Dongfeng and Volvo Joint Venture Solved the Opening of the Production Base
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At the time of the countdown of the Dongfeng Renault joint venture, Dongfeng Group retransmitted joint venture news.
Recently, it was reported that the nearly seven-year-long marathon negotiation between Dongfeng and Volvo will reach the finish on January 26. The two sides will sign a joint venture agreement in Beijing on the same day to officially form a joint venture company.
For this news, the relevant person in charge of the Dongfeng Group gave a positive reply in an interview with reporters.
It is reported that the two sides will establish a joint venture company with 55:45, of which Dongfeng Motor holds 55% shares, Volvo Group holds 45% shares, and the production site is selected in Shiyan, Hubei Province. Judging from the information disclosed so far, the brand selection of joint venture products remains an unknown issue. Will the joint venture partners plan to create a new joint venture brand or choose to fly the Chinese traditional "Shuangfeiyan" logo in the traditional way? In this regard, senior automotive analyst Zhong Shi believes: "High-end cars hanging Volvo logo, the flag of the low-end car hanging Dongfeng should be the most feasible way out."
7 years love will eventually sign
In 2013, news of the signing of the Dongfeng-Volvo Commercial Vehicle joint venture project once again surfaced. The project is scheduled to be officially signed on January 26. For this joint venture project, the relevant person in charge of Dongfeng Commercial Vehicle Co., Ltd. was very cautious, and declared a unified caliber: "I don't know about this matter."
However, Dongfeng Group insiders said in an interview with reporters: “At present, the relevant person in charge of Dongfeng Commercial Vehicles is already in Beijing and is making final preparations for the signing ceremony. It is officially signed on January 26.â€
At the same time, the responsible person stated that after years of negotiations, the two parties reached an agreement to establish a joint venture company with 55:45, of which Dongfeng Motor holds 55% of the shares, Volvo Group 45%, and the production base will eventually settle in Shiyan, Hubei.
According to the agreement between the two parties, this joint venture project involves not only vehicle production projects but also engine production projects. In the course of the joint venture, Volvo truck output technology and standards, Dongfeng commercial vehicle is responsible for providing manufacturing capabilities.
Looking back at the joint venture between Dongfeng and Volvo, it has been nearly 7 years since Dongfeng Motor officially disclosed its intention to disclose it. It is no mistake to use the term “marathon†to describe it. During these seven years, issues such as the location of production bases and Volvo’s joint venture qualifications have become an important stumbling block in the negotiations. At the beginning of last year, there was still news that "Dongfeng Volvo's joint venture will settle in Hangzhou."
Among the many obstacles, Volvo eventually established a joint venture with Dongfeng Limited or established a joint venture with Dongfeng Group as the focus of negotiations.
This issue reached a preliminary consensus last year. Dongfeng Group insiders said: "The medium- and heavy-duty truck business will withdraw from the east wind, and the plan is already underway." With the spin-off of the medium- and heavy-duty truck business from Dongfeng, Dongfeng's negotiations with Volvo also entered the fast lane. "From a certain point of view, this should be regarded as a concession made by Dongfeng Group." Analysis of the industry.
“With the expansion of the Dongfeng commercial vehicle business and the improvement of its international influence in the past two years, Dongfeng Group has a controlling share in the joint venture and it is also expected that the production base will be built at the top of the door.†Beijing Zero Research Group Automotive Research Li Ziliang, deputy director of the center consulting, said.
Brand problem to be solved
After years of efforts, Dongfeng Group has not only achieved development in the domestic commercial vehicle sector, but also has taken a place in the field of international commercial vehicles.
“But we have to admit that Dongfeng commercial vehicles have also encountered the ceiling of development.†Li Ziliang analyzed that “For Dongfeng, they are no longer satisfied to produce products suitable for the Chinese market. Their goal is to create a world Standard model."
"However, relying solely on Dongfeng's own strength, it is still difficult to break through the technical bottlenecks." Zhong thinks, "Although Dongfeng and Renault have achieved commercial vehicle cooperation, they have only solved power technology problems, chassis technology, and body design. The problem remains to be solved."
Therefore, Dongfeng's cooperation with Volvo, the world's leading commercial vehicle manufacturer, will be able to break through the technical ceiling and enhance international competitiveness.
Compared to Dongfeng Commercial Vehicles, Volvo's thirst for this cooperation is even higher. "This is mainly because Volvo was a loser in the Chinese market in the past ten years," said Li Ziliang.
According to Li Ziliang's statistics: "Volvo's annual sales of commercial vehicles in China were about 1,000 vehicles ten years ago. However, this figure is even declining. The annual sales volume is even less than 1,000."
More importantly, under the background that rivals Germany Mann and Daimler Group have achieved rapid development through joint ventures in China, Volvo’s commercial vehicle joint ventures in China have repeatedly failed, causing it to quickly slip to the margins in China.
After reaching a consensus on a number of previously controversial issues, under the condition that the roadblockers have been eliminated, Dongfeng and Volvo will eventually complete the joint venture project in the commercial vehicle sector. However, as of now, the brand issue of joint venture products remains a mystery.
Li Ziliang believes that "the future joint venture product is likely to carry the Dongfeng 'Shuangfeiyan' logo." This will also have certain benefits for future product exports, and this has become a common practice for commercial vehicle joint ventures in China.
Looking at the current China commercial vehicle joint venture, most of the joint venture models have chosen to hang the Chinese brand logo. "This is mainly due to the specific nature of China's commercial vehicle market," the industry said.
The brand suspense of the joint venture product will reveal the answer at the signing ceremony of the joint venture company. "On the issue of product identification, details of cooperation between the two parties will be announced on January 26," said Dongfeng Group insiders.