Insiders: Chinese and Western cultures are conducive to successful commercial vehicle joint ventures

Xinhua News Agency, Chongqing, September 25 (Reporter Wang Jintao) In recent years, many domestic commercial vehicle companies have joint ventures with multinational companies, but they have not produced the effect of “1+1>2”. The heavy trucks jointly produced by Volvo and the China Heavy-Duty Vehicle Group had sales of only 100 vehicles in the first half of the year; and the heavy trucks that Dongfeng and Nissan cooperated with each year had sales performance of 400 or less. The industry believes that the integration of Chinese and Western cultures is the key to the successful joint venture between Chinese and foreign car companies.

Yu Zhuoping, dean of the School of Automotive Engineering at Tongji University, recently said here that China’s commercial vehicles do need to improve their technological level. However, China is a developing country. It is not that the higher the technology is, the more effective the joint venture is. Combining with the characteristics of China's market, the technology of the existing brand vehicles will be brought up and the appropriate price will be maintained before the market competitiveness. Unsuccessful joint ventures are often desperately engaged in technology transfer. The cost has been very high. Naturally, they have to raise prices and eventually lose the market. The unsuccessful joint venture of commercial vehicles and the difficulty of integrating Chinese and Western cultures are an important reason. Xu Weida, former general manager of Shanghai Diesel Engine Co., Ltd., believes that the successful joint venture between Chinese and foreign commercial vehicle companies depends largely on the degree of integration of Chinese and Western cultures. For example, SAIC Iveco Hongyan has both the fusion of Chinese and Western cultures and the fusion of Chinese and Western cultures. Shanghai Diesel Engine Company once tried to establish a joint venture with Western companies, but failed due to poor cultural integration.

According to Xu Xingyu, former chief engineer of FAW Group, FAW Group had hoped to establish a joint venture with Mercedes-Benz to produce commercial vehicles. Initially, FAW had high enthusiasm and hoped to launch three brands together with Mercedes-Benz: one was FAW's “liberation” old brand, and the other was “mixed blood”. "Brand, one is the "Benz" brand. But then there was an irreparable rift between the two sides: FAW hopes to use Mercedes-Benz's strength to overwhelm its strong rivals such as Dongfeng and Futian, and Mercedes-Benz hopes to use FAW to consolidate its own brand, that is, there will be no FAW with FAW; FAW hopes to use the old factory building joint venture, Mercedes-Benz hopes to start another new green space. Xu Xingyi said: "We hope that Mercedes-Benz will help us beat our opponents. Mercedes-Benz wants to eat us first. We can't do it, and the joint venture will eventually come to naught."

Xu Xinglu believes that the reason for the breakdown of the negotiations between FAW and Mercedes-Benz is mainly due to differences in Chinese and Western cultures. The Chinese and Japanese are relatively easy to communicate with each other, but it is difficult to communicate with Europeans and Americans. Germans, in particular, often accept the truth of death and insist that Castle Peak does not relax and resolutely does not make concessions. Of course, as long as the signing of the agreement, the Germans are unconventional, speaking, and complementary with the Chinese people.

At the end of the first half of this year, Shanghai Automobile Group, Italy Iveco and the parent company of Hongyan Automobile, Chongqing Heavy-duty Truck Group, invested in the establishment of SAIC Iveco Hongyan Co., Ltd., which was formally established in Chongqing. Yang Shuyi, general manager of SAIC Iveco Hongyan, stated that compared with many countries in Europe and America, Italians are "Oriental people in the West" and are relatively easy to communicate. This is a key factor in the successful joint venture between the three parties.

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