Huawo Project has no rest
The Volvo truck's road in China is not smooth.
Fredrik Hogberg, president of Volvo Trucks China in recent days, said that even though Jinan Huawo Truck Company has not achieved the expected production for several years, the pace of localization of Volvo heavy truck will not disappear.
According to the reporter's understanding, Huawo Truck has not reached mass production since the joint venture was established in June 2003. In March 2004, the first car went offline, and production began to cease in October of that year. Although production resumed later, there were only 200 vehicles sold in 2005. Last year's sales figures have not yet been announced.
According to media reports, Volvo’s off-line models in Jinan are mainly based on the 40-ton heavy-duty dump truck FM12, which is a six-by-four type. Due to the drastic reduction of China’s tariff on dump trucks after 2003, the assembly advantages of the model have been eliminated. obvious. Some models produced by Huawo are sometimes more expensive than imported ones, and the inversion of this price makes Volvo very helpless.
Huawo Trucks has not been mass-produced, and it is also implicated in a two-year joint venture engine project of Volvo, FAW, and CNHTC. At the end of 2005, Volvo formally sent a letter to FAW and CNHTC to suspend the feasibility study of the engine cooperation project between the three parties. The main reason was that the joint venture of the truck was stuck. The suspension of the engine project that was originally planned for Huawo Trucks made it seem that the original joint venture project of China’s largest commercial vehicle appears to be bleak.
For the Huawo Project, which has been rumored to be stranded in the industry, the responsible person in Volvo China said that the Huawo Project will not end. Volvo executives believe with full confidence that in the future, high-quality heavy trucks will have a high market share in China, and Volvo's business in China will be greatly improved. The person in charge of China National Heavy Duty Truck also stated that the negotiations behind Huawo Truck lasted for 9 years. After the review, approval, and then the establishment and operation of the joint venture company, both parties have paid great attention and will not easily stop the project. However, the person in charge believes that the main reason for Volvo's failure in the Chinese market is that its domestic truck prices are too high and it is hoped that the joint venture will make adjustments in the future.
“High-end is a part, but in order to meet customer needs, we are also considering low-end products, so we recently made major investments and future cooperation projects are all considered.†He Berger said, “Our Huawo project is now Selection."
Volvo wants to use "Dongfeng"
Although the Chinese market suffered a lot of dissatisfaction, Volvo still has great expectations for China. On January 22, Dongfeng Motor Group announced that Dongfeng Group, Nissan Motors, and Volvo Group are currently conducting in-depth discussions on Volvo’s potential investment in the mid- and heavy-duty commercial vehicle business of Dongfeng Motor Co., Ltd.'s subsidiary.
“We will begin to discuss more about the possibility of future cooperation,†said Xu Ping, chairman of Dongfeng Motor Group, and Mr. Jorma Halonen, executive vice president and chief vice president of Volvo, Sweden. To demonstrate the progress made on this issue, Dongfeng Motor Group and Nissan Motor Co., Ltd., Dongfeng Motor Co., Ltd. and Volvo also signed a non-binding framework agreement, and hopes that Volvo will invest in the engines of medium and heavy commercial vehicles and future engines. business.
On February 19, the Volvo Group's board of directors decided to publicly bid for Japanese truck manufacturer Nissan Diesel at a planned amount of US$1.09 billion. The acquisition will bring useful supplements to the two sides in the exchange of resources and technology, which is particularly reflected in the Asian region. Nissan Diesel has a strong market position in Japan and other parts of Asia. Volvo sees the huge growth potential of these markets, including China.
Dongfeng Motor Co., Ltd., a joint venture between Dongfeng Group and Nissan Motor Co., Ltd., has its engine technology mainly derived from Nissan Diesel. Since Volvo Group successfully purchased Nissan Diesel Co., Ltd. from Nissan Motor Co., Ltd. last year, Dongfeng, Nissan and Volvo have had a lot of convenience. The connection between the two companies and Volvo's continued acquisition of Nissan Diesel Co., Ltd. increased the probability of a tripartite cooperation.
After Volvo's first acquisition of Nissan Diesel’s equity, Yoma Harone was appointed vice chairman of Nissan Diesel’s board of directors. He believes that the closer cooperation between Nissan Diesel and Volvo will benefit both parties. It mainly comes from the benefits of the increase in purchase volume after the integration of the two businesses, as well as the benefits from product development, engine and transmission systems. In addition, cooperation also allows both parties to use each other's distribution and service network, which is particularly reflected in Asia.
Volvo's domestic confidence remains the same
In 2006, Volvo Trucks delivered more than 105?000 vehicles globally, a year-on-year increase of 2%. The Chinese market has become the biggest bright spot on this report card with an increase in sales of 28%. According to statistics, Volvo Trucks has sold more than 6,000 heavy trucks in China since the mid-1970s. Its market share in China (including domestic production) has also jumped from 11% in 2004 to 29%. Ranked first in all imported brands.
He Boge, president of Volvo Truck China, pointed out: "Volvo Trucks has been in China for over 17 years. Over the years, Volvo has continued to develop in the world. It has established a brand image of high quality, luxury and comfortable trucks in the Chinese market. Volvo will The commitment of the Chinese market will continue to build the reputation of Chinese users in our long-term development."
Experts in the industry believe that the “winter†of the heavy truck industry will end at the end of 2006, and the heavy truck market, especially high-end heavy trucks, will grow rapidly in the next few years. At present, Volvo Trucks has established a service network composed of a number of maintenance service centers in major highway cities in China's expressway network to provide customers with comprehensive logistics solutions and complete after-sales service systems. With the continuous development of the Volvo China market, the localization process of Volvo Trucks in the Chinese market will also be expected to further upgrade.
Zhejiang Joya Polymer Technology Co.,Ltd , https://www.joyapolymer.com