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Delphi, one of the world's largest auto parts suppliers, announced its future China strategy in a competitive situation at the Beijing Auto Show. According to Chen Jinya, president of Delphi China, Delphi’s total sales in China last year reached US$615 million. China has become the focus of Delphi’s global strategy.
Chen Jinya said: The future strategy of Delphi is to deepen lean production and work hard on cost and lean production. It is not one-sided pursuit of scale. In addition, we must establish our own R&D center in China to develop more products. It is reported that Delphi will invest 50 million U.S. dollars to establish a R&D center with a research staff of 500 people in Shanghai, which will become the key to Delphi's success in China. According to statistics, the purchase amount of the global auto industry in China will reach US$50 billion in the next three years, and China will become the global auto parts procurement center. Chen Jinya expressed concern about this, he said: “International multinational companies all want to expand their business in China, but most of China’s suppliers are not prepared, and quality and logistics have become bottlenecks in market development. For example, logistics is a headache. The problem, if Delphi wants to ship a container from Shanghai to Chengdu, is equivalent to shipping from Shanghai to California."
Problems with hardware, software, and communication capabilities make purchasing in the Chinese market very difficult. Chen Jinya said: We must meet the demand for quality and cheap parts. If we do not have the ability to change the status quo, it will be impossible to achieve the task of manufacturing products in China.