The trend of high-end car models is driven by the development of logistics intensive trucks.


In early May, at the time of the first anniversary of the listing of China National Heavy Duty Truck Technology Products and the handover ceremony of the 6000th Mantech Technology Product, Yu Youde, Deputy General Manager of Sinotruk Group, summed up the cooperation between Sinotruk and German truck giant Mann. : Marriage in the past five years, the cooperation between the two sides has blossomed. Since the launch of Mantech's technical products in the market, it has been better than January in January. The positive feedback from users has been positive, and the successful introduction into the market was achieved.

Coincidentally, recently, another domestic joint venture heavy truck brand Foton Daimler also issued a similar optimistic voice. Wu Yuejun, president of Foton Daimler Automotive, stated externally that: In the past two years, Foton Motor and Daimler have operated in a joint venture. The two parties have successfully merged and proposed development goals. By 2016, Auman will achieve the highest sales volume of heavy trucks; In 2023, we must become a leading company.

Two news people can not help but explore: In the universal introduction of the joint venture model heavy truck market, what is the driving force behind it? What has the joint venture brought to both Chinese and foreign companies? What is the leading role of joint ventures in industry trends?

Logistics intensive development of heavy truck drivers <br>
<br> as an important means of production, the development of heavy truck market has been driven by its demand side - drive the rapid development of transport logistics. In recent years, the division of labor in logistics has become more and more detailed and more and more professional. In addition, the widespread use of car networking and internet of things and the gradual increase in costs have caused the situation in which a person buying a few vehicles to set up a logistics company will gradually disappear. Yu Youde believes that individuals cannot grasp extensive and accurate market information, and the establishment of an information-based sharing platform is the development direction of the industry. Therefore, logistics enterprises will gradually develop toward standardization, intensification, and scale.

Because of this, large-scale logistics companies need reliable and safe heavy-duty truck products to maintain efficient and punctual transportation. When selecting products, more and more priority is given to the reliability, high-efficiency and energy-saving of truck products. Performance and so on. Driven by the logistics and transportation industry, heavy trucks in the future will develop toward heavy-duty, high-power, and low fuel consumption. This trend has been confirmed by the current heavy-duty technology in developed countries in Europe and America.

This means, first and foremost, that the core technology of heavy trucks will be engine-oriented with low emissions, light weight, and high-tech equipment. Due to the lack of domestic engine core technologies, domestic heavy-duty truck companies have taken a logical step to embark on a joint venture with foreign companies.

Considering the comprehensive competitiveness of products in the market, joint ventures are also a path that is quite suitable for the current market reality. Different from the situation in the field of passenger vehicles, the field of trucks has so far been "domestic products are popular", that is, the local heavy truck brands are the main players. Analysis of the industry, the main reason lies in the price. From the point of view of maximizing value, the price sensitivity of heavy truck consumers is much higher than that of passenger cars.

Compared to domestically-made similar models, the price of imported heavy-duty trucks is still prohibitive for millions of dollars. In order to meet the higher requirements of the market for heavy trucks, the industry needs brands that have both international technical quality and can compete on price, and joint ventures naturally become a viable road.

Apart from technology and product factors, from the perspective of “soft power” in the development of enterprises, improving marketing service capabilities is also a major driving force for domestic truck companies to embark on a joint venture. Wu Yuejun believes that with the development of the logistics and transportation industry toward intensive and efficient direction, heavy truck customers will become more centralized in the future. “The dealer’s marketing ability will become the core competitiveness of the manufacturer. We will introduce Daimler’s knowledge assets, standardize the management of distributors, change the uneven status, and comprehensively enhance dealership capabilities.”

The joint venture model across mainstream truck companies <br> <br> few days ago, Brilliance Auto announced that the responsible person, Brilliance and Russian heavy truck manufacturer Kamaz cooperation projects expected to be formally signed before the end of this year, the joint venture will focus on products entering the Heavy truck field. At this point, looking at the current heavy truck industry, the joint venture model has been widely implemented in mainstream truck companies.

In fact, the joint venture in the truck market will start not later than the passenger car market. From the 1980s to the present, except for a few joint ventures such as FAW Jiefang and Hualing Xingma, which have not yet entered into a joint venture, most of the top ten companies in annual sales have already established joint ventures with foreign heavy truck brands. The recent wave of joint ventures has been accompanied by domestic economic conditions and policy stimulus. In recent years, with the upgrading of domestic truck models and increasing emphasis on environmental protection by the government, the performance, quality, and service requirements of heavy-duty trucks have risen in all directions, and more and more domestic truck companies have joined with foreign companies.

However, joint ventures are not necessarily an easy road. Over the years, there have been many successful commercial vehicle joint ventures in China. Only two years after the joint venture, Fukuda Daimler has the courage to call for a "full lead" goal? At the beginning of the cooperation between the two parties in 2012, Fukuda Daimler decided to abandon the "joint model import and brand-based" joint venture model. “China has always firmly grasped the dominance in the joint venture. Although foreign management and technology are more advanced, the Chinese know more about the Chinese market.” Wu Yuejun’s remarks revealed the deep-seated reason for the joint development of Daimler Foton .

Looking at the truck joint venture model, in addition to Foton and Daimler, GAC and Hino, Sichuan Nanjun and Hyundai took a 50%:50% equity ratio model, and Dongfeng and Volvo’s joint venture ratio was 55%: 45 %. The "Chinese-led" model is due to the current industrial policy of China's automobile industry. The relevant provisions stipulate that foreign vehicles must not exceed 50% of foreign investment in joint venture projects in China. Although the equity ratio restriction is a major topic of current controversy, but this policy allows domestic car companies to obtain foreign technology does not violate China's WTO commitments, while maximizing the interests of China in the joint venture.

Life-wide Learning Technology and Management <br> <br> although generally joint venture with China-led, but in a sense, the joint venture is "to please foreign masters door." In the area of ​​heavy trucks, what local companies have learned has played a crucial role in the development of joint ventures.

The cooperation between Sinotruk and Mann can serve as a representative. In 2009, Sinotruk signed a cooperation agreement with German Man Corporation. In Germany’s opinion, Sinosteel not only succeeded in obtaining engines, axles, and vehicle technologies that are world-class, but also learned product development ideas, business processes, and management methods. Learned the work attitude of perfection and serious and responsible work style, and realized the overall improvement of personnel quality and innovation ability. Yu Youde introduced that after cooperation between China National Heavy Duty Truck and Man, the technical level has been improved in terms of safety, reliability, economy, and comfort.

The cooperation between Futian and Daimler can be answered by a series of numbers: In 2013, Foton Daimler sold 105,000 Auman heavy trucks, an increase of nearly 30% from 82,000 units in 2012, and its market share. Up to 15%, increase 1%. After experiencing some financial losses in 2012 at the beginning of the joint venture, the joint venture in 2013 has rapidly realized profitability.

Wu Yuejun said: “After the joint venture, we learned Daimler’s advanced manufacturing management system and quality control system. Although it is still in its early stage, the effect has already begun to show. For example, the reliability of vehicle's vehicle quality has improved compared to 2012. 30%.” He also took marketing as an example: The previous marketing was only based on the Internet, but now marketing is a system, including the establishment of a customer-centric database, and marketing with two years ago is not a concept. In Wu Yuejun's view, these are only individual aspects of the transformation. Foton Daimler has made great progress in R&D, manufacturing, supplier management, marketing and services.

Leading heavy truck market direction <br> <br> a considerable extent, heavy truck joint venture to lead the development direction of the heavy truck market. In May, the industry’s eye-catching Sichuan Hyundai Heavy Trucks Co., Ltd. launched a new listing of Tigers and “killed” the heavy truck market with a “high-end heavy truck” attitude. As the first "crystal" since the joint venture between Sichuan Nanjun and Korea Modern, Chuanghu is a representative of the current joint venture heavy truck product positioning.

Looking at the current joint-venture heavy truck products, the high-end features are already evident: In December of last year, Dongfeng and Volvo jointly created the first high-end heavy-duty UD Coolo that won a reputation for cost-effectiveness at a price of 400,000 to 500,000 yuan. Fukuda Daimler's Auman GTL, China National Heavy Duty Truck Jude Ka, Guangzhou Automobile Hino's 700 series, SAIC Iveco Hongyan's Jessie and other models have been listed, they have long been in the market share.

Industry sources told reporters that the high-end of heavy trucks is mainly reflected in the development of reliability, load bearing, and durability in terms of product quality. The key components of the powertrain, brake system, and steering system are imported from abroad; in terms of technical performance To safety, comfort, lightweight, and intelligent development.

In the next step of Futian Daimler's next goal, the relevant person in charge of the company stated that in the future, Auman GTL will be built as a mid-to-high-end general-purpose product, ETX and other products will be deferred, and other high-end products will be developed. Behind the ambition of “high-end swords and fingers” is the research and development strength of the joint venture between Foton and Daimler. Wu Yuejun revealed that at present, Foton Daimler has established an independent new R&D center. The first phase of an experimental center with an investment of about 560 million yuan will also start this year. It will also need to invest more than one billion yuan in the follow-up.

Driven by market demand, the speed of upgrading and upgrading of heavy-duty trucks is accelerating. With the help of the joint venture's advanced technology and management experience, the Chinese heavy truck industry is expected to usher in new development.



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