Although Volvo’s joint venture project in Jinan, Jinan Huawo Truck Co., Ltd. (hereinafter referred to as “Hua Wo Truckâ€) has not produced as expected since 2004, Fredrik Hogberg, president of Volvo China, talked about it on the 2nd. It is still said that the Huawo truck project will not be terminated.
At the same time, Volvo’s joint venture intention in China has not stopped despite the twists and turns in two major acquisitions.
Heavy truck frustrated
Since entering China for more than a decade, Volvo has established a number of joint ventures or acquisitions in China: Shanghai Shenwo Bus Co., Ltd. and Xi'an Xiwo Bus Co., Ltd., a joint venture with SAIC and Xi'an Aircraft Industry (Group) Co., Ltd.; and CNOOC Trucks, a joint venture of the CNHTC Group, has jointly invested heavily with CNHTC and FAW to produce high-powered engine projects. At the same time, the company also acquired Shandong Linggong Construction Machinery Co., Ltd. (hereinafter referred to as “Shandong Lingongâ€). As a result, Volvo's main business has all been settled in China.
Numerous joint venture projects make the layout of Volvo proud in recent years. At present, there are more than 3000 Sunworth buses traveling in cities such as Shanghai; Xiwo's development trend also shows an upward trend. Its construction equipment division, which is mainly engaged in assembling construction machinery in China, has not experienced losses for many years.
Unfortunately, the two projects that invested a great deal of energy have encountered setbacks. After Huawan Trucking signed a cooperation agreement and put into operation in 2003, it did not reach mass production in unison, which affected its plans to lay out an engine production line in China.
According to media reports, Volvo's main line in Jinan is mainly the 40-ton heavy-duty dump truck FM12 (six-by-four). However, after 2003, China’s tariffs on dump trucks were substantially reduced, making the assembly advantages of this model less obvious.
Also involved is the Volvo Engine Joint Venture Project. On March 29, 2004, the three parties signed a framework agreement and it is estimated that the investment will reach 5 billion yuan, including the joint investment of three parties in Jinan to establish a joint venture engine base. The three parties did not disclose the specific proportion of funding, but there are reports that Volvo will account for 52%, heavy truck and FAW each accounted for 28%. The base has an investment of 2 billion yuan. It will be put into production in 2005 and will reach an annual production capacity of 50,000 sets of high-powered engines by 2008. It will mainly produce 9 to 13 liters of heavy-duty truck diesel engines for the high-end market. However, the project failed to complete the indicator.
Extended middle and low end
However, Hoberg is confident that the pace of localization of Volvo heavy trucks will not disappear. “I personally believe that the high-quality heavy truck has a very high market share in the Chinese market and our business will be improved. First, China has the world’s second-largest freeway network, and logistics demand is also very strong. On the other hand, For such a large logistics network, truck safety is more important; the third issue is environmental protection."
“High-end is a part, but in order to meet customer needs, we are also considering low-end products, so we recently made major investments and future cooperation projects are all considered.†He Berger said, “Our Huawo project is now Selection."
Continue to acquire
Recently, Volvo once again announced that it will team up with Dongfeng Motor to discuss in depth the cooperation plan for commercial vehicles. But Heberg would not reveal too much detail.
Not only that, but in 2006, the company’s acquisition of construction machinery also fought. After the company took a 70% stake in Shandong Lingong for RMB 327.5 million, on February 27, Volvo Worldwide reached an agreement with Ingersoll-Rand to successfully acquire the company's road development division for US$1.3 billion.
“Shandong Linggong Project We started contact in October 2004 and completed the entire acquisition in less than two years. Ingersoll Rand also has a factory in China and needs to be integrated for a period of time,†said Jiang Wei, vice president of the company in China.
When asked by reporters, Shandong Lingong, which ranks fifth in the country and is mainly engaged in production loaders, has not been very profitable in China in recent years. When its profits in 2005 and 2004 were also lower year-on-year, Jiang Yu said: “So We need to introduce technology for it.†She mentioned that Volvo must also meet the low-end market so that it can improve its machinery industry chain. “Shandong Lingong has moved into a huge new factory area and Volvo has done other deployments.â€
"I do not rule out new acquisitions in China, so Volvo has the possibility to introduce other projects, but first of all we have to do a good job Shandong Lingong's loader business." Chiang Kai-shek said.
Sucker Rod,Dental Elevator,Oilfield Sucker Rod,Sucker Rod Elevator
PUYANG RENHE INDUSTRY CO.,LTD , https://www.renhedownholetool.com