Weichai and Sinotruk are integrated, and Tan Xuguang ＂kills＂ Sinotruk!

On September 1st, the official website of Weichai Group announced that China National Heavy Duty Truck Group Co., Ltd. held a meeting of leading cadres, and Wang Zhonglin, member of the Standing Committee of Shandong Provincial Party Committee and secretary of Jinan Municipal Party Committee, attended the meeting and made an important speech. Li Gang, member of the Standing Committee of Jinan Municipal Committee and Minister of Organization, read out the opinions of Jinan Municipal Committee on the cadre adjustment of China National Heavy Duty Truck Group Co., Ltd.: On August 31, after research by the Standing Committee of Jinan Municipal Committee of the Communist Party of China, Tan Xuguang was appointed as Party Secretary, Director and Chairman of China National Heavy Duty Truck Group Co., Ltd., and Wang Bozhi no longer served as Chairman and Director of China National Heavy Duty Truck Group Co., Ltd., and relevant procedures were handled according to legal procedures.

A few days ago, when the news of this post was exploded by the media, it caused speculation and discussion among many people who ate melons. On September 1, the matter finally settled.

It is worth noting that this job adjustment is likely to mark a major integration project in China’s commercial vehicle industry, especially in the industry.

In fact, the topic of integration between the two sides can be seen as early as the end of last year. On December 18, 2017, at the media communication meeting during the 2018 Business Conference, Tan Xuguang answered the question about the integration of Shandong Heavy Industry and Shandong Jiaogong, and then went on to say that the next step may be. Now it seems that the next step is the integration of Shandong Heavy Industry and its Weichai Power with China Heavy Duty Truck. This large resource integration action will bring great changes to regional economy, enterprises and industries.

Shandong is determined to cultivate a world-class enterprise.

Shandong Heavy Industry Group is a wholly state-owned company, with Weichai Group as the main body and Shandong Provincial State-owned Assets Supervision and Administration Commission in charge.

China National Heavy Duty Truck Co., Ltd. is a state-owned enterprise in Shandong Province. Jinan SASAC and Shandong State-owned Assets Investment Holding Co., Ltd. hold 80% and 20% shares of China National Heavy Duty Truck Group respectively.

These two companies are the leading enterprises in the commercial vehicle industry in Shandong and even the whole country, and they are also an important supporting part of Shandong’s regional economy.

Shandong is a big industrial province, and it has always been the goal of Shandong to make the automobile industry bigger and stronger. On January 10th, 2018, the State Council officially approved the Overall Plan for the Construction of Shandong New and Old Kinetic Energy Conversion Comprehensive Experimental Zone (hereinafter referred to as the "Plan"), and agreed to establish Shandong New and Old Kinetic Energy Conversion Comprehensive Experimental Zone. This is the first regional national development strategy approved after the 19th National Congress of the Communist Party of China, and it is also the first regional development strategy in China with the theme of transforming old and new kinetic energy. It can be seen that Shandong Province is determined to reform and the country attaches great importance to it.

The "Program" pointed out that it is necessary to "deepen the reform of state-owned assets of state-owned enterprises. Give play to the leading role of state-owned enterprises in kinetic energy conversion, promote the layout optimization, structural adjustment and strategic reorganization of the state-owned economy, improve the efficiency of state-owned capital allocation, and cultivate world-class enterprises with global competitiveness. " At the same time, it is also pointed out that "Shandong will strive to build a leading international high-end equipment manufacturing base."

It can be seen that Shandong province is planning a big game of resource integration, which naturally includes strengthening the automobile industry. Before that, the transfer of Shandong’s handover to Shandong Heavy Industry has begun to take shape. Tan Xuguang also said many times that Shandong Heavy Industry and Weichai should make important contributions to the conversion of new and old kinetic energy in Shandong Province.

The government’s expectation is very clear. How will Shandong Heavy Industry and its subsidiaries Weichai and China Heavy Duty Truck fulfill this expectation from the enterprise level?

Can the powerful alliance achieve "1+1 > 2"?

For the future integration of Shandong Heavy Industry and China Heavy Duty Truck, some people in the industry hold positive views, while others are cautious.

The reporter checked the annual report of the company and found that in 2017, Weichai Power achieved a net profit of 6.81 billion yuan, a year-on-year increase of 178.89%. China Heavy Duty Truck achieved a net profit of 898 million yuan, up 114.64% year-on-year. Both companies have considerable strength, and the future integration can be said to be a strong alliance.

Industry experts with positive viewsTell the reporter: "The automobile industry in Europe and the United States has experienced a transformation from many automobile companies to several giants.China is now also moving from a multi-scattered and chaotic situation to a situation in which several large and powerful enterprises coexist through strong cooperation and survival of the fittest.. "

In the next step, the integration of Shandong Heavy Industry and China Heavy Duty Truck will probably kick off another round of upgrading of China’s heavy commercial vehicles from bigger to stronger.

Some insiders also analyzed that over the years, the sales volume of China Heavy Duty Truck and Heavy Truck has been ranked among the top three in China, and the sales volume in overseas markets is also among the best among domestic heavy truck enterprises.. Although China Heavy Duty Truck is good at engineering vehicles, it is a little weak.But it is doing well from technology research and development to product quality control. After the future integration, China Heavy Duty Truck may be more dynamic. At the same time, the competition in China heavy truck industry will become more intense.

On the other hand, some people in the industry are worried that there will be more difficulties after the reorganization of the two companies in the future.

According to some insiders, generally speaking, the reorganization and integration between large enterprises are complementary in product advantages or market advantages, but the products of Shandong Heavy Industry and China Heavy Duty Truck are highly coincident, and both have complete industrial chains such as complete vehicles, transmissions and so on. How to distinguish the future market competition and how to plan the development strategies of both sides are all unpredictable.

In addition, there is another important point. There has always been a gap between the two companies. If they merge in the future, how can Tan Xuguang make everyone put aside their differences and win the hearts of Si Qi, so as to "make the best of the brothers who robbed the waves, meet and laugh, and forget the enmity"? This is also a problem that cannot be ignored.

There are still many questions that the industry expects to answer.

In the next step, if Shandong Heavy Industry integrates China Heavy Duty Truck, there are several problems that cannot be circumvented. Now everyone is very curious about what Shandong Heavy Industry and its Weichai Power will do.

1. How to deploy the engine resources of both parties?

As far as Weichai is concerned, at present, the domestic heavy truck market is matched by other brands except China Heavy Duty Truck.

In terms of China Heavy Duty Truck, the technical engine has developed rapidly in recent years. In 2009, China National Heavy Duty Truck signed a cooperation agreement with German Man Company, and German Man subscribed for 91.185 million shares for 73.979 million euros, and obtained 25%+1 shares of China National Heavy Duty Truck. At the same time, China National Heavy Duty Truck obtained a complete truck and three models from German Man.
Exclusive right to use licensed technology and know-how in China. However, it is worth noting that the technology license agreement agreed by the two parties at that time lasted for seven years, that is to say, in 2016, this technology license agreement expired.

It is speculated by insiders that China Heavy Duty Truck Man technology engine will maintain its current development status in recent years. At the same time, in view of Weichai’s commitment to the national major project of industrialization technology and application of fuel cell engines and commercial vehicles, Weichai may in the future.It will promote China Heavy Duty Truck to take the clean energy route and increase the research and development and manufacturing of new energy heavy trucks and bus products..

2. How to integrate the transmission and axle plates of both sides?

Weichai has created the concept of "golden power chain" for many years, and it is also a leader in its own and in the domestic market.

On the other hand, China Heavy Duty Truck has its own transmission and axle manufacturing company. If it is not integrated, should the concept of "golden power chain" be revised? If it is integrated, it will inevitably involve changes in organizational system and staff work.

3. Will China Heavy Duty Truck and Shaanxi Automobile cooperate?

In 2017, China Heavy Duty Truck sold 190,000 vehicles and Shaanxi Automobile sold 170,000 vehicles, ranking third and fourth in the industry, while in the same year, the number one in sales was 240,000 vehicles. If China Heavy Duty Truck and Shaanxi Automobile join hands again, the largest heavy truck manufacturer in China will appear, and the echelon of heavy truck enterprises in China will undergo great changes.

However, it is not difficult to realize this grand plan. The State-owned Assets Supervision and Administration Commission of Shaanxi Province and Weichai have 49:51 shares in Shaanxi Automobile, Fast and Hande Axle. On the future development road, can the two sides maintain strategic consistency, work together and support each other?

4. Will the suppliers and distributors of both parties adjust?

If Weichai and China Heavy Duty Truck are integrated, they will inevitably have a series of impacts on the downstream of the industrial chain, and may also have an impact on sales. How to make production and sales run stably is also a big problem in front of us.

These are the questions that we pay more attention to after learning the news of the integration between the two parties, and time will give the answer.

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