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The 62nd Hanover commercial vehicle launch. Daimler AG, the world's largest commercial vehicle manufacturer, exhibited its environmental protection, safety and energy-saving technologies. However, for the company, how to expand the new business vehicle business growth beyond the depressed US and European markets is a top priority.
"Difficult" moment
In 2007, global sales of Daimler trucks fell by 9%. The main reason is the decline in sales in the United States, Canada, and Japan. In 2007, the United States increased the truck's emission standards, leading to a large amount of trucks' early consumption in 2006. In the first half of this year, Daimler's truck sales in the United States dropped another 30% year-on-year.
From January to August 2008, global sales of Daimler Trucks increased slightly by 0.4% to 311,000 vehicles, slightly higher than the same period of last year. Among them, Mercedes-Benz brand trucks sold 110,000 vehicles, an increase of 9% year-on-year. Brazil and the Middle East have become the two most important growth engines. In the past 8 months, Daimler's passenger car orders have also increased by 3%, the main growth from Latin America, Eastern Europe, Middle East and Southeast Asia.
Compared with two years ago, the global commercial vehicle market has undergone great changes. As raw material and fuel prices rise, the pressures of safety, environmental protection, and energy saving and environmental protection increase, and more importantly, the global economic turmoil triggered by the subprime mortgage crisis has cast a shadow on the growth of the commercial vehicle market. The global economic slowdown has affected commercial vehicles. The blow will be very significant.
However, Andreas Renschler, executive director of Daimler AG and president of CardBus, said that the motivation for auto companies to meet these challenges is also huge. Many years ago, science-fiction-like technology has now become a reality. The application of new technologies can Further reduce costs and increase efficiency.
Right now, multinational auto giants including Daimler have turned their sights on the so-called four countries of gold - "BRIC" - Brazil, Russia, India and China. According to Daimler's survey, the sales of heavy trucks in these four countries currently account for half of the world's sales. The annual sales of heavy trucks in China and India are about 500,000, which is equivalent to Daimler's annual sales. Truck sales.
Weissmann, chairman of the German Automobile Industry Association, said that the growth of the commercial vehicle market in countries such as India, Russia, China and Turkey has become a guarantee for companies to maintain their position in the industry when difficulties arise in the global commercial vehicle market.
At least so far, China's commercial vehicle sales have maintained a relatively high growth rate. According to statistics from China Association of Automobile Manufacturers, from January to August, the sales of commercial vehicles in the Chinese market increased by nearly 16% year-on-year. Among them, heavy truck sales increased by more than 33%. Although it still maintained a relatively high growth, the increase was already lower than that in the first half of the year. Russian car sales also have a slowing trend, but it is not obvious at present.
Joint venture Futian
The development of the gold four-country commercial vehicle market has brought new users, but it has also brought new competition. In the global medium and heavy truck rankings, half of the top ten leading manufacturers are Chinese or Indian companies. Although Daimler has the world's largest commercial vehicle sales scale and the most advanced technology, it is not easy to expand the Chinese market.
So far, the sales volume of Daimler commercial vehicles in the Chinese market is not large at present. In the global market of Mercedes-Benz trucks, the Chinese market share is also very low. Mercedes-Benz trucks in the Chinese market are mainly concentrated in the construction industry, oil field mining industry, and special industries such as postal services and large-scale transportation. In 2007, Mercedes-Benz trucks sold 1,580 vehicles in China, a year-on-year increase of 53%, and it is expected to exceed 2,000 vehicles this year.
Comparable, according to data from commercial vehicle brands provided by Beijing Polka Auto Consultation Co., Ltd., in 2007, in the heavy-duty truck market of over 19 tons, FAW's license data was 13,780, ranking first, followed closely by China. Heavy trucks sold 13772 vehicles.
Around 2005, Daimler once abandoned the local production strategy of commercial vehicles in China and focused on the imported car business. As of August this year, its joint venture with Foton revealed a dawn, and the company will reassess its local production in China. At present, China does not import more than 5,000 high-end heavy trucks each year. If Mercedes-Benz trucks want to make a difference in China, they should not rely solely on imported cars and must achieve breakthroughs in local production.
So far, China's commercial vehicle joint venture projects have not been operating smoothly, including the previous Yaxing Mercedes-Benz. Hua Lixin, chairman and CEO of Daimler Northeast Asia, said that Daimler will learn from past cooperation. Since August and Foton Motor signed an understanding
Since the forgotten records, both parties have been in contact with the relevant government departments. If the joint venture project is approved by the Chinese government, the Auman brand truck manufactured by the joint venture company will join Mercedes-Benz's heavy truck engine technology and will integrate the safety, environmental protection and economic performance of Mercedes-Benz trucks, which will ensure the success of the joint venture company.
According to related parties of Foton Motor, the approval of the joint venture project between the two parties is progressing smoothly and it is expected to be approved before the end of the year. At present, apart from contacting the relevant government agencies, the two sides have begun to carry out some specific work on the construction of joint venture companies.
Low price strategy
"The joint venture with Foton Motor aims to produce lower-priced models in China and provide the latest technology while reducing costs," said Hua Lixin.
Due to the adoption of many advanced technologies and research and development costs, the price of Mercedes-Benz commercial vehicles is higher, which helps maintain a stable profit margin, and is also a goal pursued by Daimler. These high-end models cannot currently become mainstream in the Chinese market. However, the technical level of trucks produced by Chinese domestic companies has not kept pace with advanced trucks in Europe and cannot meet the needs of some high-end markets. A joint venture between Daimler and Foton Motors is expected to solve both problems simultaneously. Daimler has advanced truck technology and technological innovation capabilities, and Foton Motor understands the Chinese market better and also has low-cost manufacturing capabilities. Both parties hope that their cooperation can improve product quality and technology while reducing product prices.
Hua Lixin said: "Daimler will try to reduce costs, but the high-price situation is difficult to change." Some lower-level models may be suitable for market demand in some parts of China, but in the medium to long term, Those old models will not be able to meet environmental, safety and economic needs. Therefore, Daimler will jointly produce more new models with Foton.
Due to limited space in the high-end heavy-duty truck market and the protection of the brand, Daimler still dared not venture to produce Mercedes-Benz heavy trucks in China. In fact, Daimler’s joint venture product in India will also use a new brand instead of the Mercedes brand. The project it is negotiating in Russia will not use the Mercedes-Benz brand in the future.
According to the above-mentioned Foton Motors, the price of imported Mercedes-Benz heavy trucks cannot be reduced. In the early stage of the joint venture, the use of Mercedes-Benz heavy truck technology and engines to upgrade the technical level of Auman Heavy Trucks is a low-cost strategy of Daimler AG. The price of the modified Auman heavy truck will be slightly higher than that of some domestic companies but will be worth the money.
With the increase of China's commercial vehicle emission standards and users' requirements for product quality and economy, the advanced, reliable, and durable products of high-end heavy trucks will offset the burden on users of higher prices at the time of purchase. By then, the Mercedes-Benz brand heavy truck will have the possibility of being made in China.
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