Weichai Power finally stood out from many competitors. Recently, it bought a torch with a bid of RMB 1 billion and became an indirect major shareholder of Shaanxi Zhongqi. At the same time, it is also a matter of course that will include the Torch's Fast Transmission and Hande Axle.

Experts from the commercial vehicle industry have been sitting and studying for more than ten years. They sit together and study the situation: you have an engine for the heavy truck market, I have a gearbox, he has an axle, and everyone has only one piece of the puzzle. Who can put everyone together? , who is the giant card industry heavyweight. But no matter how powerful the capital is, Big Mac is always a dream. Where is the reason?

Under the troubled world

On the website of Northwestern Polytechnical University, Shaanxi Automobile Group’s recruitment information is placed in a prominent position:

- PhD student, monthly salary 5000-8000 yuan, one-time placement fee 6,000 yuan

——Graduate student, monthly salary 2000-6000 yuan, one-time placement fee 4,000 yuan

—— Undergraduates in key universities, with 1,200 yuan during the trial period and 2,000 yuan for one-time placement fee

......

Looking at salaried wages alone, commercial vehicle companies are obviously inferior to car companies. The average salary of FAW-Volkswagen and ordinary blue-collar workers is at least 4,000 yuan. However, in the eyes of financial capital, heavy trucks are a piece of fat. In particular, since the country increased its governance overload in 2005, the enterprise's competitive landscape needs to be restructured, and the heavy-duty truck market has also become a shining golden virgin land.

In 2006, Jiangsu Chunlan Group assembled lifting cards; private entrepreneur Zhejiang Pang Youth Heavy Truck Co., Ltd.; Guangzhou Automobile Group and South Korea Hyundai invested 5 billion yuan to engage in commercial vehicles; SAIC Group used Iveco to eat Chongqing Heavy Truck... With more There are already more than 20 heavy truck manufacturers in China, especially the heavy truck market with more than 15 tons, and the competition is even fiercer.

At present, there are four large-scale heavy truck manufacturers in China – China National Heavy Duty Truck, Shaanxi Heavy Duty Truck, Chongqing Heavy Duty Truck and Foton. During the troubled times, they also want to further establish the market monopoly. 1

Big dreams

A few days ago, Weichai Power bought a torch with a price of RMB 1 billion and became an indirect majority shareholder of Shaanxi Heavy Gas, together with its Fast Transmission and Hande Axle. As a parts supplier, Weichai seems to have mastered each end of the heavy truck market operation chain.

After entering the main Shaanxi Auto, Weichai immediately stopped supplying Sinotruk to its rival, the old owner China National Heavy Duty Truck, and took the newly developed diesel engine to Shaanxi Zhongqi. At the annual meeting of Shaanxi Heavy Duty Truck on December 28, 2006, Chairman Zhang Yupu said that Shaanxi Automobile has already possessed the country's most outstanding industrial chain, namely, the engine of Weichai, the gearbox of Fast and the bridge of Hande. It has a cost advantage over any domestic rival.

However, Shaanxi Zhongqi and Weichai seem to be too happy because they actually only got a part of the integration puzzle.

Since parts and components cannot be self-provisioned, it is still costly for Shaanxi Heavy Duty to purchase the components of the controlling party, Weichai. Although the marketing network can be shared, it is difficult to achieve integration. Shaanxi heavy steam, Weichai difficult to converge the trend. More importantly, currently only four foreign-funded companies in the heavy-duty truck market, Mercedes-Benz, Volvo, Scania, and Man, have mastered all the technologies from the engine to the chassis. All Chinese companies are just a combination of orientations. 2

Technical weaknesses

“At present, there are three new heavy-duty platforms in China: one is Jinan Sinotruk imitating the joint venture partner Volvo's appearance, plus Steyr's platform, and Hao Le; second is Dongfeng’s Tianlong series produced with Renault technology; Shaanxi Automobile introduced Man’s FT200.” Zhang Yupu’s remarked that the heavy truck platform can only rely on foreign capital.

In fact, from 2005 to 2006, in the series of mergers and acquisitions involving heavy trucks, people ignored a phenomenon: that is, those who finally won in the competition are good at using foreign technology platforms.

For example, when SAIC Motor Corp proposed to make efforts in the heavy-duty vehicle market, everybody guessed that it would find the Hunan Torch Trustee, the Huarong Asset Management Company, to discuss the acquisition. However, in the end, Weichai invested RMB 1 billion to grab ahead of it. SAIC had to intervene in the commercial vehicle projects of Iveco and Chongqing Zhongqi. In this round of capital war, SAIC failed to pull Shaanxi Auto, not because the bid was not high, but because it did not find German Man as a partner, and reorganized successfully with Chongqing CNHTC because it had found Iveco.

At present, the domestic automotive industry is able to pack only overseas technology R&D personnel with SAIC Motor's Roewe team because it first bought the intellectual property rights of the bankrupt company Rover UK. Heavy trucks also want to go the same way, but unfortunately there is no chance.

The well-known heavy truck brand Scania still decided not to invest in China. Its spokesman said: "Scania has always been building a wholly-owned factory overseas. Therefore, unless China's joint venture policy changes and we completely accept it, we will not come." In another large-scale restructuring in 2005, Volvo Holding Nissan Diesel. Since Nissan and Renault are alliances, Dongfeng has a strategic relationship with Nissan. In theory, Dongfeng can share the technologies of Nissan, Renault, and Volvo. However, at present, only Renault has produced some technologies, and they do not agree to cooperate in research and development. .

The involvement of foreign capital in the heavy truck industry has divided the heavy truck market into three major segments: the first is a combination of domestic assets, represented by Shaanxi Heavy and Weichai; the second is traditional enterprise groups such as FAW and Dongfeng; It is a foreign company with a technology platform represented by Mann and Volvo.

Who will become the giant of China's heavy truck market in the future? It can not only get domestic supporting plant resources, but also can buy foreign technology platform R&D teams. This is still a dream for Chinese heavy truck companies. (Source: China Business Report)


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