FULLY DEVELOPING CHINA’S AUTOMOTIVE INDUSTRY WITH VARIOUS FOREIGN ADVANCED SOLUTIONS

For years, Jebsen Automotive Technik (JAT) has dedicated itself to bringing leading auto part and component technology to China. In May 2015, JAT Director and General Manager, Arnie Jensen talked about the company’s strategic direction in the Chinese market.

 

 


Would you please tell us more about JAT’s current market focus?

As a subsidiary of Jebsen Industrial, JAT specialises in serving China’s medium-to-high end OEM manufacturers and the aftermarket sector. We have, and will continue to, add value to our customers while supplying branded OEM components, workshop equipment and aftermarket spare parts from world-leading brands to support the passenger car and commercial vehicle segments. Also, we refined our business strategy with the addition of the joint venture model. This collaborative management model allows us to help our foreign partners localise their technologies and support OEM manufacturers with relevant, competitive, value-added solutions. To date, it has several joint ventures that locally manufacture precision gears, balancer shafts, oil pumps, turbocharger peripherals, engine components and steering systems. This is in addition to JAT’s market development efforts in the Chinese automotive aftermarket sector in recent years.

 

In recent years, is there some new cooperation JAT has with those OEMs?

Mitec-Jebsen Automotive Systems (Dalian) Co. Ltd. is a joint venture between JAT and Germany’s MITEC Automotive AG. It was established to supply the Chinese automotive industry with gears, precision components and balancer shaft solutions in 2007. It has steadily increased production capacity ever since.

 

After rampinged up its annual production of balancer shafts to one million sets in 2013 in order to meet the demand to supply from several famous renowned OEMs like Volkswagen, Chang An, and BAPC, Mitec-Jebsen has since also successfully cooperated with another global OEM to provide high-quality and tailor-made balancer shaft systems for their new engine programmes in China. Mitec-Jebsen produces balancers of the highest international quality, while maintaining a localised cost structure and using proven manufacturing technologies from Mitec as well as a variety of advanced CNC machine tools from world-leading brands. This business has established an outstanding sterling reputation for us among many domestic and abroad foreign OEMs. We now have three new projects in the pipeline that are expected to go into production from 2016.”

 

Would you please introduce JAT’s business of steering systems?

Last year, we established our fourth joint venture in SH with tedrive Steering Systems, Jebsen tedrive Steering Systems (Shanghai) Co. Ltd. It aims to bring tedrive Steering’s advanced steering technologies to China.

 

China’s commercial vehicle sector has significant market potential but it also needs vehicles that are equipped with smart functions. JAT has recognised this business opportunity and now seeks to bring safer, energy saving and intelligent heavy commercial vehicles into China. With more than 60 years of experience, our joint venture partner tedrive Steering is a global leading supplier in the development, engineering and production of steering systems and components. Its iHSA® system is an example of an electronically controlled hydraulic steering solution that can turn lane keeping, automated parking and other features into a reality. Through Jebsen tedrive Steering Systems (Shanghai) Co Ltd, we are confident of helping tedrive Steering localise its innovative niche technology, meet the demands of OEMs and Tier One customers and achieve success in China.

 

 

How is JAT going after the automotive aftermarket segment and what is JAT’s business model in this market?

Actually we have a long history in the automotive aftermarket but this has been primarily in Hong Kong, where we have a long-term partnership with MANN and Bosch . We have also paid close attention to the automotive aftermarket sector in Mainland China and found that great changes have taken place—for the better, of course. We find it an excellent opportunity to enter the market.

 

Blaumann, which is positioned as a mid- to high-end brand, is JAT’s first in-house brand. The brand will cover several product lines in the automotive aftermarket sector. We launched a range of high-performance motor oil products last year. Blaumann is based on, and complements, our present product lines including spare parts and components for passenger and commercial vehicles.

 

At this juncture, we still prefer the distribution model, which has, after all, been our forte.

 

Apart from launching this new brand, we have also established our fifth joint venture—Jet Union Diesel Fuel Injection Technology Co. Ltd. Jet Union has been authorised by Bosch to operate as a Bosch Diesel Service Station in Fotan, Hong Kong. It targets the aftermarket sector and provides diagnosis, maintenance and repair services for diesel fuel injection systems. The station started serving customers in June this year.

 

At JAT, we regard this joint venture as a natural extension of our business strategy, which has a dual focus on the OEM and automotive aftermarket segments. Firstly, our joint venture partner, the owner of Guangluen Fuel Injection Service Centre, will contribute valuable technical expertise as an established player in this field. Secondly, Jet Union can leverage both JAT’s and Guangluen’s existing aftermarket customer base and can look forward to synergies with Jebsen Industrial’s Automation & Services Division, which provides specialised customer and technical support across Greater China. In doing so, Jet Union will successfully leverage our existing relationships and expertise.”

 


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