On August 8, East Asia R&D Center jointly established by Dongfeng Motor and Cummins was completed and opened in Wuhan, marking the cooperation between the two companies moving from product introduction and manufacturing to the joint research and development stage. This is the first Sino-foreign joint venture professional R&D center in the Chinese engine industry. The general manager is a Chinese person.
On the same day, Dr. John Wall, Cummins Global Vice President, brought congratulations to Lin Weixi, the first Chinese global vice president of Cummins. At present, the first new product developed by Cummins and Dongfeng Joint Venture Technology Center is a 13-liter all-electronic heavy-duty diesel engine capable of meeting Europe and America's next-generation emission standards (US Federal Environmental Protection Agency 2010 and European Standard No. 5). In the future Dongfeng's heavy commercial vehicles. Dongfeng Cummins will formulate corresponding export and overseas licensing production strategies based on the specific needs of overseas markets.
The cooperation between Dongfeng and Cummins in the high-powered engine field makes the Dongfeng Renault commercial vehicle project, which has already been slowing down, become even more elusive. This can also be seen as a consistent strategy for Cummins in the Chinese market. Lightning has joined hands with Shaanxi Automobile Group and Beiqi Foton. At the same time, it has deepened its joint venture with Dongfeng. Cummins is gradually becoming the biggest beneficiary of commercial vehicles in China.
The success of the native American company Cummins in the Chinese market is inextricably linked to a number of Chinese, and this is exactly where Cummins’s localization strategy is used.
Cummins welcomes Tsinghua students
Dr. Lin Weiyi, who is nearly 90 years old, still lives in Columbus, Indiana, where Cummins’ US headquarters is located. He is still very concerned about Cummins’ business development in China.
So far, regarding the development of the Chinese market, Hua Qiang, vice president of Cummins Global, often consults Lin Weiyi. After Cummins entered the Chinese market for more than 30 years, few people still knew that Cummins was able to gain a firm foothold in the Chinese market. In fact, it was inextricably linked with Lin Weijun, an early graduate of Tsinghua University.
Lin Weizhen was born in China in 1917 and is a 1939 graduate of the Department of Mechanical Engineering of Tsinghua University. He has worked for several research institutes.
In 1968, Lin Weiyi officially joined Cummins as a senior technical consultant for research and development. In 1973, he was appointed vice president in charge of research and development. It was during this period that Cummins took full advantage of the advantages of Lin Weixi's Chinese and began to actively plan to enter the Chinese market.
Through the background of Cummins Chinese executives including Dr. Lin Weiyi and its good connections, Cummins quickly opened up its position in the Chinese market. In 1981, Cummins began to obtain licenses to produce engines in China. In 1995, Cummins first Chinese joint venture. The engine factory was established. So far, Cummins has a total of more than 20 institutions in China, including nine wholly-owned and joint ventures, and eight of Cummins' 14 engine families are locally produced in China.
Successor Chinese Technical Director
At the press conference on August 8th, Huaqiang emphasized another Chinese, Sun Xiaobo, who is currently the general manager of the East Asia R&D Center in cooperation with Dongfeng and Cummins. Sun Xiaobo joined Cummins in August 2004. He once served as Cummins' director of global technology planning and was seen as another Chinese technology executive at Cummins after Lin Weiyi.
Sun Xiaobo holds a doctorate in mechanical engineering from the University of Michigan (Ann Arbor) and a bachelor's and master's degree in mechanical engineering from Wuhan University of Technology. Prior to joining Cummins, Sun Xiaobo served as vice president of R&D for Huachen Automotive Group.
Sun Xiaobo's resume has such experiences. Sun and his R&D team led the development of China's first world-class sedan model as well as a variety of new engines. These products, Huachen Group, have all the intellectual property rights. He also worked as a chief scientist at Inco, California, USA, responsible for the research and development of alternative fuel engines and fuel systems. It is reported that at the time of the BMW Brilliance project negotiations, Sun Xiaobo was one of the core negotiators.
Cummins Logic
Cummins’ turnover in China exceeded US$1 billion for two consecutive years, and China has become Cummins’ largest globally fastest growing overseas market.
“A key factor in the rapid growth of Cummins’ business in China is the localization of management personnel.†Hua Jinsheng, Cummins Global Vice President and Chairman of Cummins China Investment Corporation, said in an interview with this reporter that “Chinese management personnel are one Very important communication bridge."
According to insiders from Cummins, nine of the 13 top-level executives in Cummins East Asia currently are Chinese, including the vice chairman of the China Investment Corporation, the chief financial officer, and the general manager of Cummins’ second-largest engine factory. Chinese people come to play.
Cummins’s Chinese employment logic is obviously different from other multinational companies in China. According to the head of a famous headhunting company in China, the current foreign-funded enterprises in China are looking for senior management personnel who are Chinese or have a background in Taiwan, Hong Kong or Singapore. Chinese-Americans, and managers who have grown up in the mainland are hard to become top-level executives of foreign companies.
Cummins dares to break this rule. Perhaps it is not unrelated to the "first-generation" Chinese executives who assisted in opening up the Chinese market.
An insider of Cummins told this reporter that “by negotiating with Chinese state-owned enterprises and simply applying the methods of mature markets in Europe and America, it is impossible to understand the specialties of Chinese partners and the specificity of China’s market and policy orientation. This simply fails to achieve the desired results. Chinese executives have played a crucial strategic decision and a front-line communication function."
View related topics: Dongfeng Cummins maintains strong growth
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