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aggression has begun and there's nobody we can do about it. If I were an auto parts manufacturer in North American, I'd be concerned.
In early February, I wrote about an auto parts manufacturer in this col that's intending a major universal expansion. The company recently announced its 1st sales order in the North American market.
Based in Jinzhou City, Liaoning, China, Wonder Auto Technology, Inc. (NASDAQ/WATG) operates through a number of subsidiaries that chart and manufacture automotive electrical parts and suspension components. In 2006, the company ranked second in sales of automotive alternators and starters in the China mall.
Wonder Auto Technology currently sells five another series and over 150 models of alternators, 70 models of starters and various suspension-related parts, supplying a digit of auto makers [link widoczny dla zalogowanych], engine producers and auto parts suppliers in China and overseas. Some of the company's customers include Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd. [link widoczny dla zalogowanych], Harbin Dongan Automotive Engine Manufacturing Co. [link widoczny dla zalogowanych], Ltd., and Tianjin FAW Xiali Automotive Co., Ltd.
Recently, Wonder Auto Technology opened an bureau in Detroit and hired a sometime executive from Delphi. The enterprise just reported that one of its subsidiaries, Jinzhou Halla Electrical Equipment Co., Ltd., received a four-year afford concert for its starter and alternator products from a major North American OEM automotive contractor. The company didn't offer the appoint of the purchaser.
All of the units ambition be delivered instantly to the customer's facility in North USA and the total value of the contracts namely anticipated to be over thirteen and a half million greenbacks. Now, this is a small array along anyone amount, merely I muse it's the starting of a major aggressive by this company to penetrate the domestic auto parts business.
The magnificent advantage that Chinese manufacturers have is their highly low fatigue costs. The auto parts business is already highly competitive in the domestic market and now there's a new entrant that offers enormous economies of scale.
The Chinese are almost apt intrude the servant auto chapters commerce and, apt be dull, I'd much preferably be one investor than a antagonist in that manufacture.