Volkswagen Group's commercial vehicle strategy in China or starting from Changsha


On November 27th, at the 34th FISITA World Automotive Engineering Annual Conference and Exhibition held in Beijing, Volkswagen China President Hyzman made a statement stressing that Volkswagen’s multi-brand strategy is inseparable from commercial vehicles. According to industry insiders, CEOs of Volkswagen China have rarely mentioned commercial vehicles, and Heinzmann’s position is rarely seen.


Also in November, there were rumors that the Volkswagen Group will build a new factory in Changsha, Hunan. Coincidentally, on the 23rd of this month, Sany Heavy Industry, headquartered in Changsha, and MAN Commercial Vehicles, a subsidiary of the Volkswagen Group, signed a supply framework agreement.


The news cannot help wondering whether the new plant of the VW Group in Changsha is related to its commercial vehicle business.


Undercurrent surging


As we all know, what the Volkswagen Group has left to its consumers in China is the passenger car project. In contrast, the public commercial vehicle project is rarely known. However, in fact, the commercial vehicle business of the masses has been secretly launched in China.


The current commercial vehicle business under Volkswagen Group includes three major brands: Scania, Mann, and Volkswagen Commercial Vehicles. Among them, in 2009, through the share of China National Heavy Duty Truck, Mann entered into a strategic partnership with China National Heavy Duty Truck, and the two sides jointly launched a new brand for the Chinese market last year. In addition, Man also has related technical cooperation relations with Shaanxi Automobile, Youth Bus, Yutong Bus, and Huanghai Bus.


Similar to Mann, Scania has also developed in China for many years. In 2005, Scania started cooperation with Suzhou Jinlong in the field of luxury passenger cars. After that, the two parties jointly launched the Scania-Heggar bus. Since 2008, Scania has begun to be the giant of China's construction machinery industry. A Zoomlion supplies heavy-duty truck chassis.


The Volkswagen’s independent commercial vehicle business unit, namely, the commercial vehicle brand, entered the Chinese market as early as three years ago, in order to use its own brand to cultivate the Chinese commercial vehicle market.


According to analysts from the industry, the years of cooperation between Mann, Scania and Chinese companies, combined with the market development of commercial vehicles, have created a “mass foundation” for the development of the commercial vehicle business of the Volkswagen Group in China.


Heitzmann is a commercial vehicle


Before the current president of Volkswagen China, Heizmann was the executive director of Volkswagen Group's commercial vehicle business before he officially took office on September 1. This position change of Heitzman stems from an unprecedented high-level personnel change in Volkswagen Group in June.


According to the German "European Automotive Weekly" news in June, the Volkswagen Group has adjusted a total of 31 senior executive positions. Most of the appointments took effect on September 1. In addition to Heinzmann's appointment, Austerling, who previously served as Scania's CEO, was promoted to executive director of the Group's commercial vehicle business, which is to replace Hezemann's previous position.


In addition, the former Group Executive Committee and Mann CEO Rehoven have expanded their responsibilities and are now responsible for the coordination of the entire group's engine business and the engineering design of the Man Truck Powertrain. Nielsen, former head of Scania's production and logistics, is now serving CEO of MAN Trucks; formerly Head of Scania Franchise Distribution and Factory Sales, Rendstedt is now the new CEO of Scania; Skoda's Director of Technology Development Management is in Hanover, serving as the Volkswagen Commercial Vehicles Management Committee. Spokesperson and head of technology development.


Many people in the industry believe that the changes in the personnel of the Volkswagen Group have resulted in the reuse of high-level commercial vehicles. Hezmann, president of Volkswagen, is likely to signal that the commercial vehicle business of the masses will accelerate its efforts in China. Volkswagen passenger vehicles have developed well in China, and this year sales are expected to reach 2.5 million, and its commercial vehicles are almost a blank. Will Volkswagen achieve its 2018 goal in China and will it have less commercial vehicles?


On December 3, the reporter tried to contact the Public Public Relations Department of the People's Republic of China to verify the development plan of commercial vehicles for the public in China, but the telephone has not been connected.


Changsha suspects


According to reports, Heitzman has been the executive director of the Volkswagen Commercial Vehicles business since 2010, and during the two-year period in September of this year, a major task is to fully strengthen the three brands of the MAN, Scania, and Volkswagen Commercial Vehicles. Integration. The appointment of Austerling, the successor appointed by Heinzmann, continues this task.


According to public information, in June this year, Volkswagen announced that it had completed the new round of equity increase of its subsidiary, Mann, and the proportion of shares held by the public with voting power of Man exceeded 75%, which achieved real control over Man. This was the task Hezmann completed during his time as executive director of the commercial vehicle business of Volkswagen. As early as 2008, Volkswagen acquired Scania's 68.6% voting shares and controlled Scania.


In September of this year, Austerling said in an interview with the German Frankfurt Review that it will increase the performance of its commercial vehicles, Scania and Mann brands in emerging markets such as China and Brazil. In order to cope with the decline in business, increasing the import vehicle business and establishing a truck joint venture in China are two possible measures that the general public can use to promote its business growth in China.


Just two months later, Volkswagen Commercial Vehicles began a new move in China. On November 23rd, MAN Commercial Vehicle Corporation (a subsidiary of the Man Group) and Sany Heavy Industry signed a framework supply agreement. Man will provide concrete pump trucks and other special vehicle chassis to Sany Heavy Industry in China to enhance the The leading position in the field. In addition to the previous cooperation between Scania and Zoomlion, as well as the cooperation between MAN and China National Heavy Duty Truck Group, Volkswagen Group relies on its Mann and Scania, has been "secretly" with the three giants of China's construction machinery industry respectively reached a cooperation relationship.


The reporter called the relevant person in charge of the Marketing Department of Mann Commercial Vehicles Trading (China) Co., Ltd., which is the head office of MAN Commercial Vehicles in China. The other said: "Last year, MAN and Sany signed an agreement to supply chassis. , but more news is not yet available for disclosure."


Even more conjecture is that currently the headquarters of Zoomlion and Sany Heavy Industry are all located in Changsha, Hunan, and Changsha is one of the alternative locations for the new Volkswagen plant that has been rumored for a long time. As a result, will Volkswagen Commercial Vehicles expand its footprint in the Chinese market based on Changsha?


Before the press release, a source told reporters that the rumored new factory in Changsha was used to produce passenger cars, which was not associated with commercial vehicle business. But he also revealed that the selection of Changsha for the new Volkswagen plant may not be inseparable from the “good relationship” that the commercial vehicle business has achieved in Changsha in recent years.



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