Recently, Cummins ISG series heavy-duty engines were mass-produced at the new plant in Cummins, Beijing. The new plant has a designed capacity of 60,000 units. At present, this series of engines is mainly used in the Auman GTL super model that has just been listed in Fukuda. At this point, Foton Motor (hereinafter referred to as Futian) finally overcome its short board on heavy-duty engines, reducing the dependence on Weichai Power.
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Cummins fills Futian short board As early as 2010, Cummins and Futian have already started cooperation on the ISG engine project. Prior to this, Fukuda had hoped to obtain large displacement engine technology from Daimler. Since 2003, Futian has been in contact with Daimler to establish a joint venture company to obtain large-displacement engine technology, but it was not until 2010 that the two parties established a joint venture. In 2012, the two sides reached an agreement on engine production, but the specific implementation has been delayed, and the original production in 2014 has not yet been realized.
The slow progress in cooperation with Daimler has made Futian have to find another partner to get rid of the dependence on Weichai as soon as possible. As a result, Cummins, which originally had a cooperative relationship, became a new target for Foton Motor to seek cooperation.
According to the plan, Futian will jointly invest 2 billion yuan in Cummins and Foton Daimler to produce ISG engines at manufacturing bases in Brazil and China, supporting Fukuda Daimler's global plants. This means that the future Foton Cummins engine will digest capacity in both domestic and overseas markets.
At present, the ISG series engine is produced at the new plant of Beijing Foton Cummins Engine Co., Ltd. Its total investment is 2.2 billion yuan, and its annual production capacity is 60,000 units, which can be increased to 120,000 units.
Futian's upcoming heavy-duty engine displacements are 10.5L and 11.8L, which can meet Euro IV, National IV and Euro V emission standards, while also enabling the same platform to be upgraded to Euro VI emission standards.
Eager to get rid of dependence on Weichai In 2013, Futian heavy truck sales increased by 32% year-on-year to 115,000 units, ranking among the first camps in the heavy truck industry. However, while the sales volume has increased, the lack of engine products has become a shortcoming for Foton Motor. In the first camp of the heavy truck industry, Futian is the only company that does not have the core technology of the engine.
Previously, Futian Heavy Truck mainly relied on the purchase of Weichai engines, and Weichai had an absolute advantage in the field of heavy truck engines. Weichai Power's 2013 financial report shows that Foton Daimler Automobile was the largest customer of Weichai last year, contributing 6.708 billion yuan to its orders, accounting for 11.5% of its total sales.
A person in charge of heavy trucks introduced that Futian was eager to overcome its shortcomings in the core technology of the engine. On the one hand, it hoped to reduce its dependence on Weichai Power, and on the other hand, it was because after the acquisition of Shaanxi Heavy Truck. With its own automaker, Weichai is both a partner and a competitor for Futian.
At present, the market share of Weichai has gradually declined. According to the data, in 2010, Weichai's market share in the heavy-duty engine supporting field was 40%, and it fell to 36.2% in 2013.
August 24, 2021