Volkswagen's next strategic goal in China - heavy truck


Under the support of the Chinese government and the market, Volkswagen AG has now become the world's largest automaker, producing a full range of passenger cars and commercial vehicles. It has long occupied the top spot in the European market and is firmly established in the Chinese automotive market. The top two have for years been leaders in production and sales volume in the passenger vehicle market. On March 13, 2014, Volkswagen Group held the 2013 financial results conference. In 2013, Volkswagen Group sold 9.7 million vehicles worldwide, and the Chinese market contributed 3.27 million vehicles. For the first time in nearly ten years, it exceeded the General Motors in the Chinese market for the first time in ten years.

More than one-third of Volkswagen’s global sales are contributed by China. Therefore, in the Volkswagen global auto map, the proportion of China is the decisive factor in determining whether Volkswagen is leading the world. It can be seen that Volkswagen is still the case in the field of passenger vehicles. If commercial vehicles are to enter the market in the future, perhaps Volkswagen brand cars will occupy half of the Chinese auto market in ten years. Recently, the management board of Volkswagen Group and President and CEO of Volkswagen Group (China) Heitzman made an exclusive interview with Mr. Du Jidong of Sohu Automobile, in addition to reiterating that it had previously established that the number of domestic models to be increased to 30 in 2015 and vigorously in China. The "people-oriented" strategy was implemented, and the joint venture ratio, Volkswagen's domestic electric vehicles and VW commercial vehicles in 2016, and the pre-study of a heavy truck joint venture in China were being conducted.

At the same time, Heinzmann pointed out that the recent auto industry's fierce debate over whether the stock-to-share ratio should be liberalized indicates that the Volkswagen Group is very concerned about the open-share discussion and welcomes and expects the open policy of China's equity ratio. As a result of the Chinese automobile industry policy promulgated in 1994 and the Chinese automobile industry development policy promulgated in 2004, each foreign-funded enterprise has a maximum of two car joint ventures in China. The Volkswagen Group, which already has two joint ventures between FAW-Volkswagen and Shanghai Volkswagen, has invested in the establishment of heavy truck joint ventures and will certainly benefit its future development in the Chinese market.

Currently in the heavy truck market in China, except for the joint venture between FAW Jiefang, Sinotruk and German Mann, Dongfeng Motor and Swedish Volvo, Beiqi Foton and Germany Daimler-Benz, SAIC Hongyan and Italy Iveco, Jiangling Motors and the United States. Ford Motor, JAC and Navistar, GAC Group and Japan Hino, Sichuan Nanjun and Korea Hyundai have all established an international strategic alliance, and the heavy-duty truck industry has basically formed a joint venture and cooperation map in China. Major domestic heavy truck companies have completed joint ventures with foreign truck groups. Therefore, according to the author's forecast, Volkswagen may also establish a commercial vehicle joint venture company with FAW or SAIC to produce heavy trucks or even commercial buses, and seize the market share of commercial vehicles in China with the United States, Europe, Japan, and South Korea.

After Volkswagen has included Scania and Mann, Volkswagen-branded commercial vehicles will form an alliance with Scania and Man to strengthen the Volkswagen Group's commercial vehicle alliance. Today, it is officially available in China, in Eastern Europe, and in India and North America. On the shoulders of Volvo, Daimler, Ford and Navistar, the capital in the global heavy truck area exerts strong pressure on competitors to maintain the strong position of Volkswagen, Scania and Man in this field. The Chinese market is first and foremost an extremely important success or failure key market. Therefore, Heizmann, President and CEO of Volkswagen Group (China) stated that Volkswagen Group is currently studying the establishment of heavy truck joint ventures in China. In order to realize the “2018 strategy” of the Volkswagen Group, breakthroughs in Volkswagen's commercial vehicle, especially heavy trucks, as a “short board” business are indispensable.

In fact, before Volkswagen's intention to bring passenger vehicles and commercial vehicles to cover China's automobile market in all fields, its expansionist hand has already extended to the United States market to acquire a partial stake in Navistar, indicating Daimler. And as a stepping stone to open the U.S. commercial vehicle market, to accelerate access to the US heavy truck market, to find a balance in the North American truck giants competition. The US heavy truck market is dominated by several companies such as Freightliner under Daimler, Mack under Volvo, International under Navistar and Kenworth and Peterbilt under Paccar.

After Volkswagen AG occupies all segments of China's passenger vehicle market in all directions, the next strategic and tactical goal is definitely the commercial vehicle sector, especially the lock-up of heavy trucks. The near future of VW commercial vehicles will bring Mann and Scania's latecomers to the top. It is expected that with the entry of VW commercial vehicles, Scania may become a pioneer and soon set up a factory in China, with Daimler. , Volvo, Ford, GM, Navistar and other international commercial vehicle giants launched another round of fighting.



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