Foton Motor and Daimler signed a letter of intent for cooperation. The two sides agreed to set up a 50:50 joint venture company in China, Daimler will use cash as its capital contribution, and Futian will all its Auman-related medium and heavy truck business after the evaluation of the Chinese joint venture capital contribution. It is reported that the Chinese joint venture company is the operation center for the global cooperation between the two parties and is also the center for the management decision, R&D, production, supply chain management, and marketing management of the global cooperation. Futian Automobile General Manager Wang Jinyu stated: “The cooperation between Foton and Daimler brings strategic opportunities for both parties to explore global emerging markets. Foton’s economical commercial vehicle product resources and cost control advantages will help Daimler AG. Expanding its share in emerging markets; Daimler can also provide Fukuda with strong operational management, technology research and development and global sales network support to provide insurance for Foton Motor’s overseas investment.â€
Cooperation between the two parties is not limited to the medium and heavy trucks
Foton Motors and Daimler's China Heavy Truck Joint Venture Co., Ltd. will produce Futian Auman heavy truck products and Daimler license emissions and power to OM457 heavy-duty engines with Euro V and 460 hp, respectively, and Futian products in the joint venture will continue The company uses Futian Auman's own brand for distribution, and is equipped with medium- and heavy-duty trucks such as Daimler's MB OM457 engine. In addition to the Futian Auman brand, it will also be labeled "Mercedes-Benz Power."
In view of the complementarity between the two parties in terms of products and brands, the cooperation between the two sides through the establishment of a joint venture company in China will focus on the medium and heavy truck sector and may extend such cooperation to Foton Bus products and other fields. In areas outside China, both parties can cooperate on Futian's entire series of products and strive to occupy a large market share in the domestic high-end market and the international low-end market.
Some experts believe that this cooperation has a strong complementarity with both sides of the joint venture and will promote a win-win strategy for both parties. The establishment of a joint venture company will undoubtedly be the best way to meet the strategic goals and interests of both parties. Through joint ventures, Daimler AG and Foton Motor will jointly create a company that is most competitive in meeting future road transport needs.
Fukuda and Daimler conspire in the heavy truck giant
It is easy to see that in this cooperation, there is a basic principle that the Daimler branded medium- and heavy-duty trucks will be mainly used as high-end medium-heavy trucks and will be positioned in the primary and secondary niche markets. The Fuman's Auman brand The products will be positioned in the secondary mass market and the first-tier niche market as mid- to low-end medium- and heavy-duty trucks. Since then, Foton and Daimler have formed a joint effort to increase and enhance the competition between the two sides in China's mid-to-low-end medium and heavy truck market. This will enable both parties to expand their share of the global market through cooperation with each other and enhance their profitability in such markets.
In the words of the person in charge of Foton Motor, the establishment of a joint venture company will greatly enhance its own technical level of heavy-duty trucks and its operating capabilities and ensure the sustainable development of the company in the future. After the establishment of the joint venture company, a new R&D center will be set up within the joint venture company. Under the guidance of relevant technical experts from Daimler, the R&D center will implement a new quality system, which will contribute to the reliability of the products of Foton Auman Heavy Trucks. The qualitative improvement in the aspects of sex, safety, etc., thereby improving the quality of Auman heavy truck as a whole. It is reported that both parties will also introduce Daimler development tools to jointly develop a new cab in the R&D center of the joint venture company. In addition, in order to improve the operational efficiency of the joint venture company, Daimler will also send management experts and provide management know-how to the joint venture company to establish a world-class management team and management model for the joint venture company.
However, industry analysts believe that the current leader in the heavy truck industry is China National Heavy Duty Truck, its market share has been in the rising stage, Foton Motor's ambition is not small, through this cooperation will rely on Daimler's technology and brand advantage to try to make Europe Manner is more fuel-efficient, more reliable and safer, differentiates itself by differentiated competition and seizes regional market shares that are highly accepted by rivals such as China National Heavy Duty Truck and tries to seize market share from high school, making Auman a medium-heavy card market in China. Big Mac.
Fukuda and Cummins's ulterior motives are dominating the light truck market
Prior to the signing of the letter of intent with Daimler, Beiqi Foton Motor Co., Ltd. and Cummins invested and established Beijing Foton Cummins Engine Co., Ltd. at a 50:50 equivalent ratio to produce Cummins' latest-generation 2.8-liter and 3.8-liter inline four-cylinder high-pressure engines. Direct injection light diesel engine. It is worth noting that the 2.8-litre and 3.8-litre models to be put into production are completely new products that have never been put into production anywhere in the United States, including high starting point, high performance and low Emissions and other characteristics, applicable to light trucks, pickups, SUV, MPV utility vehicles, small construction machinery, off-highway equipment and power systems and other fields.
For Foton Motor, the successful joint venture with Cummins won two of the world's top light diesel engines, perfected its own short-board power system, and even the relevant experts pointed out: "The cooperation between Foton Motor and Cummins is a technology and market. The combination of the two is a win-win cooperation, and the engine with international technical level will provide a better heart for Futian commercial vehicles, which will comprehensively enhance the quality, brand and image of Futian products and strengthen the competitiveness of Futian commercial vehicles in the international market. “This is a very important point. It is not hard to imagine that Futian’s high-end light trucks, which already have superior high-capacity, high-economy, and high-security features, will undoubtedly further enhance Cummins’ momentum and become a high-end light truck in China. Leaders in the field, leading the development direction of China's high-end light trucks. As one of the famous mid-range light truck brands in China, Aoling light trucks have the distinctive features of high-speed and heavy-duty. Compared with other brands, they have obvious advantages in quality and service. After being powered by Cummins Power, Jiangling and Qingling are on the offensive. There may be a lot of underhand.
It can be seen that, through the joint venture with Cummins, Foton Motors has enriched and improved its power layout. This arrangement will at least guarantee the competitive advantage of Futian in China and even the world light truck market in the next 20 years.
Foton Motor Hits Million Sales with "Capability Growth"
According to statistics, Futian Automotive sold 250,436 vehicles in the first six months of this year, up 18.8% year-on-year; of these, 38,366 were medium- and heavy-duty trucks, up 18.8% year-on-year; 200,589 were light trucks, up 18.0% year-on-year; 7,943 were light passengers, up 14.8% year-on-year. %; 1,278 large and medium-sized passengers, an increase of 35.5%; other (SUV, Mongolia Parker) 2,260 units, an increase of 246.1%. From the perspective of sales structure, Foton Motor's main light truck business continued to grow steadily, ensuring stable performance; while the relatively high gross profit of medium- and heavy-duty trucks, Dazhong passengers, especially passenger vehicle business (SUV and Parker products) Rapid growth has led to a rapid increase in company performance. Especially in the first quarter, Foton Motors sold 125,000 vehicles, an increase of 28.6% over the same period of last year, which was nearly 10% higher than the industry. Last year, the annual sales volume of commercial vehicles of Foton Motor soared to more than 400,000 vehicles. It ranked first in the commercial vehicle market in China and Asia, and it ranked second in the world after being ranked only by Benz Commercial Vehicles.
The sales data of Foton Motor in the past two years shows that Foton Motor has made new breakthroughs from strategic growth to capacity growth. Although Foton Motor's performance this year has exceeded the industry's growth rate by 18.8% year-on-year, and even reached about 50% growth in March, according to the vision of Foton Motor, 2010 will achieve an annual sales of 80-100 million vehicles. Among them, overseas market sales will account for 20% of the market. According to expert analysis, Foton Motors will increase its sales volume from 500,000 units to 1 million units within two years. Without a new growth point, its sales performance will be greatly challenged.
However, a series of cooperation of Foton Motor has significantly increased its technical and management capabilities and opened the prelude to its ability to grow. This cooperation with Daimler in the medium-to-heavy truck field will depend on Daimler's technology and brand advantages and Auman's core competitiveness in network and communications. This will inevitably capture the position of the domestic heavy truck leader, and the sales of heavy trucks will reach 150,000 units. Probably; With the help of Cummins, Foton’s mid- to high-end light trucks Omar and Ao Ling are on a further step to defeat their rivals. Breaking through 250,000 vehicles in 2010 should not be a problem. As for the era of light trucks under the premise of improving overall technology of Foton It is not a difficult task to rely on its reputation to complete the sales of 400,000 vehicles a year. Analysts pointed out that Foton Motor and Daimler have used Cummins to complete their layout in the commercial vehicle market. Once a concerted effort is made, the shockwave in the market is unimaginable. It can be seen that the significance of this cooperation benchmark is not only to make Fukuda acquire the technology as simple as that, but to allow Fukuda to win a market.
View related topics: Fukuda and Daimler succeeded in creating commercial vehicle giants
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