Is it time for Ford to enter Huawei?
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Although the domestic commercial vehicle market is facing various problems, the world's major truck companies still regard China as the top priority of the future market. With Jiangling Motors Co., Ltd. ("Jiangling") formally acquiring Taiyuan Chang'an Heavy-duty Truck Co., Ltd. (hereinafter referred to as "Taiyuan Heavy Duty Truck"), Ford's plan to enter the Chinese heavy-duty truck market will also officially land.
On August 8, Jiangling formally acquired 100% equity of Taiyuan Shouqi. After the acquisition is completed, the new Taiyuan Heavy Duty Truck will be a wholly-owned subsidiary of Jiangling. It will have independent legal personality and continue its current heavy truck production and operation and related businesses.
Chen Yuanqing, president of JMC, stated that current commercial vehicles, especially the heavy-duty truck industry, showed negative growth, but China’s long-term infrastructure construction and economic growth will make demand for heavy-duty truck products rise steadily. The total amount and development potential are still attractive to new entrants and dominant enterprises. force. Jiangling chairman Wang Xigao said that Jiangling will introduce new Jiangling brand heavy trucks as soon as possible after the acquisition and upgrade the existing market competitiveness of Taiyuan CNHTC.
On the same day, Jiangling also signed a contract with Taiyuan Municipal Government to establish a new production base and intends to expand the heavy truck business.
Taiyuan Heavy Duty Truck formerly known as Taiyuan South Heavy Duty Truck Co., Ltd., before the Jiangling acquisition, the Changan Automobile Group and the Corps Group respectively hold 80% and 20% of the company's shares. Financial data show that as of the first quarter of this year, the total assets and net assets of Taiyuan Heavy Duty Truck were 794 million yuan and 256 million yuan respectively. In 2011, the company’s operating income was 432 million yuan, operating profit was 139 million yuan, and government subsidies were 103 million yuan.
It is worth noting that the curve was introduced into China. Jiangling said in the acquisition announcement that the acquisition was fully supported by the majority shareholder, Ford. After the two parties formally signed the agreement on the 8th, JMC said that with the rich experience and strong technical capabilities of Ford in the heavy truck field, the new Taiyuan CNHTC will form a production capacity of 50,000 heavy trucks and 50,000 engines in the next few years. . In other words, through Jiangling's acquisition of Taiyuan Heavy Duty Truck, Ford will achieve the important layout of the Chinese heavy truck market.
At present, in the heavy truck market in China, international commercial vehicle giants have successively produced UN heavy truck production companies. They have participated in the competition in the domestic market through joint ventures and cooperation forms such as product and technology import, and have become the trend of the industry. In recent years, the multinational giants of Mann, Daimler, Volvo, and Navistar have all accelerated their entry into the Chinese market through joint ventures, hoping to gain a share of the “card slot†in China’s heavy truck upgrades.
Yang Zaiyu, a senior industry commentator, believes that Ford’s “shortcut†to acquire Taiyuan’s heavy-duty vehicles through a joint venture company not only avoids the need for Chang’an Ford to directly establish a joint venture, but also requires the Chinese government to approve new joint venture projects. Entering the Chinese truck market erected a "springboard".
Yang Zaiyu said that as early as in 2005, Ford had introduced Cargo, a heavy truck product, through Jiangling's distribution network, and tried to promote this product in the Chinese market. Even once it was announced that Cargo will be produced and marketed in China in the second half of 2007. The target market is an annual output of 30,000 vehicles. At that time, several Ford Cargo tractors were still making adaptive road tests in the country, and they also conducted parade exhibitions in related areas. However, they later lost their mind, and with Jiangling canceled the heavy truck business department. end.
Although the industry generally believes that the use of Road Jiangling to expand heavy truck performance and improve profitability is a strategic move for Ford to become bigger and stronger in China. However, Li Ziliang, deputy director of the Automotive Research Center of Beijing Zero Consulting Group, believes that "Whether it is Jiangling or Ford, it is too late."
Li Ziliang pointed out that at present, Jiangling’s technology, channels and support in the heavy-duty field can be described as “a blankâ€, and the possibility of a major breakthrough in the short-term is very low; and Ford is actually from the last century. Since the 1970s, the heavy truck business has been "thrown away". Now there is only a small part of resources and market share. At present, there is no strong advantage in the heavy truck industry. Therefore, whether it is Jiangling or Ford, the future will still rely on the original resources of Taiyuan Shouqi.
"More importantly, this transaction appears to be a "Lang-Lang-Ping" that was promoted by a major shareholder, rather than JMC's own wishes. This joint venture involving complex equity and tripartite management will be more difficult to run in the future and is currently heavy trucks. The market concentration is very high, and it is very difficult for latecomers to break through.†Li Ziliang stated that due to the high concentration of heavy truck industry, the top five companies occupy more than 70% of the market share. For the heavy truck market, the talents, The requirements for resources such as technology, funds, and channels are more demanding than ever. Jiangling’s acquisition of Taiyuan Zhongqi is weak and weak, and the outlook is not optimistic.
Since the announcement of the specific plan for the acquisition of Taiyuan Heavy Duty Truck, the stock price of Jiangling Motors has not risen and fell. Some brokerage research institutions said that the current situation of Taiyuan's loss and the overall downturn in the heavy truck industry have increased the market's concerns about Jiangling's performance. The short-term acquisition of Jiangling Motors constitutes a bearish position. It is expected that Taiyuan Heavy Duty Truck will have a total loss of more than RMB 50 million in 2012. The negative impact on corporate profits is expected to be between 2% and 3%.
Yang Zaijun also pointed out that in the first half of this year, the growth of JMC light trucks and other light passenger vehicles was sluggish, and passenger car SUVs have yet to provoke a new beam. All products are facing the bottleneck of transformation and upgrading. At this point, entering the market when the heavy truck is in the doldrums, it is unable to support the performance in the short term. Jiangling Ford Motor Co., Ltd. can lead Taiyuan Zhongqi out of the quagmire of losses, which will be Jiangling Ford’s new task in the Chinese market.