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In 2010, the Chinese truck industry set off a new wave of joint ventures. Unlike the previous round of joint ventures, the joint venture and cooperation represented by the joint venture between Foton and Daimler entered a new period of development.
In the past, joint-venture companies used foreign companies to invest in technology and brands. China invested in kind and cash and produced foreign brands. In the new round of joint venture cooperation, the foreign party will use technology and funds to take shares. The Chinese party will use the existing medium and heavy truck business to acquire shares and produce Chinese brands. In terms of overseas strategy, China can also obtain foreign network support. After Mann's share of China National Heavy Duty Truck, China National Heavy Duty Trucks is allowed to sell TGA-lift trucks in distributors with good global performance. At the same time, through cooperation with Daimler Global, Foton can use Daimler's brand, global market, management, etc. Resources to promote the globalization of Foton.
After experiencing the failure of the previous round of joint ventures, the Chinese and foreign parties, after rethinking, showed a more open mind in the post-joint venture era. The foreign side has liberalized the restrictions on brands and networks. China has also acquired capital cooperation while acquiring technology.
According to Tan Xiuqing, vice president of Shandong Heavy Industry Group Co., Ltd., “Different cooperation methods will be born at different times. Prior to the 21st century, the truck industry was mainly based on technology introduction, but after the 21st century, it was mainly joint ventures. At the beginning, foreign companies were not I understand very well that I use technology transfer to cooperate with Chinese companies, but with the development of the Chinese market and the strength of self-owned brands, Chinese companies slowly have the right to speak and demand that both parties have equal rights, and the form of the joint venture will be even more many."
The concept of the introduction of advanced technologies in China has passed, and now it is actually doing cooperation to expand the brand's influence and contribute to future product upgrades and technological improvements. In the cooperation between Chinese companies, they emphasized their right to speak and stressed that they were short of brand and technology.
Moreover, the new round of joint venture companies has seen significant changes in scale and form of formation. Huawo and Dongfeng Nissan Diesel have all built off joint ventures between Sinotrans and Dongfeng on the basis of the original company and set up joint ventures with foreign companies. The new joint venture and cooperation model broke this point. Man joined shares in heavy truck and did not change the heavy truck Some organizational forms, while Fukuda is the inclusion of medium- and heavy-duty card business into the joint venture company, Jianghuai and NC2 in negotiations will also adopt this approach.
Wang Zhongyue, Minister of Market Planning of Jianghuai Automobile Commercial Vehicle Co., Ltd., said: “The Chinese originally had medium and heavy truck business. Through a joint venture with foreign companies, the two sides established a new company. It is very important to balance the two businesses. The original medium and heavy truck business will be included in the joint venture company. There will be no business conflicts between the two, and the division of the product series within the joint venture company will help mobilize the enthusiasm of both parties."
This new joint venture cooperation model is optimistic about the industry. Du Fangci, Assistant Secretary General of the China Association of Automobile Manufacturers, said: “From the perspective of enterprise development, Futian’s approach can develop very quickly because it has strong technical and financial support from foreign parties. And because both parties use 50:50 In joint venture mode, Daimler will be able to earn half of the profits if the company develops well, so Daimler's enthusiasm will be higher and he will try to make profits bigger."
Tan Xiuqing also believes: “The full-scale joint venture model is more likely to be successful. In the past, it took a part of the business to separate joint ventures. One side was strong and one was weak. The Chinese side did not have the right to speak. Now it is an overall joint venture that ensures the strength of both parties. In terms of product development, marketing, and the establishment of an organizational structure, the Chinese have obtained an equal say. The status of the two parties is different. The future decision-making on the development of enterprises will also be different."