www.chinabuses.org: According to the research of "Prospective of China Auto Parts Companies 2009" released by Alix Partners, the global business consulting company in Shanghai on 16 April, 50% of auto parts companies showed that the net margin would be less than 5% in 2010 and more than 40% of the surveyed enterprises believed that there would be severe liquidity problem in 2010. In the future 12 to 18 months, several corporations even confronted bankruptcy. This research comes from top executives’ interviews of dozens of state-owned, private and international auto parts enterprises.

The G.M. in Asia-Pacific of BBK Consulting Co., Ltd. indicated that the risk of shuffle is big due to the low concentration of China auto parts companies compared with overseas counterpart. At present, there have been 86% of companies starting to strengthen account receivable management, 79% of ones improved financial liquidity through reducing inventory and only 38% could get shareholders' capital injection or bank loan successfully.

In addition, the sales of exporting market reduced dramatically. In 2008, 23% of industry sales income (RMB 928 billion Yuan) came from exporting. Therefore, 60% of the surveyed enterprises believed that the decreasing of export demand was the greatest challenge.

However, companies still focus on the chance of acquisition. 40% of suppliers set about domestic acquisition and 25% of companies insisted on global acquisition.