Transnational commercial vehicle companies have changed their strategies in China

In the Chinese market, the German commercial vehicle manufacturer - Man seems to always "go slow one step." In the sales of imported cars, Daimler and Volvo accounted for the top two, Mann can only settle in after; Daimler and Volvo already established a joint venture in China, and Mann, the world's third-ranked commercial vehicle Manufacturers, however, have so far failed to select a truck company to expand the Chinese market.

Faced with the sweet cake in the Chinese market, why did Man fall behind? Is it too cautious or hesitant?

In the press release issued by the two parties in the strategic cooperation agreement, Man focused on three points: Mann's acquisition of a 25% plus one stake in Sinotruk with 560 million Euros; Sinotruk takes a leading position in China's heavy truck market; will develop new models Truck series.

If we say that Man regards the status of China National Heavy Duty Truck Group in China's heavy truck market, he hopes to use its own technological advantages to cooperate with Sinotruck to expand market share. This is inevitable. However, Man decided to take a stake of 560 million euros in Sinotruk instead of the most commonly used technology transfer or establishment of a joint venture by a multinational company. This is the biggest change in Man. It may be called a compromise.

A person involved in the negotiations between Man and Hongyan told the “Commercial Automotive News” reporter that at the time, the joint venture between Mann and Hongyan was very difficult. The difficulty was that Mann’s development in China had an idea that it would not be easy to invest money. In the Chinese market, they choose to sell technology and recoup their money in one go. Previously, Mann and a number of domestic heavy truck companies have technology transfer agreements that are the best proof. It can be seen that when Mann and China National Heavy Duty Truck signed a strategic cooperation, Man “pridefully” threw 560 million euros (about 5.6 billion yuan) in shares, which proves that Man really changed.

Man only sells technology because there is no money?

Man is not without money. Since 2006, in the European market, Man has thrown tens of billions of euros to buy Scania, which has a very high profit margin. Although the final public accepted the "profits of fishermen," it also proves that for Man. In fact, it is hoped that it will invest a large sum of money in a company and develop it together. Since then, Man successfully purchased a commercial vehicle production base for commercial vehicles in Brazil; the joint venture company in India has also made it the largest shareholder of the joint venture because Mann's repeated capital injections.

Why does Man change?

One said it was because of Man's "Chinese Dream." For the development of the Chinese market, the attitude of the Mann side has always been positive. 100 years ago, Man entered the Chinese market; in recent decades, China's heavy truck companies that have imported Steyr technology from Mann's subsidiaries have thrived, but in the Chinese market, Daimler and Volvo have taken the lead. Man in this regard The development has always been unsatisfactory.

It is understood that the pace of cooperation between MAN and domestic heavy truck companies and heavy-duty engine companies has never stopped, from Hongyan, Shaanxi Auto to Weichai.

According to insiders at Red Rock, the original idea of ​​Mann was to place the engine's production base in the coastal area rather than in the central area, so he only hoped to sell TGA's cab technology to Hongyan instead of providing engine technology. However, Hongyan’s idea is that he hopes to obtain continuous injection of technology in the process of cooperation with foreign capital. Obviously, this negotiation ended without results.

In 2004, Shaanxi Automobile introduced Man's F2000 cab technology. From the sequence, from Steyr to F2000, Shaanxi Automobile and Mann have further cooperation is a matter of course. However, due to Man's demand for the use of Man's LOGO in the new brand, Shaanxi Automobile has been rejected.

Next is Weichai. In 2007, Man and Weichai bypassed Shaanxi Auto and signed a letter of intent for joint venture. According to the memorandum signed earlier, the two sides reached a strategic cooperation in the production and sales of trucks, truck engines, truck accessories and large-scale marine engines. However, I don't know why. The vigorous joint venture intention between the two parties did not appear in the end.

Therefore, the most important reason for Mr. Man’s transformation is that the voice of multinational companies in joint ventures and cooperation in China is weakening.

In 2009, the cooperation between Daimler and Foton was finally settled. In the joint venture, the new products injected into Mercedes-Benz technology will be branded with the logo of “FOTON”, while Daimler, who provides the core driving force, is driving. The words "Dummul power" were printed on the room. Such a change has never been seen in the case of Sino-foreign joint ventures.

Now, Man handed over the full range of D08, D20, and D26 engine technologies; axles, splitters, and cabs; TGA vehicle technology, one of the world’s most advanced heavy trucks; and Mann’s truck service. Four major pieces of "fat" such as technical upgrading support. China National Heavy Duty Trucks has paid less than RMB 900 million in total, which is simply worth the money. This may be another classic case of China-foreign cooperation between Chinese commercial vehicle companies.

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