My heartfelt condolences to all who supply parts to the OEM market. It is a bloodbath. In the period from January 1 through March 22 2009, production of cars in North America (USA, Mexico, Canada) dropped to 1,548,971 units, down a whopping 53% from 3,284,009 units built in the same period in 2008. Everywhere in the world, new car production has been severely curtailed. Most drastically in the US, a market on which the Chinese autoparts industry still is far too dependent.
DAILY RFID recently announced availability of the jewelry industry鈥檚 OEM (Original Equipment Manufacturer) RFID tag, designed to automatic Jewelry tracking in retail, wholesale, or secured storage applications.
PV OEM market share in 2008
PV OEM market share change in 2008
PV OEM market share change
New car manufacture around the world is at historic lows. It is no wonder that about 40 percent of China's auto part companies face severe liquidity problems this year, as an annual study by business advisory firm AlixPartners says. Some may fail in the next 12 months to 18 months. The AlixPartners study is not known for its doomsday announcements. A similar survey last year had predicted more than 30 percent revenue growth between 2008 and 2010, and healthy margins. We know how that played out.
You are still making parts for OEM production in America? You should get a medal for bravery. And you may receive a place in history as a vanishing species. We all heard of the dismal sales of new cars in the U.S. You as a parts maker are only peripherally interested in new car sales. What interests you is new car production.
Executive interview with Dr. Marcus Hoffmann, Principal of Roland Berger Strategy Consultants (Shanghai)
Foshan Nanhai Kali General Equipment Co., Ltd.
Foshan Nanhai Kali General Equipment Co., Ltd.