener industry is facing a great dilemma: the number of companies and the overall quality is not high, exports have fallen sharply, and the domestic market has also fallen into a situation surrounded by foreign capital.



September 6 The latest "State Council on promoting the views of corporate mergers and acquisitions," the auto industry ranked first in the list. It is understood that after the "Opinions", the implementation of the specific details of the industry mergers and acquisitions - "Guidance on the promotion of mergers and acquisitions of automotive companies guidance" is expected to come out.



Compared with the merger and reorganization of vehicle companies, the merger and reorganization of automotive fastener companies is of greater significance to the expansion of enterprises and technology upgrades. Without the emergence of large fastener companies, the cost and quality will not be effectively controlled, and the entire industry will be extremely difficult to develop.

Although there are many manufacturers in the automotive industry in China, most of the companies are small in scale and it is difficult to achieve economies of scale. This is still a big gap with multinational companies. Due to the self-contained distribution system for complete vehicle manufacturing companies, the number of redundant construction projects and the management system with segmented divisions have resulted in duplication of fastener companies, and many dispersed plants and small scales. This is in line with the global procurement adopted by the international automotive industry. The trend of system development, modularization, and supply of supply is quite different. Although some large-scale enterprises have gradually shaken off the status quo of heavy production, heavy production, and heavy R&D, they have also seen the fact that independent research and development capabilities of enterprises have determined the company's ability to resist risks to a certain extent, but R&D The increase in the level has been slow. In addition, some small fastener companies tend to invest less in research and development. In view of this situation, if the Chinese auto industry wants to take a place in the global auto industry competition, it should use the asset reorganization model and integrate existing resources in accordance with the laws of market economy.

Mergers and reorganizations can expand the scale of enterprises and enhance their competitiveness



By taking the road of mergers and reorganizations, enterprises can effectively enable large-scale enterprises to rapidly and cumulatively accumulate capital, and in the short term, develop at a low cost to the group and achieve economies of scale. As the American economist and Nobel laureate George Joseph Jin said, "to become a corporate giant enterprises through mergers with its competitors, is a prominent phenomenon in modern economic history.", "Not a large American the company is not in some degree, a certain way of mergers grew up, hardly a big company is relying mainly through internal expansion and grow up. ". Through mergers and reorganizations, the pros and cons are merged at the same time with certain resource advantages of the target company, such as network channels, information, technology, and geographical location. From the perspective of the fastener industry, China's corporate technology research and development capabilities are generally weak, and through mergers and reorganization can strengthen the company's own resource advantages, and concentrate technical forces to overcome the core technology. In order to regain the disadvantage in the market competition.



Therefore, the integration of China's fastener industry through mergers and reorganizations is a feasible way. With the issuance of the “Opinions of the State Council on Promoting Enterprise Mergers and Acquisitions,” the merger and reorganization of the automotive fastener industry is imperative.

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