China's commercial vehicles enter the era of full-scale joint-venture joint ventures (2)

Do not let

The CAGR of China's commercial vehicle market has reached 12% in the past five years, accounting for nearly half of the global commercial vehicle market and becoming the world's largest commercial vehicle market. In the past economic crisis, China was also the best performing and most resistant market.

China's mainstream commercial vehicle companies have basically carried out various cooperation with internationally capable companies. The direction and mode of cooperation are not the same, but the ultimate goal is the same. Through joint ventures and cooperation to complete their own technology and management upgrades as quickly as possible, and then strengthen their strength and participate in international first-line market competition.

Hui Yumei said that the joint venture of commercial vehicles is a strong alliance, and the situation is different from that of passenger vehicles. The joint ventures of commercial vehicles will be evenly matched and the two sides have the same right to speak. Therefore, the joint venture of commercial vehicles is from the other side. There are few opportunities to get benefits without paying a price. The joint venture of commercial vehicles must be jointly developed by the two sides, common technological progress, and greater sincerity of the foreign side. It is necessary to absorb the experience of previous failures and correctly recognize their own rights and obligations in the joint venture. Similarly, at the beginning of the joint venture, the Chinese side should fully investigate and inspect, scientifically assess the value of the Other party, correctly understand the joint venture, and not jointly enter into a joint venture. After the joint venture, it must continue to maintain a strong state. Both sides should work together to make progress together.

In the joint venture of passenger vehicles in China, the most common is the proportion of 50% to 50% of peer-to-peer investment. Foreign models are directly imported into the country, and finally sold abroad as foreign brands. After the completion of the joint venture between Chery and Jaguar Land Rover, the Chinese government may no longer approve other passenger car joint ventures. However, commercial vehicle joint ventures are still in the ascendant, and the future of China and global commercial vehicles will become more complex and more intense.

Through cooperation with GM, FAW can increase the influence and technical content of its commercial vehicle brands and expand overseas markets through GM's relevant channels. General Motors has formed a north-south echoing pattern. North-South GM, together with SAIC-GM-Wuling, has a comprehensive product line covering passenger cars, commercial vehicles and mini-vehicles.

In this wave of commercial vehicle joint ventures, the joint venture between Foton and Daimler was typically represented. During the entire negotiation process, Fukuda maintained the necessary strong stance: retaining local brands and introducing foreign advanced management. However, in the process of joint venture with Daimler, Fukuda’s protection of China’s interests is in place. Regardless of the distribution of management rights such as vice president candidates and parts procurement, or the authorized use of trademarks, paid transfer of GTL models, or even division of sales rights at home and abroad, Futian directly guarantees its own interests and indirectly guarantees foreign parties. interest.

Intellectual property segmentation

Commercial vehicle joint ventures and passenger car companies basically use foreign trademarks. Most joint venture commercial vehicle companies use Chinese trademarks, and some companies use new trademarks of joint venture companies.

After Mann’s share of China’s heavy gas, the company still uses the heavy-duty truck brand before the production of heavy-duty trucks. Apply new products developed by Mantech, using new trademarks.

Fukuda retained the ownership and right to use the "Auman" trademark overseas market invested in the joint venture company. Foton paid a license to use the "Futian" trademark for joint ventures. The entire vehicle of the joint venture company uses “Futian” and “Auman”, and a hybrid truck equipped with an OM457 engine at the same time is labeled “Mercedes-Benz Power”. Foton Motor licenses the inseparable intangible assets of Auman's trademarks such as “Futian” trademarks, general technology, and IT to joint venture companies, and charges 45 million yuan each year.

The Jianghuai and Navistar joint ventures adopt the principle of complete reciprocity between the two parties. Both trademarks are used free of charge; the party who uses the technology of the joint venture will pay the technical royalty to which party.

Commercial vehicle joint ventures use foreign technology, some use Chinese technology, and generally pay technology transfer fees to technology providers.

On September 29, 2011, Foton and Daimler signed the "H4 Boarding License Agreement." According to the joint venture contract, Foton licensed the joint venture company to use H4 truck technology for sales outside China. The joint venture company paid license fees to Foton Motor for a total of RMB 1.7 billion.

SINOTRUK and Man have signed a 7-year technology licensing agreement. MAN grants CNHTC's complete GTA trucks, D08, D20 and D26 engine and related parts and components that meet Euro III, Euro IV and Euro V emission standards in China. Non-transferable rights to use licensing technology and know-how, as well as related rights for distribution, after-sales maintenance and service licensing technologies and know-how. The total amount of the contract is less than RMB 900 million.

SAIC Iveco Hongyan, Hongyan and Iveco have signed a total technology purchase contract, the technology purchase cost is divided into two parts, part of the one-time payment when the introduction, the other part of the sales commission.

R&D capacity increase

As the Chinese joint venture companies have relatively strong technical strength, the general joint venture companies have R&D institutions. Many new products of the joint venture company do not originate from any parent company, but are newly developed products within the joint venture company. Through joint ventures, research and development capabilities have been improved.

Fukuda Daimler's joint venture company only establishes R&D centers for the domestic market. R&D in overseas markets is led by Foton, and the joint venture company produces Fukuda's overseas market products in accordance with Foton's requirements. Daimler will provide technical and expert support to help joint ventures improve the quality of finished vehicles and help develop new products for the domestic market.

The joint venture between Sinotruk and Mann will use the existing technology of Heavy Duty Trucks and the authorized use of Mantech to develop new products. The newly developed T7H heavy-duty truck integrates China Heavy Duty Truck's 50-year manufacturing process and Laiman's advanced technology.

Based on the original Hongyan technology, SAIC Iveco Hongyan uses Iveco-introduced vehicle models to develop new products with the joint efforts of both technical personnel. Two new product platforms have been developed: Hongyan Jieshi and Hongyan Xinjingang.

Supplier system

Commercial vehicle joint venture companies basically use domestic supplier systems. Many joint venture companies have investigated and screened the original Chinese suppliers. Most joint venture companies will put forward new requirements for suppliers, and some companies will also train and supervise suppliers. The use of domestic suppliers is largely due to cost considerations. After the joint venture, it played a leading role in China's auto parts companies.

Fukuda Daimler's vehicle parts are divided into A-type parts (important parts) and B-type parts (other parts). Category A parts management is led by Futian, including system planning, supplier selection, and so on. OM457 engine parts are purchased at home and abroad based on the principle that domestic prices and import prices are lower.

SAIC Iveco Hongyan uses the original domestic supplier system to manage and train the original suppliers. There are more than 20 teams in Shanghai Yihong Quality Department who are responsible for training and evaluating domestic suppliers.

Jianghuai Navistar believes that the cost of the product is very important, and the products produced in the future must be accepted by the Chinese market. Therefore, the domestic supplier system is basically used.

Equity structure diversity

Commercial vehicle joint ventures have a more abundant equity structure than passenger vehicles. In general, China accounts for at least 50% of the total. In existing commercial vehicle joint ventures, some companies, either Chinese or foreign, have shown a tendency to increase capital.

SAIC Iveco Hongyan has a registered capital of RMB 1.3 billion. SAIC Iveco Commercial Vehicle Investment Co., Ltd. (SAC and Iveco each set up a 50% joint venture) accounts for 67% of the joint venture company. Chongqing Zhongqi has 33% of the shares. Recently, SAIC has the tendency to increase SAIC Iveco Hongyan, and is expected to control the Yiyi Red.

China National Heavy Duty Truck Group has a 51% stake in its Hong Kong-listed company China National Heavy Duty Truck and is a controlling shareholder. In theory, under the premise that he currently holds 25% of shares, Mann may increase his holdings by 24%.

The Foton Daimler joint venture company has a total investment of 6.5 billion yuan and a registered capital of 5.6 billion yuan. Foton Motors, Daimler AG, and Daimler Northeast Asia Investment Co., Ltd. hold 50%, 40% and 10% of the shares in the Zhongzhongka JV respectively.

JAC-Navistar is a Sino-foreign equity joint venture.

Operation management

The management and operation of the joint venture company is dominated by China. However, many foreign companies also occupy important leadership positions. There is no absolute connection with share ownership in the distribution of positions.

Taking into account Daimler's lack of understanding of the Chinese market, Futian Daimler's operation and management in the first three years was dominated by the Chinese, the general manager was appointed by Futian, the important functions of the joint venture company's procurement, sales, and R&D were led by Futian, and Futian was at the management level. Appointed personnel account for the majority. In order to motivate the management of the joint venture company, the general manager of the joint venture company will be appointed by the other party when the average annual net asset yield of the joint venture company falls below a certain amount during the term of the general manager of the party. This management design laid the foundation for the sustainable and healthy development of the joint venture company.

The general manager of SAIC Iveco Hongyan is appointed by SAIC and the deputy general managers are appointed by Iveco and Hongyan.

Sales channels

The joint venture’s sales are divided into domestic sales and overseas sales. In general, sales of joint ventures in China are based on the existing sales channels of China. Since most Chinese companies also have sales channels overseas, the overseas sales of joint venture companies use the sales channels of both parties.

Fukuda Daimler is only targeting sales in the domestic market. The overseas sales of the joint venture's products are handled by Futian. Fukuda can entrust the joint venture company to produce products in overseas markets, and can also use Daimler global sales and future service resources to carry out medium- and heavy-duty trucks and OM457. Engine sales and service activities.

SAIC Iveco Hongyan also uses Iveco’s overseas network based on the original Hongyan export network. For example, the export to Vietnam is using Iveco's sales channels.

The joint venture between Sinotruk and Mann uses the global sales network of CNHTC and Mann for global sales of new products.

The international heavy truck giants who missed joint venture opportunities with China's mainstream commercial vehicle companies for various reasons did not stop there. They are still searching around with a keen sense of commerce, and they have come into contact with each other, trying to gain a share before the tide recedes.

High/Medium/Low Speeed Granulator

High/Medium/Low Speeed Granulator,Plastic Granulator ,Chemical Granulators,Pharmaceutical Equipment & Machinery

Plastic Crushing Recycling Seires Co., Ltd. , http://www.nbtemperature.com