Multinational’s Modular Production Networks And The Development Of China’s Auto Parts Enterprises

As a new mode of production methods, modular has a huge impact on global competition pattern in automobile industry. With the expansion of modular technology and a growing trend of localization by auto-multinationals, modular production network(MPN) is become increasingly mature. Against such background,it is of great importance for local parts enterprises to find the right entry-point in the network to enhance their competitiveness.Combined with the current situation and future trends of the MPN,this paper will analyze China’s auto parts enterprises’competitiveness in the network.Besides that,it is aimed to find any possibilities for improvement for parts enterprises by deeply going into Toyota, Volkswagen and General Motors’ supplying system.We find that, in the modular purchasing of multinationals, the local parts suppliers are not that competitive compared with suppliers from developed countries. Despite the differences of the networks, the common trend is increasing openness in all of Toyota, Volkswagen and GM purchasing system. What’s more, they are are also gradually shifting to the local research and development. In the modular network of automotive industry, Chinese parts enterprises have many opportunities to grub. In the end, the paper will give some proposal on how to take advantage of modular production based on the findings of the case study.