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Auto Parts
The world has seen many changes in the automobile industry during the past few decades. One of these changes that is very evident and important compared to other cases; The phenomenon of globalization of automobile production has always been the focus of experts and experts in this industry. A clear proof of this is the change in the location of car production in the world. In the not so distant past, Western Europe, North America and Japan were the only car manufacturing regions; While with the passing of several decades and the implementation of the production globalization policy, important automobile factories were moved from the mentioned areas to the developing countries, especially the Asian continent, and the production in these areas also expanded step by step with industrialized countries.
On the other hand, during the past years, the increase in competition between global car manufacturers and the increasing pressure to improve quality and reduce production costs have had the greatest impact on intensifying the globalization of this industry. In this way, during the past 20 years, which is considered to be the period of transition from traditional and centralized production to global production, automobile factories in Eastern Europe and Asia have witnessed the highest amount of foreign capital attraction and increase in the quality and quantity of production. In the beginning of the last decade, the highest amount of foreign investment in the automobile industry was reported in Eastern European countries, especially in Poland, the Czech Republic, and Slovakia. In addition to having abundant and cheap labor force, these countries had suitable conditions and laws to attract foreign investment. These investments were not limited to the mentioned countries and spread to all regions of the world. In this way, within a period of nearly a decade, car production increased significantly. With the increase in production, the need for spare parts for manufactured cars made the parts industry undergo fundamental changes and significant development. Based on the classification of economic activities in Europe, the industry of producing parts and spare parts for agricultural, industrial and automobile engines is segmented. The automobile industry, as one of the leading sectors, has been able to play an effective role in the economy through the establishment of back and forth connections with economic sub-sectors such as metal, textile, chemical, etc. industries; So that in developed countries, automobile manufacturers have allocated a high share of the gross domestic product. This share is 14.7% in America and 9.4% in Japan, and in general 7.5% of the world’s GDP belongs to this industry. According to the Hoovers Research Institute of America, 45,000 wholesale and retail companies around the world are engaged in the sale and supply of auto spare parts, and the trade volume of this industry in the world amounts to 135 billion dollars per year. In between, five parts manufacturing companies – Genuine Parts – Auto Zone – Advance Auto Parts – CSK – Pep Boys each earn more than one billion dollars per year. Based on this, the 50 largest parts manufacturing companies in the world have taken over 50% of the total global trade in auto parts. The amount of demand for auto parts depends on the following factors:
1- The average age of the car
2- The amount of distance traveled
3- The weather conditions of the profitability of component companies are also dependent on two very important factors:
1-Managing the quality of production parts
2- Success in marketing in this way, it can be hoped that the relative success rate of small component companies in the field of competition is higher than that of large companies. Small companies can overtake their larger competitors by applying policies such as producing and supplying special parts for customers, or providing more services and sending and delivering the parts required by the market quickly. According to the findings of the Hoovers Research Institute of America, the average annual income of parts manufacturing companies in the world is as follows:
1- Large wholesale parts companies, $700,000 per employee per year
2- Small retail parts companies, $100,000 per employee per year