[Navistar said in this regard that this is a separate action by JAC and the two parties need to communicate before responding. Yu Chen, an industry commentator, stated that Jianghuai’s advantage in light trucks is greater, but the heavy truck business has not been able to Entering the top 5 in the country, the sedan business is even more difficult to “live independentlyâ€.
Cooperation between Anhui Jianghuai Automobile Co., Ltd. (hereinafter referred to as "Jianghuai") and Navistar International Corporation (Navistar International Corporation) (hereinafter referred to as "Navistar") in heavy truck will be further mentioned.
"First Financial Daily" reporter learned from informed sources yesterday that JAC has recently issued a "Red Head Paper" entitled "Decision on the Establishment of a Heavy Commercial Vehicle Company." The document said, "In order to meet the company's strategic development needs, we will further strengthen the professional operation capability of heavy commercial vehicle business and promote the realization of strategic objectives. The company's research decided that the heavy commercial vehicle business should be separated from commercial vehicle companies and a heavy-duty commercial vehicle company be established."
In response, the relevant person in charge of the commercial vehicle of JAC Automobile responded to the “First Financial Daily†interview in an interview yesterday. “This internal document has indeed been made, but we are not able to answer specific strategic questions and the general marketing company leads. It's not very clear."
According to people in the industry, Jianghuai recently announced that it was “integratedâ€. In the background, it chose to set up a heavy-duty commercial vehicle company. The intention was to promote a joint venture with Navistar.
Three arrows
The reporter learned that after the establishment of a heavy-duty commercial vehicle company, the original commercial vehicle company will be renamed the light commercial vehicle company.
Li Ziliang, deputy director of consulting at the Automotive Research Center of Beijing Zero Consulting Group, believes that JAC’s independence of heavy-duty commercial vehicle business may be due to the consideration of joint venture projects with Navistar heavy trucks.
“From a financial point of view, if JAC took the entire commercial vehicle asset to join the 50:50 NVV joint venture, it would actually be necessary to cut off one of its own flesh to others. From the business risk point of view, if the heavy truck business is separated, The joint venture with Navistar can reduce the risk of cooperation failure, and, in terms of probability, Jianghuai will independently make the heavy-duty truck business with independent performance as a joint venture. This is a trio in one fell swoop," Li Ziliang pointed out.
He also introduced that currently the JAC commercial vehicle segment includes medium- and light-duty trucks and medium- and heavy-duty trucks, but the main profit is still derived from the light-to-light truck business, and the heavy-duty truck business of over 14 tons is not very satisfactory. Jianghuai’s establishment of a heavy-duty commercial vehicle company is the same as that of Foton’s separate use of the Auman division and Daimler’s joint venture, which helps reduce operational risk and clarify the relationship between the various sectors.
Navistar said in this regard that this is a separate action by JAC and the two parties need to communicate before they can respond.
Jiang Yizhou, Marketing Director of Navistar China, said in an exclusive interview with the newspaper yesterday afternoon. “We can clearly say that the current engine joint venture project has passed the approval of the National Development and Reform Commission, but the relevant procedures are still in the process and it is expected that A formal approval notice will be issued."
He told reporters that the joint venture of Jianghuai and Navistar heavy trucks will be formally submitted to the NDRC and other competent authorities for approval in the second half of this year. As for the cooperation between the two sides on school buses, they will be implemented as soon as possible through technology licensing and do not require relevant approvals. .
A wave of twists and turns
In fact, the joint venture cooperation project between Jianghuai and Navistar has been finalized as early as two years ago, but it has not been approved by the relevant development and reform commission and other relevant authorities.
In September 2010, after two years of negotiations, Navistar and JAC finally signed an "Engine Joint Venture" agreement. At the same time, Jianghuai Automobile signed a joint venture with Navistar and Caterpillar Inc. NC2 Global LLC. "Intermediate and heavy truck joint venture project" agreement.
The general manager of Navistar China, Yang Bo, said in an interview with reporters that Navistar’s goal is to enter the top 5 truck manufacturers in China. In the next five years, Navistar will fully expand its overseas business. Scale, while China is an indispensable piece, they believe that in the next 3 to 5 years, the Chinese market's revenue will reach 2 to 3 billion U.S. dollars, accounting for 15% to 20% of the company's total revenue. even more.
However, Jianghuai believes that the current heavy truck industry downturn and the industry's concerns over the overcapacity of heavy trucks will become obstacles to the approval of joint venture projects. Therefore, both the engine joint venture project and the vehicle joint venture project both focus on the introduction of advanced technologies to meet the higher emission standards to increase the likelihood of approval.
To promote the joint venture with Jianghuai, on June 9th last year, Daniel C. Ustian, Chairman and CEO of Navistar Group, formally appointed Vanuatu, who has extensive working experience in China. The head of Star China, with a view to achieving further development in communication with the Chinese government.
He has been known as “China Pass†and he has worked in GM for more than 20 years. He has participated in a joint venture project between GM and SAIC, and later served as General Manager of Iveco China Commercial Vehicles and Vice President of China Business Development of Fiat. In an interview with the media, he admitted that the main task after taking office was to promote cooperation between Navistar and Jianghuai. In the first week after taking office, he accompanied the group management to meet with the National Development and Reform Commission and then visited JAC. , discuss specific cooperation details.
Although many Navistar high-level officials repeatedly emphasized that the company's joint venture with Jianghuai has progressed smoothly, both parties are actively promoting the approval of joint venture projects and will soon “blossom resultsâ€. However, joint venture projects in the heavy truck sector have not achieved substantial development in the past year. During this period, the resignation of Zuo Yanan, the chairman of Jianghuai Automobile, and the news that Jianghuai was "integrated" again, had once caused the concerns of the relevant senior officials of Navistar.
Yu Chen, a commentator in the industry, said that JAC's advantages in light trucks are relatively large, but the heavy-duty truck business has not been able to enter the top 5 in the country, and it is difficult for the sedan business to work independently. Under the background of heavy trucks in the hands of Mann, Foton in Daimler, and Dongfeng in “Volkswagen†Volvo, whether JAC can successfully enter into a joint venture with Navistar will rewrite its future ranking in the heavy truck sector. Great significance.
However, Li Ziliang believes that "if it is just for technology, JAC does not need a joint venture, can not get channels, to enhance the brand is the key."
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