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The news of Geely's acquisition of Volvo Car once again pushed Sweden's Volvo Group to the point of view. Despite "this Volvo is not Volvo", it is enough to see the attention of the world's leading suppliers of commercial transport solutions. With attention. The Volvo Group, which has been developing at a "rocket" speed, suffered a "Waterloo" in 2009: According to the performance report released by the Volvo Group, in 2009, the Volvo Group's total sales were 218.4 billion Swedish kronor, a sharp drop of nearly 30% from the same period last year. In 2009, the company suffered a loss of 14.7 billion Swedish kronor and suffered a huge loss. What is the situation with Volvo (China)? What are the prospects? This makes people concerned about Volvo (China) somewhat worried. In the rain 鞯 鞯 鞯 醮 醮 醮 醮 冢 冢 冢 冢 咴谖侄 咴谖侄 咴谖侄 咴谖侄 ㄖ ㄖ ㄖ 邢 邢 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰 薰Remote Baldness, Monk, Song, Spirit, Spirituality, Spirituality, Spirituality, Psychology, Pentination, Pentination, Pitting, Hitchcock, Excavator Model, Airplane Models, ship models... Each model has its own story and it also marks Volvo's (China) development history and brilliant performance. Our conversation begins with these models.
China has a strong atmosphere
"China Enterprise News": Seeing these models on your desk, you can see the history of Volvo in China. Volvo and China are old friends. In recent years, the Volvo Group has developed rapidly in China. Please tell us about the localization of Volvo in China.
Jiang Hao: The Volvo Group, founded in 1927, entered China relatively early, and the products were sold to China earlier. In 1928, Volvo produced the first truck. In 1935, Volvo's truck entered the Chinese market. Since then, Volvo has always been interested in the Chinese market. In 1992, the Volvo Group established the first office in Beijing—the Volvo Trucks Beijing Representative Office. With the Volvo Group's gradual understanding of the Chinese market, the Volvo Group began to enter the Chinese market in 1999. Today, all business areas and business units of the Group have entered China, and the business covers more than 20 provinces, cities and autonomous regions across the country. The number of employees is about 5,000.
All along, from production to sales, the construction of dealer networks, the construction of local talents and the cooperation with domestic companies, Volvo attaches great importance. Volvo makes choices based on the needs of the market and provides products that China needs locally. This is the main reason why Volvo products are sold well. "Localization" is something that every multinational company is considering and doing. It even becomes a business strategy. If we say that the first 10-15 years are the period when multinational companies rely on products to enter the Chinese market, at least for now, especially after the financial crisis, more multinational corporations are thinking about how to use the resources of the Chinese market to achieve efficient cooperation within the internal market. Complementary advantages, collaboration and mutual assistance, thus achieving cost savings, and more targeted development of the Chinese market. Therefore, Volvo's localization of talents, management, operations, etc. is becoming more and more intensive, and the proportion of local talents is as high as 90%. The face of Chinese companies in senior management is increasing. The cooperation between Volvo and domestic companies is becoming more and more close and extensive. Shandong Lingong is a successful case. Volvo Construction Equipment successfully invests 70% of its shares and provides technical, financial and management support. In addition to the localization of talents and production, we also hope to absorb more suppliers with strong strength and good quality, enrich the domestic supply chain, achieve more centralized local procurement, supply Volvo plants in China, and even Overseas factories have established more perfect procurement channels.
With the growing maturity of Volvo's production technology and sales model in China, Volvo intends to reverse the previous "imported products, sales of domestic" approach. Products produced by joint ventures can also be sold overseas, especially in Southeast Asia, the Middle East, and the BRIC countries. Abundant Group product line.
"China Enterprise News": At present, Volvo Group is the world's second-largest manufacturer of heavy trucks and large passenger vehicles, and the third largest manufacturer of construction equipment. What is your position in the global business of Volvo in the huge scope of production and operation?
Jiang Yan: There is no doubt that the Chinese market is increasingly important to the Volvo Group. If Volvo took root in the early 1990s, it is now a time when Volvogen has grown strong. As we all know, the truck business is the tradition and highlight of the Volvo Group. Currently, Volvo operates five brands of truck operations. The truck business accounts for more than 60% of Volvo Group's global business, and it is far ahead in Europe and North America. Thanks to the rapid development of China's infrastructure, the largest contribution to the Volvo Group's business in China is the development of the construction equipment business. Volvo Construction Equipment's business in China mainly includes its own wholly-owned company in China, Volvo Construction Equipment (China) Co., Ltd., and its joint venture in 2007, Shandong Lingong Construction Machinery Co., Ltd. Especially the investment in Shandong Lingong, let us have high-end Volvo brand construction machinery equipment and high cost performance Shandong Linggong brand construction equipment to meet the needs of different markets and customers. Shandong Lingong’s construction equipment has achieved localized R&D and production, and Volvo has given full support to the technology. In the overall revenue of Volvo Group China, the construction equipment business accounts for about 70%.
The Volvo truck business mainly focuses on heavy trucks in China, and brands such as Volvo and Renault. At the same time, it manufactures and sells DND trucks of the Group's UD Trucks and Dongfeng's joint venture in Hangzhou. Although the Volvo truck business in China has yet to achieve its scale and position in the European market, the values ​​promoted by Volvo Trucks in China are commendable. The word circulating in the industry is that “Volvo is not selling trucks, but Selling a money-making machine."
Not only that, Volvo Buses has also developed rapidly. In Shanghai, the total number of buses owned by Shanghai Sunwin Bus in Shanghai exceeds 7,000. The goal of the Expo reached zero emission standards. Under strict requirements, Volvo and the joint venture Shenhua's passenger car products were successfully selected. We have a total of more than 3,000 vehicles to support the Expo's public transportation work. Currently running in the Expo Park are the latest technology buses of the Volvo Sunvo brand. At the same time, Volvo also provided engines for 22 Taiwanese blog ferries on the Huangpu River. In addition, Volvo is also a manufacturer and service provider of aerospace components. 80% of the world's civilian engines are operated by Volvo components and more or less benefit from Volvo's professional aerospace services.
Bright prospects for the Chinese market
"China Enterprise News": According to a recent performance report released by Volvo Group, the Volvo Group suffered huge losses in 2009 due to weak market demand. Can you introduce Volvo's operation in the Chinese market in 2009? And the next three to five years of development strategy in China?
Jiang Hao: Under the impact of the financial crisis, every company cannot survive. Volvo’s loss in 2009 was also expected by us. The financial crisis has caused huge impacts on some of our traditional markets in North America and Europe. Market demand has dropped sharply. Serious local demand has fallen by 50%, and the form has been severe. In the third quarter of 2008, Volvo also made a historic profit, but it was hit hard in the fourth quarter. At the time, our approach to coping with the financial crisis was to reduce our costs as much as possible. At the same time, as much as possible, stocks were slashed in Sweden, Europe, and North America. As a result of active and effective measures, at the end of 2009, Volvo’s losses in construction equipment, trucks, and other businesses were picking up. This gives the Volvo Group confidence in quickly getting out of the financial crisis.
It is worth mentioning that in the financial crisis, Asian business has grown in a contrarian direction, and it can be said that the Group has also reduced its losses. This is mainly due to the rapid completion of the strategic layout of Volvo in Asia in the early years. The management of Asia's industrial layout, production structure, and sales network has become increasingly mature, enhancing its ability to resist risks. At present, Asia has become the second largest market for the Group after Europe. The contribution of the Chinese market is huge. This is inseparable from the Chinese government's efforts to stimulate the economy.
"China Enterprise News": In the 80 years of development, Volvo has always been based on "quality, safety and environmental protection" as its core value. This has won widespread cognition and respect. This is inseparable from the support of technological R&D. Please talk about Volvo's efforts in technology research and development.
Jiang Hao: Since the 1980s, Volvo has been a pioneer in the pursuit of efficient transportation and energy-saving emission reduction solutions, and believes that hybrid technology is one of the most promising and most competitive technologies for commercial vehicles in the future. In March 2006, Volvo Group introduced the first heavy-duty demonstration vehicle with hybrid solutions. In 2008, the Volvo Group took the lead in the industry to demonstrate fourth-generation hybrid solutions for passenger cars, trucks and construction equipment, with fuel savings of up to 35%. This technology has been widely used in trucks, passenger cars, construction machinery and other aspects are mature. In 2007, the Volvo Group took the lead in the development of seven CO2 zero-emission trucks with different replacement fuels. Their power comes from renewable fuels, so it will not have adverse effects on the environment. This proves that CO2 zero-emissions transportation is not a fantasy, Volvo for the first time Turn ideals into reality.
In the future, Volvo Group will improve the production, sales, network and products in China, so as to better meet the needs of the Chinese market and provide more customers with better services. Volvo China will then enter a period of leapfrogging: enrich product lines and deepen market coverage. Earlier this year, Shandong Lingong introduced the excavator product series for the first time, which is a good proof. This gives our customers a choice of products ranging from high-end to mid-range. In terms of talents, we will introduce more localized talents. Now we plan to establish a Volvo Asia's largest R&D center in Jinan, Shandong Province in 2012, which will attract more domestic R&D talents. At the same time, Volvo is committed to advancing Sino-Swiss cooperation in education, sports, science and technology, and culture. Since 2008, the Volvo Group has been the diamond sponsor of the Boao Forum for Asia for the third consecutive year. It has also supported the construction of hope primary schools in poor areas and the training of rural teachers, aided the construction of disaster areas in Sichuan, and supported the poverty alleviation projects in western China. Thanks to the Group's active promotion, the world's top sailing events Volvo Ocean Race and Volvo China Open have come to China one after another and have far-reaching impact in their respective fields. In short, we expect Volvo to become a more resounding brand in China in the future.
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