Auto-Parts Makers Talk About Plans at 2012 Taipei AMPA and Autotronics Taipei
One maker offers wide ranging lamps to Korean makes and models
2012/08/29 | By Quincy Liang
Taiwanese auto-parts makers have been fighting an uphill battle in recent years, especially with underselling competitors from emerging nations as China and SE Asia. However, Taiwanese suppliers are known for amazing capacities of adaptation, and also able to fill all kinds of orders but always qualitatively and at reasonable prices.
Several suppliers this year shared their investment plans with CENS, spelling out the specifics of their programs to further strengthen their global roles in a market that seems to be relatively more resilient to downtrends.
Eagle Eyes
Founded in 1979, Eagle Eyes Traffic Ind. Co., Ltd. is a specialized maker of high-quality automotive lamps, supplying a range of head lamps, tail lamps, corner lamps, side lamps, bumper lamps, fog lamps, and center-mounted brake light etc.
Besides being ISO/TS 16949: 2009-, ISO 9001: 2008-, AQRP-approved, the maker's lab acquired the AQRP-LAB certificate to qualify to test to FMVSS108 standards, enabling the maker to perform environmental, photometric tests and issue reports to the E-Mark and Certified Automotive Parts Association (CAPA).
Gary Lin, assistant vice president of Eagle Eyes, says that the maker paved the way for local peers to the performance lamp business from 1994 to 1995, and now has become one of the world's largest suppliers of performance lamps. The maker generates about 65% of revenues from AM replacement auto lamps, with the remainder from high-end performance products and major export markets being the U.S. (about 30% of overall revenue), Southeast Asia (30%) and the Middle East (30%).
Eagle Eyes will expand, for many millions of NT-dollars, one of its two factories in Tainan, southern Taiwan in 2012, to raise capacity of high performance lamps to meet strong demand from China.
Known for dedication to new-product development, Lin says, the firm invests on average NT$400 million to NT$500 million (US$13.3 million to NT$16.7 million) to develop 300 to 500 molds.
Eagle Eyes will launch a series high-end performance, LED lamps with specially-designed lenses. These LED light bars are available in different widths and lengths, with the decisive feature being consistent lumen output regardless of bar configuration, says Lin.
Another trend is headlamps with built-in daytime running light (DRL), which Eagle Eyes can custom make, says Lin.
Consistently upgrading technical capability and product function, Lin says, the maker works closely with universities and automotive-related research institutions, long-term efforts of which have helped Eagle Eyes to adopt newer, better materials.
In recent years, Lin adds, Eagle Eyes has focused on building lamps for Korean cars to become the most comprehensive supplier in the segment.
Shih Hsiang Auto Parts Co., Ltd.
Another major Taiwanese player is the TUV ISO 9001-approved Shih Hsiang Auto Parts Co., Ltd., the largest, most comprehensive supplier of AM suspension and steering parts on the island.
Since its inception in 1978, Shih Hsiang has consistently invested in product development and now supplies over 1,000 control arm models for almost all popular Japanese, European and American cars, being widely recognized as the world's largest and most-comprehensive supplier of AM control arms for American cars.
Shih Hsiang set a milestone in expansion in mid-2011 by completing construction of a modern, massive logistic center adjacent its factory in central Taiwan, to house more materials, key components, semi-finished and finished items, in addition to US$11.5 million to US$15 million in semi-finished products.
In less than 12 months, the company will again expand the newly completed logistic center to meet increasingly strong global demand, says company president Kevin Chou.
Chou also says that stocking ample semi-finished products enables faster order filling to cut lead time, also saving cost and storage space, and that the maker works closely with well-established subcontractors to secure immediate supply of key parts. The new logistic center enables the maker to shorten average lead time from 60 days to less than 30 days, says Chou, who boasts that Shih Hsing will be able to deliver orders as they are received in three to five years.
Shih Hsiang develops on average 80-90 new items yearly, with annual R&D investment of US$2.3 million to US$2.9 million, or 10% to 15% of revenue; while the maker is known for filling small-batch, large-variety orders, which is achieved with advanced manufacturing equipment as computerized numerically controlled (CNC) machines and welding robots.
Chou looks forward to enhanced competitiveness in product quality and faster delivery among Taiwanese chassis-parts makers as products shipped to China see lower or zero duties as allowed by the Economic Cooperation Framework Agreement (ECFA) signed between Taiwan and China.
Shih Hsiang also began a branding program in late 2008, and now leads the AM suspension-parts segments in Russia, China, and Eastern Europe with its own SH brand.
At this year's Taipei AMPA, Chou also announces a multi-faceted upgrading plan for the next few years, including steady upgrading of automated production lines as raising the number of automatic packaging lines to four and tweaking jigs and fixtures, all of which should widen the gap with competitors.
The ultimate goal for the maker is to move away from relatively lower-margin contract production for customers in Europe and the U.S. and gradually build clout as a leading global brand, of which the SH label is registered in 46 nations and increasing.
Lu Chou Machinery Works
Established in 1982 and after years of growth, Lu Chou Machinery Works is Taiwan's largest supplier of rocker arms, valve lifters, and cam shafts for the aftermarket, supplying approximately 2,000 items for many popular engines in Japanese, American and European cars. It's also one of the world's most-comprehensive suppliers of parts for Japanese makes and models.
Frankly a key factor to building, sustaining good product quality is steady financing…in other words quality hinges on profitability…and doing one's best is essential to taking on fierce competition, says Lin.
Lu Chou's success is also attributable to aggressive product diversification, specifically oil pumps, fuel pumps, filter housings, water pumps, crankshaft, connecting-rod bolts, and special automotive, mechanical parts backed by years of experience, R&D, and manufacturing. The maker has also developed various belt-tensioners, says Lin.
Also known for short lead-time, Lu Chou keeps sufficient inventory of finished and semi-finished products or about 60% of catalogued items.
Nan Hoang Traffic Instrument Co.
Fred Cheng, president of the Nan Hoang Traffic Instrument Co. and Taiwan's largest manufacturer of friction materials and automotive products, says planning has started on a factory to be built with highly automated, volume production lines, only about two years after having inaugurated a new facility in southern Taiwan's Tainan Technology Industry Park.
Established in 1961, the ISO9002, QS9000, ISO14001, and ISO/TS 16949 approved maker has developed about 7,000 products popular with global auto/motorcycle makers, first-tier brands, and AM parts customers, as well as meeting quality certifications as ECE R90, TUV and test standards including SAE, JASO, DIN, CNS to achieve sought-after status in especially high-performance segments.
Cheng says the maker has begun supplying high-end brake pads to a Japanese customer for use in wind generators to be a milestone entry into the clean-energy segment. The maker will also supply top-end frictional materials for high-speed train and mass rapid transit trains, is developing samples that are expected to be certified soon, and will produce more friction parts for super sports cars, racers to move up in the market.
While aggressively trying to become suppliers to makers of passenger cars, trucks, agricultural machines, motorcycles and bicycles, Nan Hoang has signed an agreement with an American automaker and sent sample for approval. Cheng says his firm has supplied to over 30 global carmakers and is always trying to enlarge market share.
Also an eco-conscious maker, Nan Hoang uses green formula in production and is working on advanced formula to meet the low- and non-copper requirement from major American automakers, with some American states proposing laws to limit copper content in brake pads to less than 5% by 2025. So Nan Hoang is ahead of the game in those states considering its has successfully developed friction materials with sub-3% copper and will have developed zero-copper-content materials by the end of this year, according to Cheng.
Further proving its integrity, Nan Hoang has raised product safety insurance to US$5 million, and is always interested in expanding its global agency network.
Also the maker has been installing the world's most advanced testing and inspection equipment for friction materials and parts to further raise product precision, also enabling tapping of new segments as truck, rolling stock, wind generator etc.
Also eyeing the China market, Nan Hoang launched its own YangPo brand in the second quarter of 2011.
Mobiletron Electronics Co., Ltd.
Mobiletron Electronics Co., Ltd., a major AM automotive-electronic component supplier in Taiwan, continues to diversify its product line. At the show, company chairman Kim Tsai says that Mobiletron's new R&D team has successfully developed an electric powertrain system with two-speed electronic transmission.
Mobiletron also showcased its night-vision system with multi-advantages, with viewing distance of up to 200 meters achieved with super-low illumination and high image quality, with the system able to be designed as OEM product for global automakers.
The maker's solid foothold in the global AM automotive ignition parts market has also helped to speed product innovation. And by utilizing ample R&D capability in automotive-electronics, the maker has been able to develop many new products as multi-media intelligent rearview mirror, tire pressure monitoring systems (TPMS) for various vehicles, high-end sensors. The Taiwan-listed maker has also invested in the Taiwan-based RAC Electric Vehicles Inc. to venture into the e-bus segment.
Chuang Hsiang Technology Co. is an ISO 9001-certified firm focused on design, development, and production of high-end LED side-mirror covers and daytime running lights with stylish, cutting-edge designs, exhibiting at this year's show its latest products: LED edge-lighting strips or light bars.
Tapping its accumulated expertise and know-how in LED automotive applications, the maker has diversified into LED edge-lighting strips that are energy efficient with enhanced styling, says company general manager Jeff Lin.
Globally patented and of three layers of different materials to work on optic-fiber characteristics, these light bars are suitable for a wide range of consumer and industrial applications as automotive and motorcycle lamps, safety helmets, warning lights, and marker lights. Each strip needs only a few LEDs to emit bright, even light in various colors, with such light, says Lin, able to “stimulate the eyes.”
Another of the maker's innovative products is the new DRL designed to be integrated into front bumpers, helping to enhance visibility without compromising stock appearance as is the case with typical DRLs.
Lin is clearly encouraged by the successful development of the innovative light-bars and says the maker has begun cooperating with auto-lamp makers to use such items to enhance functionality and attractiveness of their lines.
The new light bars are available in different width and shape, with color, brightness being balanced, natural, and light directionality unaffected by curvature.
This maker's products meet E-mark, ECWE, EEC, SAE, and CCC standards.
Chuang Hsiang is the first company in Taiwan to develop LED mirror covers that directly replace OE counterparts, also integrated with LED signal lights and even courtesy lights that illuminate the ground upon door opening to enhance safety, convenience.
The corporate mission is to provide high-quality, top-notch products to global buyers, says Lin, who showed a catalog filled with over 130 mirror covers, most of which are designed to duplicate OE specs for many makes and models.
