No new engines will be developed after 6 years! Auto parts enterprises and main engine manufacturers will usher in the ultimate PK

Pull one hair and move the whole body.

When the automobile industry is in fierce turbulence under the wave of "new four modernizations", the traditional manufacturers and the new forces of car building are anxious, and the suppliers, as the upstream of the industry chain, are inevitably under pressure. Corresponding to the inflection point of the automobile industry, the history of the parts industry is also being rewritten.

Even the 2019 Shanghai Auto Show with the theme of "Creating a Better Life Together". The "Future Mobility" exhibition area was also set up for the first time, and the world's top parts suppliers Bosch, Valeo, Continental, Visteon and so on all participated in the exhibition, which was dusty and eye-catching.

In the new round of technological change, who can become the synonym of "future travel" between the main engine factory and global parts?

Changes in the mainland

With the promotion of the policy, the world's major automobile manufacturers have also invested in the wave of electrification. Taking the three giants of the German automobile industry as an example, Volkswagen Group, Daimler Group and BMW Group have reached a consensus to comprehensively promote the electric strategy. Volkswagen even publicly announced that it will stop developing fuel vehicles in 2026. Under the wave of electrification, traditional suppliers have transformed one after another, and Continental Group is particularly radical.

"Automatic driving, electric vehicles and intelligent internet connection: We are the founder of a safer, cleaner and smarter travel ecosystem. Continental is synonymous with 'future travel'. We provide the market with technologies that other companies are still in the testing stage. Four out of every five cars in the world are safer, more efficient and more comfortable because of our solutions, components and systems." Dr. Degenhart, Chairman of the Board of Directors of Continental, emphasized the leading position of the company in the auto market during the Shanghai Auto Show.

Continental predicts that from now to 2025, the industry will develop the last generation of internal combustion engines; From 2025 to 2030, the last generation of internal combustion engines will be produced; After 2040, the internal combustion engine technology will gradually withdraw from the historical stage; From 2040 to 2050, under ideal conditions, cities and roads will no longer have CO2 pollution.

At the global conference in March this year, Continental said that it would continue to invest a large amount of funds in the future travel ecosystem, and said that the company could still undertake mergers and acquisitions of up to 5 billion euros.

In 2018, Continental continued to invest a lot of money in the field of future travel. In fiscal year 2018, the company invested more than 6.3 billion euros, mainly for research and development, expansion of production facilities and expansion of production capacity.

During the Shanghai Auto Show, Tang En, president and CEO of Continental China, a German component giant, said that China is confident to build a safer, intelligent, cleaner and comfortable future travel ecosystem and create a travel life that meets the needs of Chinese consumers.

This means that, as a traditional auto parts supplier with a history of 100 years, Continental has found its own direction in the wave of "new four modernizations". Continental announced that in 2019, its powertrain department will be split into independent entities for operation and will be listed in the middle of the year.

Independent transformation of new business

In fact, the layout of "future travel" has already become the strategic commanding point of the parts giants.

On July 18 last year, Continental announced the largest organizational restructuring in its history, dividing the company into three major sectors: powertrain, automobile and rubber, and forming three independent holding companies.

Among them, the power train business, including electric drive system, internal combustion engine related products and battery projects, will be included in the new power train company. It is planned to IPO in the middle of 2019. The cash generated from the listing will be used to invest in electric vehicles, automatic driving and other emerging fields. At the same time, the mainland has changed the chassis and safety and interior decoration departments into automatic driving and vehicle networking businesses, which belong to the automotive sector, and established a central research and development organization. The restructuring plan will be completed in 2020. In addition, the two businesses of Maple Tire and ContiTech remain the status quo and belong to the rubber sector. However, Continental said that it would not rule out splitting the tire and ContiTech again in the future.

The main purpose of the split is to seek the development of emerging fields. The more cutting-edge transformation business will have higher decision-making power of the independent team, so the split department will benefit from independent operation. The retained rubber business will continue to input stable cash flow for the Group.

It is for this reason that in February 2018, Bosch, the world's number one component manufacturer, set up the Smart Connect Business Unit to promote the transformation of the company into an intelligent transportation service provider.

As early as September 2017, Delphi, an American auto parts manufacturer, split its powertrain system department into two independent companies, named "Delphi Technology" and "Amboff" respectively. The former continued to focus on the research and development of powertrain system, while the latter focused on the automatic driving technology.

Delphi said that after the split, the company's positioning will be more precise: relying on its technical advantages and excellent execution ability, it will provide advanced propulsion systems for cars to help customers meet increasingly stringent regulatory requirements. At the same time, "we will release greater development potential and support the development of automobile electrification." It can be seen that Delphi's key business will be shifted to electric vehicles and automatic driving in the future.

Lian Heng Lian Zong: comprehensively enter into the business of the main engine factory

In the process of splitting, mergers and acquisitions, and All-in new strategies, the parts giants usually use the cooperation of the main engine factory to avoid the risks brought by the layout of new fields. More importantly, the parts suppliers will fully enter the main engine factory business in this way, and obtain higher profits and voice power.

On January 15, 2019, the joint venture between Magna and BAIC BJEV "Magna Weilan" was officially unveiled, which is another substantive action after the cooperation between the two sides for the high-end brand ARCFOX of BAIC BJEV. Just before the Spring Festival, Magna released its financial forecast for the next stage. From 2019 to 2021, it is expected that the cumulative free cash flow will increase to US $6.5 billion, exceeding the level of US $6 billion from 2018 to 2020. This means that Magna is ready for the transformation of new energy and is making every effort to launch an impact on China's new energy market.


it happens that there is a similar case. In January this year, Mercedes-Benz announced its cooperation with NVIDIA to jointly develop the next generation of Benz cars. This time NVIDIA and Benz will cooperate on the whole car. NVIDIA DRIVE will become the core of the new car architecture of Benz, providing high-performance and energy-saving computing capabilities for its vehicles, and processing artificial intelligence (AI) software for advanced mobile travel technology.

(NVIDIA cooperates with Mercedes Benz and other auto brands on AI driving)

Even Bosch, which has a very extensive layout, has joined hands with Daimler at the level of automatic driving. It plans to take San Jos é, the third largest city in California, as a pilot city for highly fully automatic driving (SAE level 4/5) on-demand passenger service in the second half of 2019. It is worth mentioning that NVIDIA, an American technology company, also participated in the process, playing the role of an AI platform supplier.

Boston Consulting pointed out that in the next 15 years, the manufacturers of parts for autonomous driving and pure electric vehicles will have greater influence and occupy a favorable market position in the future growth field.

In any case, the market position of traditional main engine manufacturers will face profound changes in the competition pattern, and the fate of the parts giants in the new round of transformation and reshuffle will be geometric, and the car totem will continue to pay attention.

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