China International Marine Containers (Group) Co., Ltd. announced that its subsidiaries, CIMC Vehicles Co., Ltd. and Wuhu Tairui Investment Co., Ltd., and Shenzhen Jiusi Investment Co., Ltd. were in Shenzhen on January 9, 2009. The sponsors agreement was signed, and a joint venture was set up to initiate the establishment of Jirui Union Truck Co., Ltd.
Among them, CIMC vehicles accounted for 45% of registered capital, Teri Investments accounted for 45% of registered capital and Jiusi Investment accounted for 10%. According to the announcement, the legal representative of Wuhu Tairui Investment Co., Ltd. with a registered capital of RMB 550 million is Yin Tongyue.
With a joint venture alliance with CIMC vehicles, Chery has achieved the curve into the commercial vehicle sector through this approach, and intends to show itself in the commercial vehicle market, further expanding its business scope in the automotive industry.
Curve plan heavy truck
According to an announcement by the CIMC Group, in order to speed up the joint venture process, the three parties established the “Joint Heavy Industry†project company in the same stock ratio to promote the preliminary preparation of the Jirui United Truck Corporation and the project approval of the government.
The next step is how to shift Chery’s owned truck shell resources under the name of the joint venture company through capital operations, related transactions, and government approval, which will become the main task of this project company.
In fact, Chery's truck dreams have been long-standing. In August last year, Chery’s insiders disclosed that Chery’s inspection of the heavy-duty truck market has basically come to an end, and the next step will be to take action. Chery News spokesman Jin Yibo also explicitly told reporters that Chery has formed a joint venture company to start heavy truck projects.
For CIMC vehicles, Chery heavy truck production qualification is the most precious resource that CIMC vehicles want to obtain through this joint venture. As early as three years ago, Chery began planning heavy truck production and acquired the FAW Yangzi passenger car. Truck production qualification.
From the perspective of reducing the high risk of heavy truck investment, CIMC is undoubtedly an ideal industry alliance for heavy truck planner Chery. As the top-ranking special-purpose vehicle manufacturer in China and even in the world, CIMC Vehicles owns domestic special vehicle production bases such as Yangzhou CIMC Tonghua and Zhumadian CIMC Huajun, as well as a huge special-purpose vehicle marketing service network; at the same time, it is also a downstream modification of the heavy-duty truck industry. Merchants, Chery and its alliance can get a stable sales channel. What is more important is that CIMC does not produce chassis and will not collide with Jirui.
Obviously, for the joint ventures and the parties concerned, each and every one of them needs to effectively combine the shell resources with the marketing network, which can be regarded as the greatest achievement of the two sides' marriage. For CIMC vehicles, the development of business-related businesses and the search for new profit growth points will be an important strategy for the future development of CIMC vehicles. For Chery, CIMC’s extensive marketing network also increases Chery’s growth. The courage to enter the heavy truck market.
The future is still unknown
According to the announcement, the first phase of the project will invest 2 billion yuan. It is expected that after the project is put into production in 2011, it will form the production capacity of the entire process of the heavy truck (including the five processes of body, frame, painting, welding, and assembly). The joint truck is committed to becoming One of China's major future truck suppliers.
Obviously, both sides of the joint venture have great hopes for the market prospects of the Juri Union trucks. According to the announcement, the national fiscal stimulus program emphasizes the construction of infrastructure and the improvement of road transport in developing countries. The favorable factors for heavy truck manufacturing and special truck manufacturing are the foundation for Chery and CIMC to enter the heavy truck market.
However, people in the relevant industries believe that the commercial vehicle has obtained little cake from the 4 trillion yuan investment. "Despite the fact that the Chinese government has introduced a series of new policies in the past few months, the combination of boxing" to save the market, but these new policies are mainly aimed at passenger cars and light vehicles, the role of pulling the medium and heavy vehicle market is limited." Industry insiders said so. At the same time, many research institutions are also pessimistic about this year's commercial vehicle market. Xinhua believes that total sales of passenger cars are expected to decline by 5% to 15% in 2009; market demand for medium and heavy trucks is expected to decline by 10% from 2008. .
In fact, since the second half of last year, the commercial vehicle market has shown a downturn. According to the statistics of China Association of Automobile Manufacturers, in 2008, the production and sales of trucks were 16.301 million and 1.610 million, which fell 8.45 percentage points and 6.92 percentage points year-on-year. As the financial crisis continues to deepen and the national automobile consumption capacity declines, coupled with the sharp decline in demand from China's auto exporting countries, the situation in the medium- and heavy-duty truck industry will become even more severe. In addition to the deceleration of the economy and the unfavorable factors such as the increase in the cost of implementing heavy trucks in the State III, a more important disadvantage is that the heavy truck market has become saturated.
At present, China’s heavy-duty truck market has high market concentration. The top 6 market share has reached over 90%, and it has formed a 3+3 competitive landscape. China’s heavy truck, Dongfeng Motor and FAW’s liberation account for more than 60% of the market share. It is unlikely that it will be broken in the short term; while Foton Motors, Shaanxi Automobile Group and Chongqing Hongyan are also making frequent efforts. Therefore, it is still quite difficult for post-entrants to staking in the fields where others have been working for many years. Before Chunlan The precedent in which cars had to slam out of the heavy truck market also illustrates this point.
Choosing this opportunity to enter the heavy truck market, it is still unknown how the future market prospects for the Swiss Heavy Trucks will be set. In addition, the concentration of the heavy truck industry itself is very high, and Chery and CIMC do not own the manufacturing technology and technology of heavy trucks, and they are not particularly familiar with the market. Therefore, to make a difference in the heavy truck field still needs to accept the severe test of the market. .
However, it is undeniable that the joint venture of the two can give full play to the strengths of both parties and play a synergistic role in R&D, supply chain, production, distribution and after-sales service, and will have a certain competitive advantage in entering the heavy truck market.
“Chery is currently building heavy trucks and is also cooperating with us and has already reached a certain level of intention. We were involved in the development of heavy-duty trucks as they were not very familiar with the market. I feel that Chery can do it. , but it is too difficult to achieve the frontline. But their partners have a high level of marketing, so there is a huge market backing itself.†Zhao Yong, deputy general manager of Anhui Ankai Foton Axle Axle Co., Ltd. is accepting An interview with the reporter said.
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