Dongfeng Volvo Commercial Vehicle Alliance is expected to operate by the end of June
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The much-watched Dongfeng-Volvo Commercial Vehicle Alliance is expected to start operating as quickly as the end of June this year.
Just last month, the “Dongfeng†sailboat, which was supported by Dongfeng Commercial Vehicles, had completed its debut in Sanya, Hainan, and began sea training for crews.
Dongfeng and Volvo, the world's largest commercial vehicle alliance alliance's "big boat," will soon start anchoring and sail to sea.
The fastest operation of the joint venture in June is "the process is not complicated"
Since Dongfeng Motor Group Co., Ltd. and Volvo Group signed a strategic cooperation agreement in January last year, when the Dongfeng-Volvo venture has settled, it has always been the focus of attention in the industry.
At the debut ceremony of the “Dongfeng†sailing ship held on February 26, Huang Gang, general manager of Dongfeng Commercial Vehicle Co., Ltd., told the reporter of the first commercial vehicle network that the Dongfeng Volvo cooperation project has been approved by the National Development and Reform Commission, and the fastest will be 6 The end of the month begins at the beginning of July. “There are still some legal processes to complete, such as the approval of the Ministry of Commerce, etc. We are speeding up this preparation and the new joint venture is expected to be officially operational in the middle of the year. Moreover, it is possible that the time will be more 'coincident', next year's Volvo Global Sailing The time for the race to reach Gothenburg (June 27, 2015) is exactly the first anniversary of the full operation of our joint venture."
According to the schedule of the event, the new Volvo Ocean Race 2014-2015 will depart from Alicante, Spain on October 4th this year. It will stop at Cape Town (South Africa), Abu Dhabi (UAE) and Sanya (China) on its way. Auckland (New Zealand), Itaga (Brazil), Newport (United States), Lisbon (Portugal) and Lorient (France), which ended on June 27, 2015 in Gothenburg, Sweden.
"Since the signing of the strategic alliance agreement in January last year, Dongfeng has further accelerated its cooperation with Volvo. However, due to the fact that the new joint venture has not yet been officially put into operation, the government approval has not been finalized and there are still some legal restrictions. This is still a concerted activity for us. It has a certain influence, but the discussion of exchanges and cooperation in our business has actually deepened, including the coordination of overseas markets, all in an orderly manner, in addition to the optimization of the new company's organizational system, personnel preparation, and business operations. Process improvement and other work are also progressing.†Huang Gang said.
He said that the joint venture between Dongfeng Commercial Vehicle and Volvo was not the same as Dongfeng’s joint venture model with Nissan in 2002. “The last time a new company was established, the organizational structure needed to be adjusted, and personnel changes were required; and this time we repurchased assets from Dongfeng Motor Co., Ltd. (Dongfeng Limited) and established a wholly-owned subsidiary of Dongfeng Motor Group Co., Ltd. The Dongfeng commercial vehicle is under control. This work has been completed. The new Dongfeng commercial vehicle is already an independent company. The organization system is very complete. The next step is nothing but Volvo's purchase of 45% of the shares from Dongfeng Motor Group Co., Ltd. The shareholders.†Therefore, the joint venture company will not have a listing ceremony, but the ownership structure has changed. The management team will join Volvo's personnel and become an international management team.
“Our management team will be more diversified and internationalized. According to the agreement reached by both parties, the ratio of the top management of both parties is 4:4. The general manager of the joint venture company, vice president of R&D, and vice president of procurement will be responsible for the vice presidents of domestic marketing and services. From China, the Chief Financial Officer of CFO, Vice President of Export, Vice President of Subsidiary and Global Manufacturing Vice President are dispatched by Volvo Group.†Huang Gang believes that the vice president in charge of exports is selected by the foreign group to have global rich market management experience. He will be responsible for the related resources. He will bring his experience and resources to the joint venture company, which will benefit the connection of Dongfeng and Volvo's experience and knowledge. He will also “bring together†the resources of both parties and promote the development of the joint venture’s overseas business.
The overseas strategy of borrowing vessels to sail off the coast of Dongfeng Commercial Vehicles has been accelerated
In 2014, it was significant for the new Dongfeng Commercial Vehicle Company. This year was the year when Dongfeng Commercial Vehicle's exclusive title “Dongfeng†sailed to the 12th Volvo Ocean Race. The “Dongfeng†is also the only ship in China to participate in the Volvo Ocean Race.
“Our vision is to transform China’s Dongfeng commercial vehicles into Dongfeng commercial vehicles in the world and go overseas. The Volvo Ocean Race has a very strong global influence. We use such a high-end event platform to promote the Dongfeng brand and implant Dongfeng. The elements that allow others to better understand the Dongfeng, understand Dongfeng’s brand concept, and understand the core values ​​of Dongfeng Commercial Vehicle’s “trust, professionalism, and technology.†At the same time, we also hope to make more The target market customers understand what products and services Dongfeng can provide them, and understand how we will support the local transportation industry to increase efficiency.†Huang Gang said, “The goal of our first step is to enter emerging markets, this time around the port where the Ocean Race passes through. This is exactly the same as our target market, including ports of call in Southeast Asia, South America, Africa, and the Middle East. This is in line with our market goals and is conducive to the implementation of our overseas strategy."
According to Qin Jie, deputy party secretary of Dongfeng Commercial Vehicle Company and person in charge of the "Dongfeng" communications project, the 2014-2015 Volvo Ocean Race will pass through 10 ports. Alicante, Spain, is the departure port, and Gothenburg, Sweden, is the ending port. “In these ports, the Middle East, Abu Dhabi, South Africa and Brazil are all our first-stage target markets. We will use the 'Dongfeng' and the platform of the Global Regatta to plan marketing activities and conduct dealership business. Activities and local user experience activities will enhance the Dongfeng brand's recognition in overseas markets, which is in line with our vision of Dongfeng Commercial Vehicles."
Currently, as China's commercial vehicle industry is in the first phase of globalization, how to make "Made in China" become "reliable manufacturing in China" is a difficult problem facing every local Chinese company. From this point of view, using the “Dongfeng†to go to sea and expanding the overseas value chain of the Dongfeng-Volvo Strategic Alliance will greatly shorten the time and distance of Dongfeng Commercial Vehicles to “reliable manufacturing in Chinaâ€.