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At present, more and more domestic parts and components companies have gone abroad to acquire overseas companies. Xu Jinquan, CEO of China Automotive Consultation Center, pointed out that on the one hand, the financial crisis and the European debt crisis have reduced the market demand of automakers for auto parts companies in Europe and America. These overseas auto parts companies do not get orders from OEMs and face operational difficulties. On the other hand, a few domestic parts and components companies have advantages in terms of scale. If they are further developed, they must break through the barriers to core technology. Overseas mergers and acquisitions are a way of rapid development and can make up for shortcomings in a short period of time. 
At present, the status quo of domestic auto parts companies is that they are small in scale, weak in strength, and lack of R&D capabilities. For example, Ningbo, which has the auto parts industry as one of the main pillar industries, owns more than 3,000 large and small parts companies, but most of them are not large scale, and the competitive advantage is generally dependent on cheap labor. The relevant person of Ningbo Automobile Parts & Accessories Association stated that although many products in Ningbo are gradually moving towards the high end, there are still many low-tech products in total, which are facing the pressure of overall transformation and upgrading. According to Chen Wenkai, president of Gasgoo.com, the development of parts and components will determine the development of the whole vehicle. China has become the world's largest market and automobile powerhouse, but facing the industrial transformation, only the core competitiveness of auto parts and components companies can be improved first. significance.
However, local auto parts companies have increased their technological capabilities through overseas acquisitions, and it has become increasingly clear that foreign companies have mastered the strategy of controlling key technologies and market conditions. After acquiring the global steering and transmission business of General Motors of the United States, Beijing Pacific Century Automotive Systems Co., Ltd. accelerated the accumulation of technology, talents, and experience and became a global leader in auto parts and components. In addition, BWI acquired a series of overseas acquisitions such as the Delphi brake and suspension business of the United States and Zhejiang Wanxiang’s acquisition of the steering shaft business of US auto parts companies.
“With regard to the core technology of owning key components, there is a large gap between domestic parts and components companies and international parts and components companies. However, it cannot be said simply that the technology content of products produced by private parts and components companies is low, and it took only 20 years for domestic auto parts to start. The start-up time of parts and components companies is also similar, and future parts and components companies must have the ability to co-develop new products together with OEMs, and this will be the way out. This is also the future market trend of parts and components companies. After the completion of our acquisition, we will invest. RMB 50 million to set up an R&D center in the UK to develop new technologies and new products,†Ma Zhicong told reporters.