Although China has a massive automotive production capacity that makes everything from the compounds that make up tires to the little bolts that hold mud flaps to your car, it has so far failed to produce a unique Tier One automotive supplier that is able to rival the likes of Bosch, Delphi or TRW. Enter BWI or Beijing West Industries, the Beijing based company is partly owned by Chinese steel conglomerate Shou Gang Group which assisted BWI in its takeover of Delphi?s braking department in 2009, now the company is aiming to take a slice out of Bosch by buying up its braking business unit.
BWI have been at the forefront of the development of a Tier One Chinese automotive parts supplier, Chinese companies have mostly been relegated to tier two or tier three suppliers where the turnover of product is high, but with low profits ? very few domestic auto suppliers are even bothering with R&D. Of course there are some exceptions to this rule, companies such as BWI and Asimco are both examples of Chinese tier two companies that are quickly turning in Tier Ones.
BWI have not yet clinched the deal, but from a recent China Daily report BWI seem to be in first place to grab Bosch?s breaking technology and IPR. European and Japanese bidders appear to have been reluctant to grab a slice of the Bosch due to them not requiring a slice of the European market or requiring the technology, but for a ?relatively small? company like BWI then the buyout could be a major addition to their arsenal.
The breaking and suspension business unit in question is not exactly small ? it consists of some 20 facilities at 34 sites across Europe and generates over 1.24 billion USD of revenue for Bosch per year.
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