Why Chinese Auto Parts Stocks Might Be Valuable
The invasion has started and there is nothing are going to about this. Basically were a car parts manufacturer in United States, I’d get worried.
At the begining of Feb, I authored a good auto parts manufacturer within this column that’s planning for a major global expansion. The organization lately announced its first sales order within the United States market.
Located in Jinzhou City, Liaoning, China, Question Auto Technology, Corporation. (NASDAQ/WATG) operates through numerous subsidiaries that design and manufacture automotive electrical parts and suspension components. In The Year 2006, the organization rated second in sales of automotive alternators and starters within the China market.
Question Auto Technology presently sells five different series and also over 150 types of alternators, 70 types of starters as well as other suspension-related parts, offering numerous auto makers, engine producers and auto parts suppliers in China and abroad. A few of the company’s customers include Beijing Hyundai Motor Company, Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Limited., Harbin Dongan Automotive Engine Manufacturing Co., Limited., and Tianjin FAW Xiali Automotive Co., Limited.
Lately, Question Auto Technology opened up a workplace in Detroit and hired an old executive from Delphi. The organization just reported that certain of their subsidiaries, Jinzhou Halla Electrical Equipment Co., Limited., received a four-year supply deal for its starter and alternator products from the major United States OEM automotive manufacturer. The organization did not offer the specific customer.
All the units is going to be delivered straight to the client’s facility in The United States and also the total worth of the contracts is anticipated to become over 13 . 5 million dollars. Now, this can be a small order by measure, however i think it’s the start of a significant offensive with this company to enter the domestic auto parts business.
The truly amazing advantage that Chinese manufacturers have is the very low labor costs. The car parts clients are already very competitive within the domestic market and today there is a new entrant that provides enormous economies of scale.