Recently, the "Daily Economic News" was exclusively informed that Caterpillar, the world's largest construction machinery manufacturer, and Navistar, the North American commercial vehicle and engine production giant, will jointly attack in the Chinese market. Automobiles set up a 50:50 joint venture. The joint venture company will rely on the existing production base of Jianghuai Automobile. Caterpillar and Navistar will mainly participate in the form of cash plus technology.
The cooperation is mainly concentrated in the areas of heavy-duty trucks and engines. According to informed sources, “the basic framework for the current cooperation has been established and only some details need to be negotiated. The joint venture company is expected to be formally established in September. With the deepening of cooperation between the two parties, Do not rule out the possibility of further cooperation in other areas."
Commercial vehicle prospects become the main cause of cooperation
For consumers, the names Caterpillar and Navistar are a little unfamiliar. However, in the world of commercial vehicles, the two companies have a pivotal position.
On April 6, 2009, Caterpillar and Navistar signed an agreement to cooperate in the production of Caterpillar heavy-duty trucks for sale in the North American market and establish a joint venture that each holds half of the shares. The company will expand its global commercial truck business outside of North America, focusing initially on countries such as Australia, Brazil, China, Russia, South Africa and Turkey.
China, which has become the world’s largest car sales nation, has apparently become the first stop for the two giants to jointly develop overseas markets. Analysts said that the booming commercial vehicle market in China has become a major incentive for the two giants to accelerate the deployment of the Chinese market. When Jack Allen, president of Navistar Engine Group, received media interviews, he also said that China's rapid development, especially the market's growth rate, is very attractive to Navistar.
Heavy truck competition will change
With Iveco and Germany's Man Company having in-depth cooperation with Chinese companies, in the field of commercial vehicles, a new pattern of multinational companies and Chinese companies competing for the Chinese market is taking shape.
"At present, FAW Heavy Trucks cooperates with GM, SAIC and Iveco cooperate, Dongfeng cooperates with Nissan, CNHTC cooperates with German MAN, SAIC and Cummins cooperate, and Foton cooperates with Mercedes-Benz. Large truck manufacturers already stand with multinational companies. Good team, "said Jia Xinguang, an expert in the automotive industry.
In the eyes of another industry expert, the cooperation model between Caterpillar, Navistar, and JAC is obviously more worth looking forward to. “In the heavy truck industry, the profits of the upstream and downstream industries are much greater than the production of heavy trucks. Caterpillar's expertise lies in its abundant topswear products. Therefore, cooperation between the three parties can reduce the cost while improving the advantages of the two giants. Play to make it more flexible to adapt to the needs of the Chinese market.â€
"The cooperation with Caterpillar and Navistar will enhance JAC's existing production technology and future research and development capabilities. Its significance to Jianghuai is greater than its expectation of restructuring with Chery." . Industry analysts said that after obtaining the capital and technology of Caterpillar and Navistar, Jianghuai’s subsequent right to reorganize the region will be greatly enhanced.
Prospects for cooperation
In fact, this is not the first time JAC has introduced strategic partners in the commercial vehicle sector. Since the late 1990s, Jianghuai and South Korea have established cooperative relations. As the most important technology source of JAC, several of its major products, such as passenger cars, heavy trucks, and Ruifeng commercial vehicles, are from South Korea's Hyundai. However, due to the persistence of Jianghuai’s adherence to the “third line†of automakers and the urgent need to enter overseas markets, and the “extraordinary growth†of Guangqi’s modern projects, the technical cooperation between Jianghuai and Korean Hyundai for more than 10 years ended in 2007. .
In the field of commercial vehicles, there are many examples of cooperation partners that have fallen apart due to the fact that the cooperation model is not in line with China’s national conditions. Some analysts believe that the strengths of the two giants cooperating with Jianghuai are far more modern than those of Jianghuai. Jianghuai will adopt a more low-key and pragmatic attitude. However, the success of cooperation still requires both parties to jointly explore a cooperation method that truly meets the needs of users and can balance the interests of all parties on the basis of the innovative cooperation model.
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