ZF Beiben joint venture main brand

ZF Beiben joint venture main brand

January 2013, the German auto parts giant ZF (ZF) and Baotou Bei Ben heavy truck joint venture in Chongqing - North Pennines ZF Transmission Technology (Chongqing) Co., Ltd. Wang Hao, general manager of the original Chongqing Beiben Transmission Manufacturing Co., Ltd., served as the general manager of the joint venture company.

It is understood that the registered capital of the joint venture company is 122 million yuan, which is jointly established by both parties with a share ratio of 51:49. The foreign party is controlled by the foreign partner. It is mainly engaged in the research and development, application, production, assembly, testing, sales, and after-sales service of commercial vehicle transmissions. The joint venture project was signed on September 19, 2012.

Both sides have their own needs

Many people are puzzled: In the search for ZF joint venture partners in China for many years, why did you choose Beiben Heavy Duty Truck last? Why does Beibei choose ZF? In fact, ZF's previous first choice was the domestic passenger car transmission manufacturer - fang tooth.

In 2010, some media reported that the joint venture between ZF and Caichao has been nearly successful; however, in 2011, things turned awry, and the joint venture between ZF and Zambia was suspended. Since then, there have been no further joint venture rumors. According to reports, there are two main reasons for the failure of joint ventures between ZF and fangya: On the one hand, the development momentum of fangs in 2010 is very good, and the sales volume has increased substantially. Chongqing SASAC does not want to give control of dental caries to Zaire. On the other hand, the industry has also expressed concern and doubts about ZF Holdings, which has prompted Chongqing to no longer advocate a joint venture.

Industry insiders believe that ZF's joint venture with Beijing Beizhong Heavy Duty Truck Co., Ltd. produces transmissions, though unexpected, but it is reasonable. The combination of the two sides is the need for Beiben Heavy-Duty to achieve rapid development and ZF's need to break through the Chinese market. First of all, the main part of this joint venture is Beiben Transmission's holding subsidiary, Beiben Transmission Manufacturing Co., Ltd. The company introduced ZF mechanical gearbox manufacturing technology in 1986 and ZAFG's production quality certification in 1993. Therefore, the origin of Beiqi Heavy Duty Truck and ZF Company is no less than dental caries.

Second, as China's commercial vehicle market gradually expands, ZF needs to seize the Chinese commercial vehicle transmission market. Although ZF Transmission Technology (Hangzhou) Co., Ltd., which was incorporated in 2005, is the first wholly-owned factory for transmission of truck transmissions established by ZF in China, the sales volume has been relatively small since the factory mainly manufactures high-end transmissions. From January to October 2012, the company sold more than 16,000 units. This figure is obviously far from China's huge truck market.

Thirdly, as a key development industry of China North Industries Group, the Group requested that Beiben Heavy Duty Truck Co., Ltd. achieve production scale of 170,000 complete vehicles, 60,000 engines and 60,000 transmissions in the “12th Five-Year Plan” period, and also promoted The cooperation between the two. And most importantly, in this joint venture, ZF has achieved control.

The flagship co-branded target of 15,000 units in 2012

According to the target plan set by the Ordnance Industry Group for Beiben Heavy Duty Truck, by the end of 2014, Beiben Heavy Duty Truck will have a transmission capacity of 60,000 units. In this regard, a staff member of the sales company of the joint venture company stated that before the joint venture, the original Chongqing Transmission Company had an annual production capacity of 30,000 units; after the joint venture, the new company will achieve an annual output by reconstructing the existing production line and expanding the new production line. 60,000 units.

This time, Bei Ben Heavy Duty Trucks spun off the original transmission company's civilian products business and placed it in a new joint venture company. The original transmission company retained its military products business and no longer involved civilian products. The staff member said that the joint venture will mainly produce heavy-duty truck transmissions and large and medium-sized bus transmissions. "In the future, we will gradually introduce ZF's AMT gearbox and AT gearbox according to development and market demand."

In the product brand, the joint venture company will adopt a joint brand strategy. "All products produced by the joint venture company will be branded as ZF Beiben." For the first year of the joint venture company, the staff member also stated that the company's 2013 sales target was 15,000 units, including 6,000 heavy-duty truck transmissions and 9,000 large and medium-sized passenger car transmissions. Regarding the new joint venture company, Dai Zengqi, a representative of ZF's commercial vehicle and transmission technology for special vehicles, told reporters: “We will hold a press conference at the Shanghai Auto Show in April 2012 and we will formally announce this matter.”

Joint venture prospects are still waiting to see

In the heavy-duty transmission market, Fast and Crush dominate the transmission market of heavy-duty transmissions and large and medium-sized passenger cars respectively. With the strong momentum of independent transmission enterprises and the competitive pattern of production of medium and heavy-duty transmissions by auto manufacturers, what are the prospects for the joint venture between ZF and Beiben Heavy Duty Truck? In China's heavy-duty transmission market, can ZF and Beiben Heavy Gas be able to blaze a trail of blood?

According to Tan Xiuqing, member of the National Automotive Standardization Technical Committee and an expert in the heavy truck industry, the ZF-BBE joint venture company's impact on the heavy-duty transmission market is basically not considered. “The transmission that the joint venture company just started to produce is basically used only by Beiben Heavy Duty Trucks in the initial period and the amount is relatively small. Only when it is gradually bigger, it will be sold out. This requires a process.”

Tan Xiuqing also believes that ZF currently does not perform well in the transmission manufacturing plants in Suzhou, Hangzhou and other places in China. "ZF wants to make a difference in China's heavy-duty transmission market, and its products must not be degraded in performance and the price must be appropriate," he said.

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