Consulting firm Alix Partners undertook the newest review displays that China's auto sales this year of maintained development, the automotive components suppliers are opposite grave liquidity difficulties, may lead to enterprise in the next 12-18 months, the drop of .
Because numerous Chinese auto components suppliers to depend on trade items earnings, so they can not take full benefit of the robust presentation of the household market. Alix Partners, said in the report, from a chronicled issue of outlook, China's auto components commerce, about a quarter of income arrives from exports. 40 taking part in the review about 60% of enterprises said they would dynamically elaborate the household market to reimburse for the down turn in revenue.
More severe market conditions, it also exposed the Chinese automotive component supplier in the management of the supply chain and operational deficiencies. Chinese companies need more working capital more than double global counterparts.
Alix Partners, said the fourth quarter of last year, China's auto components suppliers employed capital desires of the mean was 74 days (calculated founded on mean sales revenue), contrasted with 37 days for U.S. and European companies. Alix Partners said that the profitability of outlook, the presentation of Chinese enterprises as alike enterprises in the world, only the mean earnings margins of U.S. businesses is even smaller than China.
Involved in the investigation of 40 companies, said more than 20% net loss in 2008, half of this year, the company forecast profit margins less than 5%. Even so, China's auto parts suppliers are still looking for mergers and acquisitions on domestic and international market opportunities.
Because numerous Chinese auto components suppliers to depend on trade items earnings, so they can not take full benefit of the robust presentation of the household market. Alix Partners, said in the report, from a chronicled issue of outlook, China's auto components commerce, about a quarter of income arrives from exports. 40 taking part in the review about 60% of enterprises said they would dynamically elaborate the household market to reimburse for the down turn in revenue.
More severe market conditions, it also exposed the Chinese automotive component supplier in the management of the supply chain and operational deficiencies. Chinese companies need more working capital more than double global counterparts.
Alix Partners, said the fourth quarter of last year, China's auto components suppliers employed capital desires of the mean was 74 days (calculated founded on mean sales revenue), contrasted with 37 days for U.S. and European companies. Alix Partners said that the profitability of outlook, the presentation of Chinese enterprises as alike enterprises in the world, only the mean earnings margins of U.S. businesses is even smaller than China.
Involved in the investigation of 40 companies, said more than 20% net loss in 2008, half of this year, the company forecast profit margins less than 5%. Even so, China's auto parts suppliers are still looking for mergers and acquisitions on domestic and international market opportunities.
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