·Dongfeng/Volvo against the market "hand in hand" heavy card bet new energy to turn over

The Volvo Group, which is seeking to turn over, has dropped an important piece in the Chinese market.
Recently, Dongfeng Commercial Vehicle Co., Ltd., which was established by Dongfeng Motor Group (hereinafter referred to as Dongfeng) and Volvo Group (hereinafter referred to as Volvo), was formally established with a registered capital of RMB 9.2 billion, of which Dongfeng holds a 55% stake and Volvo holds 45. % equity.
Dongfeng and Volvo are the leading companies in the field of heavy trucks at home and abroad. When the two parties are married, the growth rate of the heavy truck industry is slowing down. This cooperation will inevitably bring more intense competition and deep changes to the domestic heavy truck industry. Under this circumstance, more domestic heavy truck enterprises have begun to seek market breakthroughs, and increasing investment in research and development of new energy technologies, especially natural gas technology, has become the direction of many heavy truck companies.
Looking forward to the new energy in the case of relatively lack of cross-border heavy-duty resources, in order to find a way, we must find another way, while Shaanxi Heavy Duty Truck, United Trucks and other enterprises in the market competition intensified, trying to make breakthroughs in the field of new energy, and Natural gas heavy trucks are considered a breakthrough.
Judging from the arrangements of the board of directors of the joint venture company, Dongfeng Motor has an absolute right to speak in this joint venture, and the reason lies in Volvo's urgent demand and desire for the Chinese market.
Strong alliance For the cooperation with Dongfeng Motor Group, Volvo Group President Olof Payson said: "The size of China's truck market is equivalent to the sum of Europe and North America, and it is the world's largest truck market. The Volvo Group regards China as China. Strategic planning is the top priority. We will pool our superior resources and work together to build the world's most competitive and sustainable profitable international company, and ultimately achieve a win-win situation."
In fact, two years ago, Dongfeng and Volvo had reached a strategic cooperation agreement. After a long period of government approval process, this paper agreement finally became a reality at the beginning of 2015.
At the inauguration ceremony of Dongfeng Commercial Vehicle Co., Ltd. held on January 26, the relevant person in charge disclosed that the joint venture company will cooperate with the advantageous resources of Dongfeng Motor and Volvo Group to develop, produce and sell “Dongfeng” brand vehicles, which will cover medium and heavy trucks and buses. , special vehicles and chassis, engines, gearboxes, etc. The joint venture company will also use the technology and expertise of both parties to continuously improve and upgrade the medium and heavy commercial vehicle product platform, comprehensively enhance the commodity planning and research and development capabilities of Dongfeng commercial vehicles, and build a world-class advanced commercial vehicle technology center to build a strategic development. Overseas manufacturing systems and overseas sales systems required.
In addition, the reporter of China Business News also learned that in the joint venture company, the board of directors consists of seven directors, four from Dongfeng Motor Group and three from Volvo Group. The chairman and general manager are appointed by Dongfeng Motor Group, and the vice chairman is appointed by Volvo Group. The first chairman was served by Zhu Fushou, general manager of Dongfeng Motor Group, and the general manager was Huang Gang. Judging from the arrangements of the board of directors of the joint venture company, Dongfeng Motor has an absolute right to speak in this joint venture, and the reason lies in Volvo's urgent demand and desire for the Chinese market.
In 2003, the Volvo Group heavy truck business had a failed “marriage” with China National Heavy Duty Truck. On June 9th of that year, China National Heavy Duty Truck and Volvo were tested for nine years. The two sides invested a total of RMB 1.6 billion in a 50% investment to form Jinan Huawo Truck Co., Ltd., with a cooperation period of 30. year. According to the planning of the joint venture parties, the cooperation is mainly to use Volvo's technology to transform high-end heavy-duty vehicle platforms and form small-scale production capacity as soon as possible. However, after the cooperation began, the two sides continued to have contradictions. The dissatisfaction and contradiction after the cooperation made the two parties finally end in "divorce" in 2009. However, for the Volvo Group, the Chinese market is a market that cannot be lost, and new partners need to be selected as soon as possible to restart the voyage.
In the process of selecting new partners, the Volvo Group is also experiencing the global financial crisis and the huge impact of the European economic downturn. The data shows that in 2009 the Volvo Group lost as much as 147 SEK. To resume growth, the Chinese market is a vital part. Therefore, the Volvo Group finally chose to abandon its controlling position in order to obtain a full market.
According to the latest data of China Industrial Association, in 2014, Dongfeng Motor's heavy truck sales reached 155,000, with a market share of more than 20%, ranking first in the industry in the medium and heavy truck market. With the marriage of Dongfeng Motor and the Volvo Group, the Dongfeng Commercial Vehicle Company, which was formed by the two giant companies, will launch a more aggressive offensive in the Chinese market.
Dongfeng Commercial Vehicle Co., Ltd., which was established by Dongfeng Motor Group and Volvo Group, was formally established with a registered capital of RMB 9.2 billion, of which Dongfeng holds a 55% stake and Volvo holds a 45% stake.
At the end of 2008, the financial crisis hit the world. At that time, the Chinese government’s “4 trillion yuan” investment was undoubtedly a fortune for China, and the heavy truck sector also ushered in “Xiaoyangchun”. However, with the economic slowdown, the growth rate of the heavy truck industry fell. Data show that in 2014, the overall sales volume of China's heavy truck market (including complete vehicles, non-complete models and semi-trailer tractors, the same below) fell by 3.9%, from 774,100 in 2013 to 7.4 million.
At the time of the market decline, the marriage between Dongfeng and Volvo highlights the ambitions of both parties in the heavy truck market and makes other heavy truck companies feel pressure. A responsible person of a large heavy truck company admitted to the reporter that the technical accumulation of the Volvo Group in the truck field will greatly promote the upgrading of Dongfeng Motor, which will bring more impact to other enterprises in the future.
At present, the top three heavy trucks in China, Dongfeng Motor, China National Heavy Duty Truck and China FAW, have annual sales of 155,000, 121,300 and 11,600 respectively. Among the top three, Dongfeng Motor and China National Heavy Duty Truck have in-depth cooperation with multinational heavy truck giants Volvo and German Mann, respectively, and will further enhance their competitiveness in China and the world market with the deepening of these cooperation.
Enterprises such as Shaanxi Heavy Duty Truck and United Truck, which are in the second and third line of the heavy truck industry, have not yet had joint ventures with multinational giants. In the case that the cross-border heavy-duty truck resources are relatively scarce, in order to find a way, it is necessary to find another way. Enterprises such as gasoline and trucks are trying to make breakthroughs in the field of new energy when market competition is intensifying, and regard natural gas heavy trucks as a breakthrough.
According to the data, in 2011, the sales volume of natural gas (LNG) heavy trucks was only 5,000. By 2012, the sales volume exceeded 12,000 units, an increase of nearly 140% year-on-year, and nearly 30,000 units in 2013. In 2014, when the heavy truck industry fell as a whole, natural gas heavy trucks also adjusted, but industry insiders predicted that in 2015, natural gas heavy truck sales are expected to reach 70,000 units, which may stabilize in the heavy truck market by about 30% in the future.
At present, Shaanxi Heavy Duty Truck and United Trucks have increased their investment in the field of natural gas heavy trucks, hoping to gain a larger market share in this market segment. In 2014, Shaanxi Heavy Truck's natural gas heavy truck sales reached 14,000 units, ranking first in the industry. Zhou Chaoyin, deputy general manager of Shaanxi Heavy Duty Truck, said that in 2015, the sales volume of Shaanxi Heavy Oil and Natural Gas Heavy Truck is expected to reach 22,000. As the only heavy-duty truck enterprise in China that develops natural gas heavy trucks as its core and strategic products, United Truck has been deeply cultivating natural gas heavy trucks. Tang Gang, general manager of Jirui United Heavy Industry Co., Ltd. and general manager of United Truck Marketing Services Co., Ltd. said that in 2015, the combined truck natural gas heavy truck plan reached 4,800.
In addition to breaking through in the field of natural gas heavy trucks, in the face of the strangulation of giants such as Dongfeng Motor and China National Heavy Duty Truck, the second and third line legions still need to make greater efforts. However, the “One Road, One Belt” strategy will also bring continued positive benefits to the heavy truck industry.
Zhang Zhiguo, deputy general manager of Jirui United Truck Sales & Service Co., Ltd. believes that United Trucks will focus on the market opportunities brought by the “Belt and Road”.

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