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Consulting firm Alix Partners conducted the latest survey shows that China's auto sales this year of sustained growth, the automotive parts suppliers are facing serious liquidity problems, may lead to business in the next 12-18 months, the fall of .

Because many Chinese auto parts suppliers to rely on export income, so they can not take full advantage of the robust performance of the domestic market. Alix Partners, said in the report, from a historical point of view, China's auto parts industry, about a quarter of revenue comes from exports. 40 participating in the survey about 60% of enterprises said they would actively expand the domestic market to compensate for the decline in revenue.

More severe market conditions, it also uncovered the Chinese automotive constituent provider in the authorities of the give chain and operational deficiencies. Chinese businesses deficiency more toiling finance more than double global counterparts.

Alix Partners, said the fourth quarter of terminal year, China's auto parts providers toiling finance requires of the average was 74 days (calculated based on average sales revenue), equated with 37 days for U.S. and European companies. Alix Partners said that the profitability of outlook, the performance of Chinese enterprises as interchangeable enterprises in the world, simply the average profit boundaries of U.S. businesses is even smaller than China.

Involved in the examination of 40 businesses, said more than 20% net loss in 2008, half of this year, the business envisage profit boundaries smaller diagram than 5%. Even so, China's auto parts providers are immobile staring for mergers and acquisitions on worker and worldwide market opportunities.

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