"If we don't have profits, we have to do it. Otherwise, the matching of other parts and components will also be affected. Besides, if we don't make money, we will take up a market share." This is the mentality of many parts and components companies.
The supporting assembly is better than supporting spare parts. In Hebei, a company that produces gears is supporting a company that produces engine boxes. More than a dozen gears of the gearbox are made by the gear factory. When they do it, they can barely earn their wages, but the OEM is much better. Employees in the main engine plant also received bonuses and subsidy, but the gear factory can only watch, employees are very unbalanced; we work, others make big money. Also, they provide more than ten kinds of gears for a certain engine company in Northeast China, and the raw materials for gear production are provided by the engine factory as a condition. The purchase of raw materials for gears is only RMB 3,800 per ton, and the raw material provided is RMB 4,300 per ton. If 30 tons of raw materials are pulled from the main engine plant, the main engine plant has already earned 15,000 yuan before a gear is produced. Hebei Home Auto Interior Decoration Factory has an annual sales income of about 30 million yuan. Last year, it only reduced the price of one item, and the profit lost was more than 300,000 yuan. The downward pressure on the supplier's supply price from the mainframe plant continues.