Which multinational commercial vehicle company is one step ahead in China? I think Iveco.
Although Iveco has just established a Chinese company in September; although many people believe that Iveco imported cars are back in China and people have fallen behind; although Iveco brand heavy commercial vehicles have not yet been seen in the Chinese market, I believe that Iveco is now The first multinational commercial vehicle company to complete the overall layout of China's enterprises.
Has always taken root in China
Regarding Iveco’s establishment of Iveco China in September this year, many media use the word “return to Chinaâ€. What needs to be clarified here is that “returning†does not refer to the business of Iveco brand in China, but refers only to the imported car business.
In fact, Iveco is not only one of the earliest multinational commercial vehicle companies in China, but also the most involved multinational commercial vehicle company.
A few years ago, Iveco had stopped importing heavy commercial vehicle business, but it was not far from the Chinese market, but it made way for its Chinese joint venture. As early as 1996, she established a joint venture with Nanjing Automobile, Nanjing Iveco. The Iveco light passenger produced by the joint venture company has been selling well in the Chinese market for nearly 20 years. In this respect, Iveco never left China in these 20 years.
In 2006, Iveco formed a joint venture with SAIC and Chongqing Hongyan to build SAIC Iveco Hongyan and SAIC Fiat Red Rock. The former mainly produces heavy trucks, while the latter mainly produces heavy-duty diesel engines. Since then, Chinese and foreign parties have developed a heavy-duty truck product for China's high-end market based on the Iveco STRALLIS heavy truck technology platform, which was launched in 2007 and named "Hongyan Jieshi." SAIC Fiat Red Rock, on the other hand, introduces the Fiat Power Technologies Cursor9 engine, which is called Corso 9 in Chinese.
It was because of the joint venture to establish SAIC Iveco Hongyan and the introduction of Iveco's STRALLIS prototype vehicle. Therefore, Iveco stopped importing Chinese original heavy-duty vehicles.
It can be seen that although Iveco did not sell imported cars in China in recent years, both Iveco brand light passengers and Jewels with Iveco technology should be counted as Iveco sales in China.
Establishing a Chinese company not only to sell cars
If we understand that transnational corporations are multinational sellers, then Iveco is right to "return to China." However, companies confined to commodity exports are not really multinational companies. The reason why transnational corporations are called transnational corporations is nothing but two important features: First, the company’s products, technologies, brands and capital are exported in all directions around the world; the second is the headquarters of the group, and the layout of other regions in the world is Headquarters target service.
Therefore, the Iveco (China) Commercial Vehicle Sales Co., Ltd. (hereinafter referred to as "Iveco China") established on September 29, 2012 has a more comprehensive multinational company characteristics.
On the day the company was founded, Iveco announced that Iveco China is one of the four pillars of Iveco's global strategy and will become an important executor of Iveco's strategy and business in China.
What is the task of establishing Iveco China, one of the four pillars of the world?
It is understood that Iveco China's mission is to import high-end commercial vehicle products made in Europe into China, complement the advantages of products from joint ventures in China, and meet the needs of domestic customers for high-end commercial vehicle segment markets, and enhance the overall Iveco brand in China. At the same time, China will be built into one of Iveco's globally important bases, and Iveco's products in China will be integrated into the Iveco global system to enhance its competitiveness in the global market, particularly in Africa, the Middle East and Latin America.
In brief, Iveco China's three goals are: importing original vehicles into China, producing and selling joint venture vehicles in China, and exporting joint venture vehicles from China.
The three major target components differ in domestic production share
At the Iveco Asian premiere ceremony for three new cars, China’s general manager Wang Ning further explained the three tasks of Iveco China: “Iveco first hopes that two joint ventures in China – Nanjing Iveco and SAIC Iveco Hongyan can continue to expand. Stronger, Nanjing Iveco’s goal is to grow to more than 300,000 units on the basis of 150,000 units of sales per year. Red Rock’s target is from today’s less than 20,000 vehicles to 80,000 units. Secondly, China is used as a production facility. The base carries out large-scale export overseas. At present, China's two joint ventures have an annual export volume of about 8,000 vehicles. Our goal is to reach 50,000 vehicles in 2016. Third, to introduce Italian high-end Iveco models in China. It will quickly reach 20-30% of its imported heavy truck market share in China from the current state of zero."
From Wang Ning's statement, it can be seen that selling cars is only the last of Iveco's three major tasks in China, and there are also differences in quantitative aspects.
At present, China's high-end heavy trucks have a total annual sales of about 10,000 vehicles. According to Iveco's goal of “to achieve 20%~30% market shareâ€, that is 2000~3000 vehicles. Even considering that the growth rate of China's high-end heavy-duty truck market will be higher than that of the overall heavy-duty truck market, Iveco's sales target in China can only be calculated in thousands of vehicles, probably less than 4,000 vehicles.
For Iveco's first two goals, the first is to reach the export volume of 50,000 vehicles in 2016, and the second is to reach sales of 300,000 vehicles. These two goals are relative to the import target of less than 4,000 vehicles, which is 10 times that of Iveco. And 60 times. It can also be seen that Iveco's expectation and share of different business sections.
Intensive Iveco layout China speeds up
It can be seen that Iveco China's mission is to import capital, technology and brand to China, export Chinese localized products, and gain sales and profits.
Then, how will Iveco China achieve its sales target in the Chinese market?
Wang Ning stated that Iveco will, as always, support joint ventures, especially in terms of product technology updates, and import more European advanced technologies into joint ventures to win strategic advantages under this new competitive environment of technology upgrades and product upgrades. Secondly, while "Iveco China" was established, it continuously increased its investment in the Chinese market and won competition through technology.
Previously, Italy's Iveco's global CEO Altavilla once said: "In the next three years, Iveco will invest 1 billion euros to update Iveco's global product line. The first was to launch the new Iveco Turbo Daily light passenger product in 2013. It is a brand new heavy-duty tractor Strallis. These new products and new technologies will follow it into China.â€
In order to increase the speed and speed of the layout of China, Iveco has implemented a number of measures since this year. On the one hand, in October of this year, the author saw a heavy truck bearing the IVECO logo on SAIC Iveco Hongyan. At that time, the relevant personnel told the author that the vehicle was about to be exported overseas. Prior to this, SAIC Iveco Hongyan never produced Iveco products. The batch of trucks bearing the “IVECO†trademark were exported by Iveco China through Iveco's overseas network. It indicates that China has become an important base for Iveco's global market. Iveco's factory in China must not only satisfy the local market, but also satisfy Demand in other parts of the world.
At this year's Guangzhou Auto Show, the author once asked Wang Ning whether the vehicles were "masterpieces" after the establishment of Iveco China. Wang Ning gave an affirmative answer. Not only this, Wang Ning also said that in the future will increase the export of such heavy trucks. According to reports from SAIC Iveco Hongyan, in 2013, exports of such models are expected to reach more than 2,000 vehicles.
According to Nanjing Iveco's news, Nanjing Iveco will transfer the export business to Iveco China, and expand Iveco's overseas exports through Iveco's overseas network, including light passenger vehicles bearing the Iveco logo, and light trucks using the Yuejin trademark. Not only that, Iveco China is even getting in touch with Steam China, hoping to become an overseas agent for SAIC Chase.
In addition, on November 22, Iveco released three new cars on the first day of the Guangzhou Auto Show, which also attracted a lot of media attention and lens. All three models are medium-duty trucks designed and manufactured in Europe. One is Iveco's latest heavy-duty tractor, the Strallis. In September of this year, he won the 2013 Truck Award; one is a 6 to 18-ton Euro cargo card, and Leading players in similar markets in Europe; one is Traker, a representative of Iveco in heavy heavy duty.
This is Iveco's once again after a lapse of N years, once again brought the latest generation of medium and heavy trucks designed and manufactured in Europe to China. As for the purpose, naturally it is hoped that with these vehicles, it will be able to obtain a share of the high-end heavy truck market in China. Since the establishment of SAIC Iveco Hongyan in 2005, Iveco has stopped importing trucks to China. In the face of the fact that the annual sales of high-end heavy trucks have exceeded 10,000 vehicles and the future growth trend, Iveco’s decision still needs a share. The special envoy is Iveco's sales in Europe, which can be exported to China, and it can undoubtedly be its European factory. Provide more job opportunities. Therefore, as a commercial vehicle sales company in China, one of the important tasks of Iveco China is to sell high-end trucks produced in Europe to China.
It is reported that Iveco's latest heavy-duty tractors and the heavy truck Strallis, which was awarded the European Truck Award 2013 in Europe, are priced at only 850,000 yuan in China. This price can already serve as a crazy activity for e-commerce companies in the United States during holidays, and it may be able to spike into a group of imported heavy-duty enthusiasts.
From the above analysis, we can see that Iveco’s goals are ambitious, measures are awesome, and progress is obvious. However, without comparison, it cannot be concluded that "Iveco is one step ahead in China". How exactly do other multinationals perform in China? Can you beat Iveco? And will be resolved next time.
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