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75% Chinese suppliers fail to meet German standards
Shanghai. October 25, (Gasgoo.com)-Three quarters of Chinese suppliers have failed to meet German technical standards, according to the general manager of Beijing office of German Association of the Automotive Industry (VDA).
"I'm sorry to tell you this cruel fact," said Wolfgang R.Wagner, general manager of VDA China on the sideline of 2007 China Industrial Subcontracting & Outsourcing Fair. He said 75% of Chinese suppliers that supply auto parts for German automakers in China have failed to meet standard A.
"Chinese auto parts suppliers must at least bring the PPM (problems-per-million) level down to 120 PPM, if they could make it to 100 PPM," said Wagner. The average PPM level of European and American parts suppliers is rated at around 100 PPM, but the Chinese suppliers are currently rated between 500 and 3000 PPM, he said.
He revealed that 30 percent of these failures are tied to product quality problems while other problems arising from logistics, R&D, delivery and after-sales service account for 70% of the total.
German OEMs would carry out a general survey on its suppliers, and those who scored higher than 92 points are ranked at A-level, Wagner said. German automakers comply with international standards such as PPM system, he added.
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