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The history of the joint venture of Chinese automobiles was once considered to be the monopoly history of foreign capital that was swallowed up. The Chinese sold the market, the foreign products and technologies were exported, and the production and promotion were all foreign brands. Over the years, this unequal ecosystem of sheep and wolf has not been broken. While the wings of self-owned brands have gradually grown, but foreign forces have not diminished, it takes courage to change the status quo.
On January 26, Dongfeng Group signed an agreement with Volvo Group in Beijing to establish a strategic alliance with capital as a link, and jointly committed to the development of the world's leading "Dongfeng" brand commercial vehicle. Zhu Fushou, Executive Director and President of Dongfeng Motor Group Co., Ltd. and Uchi Qi, Executive Vice President of Volvo Group Truck Sales and Joint Venture Asia Pacific, signed a cooperation agreement.
According to reports, Dongfeng Group repurchased medium- and heavy-duty commercial vehicle business and assets from Dongfeng Motor Co., Ltd., a joint venture with Nissan Motor Co., Ltd., and most of its business and assets were transferred to the new Dongfeng Commercial Vehicle Company established by Dongfeng Group and Volvo Group. Dongfeng Group and Volvo Group hold 55% and 45% of the shares respectively. The company will develop, produce, and sell "Dongfeng" brand cars covering medium- and heavy-duty trucks, passenger cars, special vehicles and chassis, engines, and transmissions.
Some industry insiders believe that the marriage between Dongfeng and Volvo can be described as a new attempt for Sino-foreign joint ventures in the new era. The first is the Chinese party’s holding. The chairman and the general manager are all appointed by Dongfeng. The company’s product is also the “Dongfeng†brand. Dongfeng can consolidate statements. The second is Volvo as a product and technical supporter. Only the profit in the joint venture is profitable. The joint venture does not provide much help to the development of its brand in China. At the same time, Volvo will also contribute to the attack on the overseas market by Dongfeng Commercial Vehicle. Dongfeng benefits even more.
The specific process of the negotiations between the two parties has not yet been known, but through this joint venture, we have seen Dongfeng firmly grasp the initiative. Volvo can readily accept the price of Dongfeng, in addition to the value of the Chinese market, I am afraid that more reasons also come from Dongfeng's strong strength in China's commercial vehicle market.
After more than 40 years of development, Dongfeng Commercial Vehicle has become one of the largest and most comprehensive commercial vehicle companies in China. The "Dongfeng" brand sales of medium- and heavy-duty commercial vehicles have ranked first in the domestic industry for nine consecutive years, and are in a leading position in the world.
Looking at the products and technology alliances established by the global multinational corporations are all based on cooperation with similar strengths and complementary advantages. The marriage between Dongfeng and Volvo has long been not the weak background of “market-for-technology†many years ago. With product scale and technical strength, Dongfeng is no longer the younger brother of the year. Its R&D strength and comprehensive advantages have also been recognized by Volvo.
Zhu Fushou said that Dongfeng and Volvo will contribute their own development experience in the strategic alliance to jointly create new product advantages, system and process advantages, marketing advantages and brand advantages, and increase the value and positioning of their respective brands in China and international markets. To achieve the Dongfeng brand commercial vehicles to the international and Volvo Group to further strengthen the positioning in the global commercial vehicle market two goals.
He said: "Dongfeng Group will conduct research and development cooperation with Volvo Group, contribute research and development resources and technology, jointly develop vehicle product platform and key vehicle, quickly improve Dongfeng's own R & D capabilities. At the same time, the Dongfeng Commercial Vehicle Technology Center built a world-class Advanced R&D center and R&D center in Europe.Dongfeng Group and Volvo Group will share core resources, including supplier resources, manufacturing resources, and international sales channel resources, to achieve maximum business synergy and improve the alliance's commercial vehicle business. The international alliance will accelerate the internationalization of Dongfeng commercial vehicle business."
The President and Chief Executive Officer of the Volvo Group, Europa Pesson, stated: “Volvo, as a Swedish state-owned company, was initially not very large and has now emerged as a giant in the global commercial vehicle market. It operates in 190 countries worldwide and in 20 countries around the world. The countries have established production bases and have excellent product lines in the truck business, bus business, construction equipment, and marine and industrial propulsion systems."
We have seen that apart from technical cooperation and resource integration, Dongfeng’s greatest ambition is the overseas market with the European market as its core. Relying on Volvo's complete industrial chain and sales channels in Europe, Dongfeng not only can quickly enter the European market, but also can establish factories and sales networks as fast as possible, and penetrate into the core area of ​​the European commercial vehicle market.
Xu Ping, Chairman of Dongfeng Motor Group Co., Ltd., said: "Dongfeng Company proposed Dongfeng's own brand 'D300' plan in 2011, which means that Dongfeng Motor will achieve 3 million auto brand sales in 2016, of which the Dongfeng brand commercial vehicle Reached 1 million."
In 2012, Dongfeng Commercial Vehicles sold approximately 180,000 medium and heavy trucks, and sales and market share continued to rank first in the Chinese industry. For Dongfeng, it will only take 4 years to reach its target of 1 million sales of autonomous commercial vehicles in 2016. We will wait until the marriage between Dongfeng and Volvo can help realize its international vision and move forward smoothly to 1 million vehicles.
Marriage between Dongfeng and Volvo for the first time breaks China's weak ecology