On August 21st, representatives of 1,300 service companies of China National Heavy Duty Truck Group converged in Jinan. Cai Dong, as president of China National Heavy Duty Truck (Hong Kong) Co., Ltd., detailed the cooperation between Sinotruk and German MAN (hereinafter referred to as: Mann, Germany). plan.

“We hope to be able to communicate the company’s recent changes to the service provider network and clarify the product quality incidents initiated by the frequent competitors.” Heavy truck's heavy truck market share in the first two months of this year soared to 34%. Especially with Man's full cooperation, it attracted the attention of other companies in the industry.

Five weeks ago, Mann was awarded a share of 25% plus one share by China National Heavy Duty Truck (Hong Kong) with a total investment of HK$6,048 million. Prior to this, Mann has successively negotiated with technical partners Shaanxi Automotive Group and Weichai Power (000338, stocks) for several years. Due to the disagreement between Shaanqi and Shaanxi Automobile's Weichai Power, the negotiation has been ongoing. no result. In the end, the German Mann turned to China National Heavy Duty Truck. Due to the principle of exclusivity agreed upon by both parties, the technical cooperation between Germany's MAN and Shaanxi Automobile Group will be terminated.

Nearly half sold half

After the Spring Festival in 2008, after the final failure of the joint venture negotiations with Weichai Power, the German employees who had worked in the Steyr project in Jinan began to tentatively contact with China National Heavy Duty Truck and proposed cooperation negotiation. Three months later, the senior management of Sinotruk and Man Company started cooperation and consultation.

After reading the cab of the A7 model independently developed by China National Heavy Duty Truck, the attitude of the German Mannequin negotiator was intriguing. “We are not willing to compete with companies that can develop such a cab. We are more willing to cooperate.”

Germany is the world's third largest manufacturer of heavy trucks. In the heavy duty commercial truck market of over 16 tons in Europe, from January to May of 2009, Mann's market share was 15.93%, only behind Daimler-Benz. However, due to the economic crisis, Man's market share in Europe has also declined.

In a mature market like Europe, commercial vehicle giants have no longer seen long-term growth potential. European commercial vehicle giants are seeking global emerging markets as growth points, including Mercedes-Benz, Volvo, Renault and Germany.

The reason why German Mann chose to cooperate with Chinese companies is that Sinotruk's third-world market, such as Iran, has already reduced Volvo's sales of 10,000 vehicles a year to as low as 1,000 vehicles. German Man firmly believes that companies like China National Heavy Duty Truck may be more competitive in responding to emerging market demand. Mr. Man is optimistic about the ability of the two sides to develop in emerging markets in the future. This is undoubtedly an opportunity for China National Heavy Duty Truck.

In the cooperation with China National Heavy Duty Truck, Mantech's technology import method is similar to the "half-sale semi-sent." China National Heavy Duty Truck has obtained the full range of engine technologies for MAN D08, D20 and D26; axles, transfer cases and cabs, etc. Cheng; one of the world's most advanced heavy-duty truck TGA vehicle technology; and Mann's support in truck services and technology upgrades. China’s heavy trucks have once again had the opportunity to fully upgrade their technology.

It is understood that German Man will assign an executive director to China National Heavy Duty Truck in October. The other three non-executive directors will not work in Jinan. The executive director will assist Cai Dong in completing the technical introduction and production of new products. The two parties will jointly establish a new brand for sales in China and other emerging markets. In addition, in the technical center, engine division, truck factory, purchasing department, sales department and other departments, Man will send staff. Cai Dong expects the localization of the first batch of products to be completed in two years.

Joint + Autonomy

“The engine of Sinotruk cannot reach the noise standard of 80dB in Europe no matter how it is packaged.” Cai Dong acknowledged that the domestic engine based on the Steyr Euro II upgrade has met the requirements of European technology company's redevelopment. III or Euro IV emission standards, but it is not the latest product platform after all.

“We are now two roads. One is to take the route of independent research and development. European design companies are invited to help us design products. The design company has a lot of experience, but what is lacking is the experience in the production process. The products we develop will take a long time. Verification."

Cai Dong’s other plan is to cooperate with a vehicle company like MAN. “We can use mature technologies and products. For example, every model document from MAN is given to China National Heavy Duty Truck. When designing things, I knew this. Whether something is in line with production standards."

For this joint venture, the industry once had doubts that China National Heavy Duty Truck urgently needed engine technology, because the EGR engine currently being promoted by Sinotruk will not be able to upgrade to Euro IV or even Euro V. Therefore, cooperation between Sinotruk and Man is a last resort. The. However, Cai Dong does not recognize this claim.

The products introduced by this cooperation are Man's most advanced TGA platform, and a total of 4563 new models have been introduced. "The foreigner is not afraid to sell you the drawings. He is afraid to give you the model files. After you are given, you have wings and want to fly." Cai Dong said that this is the focus of negotiations with Man.

At the end, MAN decided to give a sample document for 44 components of CNHTC, covering almost all the important components of the engine. This cooperation method changed the previous joint ventures to introduce technology and products. However, the products produced have to go abroad to do the history of the evaluation process.

Monopoly triggered a new round of games

However, with Mr. Man's honeymoon period has not yet passed, the competition between China National Heavy Duty Truck and its domestic counterparts has been concentrated in sales and service terminals.

From January to July this year, the cumulative sales volume of China National Heavy Duty Truck was 77,700 units, a year-on-year increase of 2.13%. In the first two months of this year, its heavy truck market share once hit a 34%, and it is still at the 20% level, ranking first in the industry. China National Heavy Duty Truck almost monopolized growth, which has made its competition with domestic counterparts more and more serious.

According to related figures from China National Heavy Duty Truck Group, a competitor collected information on Sinotruk's after-sales service, instigated consumers to request a withdrawal request from China National Heavy Duty Truck, and then other companies sold the car to the consumer at a low price. China National Heavy Duty Trucks held a conference of service providers at this time. In addition to the events of Man’s investment, it also has the intention of stabilizing the service network.

From the signed agreement, it can be seen that if China National Heavy Duty Truck can digest and absorb the latest technology of Mantech in 3-5 years, it will make its heavy-duty truck products enter the ranks of world-class products. Enterprises with the "development" as their main body will have a certain impact.

Judging from the current situation, FAW Jiefang and Shaanxi Zhongqi may continue to follow the road of independent research and development by employing foreign R&D companies. There is no result in the joint venture between Dongfeng and Volvo. Foton and Mercedes-Benz form a joint venture and may be competitive in the future. The product, Iveco's joint venture prospects are currently difficult to predict.

Which of the following routes can be successful? Cai Dong believes that “it depends on the control of the company's costs and the adaptation of the product to the Chinese market.”
View related topics: Joint venture hot car


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October 13, 2023