Invested 6.35 Billion To Build A Commercial Vehicle Giant Fukuda Daimler

Foton Motor announced last week that its board of directors has approved plans to establish a medium-heavy-card joint venture with Daimler. The total investment of the project will be as high as 6.35 billion yuan, of which Futian will invest in the existing assets of Auman, and Daimler will invest 2.8 billion in cash.

As this cooperation will be oriented toward the global market in the future, while Daimler will help Auman heavy truck technology upgrade, but some analysts worry that some uncertainties in the joint venture may bring new risks.

Joint venture company established in August this year

Foton Motor stated that the joint venture company is Beijing Foton Daimler Automotive Co., Ltd. The total investment of the joint venture project is 6.35 billion yuan, of which the registered capital is 5.6 billion yuan.

Futian will inject the assets of the existing Auman truck business into the joint venture company, and the value of the assets injected will be assessed as RMB 2.8 billion, which is equivalent to half of the registered capital. The other half registered capital was invested by Daimler and Daimler Northeast Asia in cash. The difference between total investment and registered capital will be settled by the joint venture through bank loans.

In this announcement, Futian first made it clear that the joint venture company will be established in August 2009. After the establishment of the joint venture in the future, the products will include the Daimler OM45712 litre diesel engine with an emission standard up to Euro V (produced by the end of 2011 trial production) and Auman's existing medium- and heavy-duty trucks and fittings OM457. The engine's Auman heavy truck upgrade (also known as the hybrid model, scheduled for production in 2012). The joint venture vehicle product only uses the "Futian Auman" trademark. The sales target of the joint venture company is to reach 10 medium and heavy trucks by 2015, sales of heavy truck hybrids will reach 40,000 units, and the production of QM457 engines imported from Mercedes will reach 45,000 units.

Future cooperation will be global

From the sales structure of domestic trucks in recent years, the proportion of light trucks and medium trucks has decreased year by year, while the proportion of heavy trucks has increased. Therefore, the heavy truck sales prospects in the country are widely expected. This year, China has also issued 4 trillion yuan to expand infrastructure construction, which will stimulate the demand for the heavy truck market more forcefully. From this analysis, the joint venture between Foton and Daimler conforms to changes in the market. It also takes into account that the joint venture partners are the world's largest and China's largest commercial vehicle manufacturers respectively, and the prospects of the joint venture project's domestic market are promising.

However, Foton Motor also disclosed that the fight for the domestic market is only the first step. The greater ambition of both parties in the future lies in global cooperation.
According to the plan, the joint venture company will become the operation center for the future global cooperation of Russia, South Asia and Central and South America. It will be the center of management, decision-making, R&D, production, supply chain management, marketing management, etc. The project will serve as a regional production and sales center. After the completion of the project, both parties intend to establish a Russian joint venture within 2 years, a South Asia joint venture within 3 years, and a Sino-South American joint venture within 5 years.

In addition, a technology center will be established in the joint venture company. The goal is to enable the full-scale independent development, development, and improvement of existing products for the vehicle, chassis, and key components of the various models produced by the company. . Daimler will provide support to the Technical Center with expert guidance, technical training and necessary development of technical software and hardware.

The prospect of cooperation remains to be seen

Different from the traditional domestic automobile joint venture projects, the joint venture between Foton and Daimler has achieved innovation in many aspects, including the use of independent brands, the establishment of R&D centers, and the global market, which has been well received by domestic commercial vehicle operators and analysts.

Dongfeng Motor stakeholders believe that because of the successful joint venture projects in the domestic commercial vehicle sector, there is almost no such cooperation, at least for the industry to provide a reference to the idea.

Ping An Securities issued an investment report on January 7th, and approved the "Recommendation" rating of Foton Motor for the approval of the project. Cinda Securities analyst Xing Haizhi believes that the cooperation between Foton and Daimler-Benz will make the company's medium-heavy truck industry chain more complete. At the same time, the control of core and key components will no longer be controlled by others, providing important support for the implementation of overseas strategies. .

However, there are also some analysts who are cautious about the project's prospects based on uncertainties in the joint venture. Some people pointed out that due to the lack of high-end heavy truck core technology and low self-profit margin, Futian will have an imbalance in power and discourse power in future joint ventures. Jia Xinguang, a well-known automotive analyst, said that since it is currently determined that Mercedes-Benz will only introduce heavy-duty engines, and Mercedes-Benz has always been conservative in its technical output, it is too early to judge the prospects of joint venture companies.
View related topics: Beiqi Futian, Futian Automobile brand value of 22.157 billion yuan

Steel & Stainless Steel Milling

Cnc Milling Parts,Cnc Machining Parts,Cnc Turning Parts Co., Ltd. , http://www.cnmouldcomponents.com