Is EGR or common rail? It seems to be far away for Weichai. The question before this overlord of the high-power diesel engine is how to win the future war.
On July 9, Weichai announced that it will join forces with Bosch. On the one hand, it is the largest internal combustion engine manufacturing enterprise in China. On the other hand, it is the world’s largest auto parts manufacturer. This signifies a long-term strategic cooperation agreement with business partners that have cooperated for many years. The cooperation between the two sides has been deepened.
Just a week later, China National Heavy Duty Truck announced that the company will carry out long-term strategic cooperation with the global truck technology leading industrial group Germanman at the technical and capital level.
“In the financial crisis, the Chinese market is better. Foreign companies are targeting the Chinese market. After the heavy trucks, the foundation was relatively thin. Now a new pattern is emerging.†Han Ra, deputy secretary-general of the China Automobile Industry Association, told reporters that before heavy trucks and Weichai etc. Companies are still staking their mad staking. Now that companies are paying more attention to technology, there is no doubt that joining forces with multinational companies is a good choice.
In fact, the strong opponent faced by Weichai is not only heavy-duty trucks. In the forthcoming phase IV of the country, its opponents also have heavy-duty engines that are competitive, and a new round of competition for heavy-duty truck engines has already begun.
Continued
The contest between CNHTC and Weichai has not been interrupted.
After Weichai and China National Heavy Duty Truck officially separated their families, Weichai stopped supplying heavy-duty engines. Weichai once took a 75% share of the heavy-duty diesel engine market. At the same time, Weichai Power owns independent intellectual property rights. Series Euro III diesel engines come out, which makes the heavy-duty trucks fall into a very passive situation.
China National Heavy Duty Truck started to study the State III technology, which lasted one and a half years and developed the EGR technology diesel engine. The entry of EGR broke the high price of high-pressure common rail, and the price of a heavy truck was reduced by more than 10,000 yuan. This enabled heavy trucks equipped with EGR engines such as China National Heavy Duty Truck to rapidly expand the market share of the State III heavy truck.
Due to the low price competition with EGR, it is only by closing the price gap that the situation can be changed.
In 2007, Bosch took an exclusive supply of Weichai Power to the engine's fuel injection system, and the two parties worked together to create a high-level supply chain and seize the European engine market, which is the standard for Europe III and beyond. In a short period of one year, the capacity of the Weichai Power Blue Engine has reached 120,000 units, of which the high pressure common rail system has contributed.
Weichai first announced that the price of high-pressure common-rail engines will be reduced, and the price of one high-speed common rail engine will be about 10,000 yuan. It is obviously that the loss of the sale of this is also a frustrating move, they do not want to see the market lost.
The price reduction is only to hope that more users can understand the superiority of high pressure common rails. In the interview, Weichai declined to name an insider and said that after the price cut, the low price advantage of EGR products is no longer the advantage of high pressure common rail products. First, product technology is advanced, and the structure is reasonable. Second, the stability of the State III emission standard is achieved. Third, the high pressure common rail heavy truck adopts the electronic control method, and it is easier to upgrade the emission standard.
The decrease in the price difference has reduced the strength of CNHTC in the market once again. Obviously, the lifeline of China National Heavy Duty Truck is being held up by the ever-increasing environmental protection standards and engine technology. Industry insiders pointed out: "China National Heavy Duty Truck's engine can achieve Euro III standards, but it is difficult to achieve Euro IV and Euro V."
When we saw that the sales volume of China's auto market became the world's first for six consecutive months, in order to save the decline in profits (the first quarter of this year's financial report showed that the German company's net profit decreased by 43.8% compared to 2008), we have always hoped that in China The company that has gained more benefits in the market has finally taken an important step. On July 15th, the German company Mann Group signed an agreement with China National Heavy Duty Truck (Hong Kong) Co., Ltd. The former spent 6.048 billion Hong Kong dollars (about 5.3 billion yuan) after obtaining the agreement. The 25% shareholding plus one share is intended to achieve a greater share in China. Undoubtedly, Man Corporation has also become the rescuer of China National Heavy Duty Truck.
According to the agreement between China National Heavy Duty Truck and German Man Company, German Man Company will grant China National Heavy Duty Truck a related T80, D20, D26 engine and other related technologies for complete TGA trucks, in line with Euro III, Euro VI and Euro V emission standards. “The three engines are all starting in Euro III, but the technical indicators are for Euro IV and Euro V. It is worth noting that the three engines introduced this time are high-pressure common-rail engines that were previously equipped with electronic control of TGA. In-line pump engine D28 (MAN has stopped production) has not been introduced, which may mean that heavy truck in the country IV will be turned to high-pressure common rail." United Securities analyst Huang Weixi told reporters.
Joining hands
In recent years, with multinational companies such as Bosch, Germany Mann, Cummins and others taking the devious strategy of entering the Chinese market, they have conducted in-depth joint ventures and cooperation with Chinese companies, and a multinational and Chinese companies have joined forces to capture the new pattern of stifling the Chinese market. form.
It has been one year since China implemented the State III emission standard. Weichai and Bosch have once again joined hands to cooperate on the fuel injection system project. Bosch will use its own technological advantages and experience to support Weichai products to meet emission regulatory requirements, thereby enhancing the market competitiveness of Weichai products. Weichai will use its market influence to support Bosch in expanding its influence and market share in the Chinese market.
Analysts pointed out that Weichai's alliance with Bosch is no more than the development of a higher-level engine and will reduce costs together. Bosch still has room to cut prices, which also indicates that the price difference between high-pressure common-rail and EGR will become smaller and smaller.
"This time the two parties sign the contract again is not only the need for the two companies' international development strategy, but also the need to participate in international competition. It will help combine the advanced technologies of Europe with China's national conditions, and introduce a price and technology suitable for the Chinese market. The dual advantage of the engine is conducive to establishing an international, rapid and flexible market R&D and production mechanism; it is beneficial to complement each other and build Chinese-style engine manufacturers with strong technical capabilities, said Tan Xuguang, chairman of Weichai Power.
The other party, Sinotruk, and MAN's cooperation involve capital and technology, and introduced the most advanced vehicle platforms and engines of today. More importantly, the transfer also includes the cab, chassis, axles and transfer boxes, etc. The series of related technologies means that SINOSTEEL will have a world-leading level of truly new vehicle platforms. In the past, in the long-distance truck market (ie, semi-trailer tractors), CNHTC was relatively under-competitive due to its own products and other major factors. After introducing TGA this time, it has taken a leading position in this market, especially in the high-end truck market. "The depth and breadth of cooperation between the two parties far exceeds that of previous commercial vehicle companies," Huang said.
However, the three engines that CNHTC and MAN cooperated with were all matched by Bosch's high-pressure common rail fuel injection system. As a result, Bosch signed an exclusive supply agreement with Weichai for the common-rail system of large-piston engines. This agreement will be held this year. It is still difficult to judge whether the renewal will expire or not. If the two sides renew their contracts, MAN may need to re-equip the CNR's common rail system.
Taking into account the construction cycle factors, United Securities expects that the new production line for the entire vehicle and engine will be put into operation in 2011. Therefore, there is still enough time for matching work. It is expected that the delay in the production of the common rail system will not affect the production schedule.
Of course, the successful cooperation between China National Heavy Duty Truck and MAN has undoubtedly exerted great pressure on Weichai's engine business and other companies' heavy truck business. However, Weichai seems to have a certain expectation. It has been actively entering engineering and marine engines and other fields.
Huang Weixi believes that the future success of Weichai lies in the transformation of general-purpose engine suppliers and its long-term development is still promising. In addition, the introduction of new models of heavy trucks and new engines has clearly enhanced future competitiveness. At present, there is a large gap between the domestic technology level and foreign countries, which may prompt other heavy truck companies to accelerate their moves in attracting foreign partners.
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