Auto Parts Enterprises: car dealers blindly to keep the prices down undesirable

High-tech Zone in the many high-tech enterprises in Jinan City, Shandong Lu was Tony lights Corporation is not very dramatic. But insiders know that the companies smallish strength should not be overlooked. Lu was Tony has grown into a leader in the domestic auto parts
manufacturers, truck lights, the “leader” of the industry, with annual sales revenue of over 200 million yuan. However, is such a company, when talking about the future prospects of the enterprise managers undaunted: “subject to all the chaos of the auto parts industry, companies want to continue to rise is difficult now efforts to ensure stability.
“CNHTC more than 60% of the truck lights is produced by our company, the Beiqi Auman series truck headlights 40%, Nanjing Iveco Automobile products accounted for 70%.” Of Shandong Lu was Tony headlights Co., Ltd. Vice Chairman Zhang Liangping told reporters this set of data
shows the strength of the companies, “returned to the country many car firms supporting FAW, Shaanxi Auto, Sichuan Automobile headlights industry in the province has long been a first in the country is also the first three. “

19 years ago, the identity or collective enterprises was Tony Lu single product, lack of orders, the annual sales income of more than 600 million. In Jinan mirror Factory 323 workers scrimped and saved $ 100 million launched in 1994, set up Jinan Lu was Tony headlights Company Stock Co in the city at that time one of the 16 pilot enterprises. Clear property rights, Lu was Tony rebirth sales revenue soaring. After a few years, Lu was shell one by one to receive three bankruptcy, system shutdowns. In 1998, Lu was Tony ultimate “anti-eating parent, mergers mirror Factory in Jinan, receiving all serving and retired workers, and assumed all the debt. Today, the company has annual production capacity of 5 million lights, more than 40 series over 300 varieties.

Lu was Tony able to develop so rapidly, thanks to innovation as the soul. Zhang Liangping a vivid metaphor to reporters: “a long-distance race athletes know, can not exceed your opponent on the same runway, real transcendence from the blind followers usually do not do business innovation does not necessarily win, but there is no innovation will be eliminated. “in many people’s impression of supporting enterprises is” processing “, others to the drawings upon request production line. “Lu was Tony can be not so simple, our lights, only to vehicle manufacturers to develop a new model space dimensions, assembly size.” Zhang Liangping said., From the exterior design of the headlights, the use of materials such as by the company’s own research and development, production, assembly process, and are formulating their own molds also produce their own, only the preliminary design to go through 48 processes. Lu was Tony more than 600 employees involved in product design personnel have more than 60 people, the annual R & D investment accounts for about 10% of the sales revenue. “The current the domestic the truck headlights production of enterprises, with only two independent R & D capabilities, we are one.” Zhang Liangping told reporters.
A price not quality hamper development

In recent years, the domestic heavy-duty vehicles to enter a period of rapid growth and expanding demand for auto parts, industrial development accelerated. Market, technology, good management, such as Lu was Tony enterprise ought to development is “hard gas”, Zhang
Liangping was less optimistic: “Our development goal is to ensure stability.” He told reporters, the current auto parts competition in the market is very confusing between price and quality, vehicle production enterprises pay more attention to price, to unreasonable prices down related accessories, these production accessories companies earn less money, about developing it so blindly to keep the prices down , is not conducive to the formation of the industrial chain. “

Domestic heavy duty truck production mode with foreign Zhang Liangping said foreign research and development of a new product cycle for 18-36 months, the headlights of a new model developed for a long time will not change, which allows supporting enterprises longer production cycle, there is conducive to absorb the cost of domestic enterprises set in November this year, a new model will be asked to January next year, you must produce supporting truck headlights. “Zhang Liangping example, to reporters , within such a short time, how can you produce a competitive product? “

The new product is not just a short development cycle, market sales cycle is very short. Zhang Liangping briefed reporters on the 2023 truck lights, for example, the general will change type, so the new lights in the first year to buy the higher prices, the profit will reach 20%, the cost recovery as soon as possible, to the second year of the vehicle manufacturers will ask you to keep the prices down 5% to 8%, the third year of basic not make a profit. In order to extend the life of the product, Lu was Tony had tried to exclusive supply contract signed with the vehicle manufacturers, but some manufacturers also act in accordance with the contract, but the second year in order to reduce the cost of automobile production, will be relevant parameters disclose to the other lights manufacturers allowed to produce cheaper products forced Lu too Pui price cuts, not price cuts would mean the loss of customers. Faced with this situation, Zhang Liangping reluctantly said: “in the face of our customers ‘protection of intellectual property rights’ is simply out of the question, because ‘arm twisted, but the thigh’.”

Despite the difficulties, but Lu was Tony still choose to do the industry leader, they believe that “as long as the industry-leading position, there will be more opportunities.” On December 11 last year, of Shandong Lu was Tony lights The company is mainly involved in the drafting of the “non-highway tourist car headlamp mandatory national standards officially released by the China National Standardization

Management Committee, Lu was Tony confirms own strength. “First-class enterprise standard, second-rate corporate brand, third-rate companies make products.” Phrase widely circulated, Zhang Liangping told reporters, Lu was Tony is to do this first-class enterprise.

 March 29th, 2017  
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Genuine and “‘not coming again'” Prices

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 October 19th, 2016  
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