AC delco = Chinese Relays
10-14-2007, 04:24 PM
#1
Safety Car
Thread Starter
AC delco = Chinese Relays
I will not buy AC Delco relays any more. They are reboxed Chinese relays, and stamped chinese on the part, and on the AC delco box.
mine was double boxed. Chinese box on the inside, slipped into an AC delco box on the out side.
From now on, I'll buy the cheapest parts from a local autozone.
So much for order "original gm parts"
Rock auto wouldn;t even take it back because it was chinese. must be defective for them to accept a return.
mine was double boxed. Chinese box on the inside, slipped into an AC delco box on the out side.
From now on, I'll buy the cheapest parts from a local autozone.
So much for order "original gm parts"
Rock auto wouldn;t even take it back because it was chinese. must be defective for them to accept a return.
10-14-2007, 08:49 PM
#2
Team Owner
Their is a HUGE problem with counterfiet OEM parts. Try a google and I bet a ton comes up. Some parts are now made in China I guess also. The copies are so good only an expert can tell sometimes.
Where did you buy it?
Where did you buy it?
07-20-2010, 08:38 PM
#6
Race Director
07-20-2010, 09:11 PM
#7
Tech Contributor
Member Since: Oct 1999
Location: Charlotte, NC (formerly Endicott, NY)
Posts: 40,089
Received 8,928 Likes
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5,333 Posts
Does made in China automatically make them bad? Almost everything you purchase is made in China now. Refrigerators, air conditioners, electric light fixtures, toys, designer clothing, almost anything you buy at Walmart, Sears, Penney's and any other dept store. About the only thing still made in this country are Boeing Aircraft and they probably have quite a few Chinese made parts in them.
If you refuse to buy items made in China you will soon have a large savings account because you won't be buying anything.
Larry, how are you doing? Been a while.
Bill
If you refuse to buy items made in China you will soon have a large savings account because you won't be buying anything.
Larry, how are you doing? Been a while.
Bill
07-20-2010, 09:53 PM
#8
Team Owner
They turn out tons of junk in China now they are probably making the drugs you take with no regulation and near NO over sight. If they can't make dog food do you really want to take drugs from China?
A
And people wonder why we have no jobs here?
A
re Your Drugs Made in China?
Monday December 10, 2007
If you take pharmacy drugs, you'll want to take notice of a looming problem and a potential catastrophe.
China -- the country that brought you toys, toothpaste, lipstick and other assorted products full of lead -- is a chief supplier of American pharmacy drugs and vitamins, from over the counter to generics to branded drugs. There is a good chance you have Chinese manufactured drugs in your medicine cabinet if not in your body as you read this post.
Is there any oversight? Evidently it's not even worth mentioning. Of the 714 Chinese plants manufacturing drugs which then get shipped to the US, there were only 13 inspections in 2007.
The dangers? Well -- who is to say exactly what the ingredients are? We already know that lead was found in products that we touch every day. It doesn't matter what the list of ingredients is for any given product, because there may be more -- or less -- than what it says.
Bogus drugs are another real problem. What if you use a drug to lower your blood pressure -- and the active ingredient isn't there? We've already heard tales of fake viagra and others. For lifestyle drugs, the problem isn't so dangerous. But for lifesaving drugs it certainly is. A bogus antibiotic which came from a Chinese plant is already blamed for causing 13 people to die.
Not that China isn't trying to regulate these manufacturers. In July 2007, one official was executed for taking bribes. Another was sentenced to death for corruption. And a handful of plants were closed for quality control issues.
But what happens if the US and China don't stay friendly? According to the McClatchy newspapers, the major manufacturer of the antibiotic that kills anthrax is located in China and is no longer manufacturer at all in the US. Think back to post-911. Don't think it can't happen.
What can we do as patients? Be vigilant is all. There is little an individual patient can do except to trust.
Scary, isn't it?
Monday December 10, 2007
If you take pharmacy drugs, you'll want to take notice of a looming problem and a potential catastrophe.
China -- the country that brought you toys, toothpaste, lipstick and other assorted products full of lead -- is a chief supplier of American pharmacy drugs and vitamins, from over the counter to generics to branded drugs. There is a good chance you have Chinese manufactured drugs in your medicine cabinet if not in your body as you read this post.
Is there any oversight? Evidently it's not even worth mentioning. Of the 714 Chinese plants manufacturing drugs which then get shipped to the US, there were only 13 inspections in 2007.
The dangers? Well -- who is to say exactly what the ingredients are? We already know that lead was found in products that we touch every day. It doesn't matter what the list of ingredients is for any given product, because there may be more -- or less -- than what it says.
Bogus drugs are another real problem. What if you use a drug to lower your blood pressure -- and the active ingredient isn't there? We've already heard tales of fake viagra and others. For lifestyle drugs, the problem isn't so dangerous. But for lifesaving drugs it certainly is. A bogus antibiotic which came from a Chinese plant is already blamed for causing 13 people to die.
Not that China isn't trying to regulate these manufacturers. In July 2007, one official was executed for taking bribes. Another was sentenced to death for corruption. And a handful of plants were closed for quality control issues.
But what happens if the US and China don't stay friendly? According to the McClatchy newspapers, the major manufacturer of the antibiotic that kills anthrax is located in China and is no longer manufacturer at all in the US. Think back to post-911. Don't think it can't happen.
What can we do as patients? Be vigilant is all. There is little an individual patient can do except to trust.
Scary, isn't it?
And people wonder why we have no jobs here?
Last edited by John Shiels; 07-20-2010 at 09:56 PM.
07-20-2010, 10:11 PM
#10
Drifting
Member Since: Sep 2004
Location: Richmond Va
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Cruise-In VI Veteran
Well let's start with unions that make unreasonable demands of the corporations with absolutely no flexibility when the company tries to cut back and save jobs, a government (state and federal) that stifles growth and creates an unhealthy business environment through tax codes and regulation, and a legal system that allows any frivilous law suit to go to trial.
A business is in business to make a profit not to provide jobs. If you make item X and the local economy is to restrictive or unhealthy, you move your business to where it will flourish. Business 101.
Not that its right, but thems the facts
Bob
PS... Anyone remember the stigma attatched to "Made In Japan"?
A business is in business to make a profit not to provide jobs. If you make item X and the local economy is to restrictive or unhealthy, you move your business to where it will flourish. Business 101.
Not that its right, but thems the facts
Bob
PS... Anyone remember the stigma attatched to "Made In Japan"?
07-20-2010, 10:31 PM
#11
Racer
Member Since: Feb 2010
Location: recently back to Fort Lauderdale Florida
Posts: 278
Likes: 0
Received 0 Likes
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if you know the relay type, amperage rating, coil current etc...
you can get them at a electronics distributor like digi key, mouser etc...
i just changed out a A/C clutch relay for a Toyota, $70 for the little sucker... same rated relay from Mouser electronics, $4.00 ....
On another note....
I'm not in a union, but as long as there are executives that get paid what they do there will be unions...
you can get them at a electronics distributor like digi key, mouser etc...
i just changed out a A/C clutch relay for a Toyota, $70 for the little sucker... same rated relay from Mouser electronics, $4.00 ....
On another note....
I'm not in a union, but as long as there are executives that get paid what they do there will be unions...
07-21-2010, 12:28 AM
#12
Melting Slicks
Chinese enter U.S. by acquiring U.S. suppliers
After years of breakneck growth at home, China's parts makers are starting to reinvent themselves as global suppliers.
No longer content with shipping parts to North America, Chinese suppliers are acquiring U.S. companies and factories, often at bargain prices. In many cases they want to service North American customers -- particularly General Motors Co. and Ford Motor Co., which already do business with them in China.
In early July, for example, Tempo International Group, a Beijing supplier of brake, chassis and powertrain components, and its financial backer, the municipality of Beijing, formed a joint venture called Pacific Century Motors to purchase GM's Nexteer steering components unit for a reported $450 million.
"We want to become a mainstream supplier," Tempo Chairman Tianbao Zhou said in an interview last week at GM headquarters. "We want to blend in to the American culture."
Tempo is following in the steps of Wanxiang Group Corp.
In 1969, Lu Guanqiu, a former apprentice blacksmith, launched a farm tool repair shop with his wife, five partners and $500. Later he started producing universal joints for automakers.
Now his Wanxiang Group Corp. generates global sales of $8 billion a year. Wanxiang is in Hangzhou in China's Zhejiang province, on the eastern coast just south of Shanghai.
In 1994, Lu launched Wanxiang America Corp. in Elgin, Ill. In the late 1990s, the U.S. operation bought five distressed chassis component suppliers, keeping their American management in place.
Lu has continued buying. In 2007, the company purchased a driveshaft operation in Monroe, Mich., from Ford Motor Co.
The company's U.S. sales totaled $1.3 billion last year. At a recent industry event in Detroit, Wanxiang America President Pin Ni said he would consider other acquisitions of distressed suppliers.
Other Chinese suppliers will follow, says C. Peter Theut, the founder of China Bridge, an Ann Arbor, Mich., consulting firm that helps complete mergers of Chinese and U.S. companies. Over the past year, "We've been approached by 12 Chinese companies that want to come West," Theut says. Six were auto suppliers, he says.
Chinese cash
The Chinese generally seek small U.S. companies with niche products and annual sales of $20 million to $150 million. "The Chinese companies will come in with cash and supply the Americans with resources that they couldn't get from U.S. lenders," Theut says.
Although it's unclear how many Chinese automotive suppliers do business in the United States, the Detroit Regional Chamber counts at least 41 in the Detroit area alone. Companies range from small suppliers to the parts units of FAW Group and Shanghai Automotive Industry Corp., two of China's largest automakers.
"A number of Chinese suppliers want to get into the North American market," says Wayne County (Mich.) Executive Robert Ficano, who has led six trade missions to China. "And the automakers say, 'If you want to do it in the United States, you need to locate close to us.' "
Typically, these companies start small with a U.S. sales office and perhaps a technical center. After a few years they might start shopping for U.S. factories, says Ficano.
That was Tempo's approach -- financed by a Chinese government body. The Beijing municipal government has set up a $15 billion fund to help local companies, including Tempo, make acquisitions.
"With the support of Beijing, we are trying to take the company to the global stage," said Tempo's Zhou. With 2009 sales of $2.1 billion, Nexteer, of Saginaw, Mich., provides Tempo a platform "to build a much larger company."
Beijing's deep pockets offer Nexteer growth possibilities that it hasn't had in years. In 2006, bankrupt Delphi Corp. put its Saginaw Steering Gear unit up for sale. After Delphi was unable to find a buyer it sold the operation back to GM in March 2009. GM renamed it and put Nexteer up for sale in January.
As Delphi and then GM struggled through bankruptcy, Nexteer was forced to conserve cash. "I had to turn down growth opportunities because we didn't have the capital," said Nexteer President Robert Remenar.
Tempo's negotiations to buy Nexteer went well in part because the Chinese company had a track record on acquisitions. In March 2009, BeijingWest Industries Co. -- a partnership of China's Shougang Corp., the municipality of Beijing and Tempo -- bought Delphi Corp.'s brake operations for $100 million.
The Chinese influx will continue over the next couple of years, Theut predicts. "It's the U.S. suppliers that are so desperate, and the Chinese companies recognize that."
PacMan strategy
Company: Wanxiang America Corp.
Parent: Wanxiang Group Corp., of Hangzhou, Zhejiang province, China
U.S. CEO: Pin Ni
U.S. headquarters: Elgin, Ill.
Products: Chassis components
U.S. assets: 24 facilities, 4,500 employees
U.S. sales: $1.3 billion
Growth plan: Buy distressed U.S. suppliers at a discount.
Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz0uHuI3D6g
http://www.autonews.com/apps/pbcs.dl...307199964/1131
No longer content with shipping parts to North America, Chinese suppliers are acquiring U.S. companies and factories, often at bargain prices. In many cases they want to service North American customers -- particularly General Motors Co. and Ford Motor Co., which already do business with them in China.
In early July, for example, Tempo International Group, a Beijing supplier of brake, chassis and powertrain components, and its financial backer, the municipality of Beijing, formed a joint venture called Pacific Century Motors to purchase GM's Nexteer steering components unit for a reported $450 million.
"We want to become a mainstream supplier," Tempo Chairman Tianbao Zhou said in an interview last week at GM headquarters. "We want to blend in to the American culture."
Tempo is following in the steps of Wanxiang Group Corp.
In 1969, Lu Guanqiu, a former apprentice blacksmith, launched a farm tool repair shop with his wife, five partners and $500. Later he started producing universal joints for automakers.
Now his Wanxiang Group Corp. generates global sales of $8 billion a year. Wanxiang is in Hangzhou in China's Zhejiang province, on the eastern coast just south of Shanghai.
In 1994, Lu launched Wanxiang America Corp. in Elgin, Ill. In the late 1990s, the U.S. operation bought five distressed chassis component suppliers, keeping their American management in place.
Lu has continued buying. In 2007, the company purchased a driveshaft operation in Monroe, Mich., from Ford Motor Co.
The company's U.S. sales totaled $1.3 billion last year. At a recent industry event in Detroit, Wanxiang America President Pin Ni said he would consider other acquisitions of distressed suppliers.
Other Chinese suppliers will follow, says C. Peter Theut, the founder of China Bridge, an Ann Arbor, Mich., consulting firm that helps complete mergers of Chinese and U.S. companies. Over the past year, "We've been approached by 12 Chinese companies that want to come West," Theut says. Six were auto suppliers, he says.
Chinese cash
The Chinese generally seek small U.S. companies with niche products and annual sales of $20 million to $150 million. "The Chinese companies will come in with cash and supply the Americans with resources that they couldn't get from U.S. lenders," Theut says.
Although it's unclear how many Chinese automotive suppliers do business in the United States, the Detroit Regional Chamber counts at least 41 in the Detroit area alone. Companies range from small suppliers to the parts units of FAW Group and Shanghai Automotive Industry Corp., two of China's largest automakers.
"A number of Chinese suppliers want to get into the North American market," says Wayne County (Mich.) Executive Robert Ficano, who has led six trade missions to China. "And the automakers say, 'If you want to do it in the United States, you need to locate close to us.' "
Typically, these companies start small with a U.S. sales office and perhaps a technical center. After a few years they might start shopping for U.S. factories, says Ficano.
That was Tempo's approach -- financed by a Chinese government body. The Beijing municipal government has set up a $15 billion fund to help local companies, including Tempo, make acquisitions.
"With the support of Beijing, we are trying to take the company to the global stage," said Tempo's Zhou. With 2009 sales of $2.1 billion, Nexteer, of Saginaw, Mich., provides Tempo a platform "to build a much larger company."
Beijing's deep pockets offer Nexteer growth possibilities that it hasn't had in years. In 2006, bankrupt Delphi Corp. put its Saginaw Steering Gear unit up for sale. After Delphi was unable to find a buyer it sold the operation back to GM in March 2009. GM renamed it and put Nexteer up for sale in January.
As Delphi and then GM struggled through bankruptcy, Nexteer was forced to conserve cash. "I had to turn down growth opportunities because we didn't have the capital," said Nexteer President Robert Remenar.
Tempo's negotiations to buy Nexteer went well in part because the Chinese company had a track record on acquisitions. In March 2009, BeijingWest Industries Co. -- a partnership of China's Shougang Corp., the municipality of Beijing and Tempo -- bought Delphi Corp.'s brake operations for $100 million.
The Chinese influx will continue over the next couple of years, Theut predicts. "It's the U.S. suppliers that are so desperate, and the Chinese companies recognize that."
PacMan strategy
Company: Wanxiang America Corp.
Parent: Wanxiang Group Corp., of Hangzhou, Zhejiang province, China
U.S. CEO: Pin Ni
U.S. headquarters: Elgin, Ill.
Products: Chassis components
U.S. assets: 24 facilities, 4,500 employees
U.S. sales: $1.3 billion
Growth plan: Buy distressed U.S. suppliers at a discount.
Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz0uHuI3D6g
http://www.autonews.com/apps/pbcs.dl...307199964/1131
07-22-2010, 06:37 AM
#14
Safety Car
Tier 1 (assembly suppliers) through 4 (component/material suppliers to the Tier 1 vendors) suppliers to the domestic auto industry have been shrinking over the past decade (from approx. 20,000 to 5000 companies). For many that remained, the bankrupcies at GM and Chrysler were the last nail in the coffin (who's bills do you think got excussed as a result of the bailout?). That allowed offshore interests to scoop up companies at bargain basement prices. China has the cash (most of it ours) and is taking advantage of our mis-steps/:\
07-22-2010, 07:08 AM
#15
Team Owner
Well let's start with unions that make unreasonable demands of the corporations with absolutely no flexibility when the company tries to cut back and save jobs, a government (state and federal) that stifles growth and creates an unhealthy business environment through tax codes and regulation, and a legal system that allows any frivilous law suit to go to trial.
A business is in business to make a profit not to provide jobs. If you make item X and the local economy is to restrictive or unhealthy, you move your business to where it will flourish. Business 101.
Not that its right, but thems the facts
Bob
PS... Anyone remember the stigma attatched to "Made In Japan"?
A business is in business to make a profit not to provide jobs. If you make item X and the local economy is to restrictive or unhealthy, you move your business to where it will flourish. Business 101.
Not that its right, but thems the facts
Bob
PS... Anyone remember the stigma attatched to "Made In Japan"?
Tell me when this country goes in the crapper totally who will buy the 50,000 dollar car and truck from GM or others? Clue it won't be someone in China bar a few.
So we should work for what Chinese get?
Should we work under the same conditions of the Chinese? Like killing thousands some years to get cheap coal rather than considering safety. Cheaper to mail out the 100-150 dollar death benefit.
7% union in this country so is that where all the jobs in this country were lost?
So tell me how you compete with someone in China in a auto parts plant making 240 per month and I doubt it is 160 hours per month?
Tell me why Japan, China, Korea, and EU block US products all while dumping their crap here?
Tell me where China breaks every trade agreement they sign and we do nothing here in the USA?
Yea it is all the unions fault we lost millions of jobs here in the USA when such a small portion is union and many are municipal unions.
Tell me why the US puts up with a 30%+ currency devaluation by China?
Tell me why Japan has been allowed to manipulate it's currency for decades for an average per car advantage of $4,000 and up to 12,000 on high end cars?
Tell me why Japanese have laughed at the USA as states cut each others throat in giving away their tax base for decades when they build a plant here with no national policy?
Tell me why we let Japan block access of US parts makers to Japan's market? Bush brought it up but nothing was done as usual.
Tell me why EU can ship cars here and the sell them but US cars are buried in tariffs?
Tell me how toyoduh would be doing if we treated them like Japan treats the US?
Tell me why Japan and Korea are closed up to US beef?
Tell me why vendors never brag about made in China here?
We have reached the tipping point of cheap vs jobs. Other recession manufacturing would lead us out of recession but not this time.
When I see Japanese cars I see a stigma of US stupidity!
When I see a US fighter plane I know all the LCD screens are now made in Japan because they had a national policy to drive out US companies even if the sold at a loss for years. The knew it would be a huge market in everything we touch.
Last edited by John Shiels; 07-22-2010 at 07:49 AM.
07-22-2010, 07:11 AM
#16
Team Owner
After years of breakneck growth at home, China's parts makers are starting to reinvent themselves as global suppliers.
No longer content with shipping parts to North America, Chinese suppliers are acquiring U.S. companies and factories, often at bargain prices. In many cases they want to service North American customers -- particularly General Motors Co. and Ford Motor Co., which already do business with them in China.
In early July, for example, Tempo International Group, a Beijing supplier of brake, chassis and powertrain components, and its financial backer, the municipality of Beijing, formed a joint venture called Pacific Century Motors to purchase GM's Nexteer steering components unit for a reported $450 million.
"We want to become a mainstream supplier," Tempo Chairman Tianbao Zhou said in an interview last week at GM headquarters. "We want to blend in to the American culture."
Tempo is following in the steps of Wanxiang Group Corp.
In 1969, Lu Guanqiu, a former apprentice blacksmith, launched a farm tool repair shop with his wife, five partners and $500. Later he started producing universal joints for automakers.
Now his Wanxiang Group Corp. generates global sales of $8 billion a year. Wanxiang is in Hangzhou in China's Zhejiang province, on the eastern coast just south of Shanghai.
In 1994, Lu launched Wanxiang America Corp. in Elgin, Ill. In the late 1990s, the U.S. operation bought five distressed chassis component suppliers, keeping their American management in place.
Lu has continued buying. In 2007, the company purchased a driveshaft operation in Monroe, Mich., from Ford Motor Co.
The company's U.S. sales totaled $1.3 billion last year. At a recent industry event in Detroit, Wanxiang America President Pin Ni said he would consider other acquisitions of distressed suppliers.
Other Chinese suppliers will follow, says C. Peter Theut, the founder of China Bridge, an Ann Arbor, Mich., consulting firm that helps complete mergers of Chinese and U.S. companies. Over the past year, "We've been approached by 12 Chinese companies that want to come West," Theut says. Six were auto suppliers, he says.
Chinese cash
The Chinese generally seek small U.S. companies with niche products and annual sales of $20 million to $150 million. "The Chinese companies will come in with cash and supply the Americans with resources that they couldn't get from U.S. lenders," Theut says.
Although it's unclear how many Chinese automotive suppliers do business in the United States, the Detroit Regional Chamber counts at least 41 in the Detroit area alone. Companies range from small suppliers to the parts units of FAW Group and Shanghai Automotive Industry Corp., two of China's largest automakers.
"A number of Chinese suppliers want to get into the North American market," says Wayne County (Mich.) Executive Robert Ficano, who has led six trade missions to China. "And the automakers say, 'If you want to do it in the United States, you need to locate close to us.' "
Typically, these companies start small with a U.S. sales office and perhaps a technical center. After a few years they might start shopping for U.S. factories, says Ficano.
That was Tempo's approach -- financed by a Chinese government body. The Beijing municipal government has set up a $15 billion fund to help local companies, including Tempo, make acquisitions.
"With the support of Beijing, we are trying to take the company to the global stage," said Tempo's Zhou. With 2009 sales of $2.1 billion, Nexteer, of Saginaw, Mich., provides Tempo a platform "to build a much larger company."
Beijing's deep pockets offer Nexteer growth possibilities that it hasn't had in years. In 2006, bankrupt Delphi Corp. put its Saginaw Steering Gear unit up for sale. After Delphi was unable to find a buyer it sold the operation back to GM in March 2009. GM renamed it and put Nexteer up for sale in January.
As Delphi and then GM struggled through bankruptcy, Nexteer was forced to conserve cash. "I had to turn down growth opportunities because we didn't have the capital," said Nexteer President Robert Remenar.
Tempo's negotiations to buy Nexteer went well in part because the Chinese company had a track record on acquisitions. In March 2009, BeijingWest Industries Co. -- a partnership of China's Shougang Corp., the municipality of Beijing and Tempo -- bought Delphi Corp.'s brake operations for $100 million.
The Chinese influx will continue over the next couple of years, Theut predicts. "It's the U.S. suppliers that are so desperate, and the Chinese companies recognize that."
PacMan strategy
Company: Wanxiang America Corp.
Parent: Wanxiang Group Corp., of Hangzhou, Zhejiang province, China
U.S. CEO: Pin Ni
U.S. headquarters: Elgin, Ill.
Products: Chassis components
U.S. assets: 24 facilities, 4,500 employees
U.S. sales: $1.3 billion
Growth plan: Buy distressed U.S. suppliers at a discount.
Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz0uHuI3D6g
http://www.autonews.com/apps/pbcs.dl...307199964/1131
No longer content with shipping parts to North America, Chinese suppliers are acquiring U.S. companies and factories, often at bargain prices. In many cases they want to service North American customers -- particularly General Motors Co. and Ford Motor Co., which already do business with them in China.
In early July, for example, Tempo International Group, a Beijing supplier of brake, chassis and powertrain components, and its financial backer, the municipality of Beijing, formed a joint venture called Pacific Century Motors to purchase GM's Nexteer steering components unit for a reported $450 million.
"We want to become a mainstream supplier," Tempo Chairman Tianbao Zhou said in an interview last week at GM headquarters. "We want to blend in to the American culture."
Tempo is following in the steps of Wanxiang Group Corp.
In 1969, Lu Guanqiu, a former apprentice blacksmith, launched a farm tool repair shop with his wife, five partners and $500. Later he started producing universal joints for automakers.
Now his Wanxiang Group Corp. generates global sales of $8 billion a year. Wanxiang is in Hangzhou in China's Zhejiang province, on the eastern coast just south of Shanghai.
In 1994, Lu launched Wanxiang America Corp. in Elgin, Ill. In the late 1990s, the U.S. operation bought five distressed chassis component suppliers, keeping their American management in place.
Lu has continued buying. In 2007, the company purchased a driveshaft operation in Monroe, Mich., from Ford Motor Co.
The company's U.S. sales totaled $1.3 billion last year. At a recent industry event in Detroit, Wanxiang America President Pin Ni said he would consider other acquisitions of distressed suppliers.
Other Chinese suppliers will follow, says C. Peter Theut, the founder of China Bridge, an Ann Arbor, Mich., consulting firm that helps complete mergers of Chinese and U.S. companies. Over the past year, "We've been approached by 12 Chinese companies that want to come West," Theut says. Six were auto suppliers, he says.
Chinese cash
The Chinese generally seek small U.S. companies with niche products and annual sales of $20 million to $150 million. "The Chinese companies will come in with cash and supply the Americans with resources that they couldn't get from U.S. lenders," Theut says.
Although it's unclear how many Chinese automotive suppliers do business in the United States, the Detroit Regional Chamber counts at least 41 in the Detroit area alone. Companies range from small suppliers to the parts units of FAW Group and Shanghai Automotive Industry Corp., two of China's largest automakers.
"A number of Chinese suppliers want to get into the North American market," says Wayne County (Mich.) Executive Robert Ficano, who has led six trade missions to China. "And the automakers say, 'If you want to do it in the United States, you need to locate close to us.' "
Typically, these companies start small with a U.S. sales office and perhaps a technical center. After a few years they might start shopping for U.S. factories, says Ficano.
That was Tempo's approach -- financed by a Chinese government body. The Beijing municipal government has set up a $15 billion fund to help local companies, including Tempo, make acquisitions.
"With the support of Beijing, we are trying to take the company to the global stage," said Tempo's Zhou. With 2009 sales of $2.1 billion, Nexteer, of Saginaw, Mich., provides Tempo a platform "to build a much larger company."
Beijing's deep pockets offer Nexteer growth possibilities that it hasn't had in years. In 2006, bankrupt Delphi Corp. put its Saginaw Steering Gear unit up for sale. After Delphi was unable to find a buyer it sold the operation back to GM in March 2009. GM renamed it and put Nexteer up for sale in January.
As Delphi and then GM struggled through bankruptcy, Nexteer was forced to conserve cash. "I had to turn down growth opportunities because we didn't have the capital," said Nexteer President Robert Remenar.
Tempo's negotiations to buy Nexteer went well in part because the Chinese company had a track record on acquisitions. In March 2009, BeijingWest Industries Co. -- a partnership of China's Shougang Corp., the municipality of Beijing and Tempo -- bought Delphi Corp.'s brake operations for $100 million.
The Chinese influx will continue over the next couple of years, Theut predicts. "It's the U.S. suppliers that are so desperate, and the Chinese companies recognize that."
PacMan strategy
Company: Wanxiang America Corp.
Parent: Wanxiang Group Corp., of Hangzhou, Zhejiang province, China
U.S. CEO: Pin Ni
U.S. headquarters: Elgin, Ill.
Products: Chassis components
U.S. assets: 24 facilities, 4,500 employees
U.S. sales: $1.3 billion
Growth plan: Buy distressed U.S. suppliers at a discount.
Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz0uHuI3D6g
http://www.autonews.com/apps/pbcs.dl...307199964/1131
Ever wonder why China can come here and buy what they want but a US company has to have a joint venture in China?
Ever wonder why a US company can't build an auto plant in Japan?
Ever wonder why Renault owns half of Nissan but can't sell Renault in Japan with Nissan?
Ever wonder why Korea and Japan send millions of cars here to the US and have the most closed home market in the entire industrialized world? They allow 3-4% for the entire auto world to penetrate there market with all the taxes and regulations?
Last edited by John Shiels; 07-22-2010 at 07:18 AM.
07-22-2010, 07:13 AM
#17
Team Owner
Tier 1 (assembly suppliers) through 4 (component/material suppliers to the Tier 1 vendors) suppliers to the domestic auto industry have been shrinking over the past decade (from approx. 20,000 to 5000 companies). For many that remained, the bankrupcies at GM and Chrysler were the last nail in the coffin (who's bills do you think got excussed as a result of the bailout?). That allowed offshore interests to scoop up companies at bargain basement prices. China has the cash (most of it ours) and is taking advantage of our mis-steps/:\
07-22-2010, 07:23 AM
#18
Team Owner
