From tenacity to compromise on the 10-year joint venture process of Daimler commercial vehicles in China
Hot-dip galvanizing (HDG) is the process of coating iron, steel or ferrous materials with a layer of zinc. This done by passing the metal through molten zinc at a temperature of 860°F (460°C) to form zinc carbonate (ZNC03). Zinc carbonate is a strong material that protects steel and can prevent corrosion in many circumstances. Hot-dip galvanizing can be carried out cheaply and in large batches.
Oval Steel Pipe,Welded Oval Pipes,Astm Welded Oval Tube,Stainless Steel Oval Pipe SHANDONG HUITONG STEEL CO.,LTD , https://www.cnhuitongsteel.com
The joint venture process of Daimler in China is full of thorns: the joint venture with Yaxing has lasted for 4 years; and the negotiation process for the establishment of Fujian Daimler Automotive Industry Co., Ltd. took 6 years; and Foton Motor’s The joint venture also lasted for 5 years.
4 years of difficult negotiations turned counterproductive
In March 1997, after four years of difficult negotiations, Yaxing and Daimler-Benz (former Daimler) formed a joint venture of Yaxing-Benz, each with a 50% stake and a total investment of 95.5 million U.S. dollars. Set up two production lines to produce Mercedes-Benz and Yaxing series passenger cars.
According to a person familiar with Yangzhou, Yangzhou, the joint venture was one of the results of high-level visits to Germany at that time and was highly hoped by the public. At the time of negotiation, it was determined that Yaxing-Benz's business scope was more than 8.2 meters for non-urban buses, and subsidiaries of Yaxing Passenger Vehicles Group Co., Ltd. produced non-urban buses and all city buses under 8.2 meters (inclusive).
However, subsequent developments are counterproductive. At the beginning of the joint venture, Yaxing-Benz introduced 4 high-end passenger cars from 8 meters to 12 meters. As all these buses were imported by Mercedes-Benz, the chassis was assembled, the localization rate was less than 2%, the price was high, and the product itself was not mature enough. The final result was that in addition to the YBL6120, the other 3 models were discontinued. According to informed sources, the real hidden trouble lies in the fact that the two sides' struggle for control rights and joint ventures are not complete, and the final joint venture ended in failure.
6 years of successful cooperation with Fuqi
In 2001, Dai-ke (before splitting) signed a cooperation letter of intent with Fuqi Group and planned to cooperate directly with Fujian Southeast Automotive. However, due to the fact that Southeastern Automobile already has 50% of Taiwanese capital, Dai-ke had to work with Taiwan. China first established Daimler Light Vehicle (Hong Kong) Co., Ltd., and then it indirectly realized cooperation with Southeast Fujian Automobile.
On October 23, 2007, Fujian Daimler Automotive Industry Co., Ltd. officially laid the foundation in Fuzhou, and the Mercedes-Benz light passenger car project finally entered the construction phase after it had waited for 6 years.
Gradually compromise Double brand becomes single brand
On August 7, Daimler and Foton Motor signed a letter of intent for cooperation. The biggest change was that Daimler gave up the production of the Mercedes-Benz brand heavy truck in the joint venture company.
"Commercial Auto News" reporter learned that in earlier times, Daimler had talked with FAW Group about the joint venture production of heavy trucks, but due to Daimler's toughness, requiring the joint venture to give up the liberation of the brand, the final joint venture with FAW failed Below.
Why did Daimler choose to compromise after the joint venture with Fukuda?
Industry sources told reporters that, first of all, the Mercedes-Benz brand as a high-end heavy truck sales in China is limited, it is not cost-effective to spend a lot of money to build a new production line. Secondly, Daimler's joint venture in China did not bring good returns. For the current Daimler, seizing the opportunity for the rapid development of China's commercial vehicle market, to obtain better returns is its most urgent desire. The Chinese government's attitude of encouraging the development of self-owned brands has also allowed Daimler to give priority to the development of the Futian Auman brand to gain government support and ensure the successful adoption of the joint venture project. “Daimler also conducted meticulous research and analysis of the Chinese market, considering comprehensive considerations in various aspects such as national policies and market environment, and eventually made concessions,†said the person in the industry.
View related topics: Fukuda and Daimler succeeded in creating commercial vehicle giants