What will happen if Volkswagen Group's global auto map lacks China? The answer is simple - it will lose a third of global sales.
On March 13, 2014, Volkswagen Group held the 2013 financial results conference. In 2013, Volkswagen Group sold 9.7 million vehicles worldwide, and the Chinese market contributed 3.27 million vehicles. For the first time in nearly ten years, it exceeded the General Motors in the Chinese market for the first time in ten years. Hezmann, president and CEO of Volkswagen Group (China), received an exclusive interview with the Chinese media delegation after the performance announcement. He used "a very successful year" to describe Volkswagen China's 2013 and communicated with the Chinese media on hot topics such as joint stock ratio.
Undoubtedly, excellent market performance will allow the public to continue to deepen their cultivation and development in China. In addition, Heizman reiterated in his exclusive interview that he had previously determined to increase the number of domestic models to 30 by 2015 and vigorously promote a “people-oriented†strategy in China. He also exchanged views with the media on topics such as the JV ratio, Volkswagen's domestic electric vehicles in 2016, and the development of mass commercial vehicles in China.
In response to the recent heated debate in the Chinese auto industry over whether or not joint ventures should be liberalized, Heinzmann stated that the Volkswagen Group is very concerned about the open-ended discussion and welcomes this open policy. He also revealed that he is conducting a pre-study on establishing a heavy truck joint venture in China.
VW considers establishment of heavy truck joint venture in China
After the acquisition of Scania and Mann, the Volkswagen Group officially had the capital to call on Volvo and Daimler. The Volkswagen brand commercial vehicles will form a commercial vehicle alliance with Scania and Mann, which will further strengthen the Group’s commercial vehicle business.
Speaking of the status quo of commercial vehicles in China, Heitzman stated that Scania and Man now only import high-end heavy trucks in China, and the market sales are still very small. He later revealed that Volkswagen Group is currently studying the establishment of heavy truck joint ventures in China, but he said that this idea is still in the early stage of pre-study.
However, with the inclusion of Scania and Mann, Volkswagen commercial vehicles have transformed into international heavy truck giants that compete with Volvo and Daimler. Volkswagen must exert strong pressure on competitors in the commercial vehicle sector, especially in heavy trucks, to maintain its competitiveness. The strong position of Konya and Man in this field is certainly a good choice for the Chinese market. The only problem that exists is time.
In addition, China currently surpasses Volkswagen’s global sales contribution by one-third of its sales, almost entirely from passenger vehicles. In order to realize the “2018 strategy,†breakthroughs in Volkswagen's commercial vehicle business in China as a “short board†are indispensable.
According to China’s auto industry policy, each foreign-funded company has a maximum of two car joint ventures in terms of domestic passenger cars and commercial vehicles. The Volkswagen Group, which already has two joint ventures between FAW-Volkswagen and Shanghai Volkswagen, has invested in the establishment of heavy truck joint ventures and will certainly benefit its future development in the Chinese market.
If Heinzmann called the Volkswagen Group this “still in the early stage of pre-study†heavy truck joint venture plan to be implemented, who will be the future partner?
Looking at the heavy truck market in China, after the strategic alliance between Dongfeng and Volvo Group was established, the joint venture map for China's heavy truck industry was basically completed. In addition to the joint venture between FAW and China FAW, the other domestic heavy truck companies have completed joint ventures with foreign truck groups. .
Based on many years of successful cooperation, FAW and SAIC should theoretically be the first choice of the public, but on the one hand, SAIC's commercial vehicles, especially the heavy-duty trucks, are extremely weak. On the other hand, the competition between FAW and Volkswagen for the equity of the joint venture company is already Become a "heart disease" on both sides. The above two points may become obstacles for the masses in cooperating with them in heavy truck joint ventures.
In contrast, other domestic heavy truck companies such as Dongfeng, China National Heavy Duty Truck, Shanxi Auto, Foton, and Liuzhou Automobile have already established cooperation with foreign heavy truck companies or related component giants. If Volkswagen’s heavy-duty truck partners are out of their existing two partners, who would it be?
Judging from the relationship between “comparativeness,†Volkswagen’s most “close†company with China in terms of commercial vehicles is China National Heavy Duty Truck. It has long co-operated with Volkswagen's Man brand, and other heavy truck companies have not seen a clear intersection with the public.
According to the official website of China National Heavy Duty Truck, "China National Heavy Duty Truck successfully achieved strategic cooperation with German MAN in 2009, Mann Co., Ltd. participated in 25%+1 shares of China National Heavy Duty Truck (Hong Kong) Co., Ltd., and Sinotruk introduced Manco's D20, D26, D08 three models of engine, Zhongka, heavy truck bridge and the corresponding vehicle technology", the two sides released the latest cooperation models at the Shanghai Auto Show in April 2011.
At that time, Heitzman, who was responsible for the commercial vehicle business of Volkswagen Group as a member of the management board of Volkswagen Group, attended the above press conference.
At this time, Volkswagen’s control over Mann was deeper, and Heitzman, who is still a member of the management board of the Volkswagen Group, has been transferred to the president and CEO of Volkswagen Group (China), responsible for the comprehensive business of Volkswagen Group in China. Of course, Also includes commercial vehicles.
Therefore, for the general public, through the cooperation foundation laid by Man, using the experience of Heinzmann in commercial vehicles and understanding of the Chinese market, it is not unclear to seek new and further heavy truck cooperation with China National Heavy Duty Truck on an existing basis. Not a good choice.
Before the public made a definite deployment of the heavy truck joint venture in China, everything was only speculation. But for China’s commercial vehicles, especially the heavy-duty truck market, if the masses carry Scania and Man Qiang’s strength, it will inevitably make the fierce competition even more cruel. The international heavy-duty truck giants Daimler, Volvo and Volkswagen’s Scania and Mann will launch new fights in China.
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