Car: Disparity between the two sides of the ocean
At the hillside of Mount Tai, we had the opportunity to read a comprehensive scientific report on the current state, future trends, and challenges facing the global automotive industry. This report was truly eye-opening for us. It serves as a springboard for our development, and we must deeply understand and actively engage in this process—taking off layers of skin, so to speak, and getting fully involved. This was the strong message from Dean Wu Jianong, deputy mayor of the Chongqing delegation.
One major gap we identified is in the automotive supply chain. Unlike Detroit, which has a highly integrated and long industrial chain, our industry still lacks that depth. Detroit isn't just a hub for car manufacturing and sales—it's also the center for automotive support services, logistics, R&D, trade, and finance. For centuries, the automotive industry has made Detroit shine globally, shaping the lives and dreams of its people. The big three—General Motors, Ford, and Chrysler—have annual sales in the billions, while companies like Delphi, Lear, and Visteon provide cutting-edge parts and R&D support to automakers worldwide. Around these giants, thousands of smaller suppliers and service providers form a vast, interconnected network that spans across hundreds of cities.
In the Ford Michigan Truck Plant, where 300,000 vehicles are sold annually, Chongqing entrepreneurs were amazed not only by the modern equipment but also by the precision of the logistics and distribution system. The production line runs multiple models simultaneously, with every part perfectly synchronized with the assembly process. There’s no delay or mismatch—every component arrives exactly when needed. Ford has invested heavily in custom logistics software, ensuring seamless communication with suppliers. This level of coordination is something we need to learn from.
Another gap lies in R&D. We don’t yet have the same depth of technological integration as Detroit. At Visteon, one of the world’s leading auto parts companies, Chongqing delegates saw what true automotive R&D looks like. With over 4,000 patents and $18 billion in assets, Visteon partners with major automakers globally. Its focus on detail and craftsmanship sets it apart. As Ling Zemin, chief engineer at Chongqing Chaoli High-tech, remarked, "Auto parts are not just industrial products—they're crafts." In contrast, Chongqing lacks large-scale testing facilities, often relying on fragmented departments for quality checks.
The third gap is in the relationship between vehicle manufacturers and parts suppliers. In Detroit, the separation of parts companies from整车 manufacturers has led to more efficient and cost-effective supply chains. After Delphi and Visteon split from GM and Ford, they became independent players, driving innovation and global procurement. This model has allowed both sides to grow and collaborate strategically.
Chongqing currently has 17 vehicle manufacturers, producing 400,000 mini-vehicles, 200,000 cars, 70,000 light trucks, and 20,000 heavy trucks. However, due to a long-standing planned economy model, the focus has been on整车 production rather than building a strong parts ecosystem. Despite having over 17,000 units of production equipment, the technology lags behind national leaders. Most parts companies lack serialization, advanced R&D capabilities, and cannot effectively support整车 manufacturers.
Currently, no local company can produce high-end components such as ABS systems, airbags, or electric power steering. According to recent data, Chang’an Automobile relies on 271 suppliers, but only 47% are local. For Qingling and CNHTC, the percentage drops to 38% and 23%, respectively. Even Chang’an Ford only sources 20% of its parts locally. This highlights the urgent need for Chongqing to strengthen its auto parts industry and move toward modular, systematic supply chains.
Detroit's success is built on a deep understanding of integration, innovation, and collaboration. To catch up, Chongqing must embrace these principles and invest in R&D, infrastructure, and strategic partnerships. Only then can it build a sustainable and competitive automotive industry.
Machining Aluminum Parts, Industrial Compressor Parts,Precision Cnc Machining,Micro Machining Metal Parts
Mianyang ZHIWELL Electronics Co.,Ltd , https://www.micrommf.com