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Dongfeng and Volvo's commercial vehicle joint venture project has entered the final step of the process.
The relevant person in charge of the Dongfeng Commercial Vehicle Technical Center currently revealed to reporters that currently Volvo’s technical staff is already partially in place. According to informed sources, the new Dongfeng Commercial Vehicle after the joint venture will have 8 board members, and Dongfeng and Volvo will each appoint four.
In the face of increasingly stringent emission regulations, technology upgrades are placed in front of every commercial vehicle company. According to the plan, through cooperation with Volvo, Dongfeng will receive more technical and R&D support, and Volvo will also be able to rely on Dongfeng to gain more seats in the world's largest commercial vehicle market.
Volvo and Dongfeng jointly held hands. On July 28, Dongfeng Group was listed on the Shanghai United Assets and Equity Exchange and publicly transferred a 45% stake in its Dongfeng Commercial Vehicle Co., Ltd. for 5.51 billion yuan.
In the "property transfer announcement" announced by the Dongfeng Group, the transferee proposed "one of the world's leading mid-heavy truck production and sales companies" and other qualifications. Analysts believe that these restrictions are basically tailor-made for Volvo.
According to the initial plan of Dongfeng Commercial Vehicle, the cooperation between Dongfeng and Volvo should be completed before and after New Year's Day this year, and then Dongfeng’s internal plan to postpone it until June this year. However, it was not until July 28 that the Dongfeng Group announced the transfer of a 45% stake in Dongfeng Commercial Vehicles through the Shanghai United Assets and Equity Exchange.
In fact, as early as a few years ago, Volvo acquired a 50% stake in Dongfeng Motor Corporation and established a joint venture company with Dongfeng in Hangzhou. The business of the joint venture was mainly limited to the final assembly. “Volvo will send parts from factories all over the world to Hangzhou. We will be responsible for the assembly and sales of Volvo brand products.†The responsible person of Hangzhou Dongfeng Volvo introduced the situation to the reporter.
However, this did not open the Chinese market for Volvo. The main reason was that the price was too high. According to industry insiders, the price of Volvo's commercial vehicles far exceeds that of domestic commercial vehicles. Whether they are complete vehicles or accessories, they are outside the Chinese market.
“There is a big difference between the Chinese market and the European market.†According to the head of the Hangzhou Dongfeng Volvo North China Region, the “broad road transport†environment targeted by Volvo products does not exist in China. On the one hand, Chinese logistics is mostly self-employed and it is difficult to afford high prices. The cost of transportation, on the other hand, is also daunting for domestic consumers.
Volvo, which has encountered serious environmental problems in China, is in urgent need of a new "Chinese partner".
Dongfeng commercial vehicle product upgrades need <br> <br> Dongfeng commercial vehicle forefront in China in the heavy truck market, but in the framework of the original limited Dongfeng, are seen as "inefficient" business segment. Dongfeng Commercial Vehicle Company insiders told reporters: "Dongfeng Commercial Vehicle has more than 70,000 employees, which is too inefficient for Nissan."
The best way to change the low efficiency of the Dongfeng commercial vehicle business is to upgrade technology and products. Nissan's global commercial vehicle business is not able to provide sufficient technical support. It is precisely because of this that Volvo's "Olive Branch" is obviously more conducive to the development of Dongfeng Commercial Vehicles.
The relevant person in charge of Dongfeng Commercial Vehicle revealed that Volvo's technology requires high costs. Dongfeng may adopt “flexible†some of Volvo’s core technologies, such as applying some engine technology to Dongfeng’s models, in order to better fit domestic commercial applications. The requirements of the car market. He said that it is not difficult for Dongfeng Commercial Vehicles to achieve State IV technology, but in the future it will be “difficult†to upgrade to higher standards. This requires Volvo’s more advanced engine technology.
To this end, both parties will jointly establish an R&D center. It is understood that according to the Dongfeng “Dry D300†plan, Dongfeng Commercial Vehicles will achieve a production of 1 million vehicles in 2016, so product upgrades are imminent.
Previously, Daimler, Mann, and other international commercial vehicle giants had already begun deployment in China. As early as 2009, Sinotruk signed a contract with the German commercial vehicle giant Man Group, which bought shares of China National Heavy Duty Truck. The Houman Group licensed its advanced truck and engine technology to China National Heavy Duty Trucks in China under an exclusive license. .
The current cooperation model between Dongfeng and Volvo can be seen as a microcosm of the upgrading of China's commercial vehicle industry. According to industry analysts, under the current situation of declining macroeconomic growth, the high growth of the commercial vehicle market is difficult to reproduce. Dongfeng, through joint ventures with Volvo, will continue to lead this market. However, the digestion and running-in of technologies is still an important juncture.
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