Resource: CIAPE Secretariat

On April 13 to 19, the CIAPE delegation, led by Mr. Zhi Luxun, the director of the department of the Mechanic, Electronic and Hi-tech Industry, Ministry of Commerce and consisting of 7 members, visited 5 leading automotive industry associations upon invitation.

The CIAPE delegation visited American Aftermarket Industry Association (AAIA),Specialty Equipment Market Association (SEMA),Original Equipment Supplier Association (OESA), Automotive Industry Action Group (AIAG), Society of Automotive Engineers (SAE-International), and kindly exchanges ideas on the current situation and the cooperation of the two countries in auto parts areas.

I. The visit to AAIA

CIAPE delegation and AAIA meeting in Washington

On April 14th, CIAPE delegation paid a visit to AAIA in Washington D.C, and had a meeting with Ms. Kathleen Schmatz, President & CEO of AAIA and Mr. Lee Kadrich, vice-President of AAIA. Mr. Dai Yunlou, Commercial Counselor of the Embassy of the People’s Republic of China in the United States also attended the meeting.

During the meeting, Mr. Zhi Luxun gave a brief introduction about the situation of China’s automotive industry and the bright developing prospect in China’s automotive aftermarket. He further introduced that CIAPE is oriented toward the global OE market and aftermarket, and serves as a comprehensive international platform for both import and export. And he also emphasized the vast cooperating opportunities existing between CIAPE and AAIA.

Ms. Kathleen Schmatz expressed that she had already heard about CIAPE2007 from her colleagues and known that it was a great success. “The platform of CIAPE is really great and AAIA is more than glad to cooperate with it. We wish to introduce our member companies into China and to create business opportunities for them. We will work out the detailed cooperating intention as soon as possible.” said Ms. Kathleen Schmatz, who was highly optimistic about the cooperation.

AAIA sent the cooperating program 3 days later to CIAPE as follows: AAIA agrees to act as the overseas partner of CIAPE, and will recruit its member companies to participate in CIAPE. AAIA plans to hold a special promotional meeting for CIAPE on the topic of “How to sell your products in China’s automotive aftermarket” on November 2nd in Las Vegas before the opening of AAPEX. Moreover, AAIA wishes to hold match-making conference with CIAPE during this year’s exhibition so that Chinese companies could have face to face meetings with top-ranking suppliers, retailers, dealers, distributors and service providers from US.

II. Meeting with SEMA

CIAPE delegation meeting with SEMA management

SEMA management are reading the CIAPE brochure carefully

CIAPE delegation visited the Peterson museum of tuning cars

On April 15, CIAPE delegation had a meeting with SEMA management in Washington D.C. During the meeting, Mr. Zhi Luxun, expressed his gratitude to the support from SEMA in CIAPE 2007. He reviewed achievements made by Mr. Wei Jianguo, Vice Minister of Ministry of Commerce of China and SEMA, pointing that the Chinese specialty equipment market will be a great potential market and restressing that the specialty equipment market is open to the world and car tuning operation is legal in case that the specialty equipment parts is excluded from vehicle safety problem.

Jim Cozzie, chainman of the board of SEMA, expressed his gratitude to the cooperation from the Chinese government. From his point of view, the foremost aim of SEMA is to seek new business opportunity in China since the specialty equipments prevail in the global automobile consumption market. The Chinese specialty equipment market is a huge potential market, and the size of several hundred million yuan will be achieved in this area with a much more flexible policy. He also expressed that SEMA, as a professional association with over 40 years history, is willing to provide the Chinese government with support of information, law and technology and delivers its experience from the development of American specialty equipment market to managers and consumers of China to press ahead the specialty equipment market of China in a more scientific and safer direction.

The following agreements had been made from both sides after the meeting: the specialty equipment market of China, full of wide perspective and great potential, will be open to the world step by step through joint efforts and wide propagation made by both sides. SEMA will publicize CIAPE by its own resources such as website, magazine and e-works. Meanwhile, SEMA will actively organize its members to participate in and visit CIAPE.

III.Visit to OESA

CIAPE delegation and the OESA management

In the discussion, Mr. Zhi Luxun elaborated on the characteristics of the Chinese and U.S. sides in auto parts industry: China is advantageous in cost and labor force provision and is provided with a certain level of integration and the potential for transforming to preliminary market; however, U.S. auto parts enterprises are distinctly advantageous in terms of R&D, standard, quality, logistics, and so on. This feature of structural mutual complementation and bi-directional symbiosis determines that there will be no competition between the Chinese and U.S. automotive industry in a short period, thus a favorable opportunity is extended for the Chinese and U.S. sides to seek cooperation and market complementation. CIAPE is such a platform under the background of industrial globalization for cooperation, exchanges, exhibition and trading as built up by the Chinese government according to industrial development. It represents the overall standard of the Chinese standard of the Chinese auto parts industry and a bridge connecting the Chinese and overseas automotive industry, creating favorable channels for mutual benefit and win-win.

According to Ms. Margaret Baxter, Vice president of OESA, the North American automobile market faces huge challenges now. OESA is a bridge between the government, customer and manufacturer, serving the interests of auto parts producers. OESA thinks high of the Chinese market and 50% of its members have established subsidiaries in China. OESA also has a China Strategy Council to for the discussion on strategy in China, responsibilities, talents, and the way to purchase and achieve benefit in China. Meanwhile, OESA holds annual session in China. The session was convened in Shanghai in previous years, but Beijing is also taken into consideration. Ms. Margaret Baxter expresses that OESA attaches great importance to CIAPE as a state-level platform. OESA, on behalf of auto parts suppliers, communicates with and coordinates whole vehicle producers, speaking primarily for the auto parts suppliers in the field of price and benefit.

IV. Visit to AIAG

CIAPE delegation meeting with AIAG in Detroit

CIAPE delegation at the EOY luncheon banquet at the invitation of AIAG

CIAPE delegate exchanges ideas with executives of American automotive industry

Automotive Industry Action Group (AIAG), entered China in 2006, dedicated to disposing of and solving problems that affect the global automotive supply chain for U.S.-based whole vehicle producers and auto parts suppliers. The difference between AIAG and OESA lies in that AIAG focuses more on formulation of product standards for auto parts producers, thus the auto parts enterprises could enter into global whole vehicle supply chain smoothly and the bilateral relationship will become more and more harmonious.

When visiting AIAG, Zhi Luxun indicated that the government has already paid attention to problems arising out enterprise’s production and trade alongside development of the Chinese automotive industry. As some problems cannot be solved by enterprise, the enterprise concerned wish assistance of the government in such aspects including certification, approval, training, difference analysis, etc.. AIAG is such a fine platform in this regard. In recent two years, AIAG is seeking development opportunity in China and convened the dedicated Chrysler sourcing fair successfully at the CIAPE last year. AIAG expresses that, at 2008 CIAPE, AIAG will continue planning special sourcing forum for international whole vehicle producers. At the same time, Mr. J. Scot Sharland, President of AIAG, will attend the event and related activities.

V. Visit to SAE-International

CIAPE delegation with SAE management

CIAPE delegate communicates with exhibitors at SAE world congress

The visit just met the ongoing annual session and exhibition of SAE. The delegation visited the exhibition which is most authoritative in the world concerning auto parts and related industries and technologies. The delegation also had discussion and exchanges with the senior management of SAE. According to Zhi Lunxun, SAE has contributed enormously to the development of the global automotive industry in technological innovation. China still falls behind the United States in this regard. Hopefully, the cooperation will help the Chinese enterprises improve innovation capability and technical qualification, thus yielding products up to standards of the U.S. enterprises sharpen competitive edge, but also facilitate American enterprises to upgrading the international competitiveness. This way, it means a win-win result.

Mr. Richard O Schaum, Annual Chairman of SAE2007 and Mr. Gary Schkade, Director of SAE Asia-Pacific, ever attended 2007 CIAPE and witnessed in person the turbocharger technology and product developed by Chinese enterprises independently. As a sponsor of auto parts exhibition in the United States, SAE also enthusiastically expects cooperation with CIAPE on the basis of mutual benefit and win-win. Mr. Gary Schkade, Director of SAE Asia-Pacific, indicates that the future specific cooperation program will be discussed by the two sides.

Finally, Zhi lunxun expressed that the aim of the visit to North America was to seek opportunity for export of auto parts made in China to the international supply chain and to introduce a number of excellent Chinese enterprises when visiting North American buyers and presenting the status quo of the auto parts industry in China. The visit is a great success in that it introduced the Chinese policies concerning automotive industry and the brand of CIAPE to the North American market effectively, receiving high attentions and universal recognition in America. Members of the delegation also have a deep understanding that the development of CIAPE, an important platform for the international exchanges and cooperation between the Chinese and overseas automotive industry, will deepen the division of work in the international automotive industry and optimize the automobile supply chain, enjoying the significance to the development and progress of the world automotive industry.

Beside the visit of the U.S., some CIAPE delegates also went to Toronto and Ottawa in Canada for a special visit to the Automotive Industries Associations (AIA) and Automotive Parts Manufacturer’s Association (APMA).

All in all, CIAPE delegation reaches a great success for this U. S. visit. CIAPE made an effective brand promotion in the U.S. market and received a high recognition by illustrating the policy of the Chinese auto parts industry. Each delegate feels deeply that the success of the visit and the exposition can be attributed to the globalization of the automotive industry and the attraction and importance resulted from the prompt development of the Chinese auto industry as well as the strong support of the Chinese central and local government. CIAPE comes into being upon the request of the current trend of the development of the industry and it views a bright prospect to be the world leading industry exhibition in the near future.