With the adjustment of the strategy, Steyr has accounted for less than 10% of heavy-duty trucks. Profile photo
Times July 24th (Reporter Li Song) 6 years ago, the heavy-duty truck and Volvo who had been in love for 9 years finally went onto the “red carpetâ€â€”a joint venture to establish Jinan Huawo Company; now, this hard-won Marriage has come to the brink of rupture. The reporter was informed today that Sinotruk and Volvo have agreed to terminate the contract and the two parties will soon break up.
Since the 15th, SINOTRUK announced in Hong Kong that the German MAN company’s 6 billion Hong Kong dollar will be used to join SINOCHEM’s listed companies in Hong Kong. The news that CNHTC and Volvo will break up will grow. In recent years, due to the unsuccessful cooperation, the news that the two parties have to break up will appear from time to time.
“Yes, the two sides have agreed to terminate the contract.†The responsible person of the Heavy Industry Group Propaganda Department confirmed the news of breaking up in an interview today. “The two sides feel that it is difficult to cooperate with each other. Instead of dragging on, it is better to break up.†The person in charge said that the decision made by both parties was before and after MAN’s shareholding in China National Heavy Duty Truck (Hong Kong) Limited announced. "This project is very simple, but Volvo provides Accessories, production of joint venture factories, Volvo responsible for sales." The official said, and the joint venture plant located in the production base of heavy truck in western Jinan is not large, and when the assets involved were small, breaking up The relevant procedures will be completed soon.
This afternoon, the reporter wanted to verify the matter by telephone to the other party, Beijing Volvo (China) Investment Co., Ltd., but he did not get a clear reply.
On June 9, 2003, after 9 years of negotiations, Sino Heavy Truck and Swedish Volvo signed an agreement in Beijing. Both parties jointly invested in the establishment of Jinan Huawo Truck Co., Ltd. This is the first domestically approved heavy-duty vehicle joint venture project. According to the contract, the joint venture has a joint venture period of 30 years and a total investment of RMB 1.6 billion. The proportion of the two parties' investment is 50% each. At the end of March of the following year, the first domestic Volvo truck went offline. "But because the price is too high to sell, the output has been very small. At present, the plant has been shut down for two or three years," said the person in charge of heavy trucks in an interview today.
It is reported that due to Volvo's restrictions on core technology and sales from Volvo's responsibility, the cooperation between the two parties has not been very smooth. With CNHTC "marriage" another world truck giant MAN company, the outsiders believe that the two parties have already reached a foregone conclusion.
Heavy trucks break up with Volvo
"Flash marriage" is now rarely seen among young people. But why did ninety-year-old CNHTC, which was "marriage" with world truck giant Volvo, break up with Volvo after "marriage" lasted only six years?
Rumors of breaking up have been around for years. In fact, this "marriage" has long existed in name only, the joint venture's output has been very small, due to the over-selling of the price is too high, the last two or three years has even been discontinued. It is said that the two sides had broken up long ago, but no one was willing to put it forward.
However, the poor performance of the joint venture company does not bring expected profits to both parties. This is obviously not the most important reason, at least for Sinopec.
Steyr's technology was introduced to make SINOTRUK the leader of China's heavy trucks. However, after Steyr's technology was introduced into China for 20 years, the platform has gradually become old and outdated. Therefore, Sinotruk hopes to obtain new technical support through cooperation with Volvo. It is said that shortly after the cooperation, a heavy-duty truck was using Volvo's cab technology, which made Volvo less happy. However, Volvo could only “have a bad job†because of “arguments†before.
In fact, the joint venture established by the two companies, Huawo Company, is only responsible for assembling various accessories such as the engine into a complete vehicle, and its technical content is not high. Obviously, from such a cooperation, it is difficult for CNHTC to get the technology it wants. On March 29, 2004, SINOCHEM signed an engine cooperation framework agreement with FAW and Volvo in Beijing. However, this project has not been formally launched and has rarely been mentioned in recent years. In addition to the “marriage†MAN of CNHTC, in addition to raising more than HK$6 billion in funds, it also obtained MAN's technology. After the exclusive use of MAN's technology in the mainland, for Volvo, Volvo's value has decreased in access technology. Moreover, it is unlikely that heavy-duty trucks will use technologies from both companies at the same time.
At the same time, the truck produced by the joint venture company is a Volvo brand. This is not very consistent with the strategy of heavy truck. After the restructuring of CNHTC, establishing its own brand is one of the important strategic objectives of CNHTC. Since the reorganization, although it is still possible to use Steyr, which was once a synonym for China heavy truck and was still the first brand in the heavy truck industry in China at the time, the company has gradually abandoned its use of the brand and switched to its own brand HOWO. At present, heavy trucks under the Steyr brand account for less than 10% of their total production.
Entering overseas markets is another strategic objective of CNHTC after restructuring. It is said that once in the export of cars hit the Steyr brand, heavy trucks soon received Steyr's legal documents - because heavy truck can only use the Steyr brand in the country. This made CNHTC step up its determination to build its own brand, and it soon launched SINOTRUK, a brand dedicated to export. After the joint venture between Sinotruk and Volvo, the HOWO brand was launched. At that time, the Chinese name was "Hoover." It is said that this has also led Volvo's unhappiness. For heavy-duty trucks that have been determined to build their own brands as an important strategic goal, they obviously do not want to just hit other people's brands and do it for them.
Technology and branding are the two lifebloods of manufacturing companies. For Sinopec, which has increasingly emphasized the right to speak in recent years, it has been the result of these two considerations that it has shifted to “marriage†MAN with Volvo.
View related topics: Joint venture hot car
arc Inverter Welding Machine( IGBT tube)
Electric And Machine Co., Ltd. , http://www.ylweldingmachine.com