| Budget Amount *help |
¥2,400,000 (Direct Cost: ¥2,400,000)
Fiscal Year 2005: ¥500,000 (Direct Cost: ¥500,000)
Fiscal Year 2004: ¥900,000 (Direct Cost: ¥900,000)
Fiscal Year 2003: ¥1,000,000 (Direct Cost: ¥1,000,000)
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| Research Abstract |
By the accession to the World Trade Organization (WTO), the Chinese automotive industry transforms from the stage of protected market by the government to the stage of the global competition. Accession to the WTO would have big impacts on China's auto industry.
In the result of the substantial liberalization of the Chinese auto market based on the WTO accession as mentioned above, the China's auto market become more competitive than Japanese auto market. Perhaps it is right to say that Chinese auto industry is featured as "global competition inside the Chinese automotive market".
The auto parts industry is competitive as the same as vehicle assembly. For instance, in the case of sheet manufacturers, Johnson Controls, Lear, Magna, Visteon, Araco, Tachies, and Takashimaya-Nippatsu started production in China.
The U.S. and European automakers and system-suppliers geared up the modularization strategy. The modularization means the outsourcing of subassemblies in larger units to suppliers. For instance, Volkswagen built the new plants based on the concept of modularization in Resende (Brazil), Bole Slav (Czech), and Mosel (former East Germany).
The U.S. and European automakers and system-suppliers try to introduce the modularization in China. For instance, Visteon established a joint venture, Shanghai Yanfeng Automotive Trim Systems, with Shanghai Automotive Industry (Group). This company supplies the integrated cockpit module to Shanghai VW and Shanghai GM. In addition, this company establishes a joint venture with TRW and supplies the airbag for this cockpit module.
As mentioned above, it is no exaggeration to say that the Chinese auto industry entered the new stage of as "global competition inside domestic auto market".
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