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When the financial crisis deepened and the heavy truck industry entered the adjustment period again, after Futian and Hualing, the new round of heavy truck shock waves began quietly. Who will become the dominant?
Facing the phone ringing in front of him, Yang Yong frowned and he did not know whether it was the reporter who called it. Now, nothing can make Yang Yong feel more embarrassed than the phone he receives.
As the general manager of Nanjing Xugong Motor Co., he is currently responsible for Chunlan Heavy Truck Co., Ltd., which Xugong took over (the company is now renamed as Nanjing Xugong Motor Co.). Although XCMG heavy trucks have already started sales in February 2009, there are even 20 trucks exported to North Korea. However, the failure of the Nanjing Chunlan heavy truck operated by the Chunlan Group made XU Gong very cautious about the words and deeds involving heavy trucks. Holding the attitude of “do it and see it, and wait for it to be successfulâ€, whenever a reporter calls to ask Xugong for heavy trucks, Yang Yong is not willing to reveal more.
A similar situation also happened to Chery. "The commercial vehicle is not convenient to disclose when it has not yet been said to the outside world." Chery's assistant general manager Jin Yibo told reporters in this way. In fact, since the acquisition of FAW Yangzi in 2006, Chery has been waiting in the wings to enter the field of commercial vehicles. In early 2009, it set up a joint operation with CIMC Group, and the project team has also been operating quietly.
What makes these people secretly? People have speculated that if it goes back to the first half of 2008, it will be another situation.
In the first six months of 2008, the sales of heavy trucks reached 380,000 units, an increase of 48.6% year-on-year, which was 77.98% of the 487,481 units sold in 2007. Under such circumstances, each host plant will do its utmost to expand its production capacity, work overtime and build a new high of its own production capacity. However, after July, China’s heavy truck market is no longer fascinating. The financial crisis that has raged on Wall Street has caused a global economic recession, and the Chinese economy, which has maintained a double-digit GDP growth, is also facing a test. China’s import and export trade experienced a sharp decline, and the total volume of road freight declined sharply. Sales volume also fell again after September, setting a new monthly sales volume for the full year. In November, the sales volume was less than 20,000 units. In December, it was 20,255 units, if not for the sake of manufacturers. In order to compete for rankings, sales in December will definitely be lower than 20,000.
Around 2000, Futian, Hualing, Chunlan and other companies all set foot in the field of heavy trucks. This can be seen as the first wave of shocks for China's heavy trucks.
Futian Auman was the leader in the first round of heavy truck shocks. With the extraordinary Auman speed and strong marketing capability, Auman Heavy Trucks quickly grew into a dark horse in the industry. In just a few years, he completed the transition from dark horses to white horses. . At the same time, the sales income of Anhui Xingma, which entered this sector almost at the same time, also increased from more than 2 million yuan in 1994 to more than 10 billion yuan in 2008.
The power of example is endless. What's more, the blowout of the heavy truck market in recent years has made Chery and Xugong unable to sit still.
Inspired by the first batch of successful companies entering the heavy truck industry, Chery and Xugong, who originally wanted to share a share in the fast-growing heavy-duty truck market, seemed to be caught up in the market situation.
Chery and Xu Gong shot
The departure of Chunlan Motor made Xugong find an opportunity.
In 1997, Chunlan Group acquired Dongfeng's special-purpose vehicle manufacturing company in Nanjing and changed its name to Nanjing Chunlan Automobile Manufacturing Co., Ltd. (holding 60%), formally entered the heavy-duty truck industry, and has also become a typical example of the “outsider†heavy-duty card. But later facts prove that the Chunlan Group's advantages in home appliances can not make a difference in Chunlan Auto, and like other home appliance companies, it finally exits.
After several years of preparation, on September 23, 2008, Xuzhou Science and Technology announced that it had acquired a 60% stake in Nanjing Chunlan Automobile Manufacturing Co., Ltd. for a price of 170 million yuan. The intention of Xugong, which is known as the manufacturing engineering machinery, is obviously to acquire Chunlan Automobile. It is to broaden the product line for the platform and enter the heavy-duty vehicle industry. The possession of heavy-duty vehicles is beneficial to the promotion of sales of construction machinery products, and also to its construction machinery. The overall level of product improvement brings positive effects.
At the same time, at the same time, the chairman of the board of Chery Yin Tongyue is also planning to enter the heavy truck to enter the plan, and choose the right time to enter.
In the planning of Yin Tongyue’s plan, after the expansion of passenger vehicles, the diversified development of Chery will surface, and in the future, Chery will be made into a car group with the production capacity of passenger cars, passenger cars and trucks to gain greater utterance. right. In 2006, the FAW Yangzi passenger car located next to Wuhu Chery Automobile Co., Ltd. completed one of the layouts. Where is the opportunity for the next truck?
Unlike XCMG, Yin Tongyue did not rush to attack without any heavy-duty experience and resources. He does not plan to use the acquisition method to achieve the plan, so it is too risky. What he needs is a strong partner.
CIMC Vehicles Group is part of China International Marine Containers Co., Ltd. Its background and strength are good, and CIMC vehicles, as a modified vehicle company, also have the desire to expand their product lines to the end. By chance, CIMC had a project in Wuhu, which had met with Chery. One had to go downstairs for production qualification. One needed experience and resources. The two parties hit it off. After further negotiations, they decided to start a joint truck.
In January 2009, both parties announced that they had invested 1.2 billion yuan to initiate the establishment of Jirui United Truck Co., Ltd. Among them, CIMC vehicles accounted for 45% of the registered capital, Tairui Investment (a subsidiary of Chery) accounted for 45% of the registered capital, and another investment company Jiusi Investment accounted for 10% of the registered capital.
Only at this time, the enthusiasm of both partners is still there, but the market has undergone fundamental changes.
Arrows
For such a long time, Chery and Xugong were not unaware of the changes in the heavy truck market. However, for those who have invested huge amounts of money, it is the only choice to continue and wait for the next blowout.
At present, Jirui United Truck Co., Ltd. is not listed, and a project team consisting of CIMC and Chery members has already carried out preliminary operations in Wuhu, including the design and development of new products, recruitment of suppliers, and the formulation of development plans.
Because there is no reserve of commercial vehicle talents, the Jirui truck project team is recruiting troops everywhere. Recruitment advertisements have already entered the recruitment website. From the frame, body, stamping and welding equipment, to the painters and general assembly technicians, etc. Demand, in addition, according to insiders, they also need to dig some people from Dongfeng, Jiefang, Futian and other companies to do the project.
According to insiders, the design of Jire truck is in progress and it is estimated that it will be possible to make prototypes next year. According to the announcement issued by CIMC, the project will invest 2 billion yuan in the first phase. It is expected that after the project is put into production in 2011, it will be formed. The total production capacity of the truck's entire process (including the five processes of the body, frame, painting, welding, and assembly), and the joint truck is committed to becoming one of China's major truck suppliers in the future.
In the eyes of people in the industry, although Chery and Xugong have invested heavily in the heavy truck program and are able to use the market downturn to obtain cheaper raw materials and barriers to entry, the reactionary power of the financial crisis to the economy has already emerged.
Moreover, the heavy truck market in China is currently highly concentrated, with the top six market share reaching over 90%, and a competitive pattern of 3+3 has already formed. The market share of China Heavy Duty Truck, Dongfeng Automobile and FAW Liberation accounts for more than 60% of the market. It is unlikely that it will be broken; while Foton Motors, Shaanxi Automobile Group and Chongqing Hongyan are also making frequent efforts. Therefore, it is still quite difficult for post-entrants to hurry around in areas where others have been working for years.
The bigger variable is that the country’s current automobile revitalization plan encourages mergers and acquisitions among companies. For Anhui Province, where Chery is located, there are several heavy truck projects. In Maanshan City, not far from Lugu Lake, there is a well-traveled heavy-duty truck company Hualing. It is located in the Geerfa project of Jianghuai Automobile Co., Ltd. in Hefei, together with Jirui heavy truck. There are three heavy-duty truck projects in the province, which is unique in China. . Moreover, recent news about Chery and JAC's reorganization has continued to spread. Chery's internal staff also expressed concern about the reporters privately.
Who else is this round?
In fact, not only Chery and Xugong, but other companies even started earlier in this shockwave of heavy build cards.
As early as November 2007, the joint venture between GAC and Hino was officially established and will be officially put into production in July this year. In June 2007, SAIC Iveco Hongyan Commercial Vehicle Co., Ltd. was formally established, and its joint-venture product “Jieshi†has been on sale this year.
It is worth mentioning that there are also some companies that secretly create heavy trucks.
Universiade Automobile Manufacturing Co., Ltd., located in Yuncheng City, Shanxi Province, and Da Yun Motors are both subsidiaries of Shanxi Tongda Group. Universiade Automotive started construction as early as in 2005. The project investment is 2.1 billion yuan. It has already started operation in October 2007. , design, production, sales, service as a whole, to produce the main transport heavy trucks. Thanks to the strong support of the Yuncheng government and Tongda Group's background, Shanxi Provincial leaders have expressed their stance that the Grand Canal Heavy Duty Trucks should be the highlight of economic development and strive to make Shanxi occupy a place in the national economic layout. Therefore, its strength must not be underestimated.
In Zhejiang, Zhaolong Group, which focuses on automotive modification, parts production and logistics, completed the approval and land supply procedures for the Zhaolong heavy truck project in 2008, with a total investment of 1.5 billion yuan in the Keqiao Ecological Industry in Shaoxing County. Build a factory in the gathering area.
In addition, Yingkou City Government of Liaoning announced last year that it would like to invest RMB 6 billion in the construction of heavy trucks and engine production bases to attract investment.
However, whether it is the Grand Canal or Zhao Long, it is still not known whether its heavy truck products will be used to produce heavy trucks. If not, they can only be bluffed or listed by road.
Faced with the heavy truck projects that were launched, some old heavy truck manufacturers expressed their understanding. Tong Dongcheng, general manager of Dongfeng Commercial Vehicle, told the “Car Watch†reporter: “This phenomenon is determined by the Chinese market. The demand is so great that anyone wants to eat this 'cake'; secondly, many companies have a special luxury. All of them are pursuing all-round development and are not willing to do one thing. It is foreseeable that in the new round of development, some people will be able to eat 'cakes' and others will pay a greater price."
Who is the next Futian, Valin?
Obviously, the time and environment of these two heavy-duty shock waves are obviously different.
The timing of the entry of Futian and Hualing is just the beginning stage for China’s heavy truck market just entering high-speed growth. For example, when Futian Auman heavy truck was officially listed in 2002, it was just in time for the continuous high growth period rarely seen in the heavy truck industry in China from 2001 to 2004. In the months since its launch, it sold more than 3,000 vehicles, followed closely by sales in 2003. It was close to 1.48. Millions of cars have magically reached 44,000 in 2004. In spite of the overall decline in the industry in 2005, it quickly recovered in 2006. From 2007 until the first half of 2008, it even reached a blowout. The rapid growth of the market has made the first wave of heavy-armed newcomers not only stand firm, but has even surpassed some of the old heavy-duty truck manufacturers.
Nowadays, the time has passed, and the uncertainties of the financial crisis and the heavy truck market have made XCMG and Chery no good time. This brought about a lot of resistance to the current round of heavy truck shock waves.
However, in this round of new entrants to heavy trucks, Guangzhou Automobile's Hino and SAIC Iveco Hongyan’s advantages in terms of group advantages and mature technologies of their partners appear to be more obvious, but industry insiders also reminded that there are few joint ventures in the heavy truck area before With success, the withdrawal of Chunlan is an example. Joint ventures between China and foreign countries have no precedent for success. The future of 45% joint ventures between CIMC and Chery is also difficult to predict.
The advantages of CIMC and Chery's joint-venture heavy-duty trucks are that they have strong complementarities. Chery has experience in building vehicles and CIMC has downstream markets and sales channels. However, the weakness of the company is that both parties do not directly own heavy truck manufacturing technologies and processes. Heavy truck R&D capability is also very important. In addition, having a complete supply chain consisting of engines, axles, transmissions, etc. is increasingly becoming the competition for heavy truck manufacturing companies. Shaanxi Automobile is relying on its own gold supply chain. It has become the fastest growing heavy truck company in the past two years.
As far as XCMG is concerned, as a construction machinery manufacturing company, Xugong Technology’s uploading ability is very strong. Coupled with some parts and components of Xugong Group, Xugong Technology’s entry into heavy-duty trucks is compared with many new entrants from scratch. The foundation is not bad. However, in the opinion of analysts, despite the resources of Chunlan, Xugong Heavy Trucks also faced difficulties in the supply chain. Because Chunlan Heavy Duty Trucks did not form its own characteristics and did not have its own complete industrial chain, Xugong Technology's resources could not complete this industry chain, and it was very difficult to form a heavy truck market in the short term. In addition, entering the heavy truck market does not mean that Xugong Technology will use the heavy truck as its main business. Xugong Technology may be more concerned about the dump truck market. However, in the entire heavy truck industry, dump trucks account for only 1/3 of the market.
In fact, the combination of CIMC and Chery, XCMG and Chunlan combined, and the parties involved in the cooperation are production special vehicles. This is similar to Anhui Xingma's manufacturing of Hualing Heavy Trucks. Hualing used to rely on the joint development of heavy trucks and special vehicles. It has achieved rapid development, so its model has implications for Jirui and Xugong Heavy Trucks.
In the economic downturn and the market downturn, the adjustment period for the heavy truck market is the common environment encountered by the second wave of heavy trucks in China. However, they seem to regard the current situation as an opportunity for them. The relevant persons of CIMC vehicles are right. The reporter said, “Because of the economic downturn, we have saved a lot of costs. For example, the reduction in steel prices will give us more money than before in the procurement of factories, equipment and materials. We can now use our time to make arrangements and adjustments. Then we wait for the market to be good, so we think it's the market waiting for us."
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