The rise of joint ventures should bear greater industry responsibility


The joint venture between Dongfeng and Volvo will consolidate Dongfeng's dominant position in China's heavy truck industry, and it may even push Dongfeng to the height of China's heavy truck industry leader and world-class heavy truck giants. According to the scale of production and sales, Dongfeng has been the No. 1 in China and No. 3 in the world in the past year. It seems that there is already a trend of giants. However, compared with the world's top truck companies, Dongfeng still has disadvantages: First, it is in the core technology and technology R&D capabilities. There is still a gap compared with the world-class truck giants. Second, international resources such as international channels and brand awareness are not enough to go to the world. The joint venture with Volvo just makes up for the above-mentioned disadvantages of Dongfeng, not only consolidating its dominant position in the domestic market, but also accelerating the pace of Dongfeng to the world. It is foreseeable that Dongfeng will use the joint venture to win more rapid development. By then, as the leading company in the heavy truck industry in China, Dongfeng will also assume greater responsibility for the entire industry.

These responsibilities can be summed up in the following four points:

First, optimize the domestic heavy truck industry structure. Considering the reasonable allocation of market demand and resources, the number of heavy truck companies in China is high. At present, there are more than 20 enterprises that produce heavy trucks in China, among which the top ten companies with sales volume account for about 85% of the total production and sales volume of the industry. After the ten companies have a small scale of production and sales, there is no willingness and ability to upgrade technology. Dongfeng can consciously reduce the number of heavy-duty companies through mergers, reorganizations, and competitions, and optimize the domestic heavy-duty truck industry.

Second, to lead the technological progress of the heavy truck industry in China. Large-scale enterprise groups have inherent advantages in technology research and development. In addition, Dongfeng and Volvo jointly develop core components such as engines and transmissions, share R&D resources, and jointly build R&D centers, which will enable Dongfeng Heavy Trucks to raise its technological level to a higher level. While gaining technological progress, Dongfeng can lead the technical upgrading of China's heavy truck industry through product development, technology transfer, and other forms, so that the imported heavy trucks in the Chinese market will gradually be replaced by domestic heavy trucks.

Third, he led Chinese heavy truck companies to compete for the international market. No matter whether it is the international market or the domestic market, the capacity has not been able to increase substantially, even when there is a negative growth. Since the global economic crisis, the demand for European and American heavy trucks has shrunk, and the Chinese heavy truck market has also fallen by 27.8%. In this context, the market has become a scarce resource and has become the most important factor constraining the development of truck companies. On the one hand, Chinese truck companies want to protect the domestic market and on the other hand also compete for the international market. Dongfeng's use of a joint venture to use Volvo's international resources to realize Dongfeng brand commercial vehicles will increase the visibility and influence of Chinese brands, and other Chinese truck brands can also benefit, just as Toyota used the name of the Japanese car. Honda and Nissan benefited in succession. In the future, it is not only the Dongfeng brand commercial vehicles but also the Chinese heavy truck business groups that will require Dongfeng to lead the international market.

Fourth, weakening the advantages of European truck companies has enabled Chinese truck companies to obtain relative returns in the “win-win” joint ventures, accumulating experience for the game in joint ventures across the industry. Although the Dongfeng Volvo joint venture was seen as a “win-win”, Dongfeng got what it wanted and Volvo also obtained the Chinese market through joint ventures and strengthened the position of Volvo Group in the global commercial vehicle market, but “win-win” does not mean that "Even if you win," the relative gains of the two parties will be relatively greater if they make more profits. The accumulation of relative returns will result in changes in the overall strength of the "win-win" parties. One of Dongfeng’s responsibilities is to obtain relative returns from joint ventures that appear to be “win-win”, gradually narrowing the gap with the joint venture partners, and approaching and surpassing European truck companies, weakening the advantages of European trucks in the world and providing other joint ventures. The Chinese side sets an example and accumulates experience.

Pharmaceutical Intermediate

Jiangsu Kaihuida New Material Technology CO.,Ltd was founded in 2010.We produce Pharmaceutical Intermediate,Chemical Intermediate,Intermediate,etc.

Our main products:Pharmaceutical intermediates,Food Additive,Flavor,Organic intermediate,Cosmetic materials,Chemical Raw Materials,Daily chemicals,Dye intermediate,Disinfectant,and other products.

Our main sales market:the United States,Canada,Mexico, Australia,the United Kingdom,France,Germany,Italy,South Korea, the Netherlands,Sweden,Spain,Switzerland,Colombia and other countries and regions.

Pharmaceutical Intermediate,Api Pharma Intermediates,Bmk Powde,Chemical Intermediate

Jiangsu Kaihuida New Material Technology Co., Ltd , https://www.khdchemical.com