Southwest's largest joint venture heavy truck project settled in Chongqing
"I live in the head of the Yangtze River and live in the Yangtze River. I don't see the king and I drink together in the Yangtze River. I use the famous words of Li Zhiyi of the Northern Song Dynasty to describe the location of Chongqing Heavy-duty Truck Group Co., Ltd. and Shanghai Automotive Co., Ltd. And the relationship between them is quite similar.
On June 15, SAIC Iveco Hongyan Commercial Vehicle Co., Ltd., a Sino-foreign joint venture funded by SAIC Motor, Italy's Iveco Commercial Vehicle Co., Ltd. and Chongqing Heavy Duty Truck Co., Ltd., and the SAIC Fiat that was established during the same period attracted much attention from the industry. Hongyan Powertrain Co., Ltd. held a ground breaking ceremony at Huangmaoping Automobile Industrial Park in Chongqing Jiangbei Economic Development Zone.
According to Ren Yong, chairman of Chongqing Heavy Duty Truck, the newly established SAIC Iveco Hongyan Commercial Vehicle Company has a registered capital of 1.3 billion yuan. Among them, SAIC Iveco Commercial Vehicle Investment Co., Ltd., a 50-50 joint venture between Shanghai Automotive and Iveco, accounted for 67% of the shares, and Chongqing Heavy Duty Automotive Co., Ltd. had 33% of shares, with a business life of 30 years.
Ren Yong said that SAIC Iveco Hongyan and SAIC Fiat Red Rock have invested 4.7 billion yuan to build a new base. The first phase of the project is planned to be completed in October 2008. At that time, it will form an annual production capacity of 40,000 complete vehicles and 100,000 engines. .
New joint venture raises three major associations
Yang Shuyi, General Manager of SAIC Iveco Hongyan Company, said that the new joint venture will combine SAIC's capital and management, Iveco's technology and international operating experience, and Chongqing Heavy Truck's existing heavy-duty truck industry resources, with the realization of a new heavy-duty truck platform Goals and their dreams.
Industry analysts believe that such a distinctive joint venture will surely pose new challenges to the domestic heavy truck market structure. In addition, the new joint venture also generates a broad association.
One of the associations, with Iveco as the link, will have closer relationship with SAIC. At the Shanghai International Auto Show in April this year, Hu Maoyuan, chairman of SAIC, responded to the media's reorganization of Nanqi: "The doors of SAIC and NAC are open at all times."
SAIC Roewe and Nanjing Automobile MG MG are technically one root. Both parties have a lot of facilities for cooperation and there is also a lot of space. Now that there is an additional link between SAIC and NAC, Iveco’s ties are further enhanced.
The second of Lenovo, taking the Chongqing project as an opportunity, SAIC Motor began to create a problem with its own brand automobile system. All along, people have various opinions on SAIC Motor’s development of its own brand cars. In this regard, SAIC is breaking this proposition based on its own principles and wisdom. Hu Maoyuan said that the principle of SAIC is to make full use of both domestic and international resources and form its own brand passenger car and commercial vehicle management system in accordance with established plans. The implementation of the Chongqing project has provided a good commentary for SAIC to achieve this planning goal.
Lenovo's third, the new joint venture model or will become an example of future Sino-foreign joint venture heavy-duty companies. While producing the Iveco brand heavy truck, the new joint venture will simultaneously develop China's original Hongyan and Steyr brand heavy trucks and transfer the imported foreign technology to China's economic products. This kind of win-win new model may become an example of setting up Sino-foreign joint venture heavy-duty companies in the future.
In the future, Hongyan heavy trucks and Iveco heavy trucks (middle white cab) will often be discharged. Now the three major product platforms in front of users cover the high school, low end market
Yang Shuyi said: "The joint venture company will continue to develop its own brand of Hongyan in the existing Hongyan heavy truck technology platform to meet the needs of the low-end market. At the same time, with the advanced technology of Iveco, we will develop a variety of advanced and practical technologies. Safe and cost-competitive 'mixed loading vehicles' to meet the needs of the mid-range market, and continue to extend to the low-end market. The STRALIS, an internationally advanced prototype vehicle imported from Iveco, is facing the high-end market demand." He said that the three major products The platform can provide customers with different needs at home and abroad with technology-leading, high quality, reasonable price, safe and reliable heavy trucks covering high, medium and low-end markets.
It is reported that in Chongqing Hongyan this year from January to May, the production and sales of heavy trucks increased by 80% year-on-year, and production and sales volume hit a record high. It is expected that more than 70% of the annual tasks will be completed in the first half of the year, which will fully exceed the 2006 annual production and sales volume. In 2007, the sales target of the new joint venture company was to ensure that vehicle sales increased by more than 40% year-on-year, sales revenue increased by more than 20% year-on-year, and market share increased by 1 percentage point on the previous year.
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