Yang Zaiyu: Dongfeng wind wheel rolling forward with Volvo wheels

Volvo Latin means "moving forward." Yu indicated that the wheels of the car rolled forward, the company flourished and the future was infinite. Volvo Cars is the largest automotive company in Scandinavia and the largest industrial conglomerate in Sweden. It is one of the top 20 auto companies in the world, second only to Daimler’s world’s second-largest truck manufacturer. However, the wheels of Volvo Car Corporation have not been able to “roll forward” in the past 20 years in China. Instead, they have been filled with bumpy and ups and downs.

According to the “Daily Economic News” report on September 27th, 2012: “After four years, the Dongfeng and AB Volvo JV has once again become a hot spot in the industry. It is reported that the two parties have established a joint venture in accordance with 55:45 and have already Obtain approval from related departments and wait for the official announcement. It is reported that the joint venture company is headquartered in Hangzhou, Zhejiang Province, the production plant is located in Shiyan, Hubei, Volvo truck output technology and standards, Dongfeng commercial vehicles provide "capacity", the daily management of production plants by Dongfeng Commercial vehicles are responsible.

However, the fact that the joint venture company has been approved has not yet been publicized. The current business development of Volvo Trucks in the Chinese market is normal. Volvo (China) Investment Co., Ltd. established a special joint venture project team to promote joint venture projects. In terms of Dongfeng Motor Corporation, Dongfeng Commercial Vehicles was divested from the Dongfeng Limited Framework earlier this year and became an independent subsidiary. The joint venture company operates under the Dongfeng Commercial Vehicle framework.

In 2003, the Volvo Group, which had a large-scale global expansion, finally opened up a gap in the Chinese truck sector. Jinan Huawo Truck Co., Ltd., a joint venture with China National Heavy Duty Truck, was formally established. Jinan Huawo Trucks was established by a joint venture between Volvo Trucks and China National Heavy Duty Truck in 2003. It was put into production in 2004 and is the first domestically approved heavy truck joint venture project. The total investment is RMB 1.6 billion and the proportion of investment is 50% each. The joint-venture negotiations between the two parties have been going on for a long period of nine years. The original cooperation deadline was 30 years. In 2005, domestically produced Volvo heavy trucks only achieved production and sales of more than 200 vehicles.

In 2006, due to the high price of the car and too little sales, Jinan Huawo started to completely stop production. Volvo said that Sinotruck rebelled itself and abandoned the technology. After stealing technology, China National Heavy Duty Truck Group alleged that Volvo made false localization, was keen on CKD production, and imposed a technical blockade, resulting in high product costs and difficulties in competing with other domestic heavy truck products. At the same time, Jinan Heavy Truck Jinan imitated Jinan Huawo models developed so-called autonomous HOWO heavy truck put into operation, and quickly achieved success, which led to further intensification of the contradictions between the shareholders, the two sides eventually broke down the "marriage" and the disintegration of labor Yan fly, go their separate ways.

In 2007, Dongfeng Group announced that Dongfeng Motor, Nissan Motors, and Volvo Group have signed a non-binding framework agreement. Dongfeng is prepared to jointly produce medium and heavy trucks and engines with AB Volvo. Nissan Motors will focus on passenger vehicles in the future. Production of light commercial vehicles. Since then, the negotiations between the two sides have continued for nearly two years.

In July 2008, the two parties stated that because Dongfeng Motor, Nissan Motors, and Volvo Group still had differences in capital and equity, they failed to reach an agreement on issues such as cooperation ideas, brand use rights, and site selection, leading to a "full suspension" of the joint venture negotiations. .

In July 2009, Sinotruk signed a long-term strategic agreement with Germany's MAN Group. MAN invested 560 million euros in Sinotruk to jointly develop a new type of truck that was specifically targeted at emerging markets. Volvo's withdrawal was almost inevitable. In November of the same year, Volvo Group officially announced the termination of its cooperation with Sinotruck. Withdrawing from the company and withdrawing from the joint venture company marks the end of this originally scheduled 30-year cooperation, and Volvo will sell its stake in Jinan Huawo Truck Co., Ltd.

After Volvo withdrew from Sinovac Sinobo project in 2009, Volvo began to look for new partners. The CEO of Volvo Group Leif Johansen said at the time: “Volvo Group must also negotiate with Dongfeng Motor and China Automotive Industry Authority about the possibility of expanding cooperation.” Dongfeng Company once again entered its vision, and this also gave a restart to Dongfeng Joint Venture. The project brings hope. Previously, the difficulty in negotiating was revealed in the issue of equity. According to China's automobile industry policy, foreign-invested automobile manufacturers must have joint ventures with Chinese companies in the production of complete vehicles in China, and Chinese companies must not have less than 50% of their shares in joint ventures.

Now that the Volvo Group has four truck brands under its belt, including Volvo Trucks, Renault Trucks, Nissan Diesel, and Mark Trucks, the Volvo Group will have to comprehensively plan its layout for the Asian truck market. Previously, the president of Volvo (China) Investment Co., Ltd., York, also said that cooperation with Dongfeng will involve the above four brands, not a Volvo brand.

Currently, the Volvo Group has four commercial vehicle joint ventures in China, namely Huawo, Shenwo, Xiwo and Dongfeng Nissan Diesel. These were established before the promulgation of China's "Auto Industry Development Policy" in 2004. According to the current industrial policy, a foreign-funded enterprise can only have two joint ventures in the country.

Therefore, Volvo has apparently used up its own joint venture quota. In accordance with the requirements of industrial policy, if Volvo wants to establish a new joint venture with Dongfeng, it must also withdraw from more than two joint ventures, but Volvo Group is already a shareholder of the joint venture company Dongfeng Nissan Diesel and has successfully entered Dongfeng Limited (Dongfeng Nissan's joint venture company).

In September 2011, Volvo Group and Dongfeng Commercial Vehicle have successfully concluded the joint venture negotiations and will formally establish a joint venture company in 2012. Among the new joint ventures, Dongfeng holds 55% of the shares and Volvo holds 45% of the shares. As a key third party to promote this matter, Nissan Motor Co., Ltd. will fully withdraw its capital from Dongfeng Limited's commercial vehicle business, and in return, Dongfeng will support Infiniti and Renault to manufacture domestically. Whether the new product logo after the joint venture has extended the Dongfeng “wind wheel” trademark, the two sides still did not give a clear indication whether this key issue was also involved in the joint funding negotiations.

The Volvo Group's most famous technology is heavy truck technology. Volvo has increased the introduction of heavy truck new products in China, especially in Volvo's advantageous technologies such as fuel economy and high-efficiency engines. Once it is aligned with it, Dongfeng’s heavy truck strength will Even more powerful. After the joint venture between Volvo and Dongfeng, in order to reduce costs, it may give up its vertical matching model in Europe and become localized procurement.

New products in the power can be selected with domestic high pressure common rail Dongfeng Cummins 13L engine and Dongfeng Renault dCi series engine; or purchase domestic ZF and Fast transmission. All of these unique resources for Dongfeng can be fully utilized, so that the price of the Dongfeng version of Volvo with hybrid genes after the joint venture may drop from “high price” to “human price”.

Recently, Dongfeng Motor Co. and Volvo Car Co., Ltd., after eight years of arduous and razor-sharing negotiations, has finally come to an end. This stock ratio does not appear in the form of reciprocity. This fully shows that today's Dongfeng has long been not an east wind eight years ago. Bigger and stronger. Dongfeng Commercial Vehicle Co., Ltd. is the largest in Asia and the third largest in the world. Therefore, Dongfeng Motor Co., Ltd. has already had very strong strength today and can negotiate with Volvo for reciprocal negotiations without making any concessions. Dongfeng has already taken the initiative in the joint venture negotiations.

Following “grand autonomy”, Dongfeng Motor proposed the concept of “big commercial vehicle”. The strategy will focus on resource integration, business synergy, and new and old synergy. It will strive to make Dongfeng’s total commercial vehicle sales reach 1 million by 2015. Vehicle. Among them, the proportion of medium-heavy and light commercial vehicles will be around 3:7. Commercial Vehicle Segments Strategic positioning is particularly important for Dongfeng Motor. According to the "big commercial vehicle" strategy, the vehicle production capacity of the Dongfeng Motor Shiyan base will reach 700,000 units, which will double. In the Dongfeng commercial vehicle strategy, the overseas market occupies a pivotal position.

The reason why Dongfeng Motor Company today "willfully accept Volvo's cooperation with the olive branch is to look at the technical strength of Volvo." Leif Johansson, president and CEO of Volvo Group, said at the time that Volvo currently has a strong presence in China. With Nissan Diesel, two strong partners, they have laid a very good foundation for Volvo's development in the Chinese market. In the future, after Volvo and Dongfeng have joint ventures, they will increase investment and launch efforts in the product area, especially in fuel economy. And Volvo's superior technology fields such as high-efficiency engines.

In the future, Volvo Euro 4 and Euro 5 engines as well as vehicle technology and key assembly will be introduced into Dongfeng Commercial Vehicles. Dongfeng is bound to be even more powerful and its product competitiveness will be significantly enhanced, which is expected to stimulate the domestic heavy truck market. In addition, the joint venture with Volvo is the solution to the difficulties of the slow progress of Dongfeng commercial vehicles in overseas markets.

Dongfeng Commercial Vehicle Co., Ltd. has an annual production capacity of 300,000 vehicles, 20 production and operation units and 12 functional departments: Dongfeng Liuzhou Automobile Co., Ltd., Dongfeng Xinjiang Automobile Co., Ltd., Dongfeng Hangzhou Automobile Co., Ltd., Dongfeng Nissan Diesel Automobile Co., Ltd., and Dongfeng Motor. The Chuangpu Special Purpose Vehicle Factory, Dongfeng Huizhou Automobile Company, Shenzhen Dongfeng Motor Company, Hubei Shenli Forging Co., Ltd., and Hunan Dongfeng Automobile Sales & Service Co., Ltd. are reorganized into Dongfeng Commercial Vehicle Company.

It is reported that in the future, the joint venture company will also have two heavy truck brands, Volvo and Dongfeng, but there will be differences in product positioning, Volvo will be positioned in the high-end heavy truck market, and Dongfeng is positioned in the low-end heavy truck market. The specific models introduced by Volvo Trucks are still unknown, but after they are made domestically, the price will be more expensive than that of Dongfeng, which is now selling in the market. However, this is not a price that is generally accepted by Chinese consumers and is expected to be localized. After that, the price will decrease year by year.

Wu Yuzhang, the former vice president of the Volvo Group, once summed up: “The heavy truck manufactured by Huawo Group has less advantage in price compared with the imported Volvo heavy truck. This is one of the important reasons for the poor sales of joint venture products. Whether it is imported or not In joint venture production, we all need to find a new route that suits China's national conditions.” Lu Botian, president of Volvo Truck China in response to the reporter, said: “The road to localization is the only way for high-end trucks to develop in China in the future.”

The cooperation between Dongfeng and Volvo is not only a shock in China but also in the world of commercial vehicles. This project is the largest, most in-depth and most comprehensive foreign cooperation project of China's automobile industry so far. Through this successful cooperation, Volvo will have the strength to compete with Daimler-Benz, the world leader in heavy trucks, and it will likely change the competitive landscape in the world of heavy trucks.

In recent years, international commercial vehicle giants have shifted to the Chinese market and become the trend of development. China's commercial vehicles have entered a new round of high tide of joint ventures and entered the era of joint ventures. The Chinese commercial vehicle market is undergoing a transformation, as the truck market is maturing. This will force commercial vehicle companies to improve their cost structure, increase efficiency, and upgrade their product lines.

At present, SAIC Hongyan and Iveco, Sinotruk and MAN, Guangzhou Automobile and Hino, Beiqi Foton Daimler, JAC and Navistar, FAW Jiefang and GM, Sichuan Nanjun and South Korea Hyundai, Dongfeng and Volvo have established a joint venture the company. The Volkswagen Group may also carry Scania and Volkswagen commercial vehicles and consider establishing a truck joint venture in China to boost business growth in China. It is expected that in the future global market, most of the increase will come from emerging markets such as China and India.

China's passenger vehicles have been in joint ventures for more than 30 years. The market-for-tech policy line ended in a complete failure. The Chinese auto industry did not get anything, and eventually became an overseas colony of automobile giants. Therefore, it is hoped that in the process of this round of joint venture commercial vehicles, the brand nationalization, design and R&D localization, and mastery of the introduction of advanced technologies should be the first priority. We must not repeat the technological hollowing out of Chinese passenger cars. The mistakes.

● Attachment:
Volvo VOLVO Events in China In 1993, Dongfeng and Volvo's Nissan Diesel signed an agreement to jointly manufacture chassis for large passenger cars and heavy-duty trucks in Hangzhou. In May 1996, Dongfeng Nissan Diesel Automobile Co., Ltd. was established. Its products have been extended to heavy-duty trucks, concrete mixer trucks, heavy-duty tractors, passenger car chassis, special vehicles, and heavy-duty dump trucks. In 1994, Volvo VOLVO Group and Xi'an Aircraft Co., Ltd. established Xi'an Volvo Bus Co., Ltd.
In 2000, Shanghai Automotive Group Co., Ltd. (SAIC Motor), Volvo (China) Investment Co., Ltd. (Virgin) and Swedish Volvo Bus Company (VBC) invested in Shanghai Shanghai Volvo Bus Company.
In 2003, Volvo Group and China National Heavy Duty Truck experienced nearly ten years of talks and talks about love. After being able to cooperate with a power company that had not done anything good and failed to do a good job, the Volvo Group and the China National Heavy Duty Truck Co., Ltd. have finally joined forces. A joint venture company, Jinan Huawo Truck Co., Ltd. was established. The total investment is RMB 1.6 billion and the proportion of investment is 50% for Volvo and China National Heavy Duty Truck. The joint venture period of the project is 30 years, which is China's first approved heavy-duty vehicle joint venture project. The first car went offline in March 2004 and was suspended in October of that year. In 2005, there were only 200 vehicles sold.
In 2004, Dongfeng Industrial Investment Co., Ltd. (Dongfeng Investment), Dongfeng Motor Co., Ltd. (Dongfeng Co., Ltd.), Liuzhou Industrial Holdings Co., Ltd. and Renault Commercial Vehicle Co., Ltd. (Renault Trucks) reached a framework agreement in Paris, France. Taking Dongfeng Liuzhou Auto as the starting point for the joint venture and cooperation between the parties, Renault trucks and shareholders Liu Fengqi were introduced to introduce Renault truck technology and products.
Renault Trucks, a subsidiary of Volvo, signed a principle agreement with Chinese truck manufacturer Dongfeng Motor to establish a joint venture company in China to produce truck and truck parts. The initial goal of the agreement is to establish the full-scale assembly (CKD) capability of the Kerax truck in China, and the long-term goal is to be able to produce components for Renault and Dongfeng Liuzhou Automotive's Chinese product line. In addition, cooperation was carried out on the research and development of heavy truck Tianlong, after which Dongfeng and Volvo’s joint venture cooperation was once on the agenda.
In 2007, the Volvo Group signed a non-binding agreement with Dongfeng and Nissan, and the two sides demonstrated the feasibility of cooperating in the production of trucks in the future. The cooperation between the two parties stipulates that Nissan will return some shares of Dongfeng Commercial Vehicles to Dongfeng Motor Co., Ltd. and completely withdraw from the commercial vehicle business. The Japanese management personnel will also start to retreat from the important management positions of Shiyan commercial vehicles. Dongfeng Zehe will build a new heavy truck production plant. High-end heavy trucks.
At the same time, Dongfeng, Nissan and AB Volvo signed a non-binding framework agreement. Dongfeng prepares to jointly manufacture medium and heavy trucks and engines with AB Volvo. Nissan will focus on the production of passenger cars and light commercial vehicles in the future. .
In the month of 2008, due to serious differences in capital and equity issues between Dongfeng Motor, Nissan Motors, and Volvo, there was no agreement on cooperation ideas, brand use rights, relocation of Shiyan bases, etc., and the “complete suspension” of the joint venture negotiations was suspended. Collaboration negotiations eventually ended. In the same year, Volvo spent 7.5 billion Swedish kronor to acquire Nissan Diesel Engine Co., Ltd. The Volvo truck business will be responsible for the operation of Nissan Diesel.

Volvo VOLVO Introduction

"Volvo", a famous Swedish car brand, was also translated as a rich man. Founded by Assari Gabrielsson and Gustav Larsson in 1924, the brand car is currently the safest car in the world. "VOLVO" is Latin and means "scrolling forward." Yu indicated that the wheels of the car rolled forward, the company flourished and the future was infinite. The trademark consists of an icon and a word mark. Its graphic logo is painted in the shape of a wheel and has an arrow pointing to the upper right. The word mark “VOLVO” is Latin, meaning rolling forward. It means that Volvo’s wheels are rolling forward and the company is prosperous and thriving.
Volvo Cars is the largest automotive company in Scandinavia, the largest industrial group in Sweden and one of the top 20 automotive companies in the world. Founded in 1924, the founders were Gustav Larsson and Assar Gabrielson.
Volvo Cars enjoys a high reputation in Scandinavia for its excellent quality and performance. In particular for safety systems, Volvo Cars is even more unique. The U.S. Highway Loss Institute has rated ten of the safest cars, and Volvo has topped the list. By 1937, the annual output of the company's automobiles had reached 10,000. Subsequently, its business gradually developed into many fields such as production materials, living resources, and materials and energy products, and it became the largest company in Northern Europe.
Its products cover trucks, buses, chassis, special vehicles, off-road vehicles, engines, cabs, and key components. It is one of the largest commercial vehicle production bases in China. And plans to spend 14 billion yuan during the "Twelfth Five-Year Plan" to promote, for the development of medium- and heavy-duty commercial vehicles, passenger cars, minor series of fully automated vehicles, parts and equipment and other business.
In addition, Dongfeng has a strong market advantage, coupled with more than 20 years of operation, sales outlets are widely distributed, and has been in many three or four prefecture-level markets. Its influence and radiation power are far stronger than those of Volvo Trucks' network. In the future, the joint venture company will select part of Dongfeng’s existing truck network to sell domestically produced Volvo trucks and provide exclusive after-sales services.
After the joint venture between Volvo and Dongfeng for commercial vehicles, it will impact the existing pattern of Dongfeng Commercial Vehicle Co., Ltd. How Dongfeng Commercial Vehicle's Dongfeng Liuzhou Automobile, Dongfeng Hang Gas, Dongfeng Nissan Diesel, Dongfeng Special Automobile Factory and Engine Factory and so on Volvo achieves integration, and the company will wait and see what good commercial vehicle assets will enter the "new joint venture company."
The Volvo Group’s North American operations have been in a recession, shutting down factories and layoffs. Although the world’s second-largest commercial vehicle company’s business in Europe has been growing, its business performance in Asia has not been outstanding. . In the face of China, the world's largest growing commercial vehicle market, Volvo Group's shareholders obviously will not let go. Volvo’s eagerness to enter into joint ventures with Chinese companies is due to its sustained losses in the global market. It needs to find an emerging strategic market to provide new support and to obtain more dividends from the rapidly growing Chinese heavy truck market.

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