To cope with the continual depression in domestic auto market of China, automobile corporations with brands started to ally with parts enterprises.

Report from Chery Automobile Co., Ltd. announced its cooperation with Zhejiang Wanliyang Transmission Co., Ltd. in integrating the transmission business. Previously, Geely Automobile Holdings Limited also signed cooperation agreement with Zhejiang Wanliyang, selling its production line of gearbox of vehicles and relative assets to Wanliyang.

It was analyzed that by taking shares of interest community that’s built jointly with part enterprises, changes will occur in reducing the conflicts between automobile corporations and parts enterprises. The tendency of “Business-minus” is now inevitable.

“As to the automobile corporations with self-owned brands, it is never wised to be autonomous for oneself.” said Mr. Chen Guangzu, Secretary General of Advisory Committee of China Automobile Industry. In his view, over a decade of technology accumulation allows automobile corporations with self-owned brands to gradually outsource the auto part business to professional part manufacturers. The outsourcing of Parts business is, to some extent, reducing the waste of production capability. In these automobile corporations, emphasis will be shifted from the part-manufacturing to the R&D and marketings of autos.