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Foreign investend auto part enterprises have accounted over 500 in China!

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Profit shrinking is the fundamental reason. In the first quarter of 2005, profits of automotive industry decreased about 10 billion yuan year on year, down by 60%. Influenced by the stagnation of automotive assembly industry and the rising of steel price, it is the first time in the past ten years that the profit has declined.

China’s auto part manufacturers can be divided into the following four types: the first is part plants affiliated to large automotive groups. Depending on state-owned parent groups, these plants are accustomed to China’s traditional plan production mode and deviates from market orientation in price mechanism.

Together with the development of China’s economy, relatively rapid growth has been maintained in China’s auto part market in the recent years. Currently, there are about 5 000 large part enterprises in China, whereas 15% of these enterprises get a monthly profit of 50 million yuan. Part cost takes up over 70% of the total auto cost; therefore, the development of auto part industry directly influence the automotive industry development.

Foud’s activities have won the company praise and admiration in all sectors of Chinese society. In 2005, the Ford Motor Company won the “Best Corporate Citizen Behavior Award” for the second time, in recognition of its active promotion of environmental protection. In 2006, the China Environmental Protection Foundation awarded Ford the “China Environmental Award Corporate Environmental Protection Green Oriental Award,” making it the first foreign enterprise ever to have won it.