The Volvo Commercial Vehicles joint venture will eventually settle to Dongfeng or shareholding at 55%


After a lapse of four years, Dongfeng and AB Volvo (hereinafter referred to as Volvo Group) joint venture company once again become a hot spot in the industry. According to sources, the two parties have already established a joint venture in accordance with 55:45 and have already obtained the approval of the relevant departments, only waiting for an 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 the Dongfeng Commercial Vehicles.
In response, the relevant person in charge of Volvo (China) Investment Co., Ltd. was interviewed by the reporter of "Daily Economic News" and stated that the contact with Dongfeng Commercial Vehicle has been in existence for a long time and has maintained communication. 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.
"Daily Economic News" reporter learned that Volvo (China) Investment Co., Ltd. has established a special joint venture project team to promote joint venture projects. In terms of Dongfeng Motor Company, Dongfeng Commercial Vehicles was stripped from Dongfeng Limited Framework at the beginning of this year and became an independent subsidiary. It is reported that the joint venture company operates under the Dongfeng commercial vehicle framework.
In this regard, the relevant person in charge of Dongfeng Motor stated that the joint venture company has not been established at the group level. The relevant person in charge of Dongfeng Commercial Vehicle did not comment on the matter.
In recent years, the shift of commercial vehicle giants' eyes to the Chinese market has become a trend. After the joint venture between Volvo and Sinotruk failed, Futian Daimler, Sichuan Nanjun and South Korea’s Hyundai, JAC and Navistar, China National Heavy Duty Truck and New projects such as Man settled in China one after another. In this wave of commercial vehicle joint ventures in the Chinese market, the simple 50:50 equity joint venture model may have been broken, and domestic car companies are trying to use the market advantage to win more equity and the right to speak.
6 years joint venture marathon
Dongfeng Volvo's joint venture project originated in March 2006. Li Rongrong, the then director of the SASAC, met with Nissan and Renault Motor Company President and CEO Carlos Ghosn and Volvo Group CEO Leif Johansen. At that time, Volvo Group and Dongfeng Commercial The form of car cooperation was communicated and discussed with the relevant authorities.
In January 2007, Dongfeng Group announced that Dongfeng Motor, Nissan Motors, and Volvo Group have signed a non-binding framework agreement. Dongfeng prepares to produce medium and heavy trucks and engines together with AB Volvo. Nissan will focus on passengers in the future. Production of vehicles and light commercial vehicles.
Since then, the negotiations between the two sides have continued for nearly two years. In July 2008, both parties stated that because Dongfeng Motor, Nissan Motors, and Volvo Group still had differences in capital and equity, they could not reach an agreement on issues such as cooperation ideas, brand use rights, and site selection, and the joint negotiation was “completely suspended”.
Since then, little news has been reported about the Dongfeng Volvo joint venture. Until September last year, Dongfeng Motors announced a "big commercial vehicle strategy" high-profile, and Dongfeng Volvo once again returned to the field of vision. At the end of last year, Dongfeng insiders disclosed to the outside that the Volvo Group and Dongfeng Commercial Vehicle have successfully concluded the joint venture negotiations and will formally establish a joint venture company in 2012.
In 2012, the joint venture details of Dongfeng Volvo became clear day by day. Relevant information shows that the two parties have already finalized the establishment of a joint venture company in 2012 and will settle in Shiyan. 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.
With regard to the news that the Dongfeng Volvo announced the approval of the joint venture project, both parties stated that the project is progressing, but the final situation shall be subject to the final approval of the NDRC.
According to a source close to the Volvo Group, the "Daily Economic News" reporter said that the negotiation of the joint venture company with Dongfeng has been continuing. However, both parties have not received written approval and the information has yet to be confirmed.
Previously, Jiang Yu, vice president of China Volvo Group, told the media that the previous joint venture did not allow Volvo to abandon the Chinese market.
Dongfeng Commercial Vehicle Integration
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.
Xu Ping, chairman of Dongfeng Motor Corporation, once stated that the strategy of large commercial vehicles will focus on advancing the self-manufacturing capability of the core components of the powertrain, establishing a new automobile industrial park in Shiyan, and accelerating the promotion of overseas strategies, and the investment of 14 billion yuan will be this strategy. The specific performance of the action.
It is reported that the heavy truck business will be the focus of the Dongfeng commercial vehicle concept. In 2015, the ratio of medium-heavy and light commercial vehicles will be around 3:7 for the target of 1 million commercial vehicles. 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.
The accelerating progress of the Dongfeng Volvo joint venture project came into being under this background. Analysts said in an interview with reporters that Dongfeng Motor’s truly competitive segment is the heavy commercial vehicle segment. Therefore, taking advantage of joint ventures in the heavy truck field has become a tool for Dongfeng Motor in the commercial vehicle market.
Therefore, the joint venture can complement the short board for both parties. In the Dongfeng commercial vehicle strategy, the overseas market occupies a pivotal position. The joint venture with Volvo is the solution to the difficult problems of Dongfeng commercial vehicles in overseas markets. After all, the advantages of Chinese commercial vehicle companies in the international brand effect are not obvious.
In addition, Dongfeng Volvo's joint venture structure is currently not clear. In the first half of this year, Dongfeng limitedly completed the combing of its joint venture business. Dongfeng Commercial Vehicles spun off to Dongfeng Limited and reported directly to the Group.
According to the reporter's understanding, there is also a joint venture plan is also brewing, namely the establishment of a new investment company within the Dongfeng Motor Company, the investment company as the main body, with Volvo in the establishment of a commercial vehicle joint venture company.
The industry’s speculation on the above possibility has not been answered by the relevant person in charge of the Dongfeng Commercial Vehicle. With Dongfeng Volvo's good deeds approaching, Dongfeng's “large commercial vehicle” strategy is accelerating as Dongfeng’s “autonomy” strategy moves forward.
According to Dongfeng Motors’ plan, Dongfeng Group is working hard to achieve the traditional advantage of commercial vehicles in order to realize the goal of selling more than 2.5 million self-owned brands at the end of the “Twelfth Five-Year Plan” period.
The rise of the joint venture in the commercial vehicle market
When the Dongfeng Volvo joint venture became clearer, the commercial vehicle cooperation in the Chinese market was in the ascendant. Recently, it was reported that Liv? Osterlin, executive director of Volkswagen Group's commercial vehicle business, said that it would enhance the performance of its commercial vehicles, Scania and Man brand in emerging markets, respond to the decline in business decline, and consider Established a truck joint venture in China to promote business growth in China.
In this regard, the relevant person in charge of Volkswagen China told reporters that commercial vehicles, whether in the world or in the Chinese market, are increasingly gaining market attention is an indisputable fact.
Recently, Foton Motors and JAC Motors have announced the formation of joint ventures with multinational giants. According to the analysis, the field of commercial vehicles in China has entered a new round of joint ventures, and the Chinese mainstream commercial vehicle enterprises have basically entered the joint venture era.
It is worth noting that this round of joint venture occurred in a markedly declining market environment. The data shows that, unlike the growth of China's commercial vehicle market that experienced more than 30% of annual growth in the past few years, China's commercial vehicle market was already the hardest hit in all market segments in 2011. According to statistics from China Association of Automobile Manufacturers, in 2011, sales of commercial vehicles fell by more than 6% year-on-year, and year-on-year growth rates fell by more than 30 percentage points from 2010.
This year, the situation has not improved. From January to August, the cumulative production of domestic commercial vehicles was 2,456,100 units, a year-on-year decrease of 7.15%; and cumulative sales were 2,520,600 units, a cumulative decrease of 8.85% year-on-year.
According to the analysis, with the shrinking demand of the commercial vehicle market in developed countries, transnational corporations increasingly value the weight of emerging markets such as China. The pattern of China's commercial vehicle market is undergoing changes. As the truck market is maturing, it will force commercial vehicle companies to improve their cost structure, increase efficiency, and upgrade their product lines.
For this segment of the market, some analysts said that because the current market is in a downturn, it is a new opportunity for joint venture restructuring. In terms of joint ventures, the above-mentioned sources suggested that commercial vehicle companies should be vigilant about joint ventures. In the course of the joint venture of passenger vehicles, China will eventually become the production base of foreign markets and profits in China. Commercial vehicle companies must avoid repeating the mistakes.
View related topics: Dongfeng, Volvo wants to cooperate with commercial vehicle business


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