From the vehicle to the powertrain, the road of group operation of China's heavy truck companies seems ordinary, but with careful taste, it is not difficult to find that the industry is gradually changing and the major truck companies are unwilling to be controlled by others and become bigger and stronger. The ultimate dream.

"If you don't have a dream, it's like salted fish."

Today, a series of events show that the dreams of domestic heavy truck companies have grown bigger and bigger. In this highly concentrated industry, even the lower-ranking companies seem to be happy. In their opinion, expanding the scale of production and sales and launching supporting industries will allow their own companies to have a better future.

The dream of turning shrimp

"As early as many years ago, we were ready to expand our scale. In 2008, our wheeled steel bridge was put into production. Now these bridges are installed on our products." As chairman of Anhui Hualing, Liu Hanru told reporters Compared with engines, transmissions, and other powertrains, the development and production of drive axles is relatively simple. Therefore, Liu Hanru successfully produced the drive axles in 2008 after successfully launching the vehicle. "At present, we have basically achieved self-sufficiency in the supply of spare parts in addition to engines and transmissions."

There is a similarity between Hongling and Hualing. The difference is that, as long ago as cooperation with Iveco, SAIC, Hongyan has its own bridge production line. At present, Hongyan has made a breakthrough in the powertrain and has its own engine supporting company. In May of this year, SAIC Fiat Red Rock Powertrain Co., Ltd. (SFH), a joint venture between SAIC Motors and SAIC Motors (FPT), SAIC and Hongyan, started operations.

According to the plan, SAIC-FIAT Hongyan Powertrain Co., Ltd. will fully introduce FPT's global advanced power technology, market-oriented and provide the market with three series of products including CURSOR, NEF, and FIC, which will satisfy Xinhongyan The demand for power from heavy, medium and light commercial vehicles and construction machinery, etc. also ended the embarrassing situation of Hongyan Heavy Trucks not having its own independent engine supplier. It is said that Hongyan did not have the idea to establish its own engine factory. However, due to the introduction of Iveco's vehicle technology and the intensification of the current market competition, Iveco and SAIC have finally changed the original intention of Hongyan.

Big Big Big Dream

"Shrimp" has big dreams, so it's even more so for the top truck giants.

As the leader in China's heavy truck industry, China National Heavy Duty Truck Corporation has already completed the steps of its own group operation through three major steps. Separated the road from Weichai Power and realized the dream of owning its own engine company. The acquisition of Dazhe Group made up for the heavy-duty truck transmission, a weak link in this industry chain. The long-term strategic cooperation with German Man at the level of technology and capital also filled the gap in engine technology.

Of course, Dongfeng, Liberation, Shaanxi Auto, Futian and other competitors are similar to China National Heavy Duty Truck.

Nowadays, Dongfeng Commercial Vehicles, which have rapidly emerged from the heavy-duty industry with the Tianlong series, not only own their own gearboxes, axles and other companies, but also own their own engine companies through joint ventures with Renault and Cummins. Although at present, the share of these engine companies in the industry is not very large, but with the changes in the atmosphere of China's heavy-duty truck market, who can guarantee that they are not the most favorable competitors for Weichai in the future?

FAW, known as "the eldest son of the Republic", is also eager to bear the fruits of group operation in the heavy truck field.

On July 15th, just before the signing of cooperation between Sinotruk and Man, the first phase of FAW's independent commercial vehicle production with an annual output of 30,000 CA10TA190 heavy-duty transmissions was formally put into operation. The commissioning of this project also compensates for the lack of FAW in the transmission field. At this point, FAW Liberation fully achieved self-sufficiency on the three powertrain projects, but it still takes time for customers to buy or not to buy. Prior to this, Fast in the heavy truck "Gold Industry Chain" has been a key supplier of FAW's heavy truck gearbox. Needless to say, through a period of running-in, FAW will gradually reduce its purchase of Fast transmissions.

In the same situation, of course, Weichai was the least.

Today, the largest share of Weichai engines in the heavy truck market is also facing increasing competition. In addition to major auto companies that have their own engine subsidiaries, even their own subsidiary, Shaanxi Heavy Duty Truck, also has an engine company jointly established with foreign investors - Xi'an Cummins. Although the "golden industrial chain" formed by Shaanxi Heavy Duty Truck, Weichai Power, Hande Axle, and Fast Transmission has always been favored in the industry, this does not stop Shaanxi Shouqi from opening the market by itself.

Although Li Dakai and Tan Xuguang claimed that the competition was more conducive to the rapid development of the industry, privately, they also teased the crisis. In order to survive, or for better development, at the moment, the two companies with the largest share in heavy-duty truck gearboxes and engines have extended their reach to the passenger cars that they are not looking for. In the early years, for them, the area of ​​passenger cars with an annual output of only 100,000 cars was too small to be noticed. However, the cruel reality has forced them to think about the future of their own business. Fortunately, even if there were former pursuers and later interceptions, the “Blue Ocean” development of the two major companies all had impressive gains.

As a result, we may have a question: In the future, China's heavy truck companies have realized group operation or supporting alliances. Then, where are the independent engine and transmission enterprises going?

Wu Qiwei, deputy general manager of Yuchai, gave us a clever answer. “When Yuchai entered the automotive engine industry, it always faced the problem of whether independent engine companies could survive for a long time. More than ten years later, Yuchai has grown from a small company that produces tens of thousands of engines per year. It is a large enterprise that produces 500,000 engines per year, which will continue to be sustained in the past, present, and future. However, opportunities and challenges are also present. It is not only the engine companies that are challenged to be independent, but also Including gearboxes and other parts companies and vehicle companies, after all, product quality, technology, after-sales service, and price are all issues that customers need to consider.

Caused by a variety of factors

A series of events have shown that China's heavy-duty truck manufacturers have invariably chosen the road to self-build or develop existing powertrain companies, whether they are within the group's subsidiaries, branches or joint ventures with foreign companies.

"The operation of heavy truck companies may be an inevitable phenomenon." According to the current phenomenon of group operation, an industry expert told reporters that the internationally renowned heavy truck companies such as Mercedes-Benz, Volvo, etc., their heavy truck products powertrain Most of them are completely independent of their own production. At present, China's heavy truck companies are merely repeating the road that overseas truck giants have used in the past.

However, a question is also out of the question: R&D powertrains will greatly increase the R&D expenses of companies. Why do these heavy truck companies choose this road invariably?

“The first is to reduce procurement costs because only the cost of parts and components will decrease, the cost of the entire vehicle will decline, and the price of the product will be more competitive. In particular, it will be able to contain the current supplier with the strongest momentum. Secondly, it is also possible to adjust the technology more flexibly and accurately according to the needs of the heavy truck market strategy.” During the interview, the expert said so, “Although it is said that some independent engine and transmission companies in China are improving in terms of technology, quality, and service. Very quickly and excellently, but since China’s heavy truck and its powertrain technology originally originated in Europe, the United States, Japan, and other countries, the technical route of these powertrains is not completely consistent with the requirements of the major truck companies. To achieve the best performance of the vehicle well, on the contrary, once it is produced, it will form an effective mechanism within the company, which will make the vehicle more compatible and the speed of the vehicle to be launched faster."

The survey of reporters has also shown that group operations can also achieve the integration of after-sales services, avoiding the push between the vehicle companies and parts and components companies, and engine companies in particular. “More importantly, there will be no incidents that the supporting companies will have a major impact on the vehicle products.” As the heavy truck New Forces, Valin Chairman Liu Hanru deeply feels this, he told reporters that in recent years, China The heavy truck market has been operating at a high level. Due to capacity constraints, the supply of powertrains such as gearboxes and engines is severely insufficient at the peak of sales. “Only in the first half of 2008, we lost 3,000 heavy truck orders because of insufficient supply. Even if we signed a strategic partnership, it is of little significance. Parts companies are also the first to take care of big customers!”

The harsh reality made Liu Hanru "very injured." “But this also strengthened the confidence that Hualing took the path of group development. No company is willing to rely on people and is subject to people.” Perhaps, Liu Hanru’s few words really revealed the real reason why the current vehicle companies are operating in a group.

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