Joint venture is awaiting approval
In September 2010, Navistar signed an engine joint venture agreement with JAC Motor in Beijing. At the same time, NC2, a joint venture company with Caterpillar Inc. of the US, and Jianghuai Automobile have signed an agreement on a joint venture for medium and heavy trucks, and Navistar entered this field of vision.
According to reports, Navistar is a company that produces commercial vehicles and diesel engines. Its sales of medium trucks, special trucks, and school buses are among the highest in the North American market. Sales of heavy trucks have increased by 9% year-on-year in the past three years.
The Navistar Group will not simply bring products produced in the United States to China, and the joint venture with Jianghuai is awaiting government approval. The entire vehicle project is still under negotiation. The most urgent desire of Navistar is that the joint venture project will be approved by the government, and the Chinese partner will work hard to promote this project. The two sides have relatively smooth communication and negotiation.
Will launch a joint venture brand
Compared to those European commercial vehicle companies that came to the Chinese market earlier, Navistar was about 10 years later. As a latecomer, the former European commercial vehicle giant Mercedes-Benz and Volvo have not been successful in expanding the Chinese market. How Navistar will occupy a place in the Chinese market has attracted attention.
Foreign companies have many unsuccessful cooperation cases in China. Whether they are successful experiences or lessons learned from failure, they are worth learning from. The Chinese market is huge and potential is continuously being released. In 2010, automobile production and sales accounted for almost 40% of the world's total. Compared with Europe, China's geography and transportation infrastructure are more similar to those of the United States. The key is that products and technologies are suitable for the needs of the Chinese market.
Navistar will conduct joint research with JAC on the market and will not simply take products produced by Navistar in the United States to China. It is necessary to first establish a research and development center, introduce advanced technologies from Navistar through this center, and develop new medium and heavy trucks together with JAC. Joint venture products not only target the Chinese market but also export. Products sold in the Chinese market will use JAC's marketing network.
Today, commercial vehicle joint ventures also need their own brands. Navistar will build a joint venture company brand with JAC. Navistar will neither use the brand nor use the JAC brand to produce trucks. The joint venture will develop new vehicles and will not directly copy US products to China. American companies are relatively pragmatic and open, unlike European companies, which emphasize their own lineage and brand. Navistar has set up an R&D center in China. The United States headquarters plans to send a Chinese national manager to take full responsibility.
The product is subject to market demand
In the product introduction planning, the first product to be imported is expected to be a diesel engine, which will introduce the latest engine from Navistar into China. For the vehicle, it is planned to introduce a light commercial vehicle with an engine displacement of 3.2 to 4.8 liters.
In addition to trucks and engines, Navistar has produced school buses for more than 40 years and is known for its solid safety. If there is demand in the Chinese market, there is also the desire to introduce it. However, there are still many uncertainties in China's school bus market. Navistar will wait and see for some time before making a decision. At present, there are no specific plans. The idea of ​​passing the school bus with the Huai River Ditch is not necessarily placed on JAC production. It mainly depends on Jianghuai's wishes.
In the United States, long trucks are the dominant products. In China, due to the restrictions imposed by the relevant standards on the length of the vehicle body, the current development of long trucks is not optimistic. The United States has also experienced a flat-topped car as the mainstream stage of the market, but a simple regulatory adjustment will make trucks in the United States turn from flat cars to long cars almost overnight. The reason is very simple. Long heads are safe, comfortable and fuel-efficient. Drivers do not need to sit on top of the engine, and fuel economy can be reduced by 10%, making maintenance easier. The wider roads and developed high-speed road network are suitable for long-haul trucks. Long-head trucks can improve transportation efficiency and reduce the cost of use.
Navistar's product line is very complete, long head and flat car. If the Chinese market does not currently have long truck demand, we will develop and produce flat products in accordance with Chinese regulations and current conditions.
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