“It is not enough to rely on our own capabilities alone. We learned yesterday that Lu Guanqiu, Chairman of Wanxiang Group’s Board of Directors, took the restructuring of Delphi Assets as the “best opportunity†to promote its own development. The tone set for possible acquisitions is to work with others. In fact, Wanxiang Group's joint acquisition of auto parts companies has been successfully practiced in the United States.
According to Wanxiang Group sources, Lu Guanqiu’s acquisition of Delphi Assets as the “best opportunity†to promote its own development is mainly because the auto parts industry occupies a very central position in the business map of Wanxiang Group. Among them, universal joint products sold by Wanxiang Group in overseas markets account for half of the total sales. Only Wanxiang Group, a US company, had an operating income of up to 500 million U.S. dollars in 2004.
The increasing proportion of overseas market contribution is the result of Wanxiang Group’s development of the “first parts and rear parts first; domestic first and second after foreign countries; first secondary market and second-level market†in recent years and the continuous upgrading of the industrial chain. In the case of domestic upgrades to Tier 1 suppliers, Wanxiang Group has been looking for ways to upgrade abroad. After acquiring overseas companies such as Schoeller, UAI, and Rockford, which are in the lower reaches of the value chain, Wanxiang Group transferred its technology and production to the country and obtained more than 100% of years by continuing to use the original brands and channels. Average return on investment. However, Wanxiang Group still plays a secondary supplier role in overseas markets. It goes without saying that if we can acquire some of the industry's top Delphi assets, it will greatly shorten the entire upgrade process.
The predicament of Delphi's operations is currently in the background of the continuous decline of the US auto parts industry, but the high labor costs and the large number of retired employees are the main factors. When the company acquired Seller, an American company with a history of nearly 80 years, Wanxiang successfully operated a joint operation with an American affiliate and successfully bypassed the trade unions behind the one of the top three parts suppliers in this American auto repair market. Pressure. Moreover, Wanxiang Group believes that it will be better for local companies to deal with some problems than to deal with them by themselves.
Although Wan Xiang, the general manager of U.S., said in an interview with overseas media that it had not conducted any dialogue with Delphi on the acquisition of assets, it did not rule out that Wanxiang Group had been quietly choosing partners. As a Wanxiang Group with many years of cooperation with Delphi, it is impossible to have a certain amount of judgment on which of its assets are available for purchase. Lu Guanqiu once said in the company: “We have always had a supply relationship with Delphi, and business opportunities are often given by the prophets.†The reporter called the Wanxiang Group U.S. company based in Chicago. The people also admitted that since the negotiation process of the acquisition is often dictated by a large number of trade secrets, revealing any details may change the final result.