In detail, it is divided into three steps: 1. In 2025, the company * carries out research and development on the investment cost of internal combustion engine once; 2. Production of * first-generation internal combustion engine products will start in 2030; 3. In 2040, the internal combustion engine will be withdrawn from the product series of continental group. It's a warm embrace from the German parts giant following the global car industry's move toward electrification. In a departure from the corporate strategy of other parts suppliers, continental directly condemned the internal combustion engine OUT.

　　In recent years, the automobile industry has been increasingly broken by new technologies and new business models, and parts suppliers, as the upstream of the industrial chain, have been busy trying new technologies and anticipating industrial trends in order to adapt to the development of the new era. While planning how to transform and upgrade, while an aggressive restructuring split. * as a result, component suppliers are increasingly betting on new areas.

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　　1. From the perspective of the transformation paths of various parts giants, it can be regarded as two types: one is the enterprise with strong innovation ability, and actively expands its layout in the four modernizations according to its own advantages; The other is that they are weak in the field of new technology and continue to make up for their weaknesses through acquisitions and strategic cooperation.

　　2. The auto parts market is not as prosperous as we thought. In the context of the overall economic slowdown, the car market has negative growth, directly affected the survival of the parts market.

　　3. Component manufacturers must change their thinking, from a supplier of material components to a supplier of scientific and technological solutions, to a supplier of basic solutions, and to an entrepreneur to a thinker of technology.

　　Electrification, intelligentization, network connection into "title song"

　　The electric wave has long been unstoppable, the impact of * may be large parts suppliers. For traditional parts suppliers, the transformation of this trend is undoubtedly to give up their competitive edge and compete in new areas. It was painful, but I had to do it.

　　Bosch, for example, is the global leader in automotive parts, with businesses covering everything from chassis control systems to automotive electronics. In the emerging market of new energy vehicles, autonomous driving and intelligent network, Bosch quickly carried out strategic transformation. At the 2019 Shanghai auto show, Bosch focused on showcases such as 360-degree environment awareness, 48V system and V2X vehicle interconnection control unit.

　　In recent years, zf has gradually made strategic transformation to autonomous driving, Internet of vehicles and new energy vehicles. Since the acquisition of a start-up company in the autonomous driving field in 2016, we have invested in related technology research and development, and conducted strategic cooperation with hela in camera system, imaging and radar sensor technology. On top of that, zf has partnered with door2door, a berlin-based startup, to develop a driverless Shared fleet management system and move digitally.

　　In 2017, valeo launched a new artificial intelligence and "deep learning" research center in France to develop new technologies and apply them to self-driving vehicles. At the same time, valeo and Siemens set up a joint venture new energy vehicle drive motor company to develop new energy electrical systems. In addition, digital, battery management system also has research and development.

　　As a subsidiary of Toyota group, Japan's aishin seiki automatic transmission almost all Toyota models. But a few years ago, when Toyota announced its goal of basically eliminating the traditional internal combustion engine by 2050, ichime, as a supplier to Toyota, made a strategic change: on the one hand, it made a strategic transformation for a new power system, on the other hand, it expanded its business in automobile navigation, parking assist system and safe driving.

　　From the perspective of the transformation path of each component giant, it can be regarded as two types. One is an enterprise with strong innovation ability like Bosch, which actively expands its layout in the four modernizations according to its own advantages. The other is that they are weak in the field of new technology and continue to make up for their weaknesses through acquisitions and strategic cooperation. It is because of this change that they become less and less relevant to their own business.

　　The pain behind the elephant turn

　　So what does the "transformation" look like? Bosch has made it clear that it will transform from a supplier of automotive systems to a supplier of urban intelligent transport solutions; Continental turned parts suppliers into technology companies; Zf went from providing transmission to autonomous driving solutions... From the transformation of these parts suppliers, we can also see that the future automobile industry will be able to build smart city transportation, which is bound to be inseparable from the construction of autonomous driving scenarios and travel ecology.

　　It is worth noting, however, that achieving an "elephant turn" for component suppliers is a daunting task in itself. The trend of automobile modernization brings both opportunity and crisis to the parts market.

　　For component giants, the opportunity they have lies in their mastery of many cutting-edge technologies and good strategic cooperation with many auto companies, which makes it easier to win in the overall stability of the reform. At the same time, they also face in the face of new technologies, such as AI, intelligent network and other areas do not have fundamental advantages. There will also be an uncertain set of digital challenges.

　　By contrast, life is tougher for the weaker parts companies. "It is clear from the development trend at the end of last year that the development of automobile structure has entered a period of major change. As a result, the profits of traditional parts companies such as engines and transmissions have shrunk substantially." Lu chao, chairman of hubei tait electromechanical co LTD, said, "as far as I know, the profit decline rate of most parts companies in 2019 is more than 50 percent. "On this trend, more than 50 percent of the component companies will be eliminated in the next three years."

　　In fact, whether parts giants or other parts manufacturers, their survival conditions are affected by varying degrees. Especially in the second half of last year, split, mergers and acquisitions, bankruptcy, sale, cooperation and so on a number of big dramas staged in succession, tandem up can even deduce a modern version of the river lake enqiu lu. (link to details: "transformation/spin-off/restructuring of parts enterprises to survive")

　　The "aggregation effect" increases the probability of survival

　　In the face of fierce competition, powerful rivals are racing to create a new industrial landscape. In such an environment, other parts and how to achieve curve overtaking? After all, nobody wants to be the next nokia in this market race.

　　According to a 2018 issued by the China auto parts industry development research "(the report is authorized by ministry of equipment department, by the China automotive technology research center and China automotive engineering society established parts industry research joint research project) according to the report, the total profits of 170 billion yuan of Chinese parts enterprises in China, by contrast, the profits of foreign investment, joint ventures also reached 150 billion yuan. It is worth noting that the number and scale of Chinese parts enterprises is obviously larger than that of foreign-funded and joint-venture enterprises, and the profit margins of the two are quite different.

　　For those small and medium-sized parts enterprises, due to the size advantage of enterprises without the head and the cooperation relationship with automobile enterprises, as well as the weak ability of product negotiation and high-tech content, they are not able to withstand the pressure in the market downturn. Therefore, in the complex market environment, the head aggregation effect will become more and more prominent in the future, and the "Matthew effect" of the strong will accelerate the elimination of the bottom position and reshape the market pattern.

　　Fu yuwu, President of the Chinese society of automotive engineering, suggested that "component manufacturers must change their thinking, from a supplier of physical components to a supplier of technological solutions, to a supplier of basic solutions, and to an entrepreneur to a thinker of technology.