European Commercial Vehicle "Tech Emperor" Faces Choice


After experiencing the global financial crisis, the European commercial vehicle industry still has a long way to go. As the largest and most influential commercial vehicle show in Europe and even in the world, the Hannover International Commercial Vehicle Show (hereinafter referred to as "IAA") has never been as urgently needed for innovation, change and development. "New" and "change" are not only embodied in technology and products, but also reflected in the strategic adjustment and shift of market focus of commercial vehicles and parts companies in Europe.

In 2009, European commercial vehicle sales fell by 80%, but the Dutch Hayward Group was hard hit. The group is the largest manufacturer of hydraulic systems for special vehicles in Europe. At the same time, it produces a series of heavy-duty special vehicles and equipment such as pull-arm vehicles and swing-arm vehicles.

Haiwo's joint venture company in China - Haiwo Machinery (Yangzhou) Co., Ltd. Executive Director Tan Hao told reporters that the development of the Haiwo Group is not affected by the financial crisis is important because 10 years ago began in China, India, Brazil And other countries build factories. Currently, Haiwo China's sales account for 35% of the Group's total sales. Collaborating with companies in developing countries and pursuing market diversification has enabled Hayward to survive the financial crisis. It is understood that under the leadership of Haiwo, some of the company's suppliers have also begun to plan to invest in China to build factories.

The joint manufacturer of commercial vehicle safety connectors, the German Yost Group, has the same experience. According to Altman, Asia Pacific president of the group, “The Chinese market is very attractive to us and the company has begun to consider further expansion in China.” The reporter also learned at this IAA that many European companies that build factories in China are There are plans to increase the capacity of Chinese factories. These companies hope to use Chinese factories as their production bases to radiate the surrounding markets.

In stark contrast to this, a group of European commercial vehicle companies with the best technical strength have suffered huge losses in the financial crisis and even faced the fate of bankruptcy. Even so, they still stick to their existing markets and stubbornly believe that their products do not have a market in China. German Croton company is a typical representative.

Frank, the German Sales Director of Crowne, told reporters that the biggest problem they face is weak market demand. He predicted that in the next 3 to 5 years, the German economy will be able to return to its pre-2008 level. When asked if there are plans to develop into emerging markets such as China, Frank said that the company's products are designed and produced in accordance with European standards and requirements, and that the prices are very high and are simply not suitable for sales in China. Establishing a branch company in China is responsible for the local sales and maintenance of products, and the investment cost is too high.

European commercial vehicle "techno-emperors" are unwilling to step out of Europe. There are three main reasons for cooperation with emerging market companies. First, Europe is the main consumer market for high-end commercial vehicles. With advanced products and technology, and huge sales profits, they are reluctant to spend. Efforts to open up new and unfamiliar markets; secondly, some companies have experienced bitter experience in the failure of joint ventures in China, and are reluctant to return to their sad places. Third, after the financial crisis, European companies have become more cautious of foreign investment and often need to go through repeated Market research and demonstration.

After the outbreak of the financial crisis, the concept of commercial vehicle companies in Europe has changed and the concept of consumers has also changed. It is undeniable that European companies still have the world's top commercial vehicle technology, but the problem is that the European market alone cannot support their subsequent development. From the reporter’s point of view, European companies have to go out and go out, improve their adaptability technology with advanced technologies, and serve the new market, so as to achieve greater development.

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