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On January 26, 2013, Dongfeng Group and Sweden's Volvo Truck Group formally signed an agreement in Beijing to establish a strategic alliance with capital as a link, and jointly commit themselves to the development of the world's leading "Dongfeng" brand commercial vehicle.
The signing place is at the National Convention Center. The attendees are all thrifty and grand. For Dongfeng Group, the most urgent expectation of this move is to grasp the skills of the world-class commercial vehicle companies at an early date and to take a place in the world of commercial vehicles and realize the vision of “China's east wind and the world’s east windâ€.
Basic Information
The two major groups will jointly develop through complementary advantages, resource sharing, and business synergy. In the early days, Dongfeng repurchased medium- and heavy-duty commercial vehicle business and assets from Dongfeng Motor Co., Ltd., a joint venture with Nissan. Most of its business and assets will be transferred to the new joint venture company. Dongfeng will account for 55% of the shares and Volvo will occupy 45% of the shares. The board of directors consists of 7 members and Dongfeng appoints 4 of them, of whom two are chairman and general manager. Volvo appoints three of them, one of whom is vice chairman. The new company will develop, produce, and sell "Dongfeng" brand vehicles covering medium-heavy trucks, passenger cars, special vehicles and chassis, engines, and transmissions.
Volvo chairman is sincere
Volvo chairman Eurof Payson said in his speech that the demand for commercial vehicles in Asia is growing rapidly. China has become the world's largest truck market. Therefore, China has become the top priority of Volvo's global strategy. Dongfeng and Volvo are good friends who have known each other for many years. Europa Payson really appreciates Dongfeng's professional team and production line. Especially in the market downturn, Dongfeng still ranked first with a record of 148,000 vehicles, making it a well-deserved leader. "With its strong position in the Chinese market, Dongfeng will have a strong profitability." He used the Chinese that he had just learned to greet everyone "Happy New Year" and "All the best."
The Swede, who was promoted to President and CEO in September 2011, is a blessed man. The joint venture and cooperation he started in 2007 will bear fruit in his appointment and will immediately add luster to his 2013 results. His speech conveyed two meanings: First, he looked at Middle East Wind China’s status and capabilities of heavy truck “bossâ€, and thus had confidence in the profitability of the new company; Second, he did not exclude localization, although the 8 Chinese characters I am not good at saying that I am willing to express my sincerity in the Chinese language and I am not afraid of losing my ugliness.
Seeing more joint ventures, especially after several successful commercial vehicle joint ventures, the reporter believes that the key to success lies in whether foreign countries can treat the Chinese side equally and are willing to put aside their positions to give China real things in order to win together. Therefore, the phrase "attitude is everything" is very reasonable. The attitude of the Europa Payson decided the direction of the strategic alliance.
The reporter interviewed him several times in Sweden and in the country. The person was concise in speech and capable in the style. In November 2008, he took over as president and CEO of Volvo Construction Equipment, successfully reorganized the company in the global financial crisis, and made it one of the fastest growing companies in the industry in terms of profitability and scale. In 2007, Volvo invested in Shandong Lingong to implement a dual-brand strategy and achieved success. This background also gives us reason to expect him to be a master of investment and reorganization. He is familiar with Chinese culture and is good at “you have me and I have youâ€.
Weakening joint ventures to strengthen the alliance
This joint venture talked for 5 years. The pressure on the east and the west is undeniable. They are most afraid of the outside world saying something about themselves. It seems that a joint venture will give up on their own. The people's feelings about Dongfeng are national sentiments. The products of the joint venture use the “Dongfeng†brand and pay it to China for use. It is presumably this is a negotiation process. The Middle East wind has spent a lot of effort on it. Dongfeng’s leadership has concerns, so it will come up with ways to weaken the joint venture and strengthen the alliance in the publicity. It's really hard to think about leadership.
Some people have discussed several modes of joint venture cooperation between Chinese commercial vehicles and multinational companies, saying that in fact, the model of Fu-Dai is similar to that of Dong-Wo. The reporter believes that the discussion mode is of little significance. No matter who the black cat or white cat is, whoever can achieve the ultimate joint venture vision will succeed. After 5 or 10 years, most countries in the world can see 100,000-class "Dongfeng" heavy trucks running on the road. The east wind is cattle. The leader of the East-Woshan joint venture is the national hero. . Do not use the model theory to frame people, so that the leadership of the Dongfeng less burden - Shiyan Dashan out of China's first heavy truck, people are not easy.
Industrial structure will change
There is no doubt that this is a strong alliance. Judging from the actual experience, strong and weak are easy to succeed. Stronger and more prosperous, they are unhappy because they both want to be bosses. This is a painful lesson for Volvo. In 2003, the reporter went to Jinan, and an employee pointed to the joint venture plant of heavy-duty trucks and Volvo that was not in use at the time. He said: There was no quarrel. There has been a failure experience, presumably Volvo will no longer break the strong prospects in the Chinese market because of the strong. This time, I will not see you again. I am afraid that I will be on the blacklist. For the third time, the National Development and Reform Commission will not approve.
For Dongfeng, the joint venture experience with Nissan will add to the success of the upcoming journey. The running time of both parties may be shortened, which is beneficial to the early arrival of new platforms and new products.
Volvo in China needs a joint venture partner such as Dongfeng too much to upgrade its position in China and to radiate Asia. Dongfeng also needs to increase its strength and act as a leader in technology upgrades and product upgrades in China, leaving liberation far behind and obstructing the chase of Shaanxi Auto and CNHTC. Future domestic and international PKs will be developed between Dongfeng and Fudai.
China's competition for medium- and heavy-duty commercial vehicles will become more and more exciting.