In the financial crisis, what kind of auto companies hurt the most? Look at the Shanghai International Auto Show. Compared with the entire vehicle, the enthusiasm of this component company to participate in the Shanghai International Auto Show is obviously lower.
International tire giants are generally absent
The tire industry is an industry that does not let down. At the Shanghai International Auto Show, it will be difficult for us to see the Michelin rod box with the Michelin logo swaggering through the streets. This tire giant, who has not been sponsored by the Shanghai International Auto Show for years, chose not to exhibit.
Goodyear, which has never participated in the domestic auto show, still does not attend this auto show. Among the tire giants ranked globally, it still seems that only the Bridgestone Tire Company will participate in the Shanghai International Auto Show. Its exhibition area is nearly 200 square meters.
All this stems from the decline in global demand for cars and the decline in profits of the tire industry. In 2008, sales of Michelin tires fell by 2.9%; Michelin’s profits plummeted by 53.8% due to soaring prices of raw materials.
Tire giants generally expect the recession to continue. Bridgestone Tire Company pessimistically expects its sales revenue to decline by 22% year-on-year in 2009, and its profits will fall by 71%. The large number of layoffs and production cuts and unnecessary expenditure reductions have become a magic weapon for tire companies. Goodyear Tire's tire production plan in North America will be reduced by 50%. In 2009, it may eventually reduce 17 million tires.
U.S. Parts and Components Manufacturers Cold to Auto Show
This year's Shanghai International Auto Show, the auto parts giant will be less than last year. At present, only the Bosch Group and Mahle have announced their participation, but the scale of the exhibitors at Mahle has been significantly reduced. Delphi, Canadian Magna International, ArvinMeritor, American Axle Manufacturing, Johnson Controls, and TRW Automotive Group have made it clear that they will miss the auto show.
These reduced-cost auto parts companies are mostly US-based companies, or their main vehicle customers are American vehicle companies. This is mainly due to the sharp decline in vehicle sales of the U.S. Department, so the revenue and profits of component suppliers have also dropped sharply.
Delphi company sources told the Shanghai Securities News, “In the past few years, Delphi has been participating in the domestic auto show, but the current economic situation is poor, Delphi adjusted the market strategy, reduced the market and advertising expenses, the limited money spent As for the promotion of direct customers, Delphi hopes to return to the domestic auto show in the future if the economy picks up."
Geszt.com CEO Chen Wenkai pointed out that “The cross-border auto giants are also very normal for the auto show. First of all, at the five major international auto shows, there are fewer auto parts exhibitors. After all, large-scale auto shows directly face the entire vehicle consumer. While the audience of the parts and components companies is professionals, the effect of participating in this type of auto show is not as good as that of parts and components exhibited through technological exchanges.Secondly, after the financial crisis, parts suppliers have been hit harder than vehicle companies, and their wealth has increased. The parts and components companies must begin to carefully evaluate the value of the exhibition. Instead of spending more than 400,000 yuan on exhibitions, it is better to participate in several more targeted technology exhibitions."
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