In 2010, the joint-venture vehicle companies expanded their new factories to compete in capacity competition, and multinational auto parts companies also set off a wave of expansion . Recently, multinational auto parts giants Continental Group and Visteon have announced the expansion of production capacity in China. Some multinational parts companies with exclusive technology in the subdivided areas have also stepped up their presence in China, such as Meijia, Sapa and Hintka. The company is a company that holds core technologies in the automotive component market. The reason why multinational auto companies continue to expand production capacity and extend new business in China is very simple: huge market with huge potential and considerable profits. However, the close layout of cross-border parts and components companies has also caused concern in the industry about the outflow of profits from the automotive industry. Wang Xiaoguang, a researcher in the Department of Policy Consulting at the National School of Administration, said in an interview with reporters that the current pattern of the Chinese auto market is "40% of international capital, 50% of the capital, and 70% of profits." The relevant personage predicted that "the weakness of independent brand strength and the lack of key parts and components technology have been recognized by the industry as the crux of the problem that China's automobile industry profits will flow to the outside world. The huge outflow of profits from China's auto industry will continue for 20 years or even longer. ". Multinational enterprise expansion layout As a latecomer to China, the global auto parts giant Continental Group is no longer conservative in its investment strategy in China and has completed its layout in China. On October 28, 2010, ContiTech, a subsidiary of Continental Group, completed the formal expansion of its new plant, ContiTech Ocean Pipe (Changchun) Co., Ltd. It is understood that the total investment in the new factory is 30 million yuan. In 2011, the new plant will produce about 2.3 million automotive air-conditioning pipes, one-third more than the production volume in 2010. The plant will also produce more than 1 million pipes for the power steering system, fuel supply system, exhaust gas management and industrial sectors. road. In addition, the new plant will also produce turbocharger lubrication medium lines, turbocharger cooling oil lines, and oil cooling lines from 2011 onwards. In fact, the company established a new factory in March 2010 with an investment of 40 million euros in Changshu City. The new plant has three business units at the initial stage, namely the air spring system (air suspension system), fluid technology (pipe and piping system). ) and vibration technology (including noise reduction), the products will be mainly supplied to China and other Asian markets, and ContiTech also intends to establish a compounding center in Changshu. Winterth, president of ContiTech Group Co., Ltd., a mainland collective director, said in an interview: “The Asian market is developing rapidly. Therefore, we have invested in and built a new factory, which further enhances our position in China.†On October 26, 2010, Visteon, the auto parts giant, also announced the expansion of the company. The company's joint venture, Da Mao Visteon Automotive Lighting Co., Ltd. and Twi West Transportation Co., Ltd., expanded the plant by 10,400 square meters. In addition, due to the increase in injection molding, electroplating and assembly capacity, the plant's production efficiency after the expansion will also be fully improved. The huge market for auto parts in China has also attracted a number of specialized multinational companies to “find gold†in China. Previously, MEGAPLASTICS, a world-renowned plastics auto parts company, claimed in early August that the company would consider establishing a new factory in north and south China. The new factory in the north may be located in Beijing, and the new factory in the south is expected to be located in Shenzhen. To meet the company's North-South layout. It is understood that MEGA's main products are high-performance plastic auto parts products. Instead of some steel parts, it has been used in engine exhaust pipes and other related core areas to meet the automotive lightweight and reduce cost requirements. Floating Ball Valve,Side Entry Ball Valve,Cast Steel Floating Ball Valve Beigao Valve Co., Ltd. , http://www.sanitary-ballvalve.com