It is not easy to make a speech with new energy technologies as the main content firmly grasp the eyes of all the audience, especially considering that the speaker is an out-and-out American, which is even more challenging.
But Steve Chapman, president of Cummins China, still did it. In fluent Chinese, he introduced himself to hundreds of audiences under the table: “Cao Side, this is the Chinese name I took for myself for the first time when I came to China 20 years ago because I wanted to do it like Zhang Side. Serve the people wholeheartedly and serve the customers."
The fact is, taking a Chinese name for yourself is the first thing that every Cummins executive who works in China. This engine manufacturer with rich international development experience, with its high degree of localization, has never preferred any opportunity, and it is the same in China.
A few months ago, Foton Cummins, a joint venture with China's largest light truck manufacturer Beiqi Foton, was officially put into production. Since then, Cummins has completed the strategic layout of China's heavy truck, medium heavy truck, and light truck markets. Although the time is still short, people in the industry are very optimistic about the Foton Cummins project and believe that this will be another successful example of Cummins after China’s Dongfeng Cummins, and thus seize the opportunity of the Chinese light-card market.
“Yes, we will not miss any opportunities, especially in China. Although Cummins has also suffered a global economic recession and global business has been affected, but it turns out that the Chinese market is the healthiest.†Cao Side told reporters in this way .
Strategic partner selection strategy
“China is the second largest market for Cummins in the world. In 2008, our sales in China exceeded 2.3 billion, and the United States ranked first.â€
In this regard, Mr. Cao Side credits the success of partner selection. “There are few companies that have succeeded in the choice of partners. We are equal to all joint venture partners, and the shareholding of Cummins and China is 50%. We do not have the question of who is leading who. Even though my partner We don't produce engines, but they are as high as ours," said Mr. Cao Side. "Kangmings attaches great importance to the selection of strategic partners. We will consider them very carefully and consider our long-term development."
Cummins was one of the earliest Western diesel companies to produce engines in China. In 1981, the Chongqing engine factory started the license to produce Cummins engines. In 1995, Cummins' first joint venture engine factory was established in China. To this end, Cummins has a total of 26 institutions in China, including 15 wholly-owned and joint venture companies.
This generous and long-term strategic vision also enabled Cummins to acquire a number of solid and strong allies in China: Dongfeng Motor, Shaanxi Automobile Group and Beiqi Foton, each of which is a leader in the industry. Today, 11 Cummins engines have already been produced locally in China. Cummins’ status is unbreakable in China, where the engine market is highly competitive.
"The successful choice of strategic partners is what I have done most proudly in China."
Strong competitors
The war between the challenger and the challenger makes the healthy market filled with gunpowder. And Cummings always plays the role of the latter in China.
It is not an exaggeration to describe the Chinese engine market, especially the truck engine market, with heroes. Weichai, Yuchai, and Xichai’s three “Chai†stands, and Shangchai, Iveco, and Daw Chai waited for opportunities.
“I have great respect for our competitors in China. This is when we face these outstanding competitors, we are able to radiate even greater vitality.†When Mr. Cao Side mentioned his competitors, this is what he often says. words.
The strength of competitors and the maturity of China's engine market have become the most healthy evidence for the Chinese engine market.
“The domestic manufacturers respond quickly to consumer demand, such as Weichai. When consumers have questions about products or need to improve services, they can quickly respond to consumer demands with a small interval. In foreign countries, these are impossible. If you are abroad, there are a number of requirements that consumers have to go through. These are all things we want to learn. I am not a competitor who respects China.†Mr. Excellent performance is amazing.
The excellence of competitors is not only reflected in after-sales service providers, but also the price of accessories for Chinese domestic engine companies' products is not comparable to that of foreign companies or joint ventures. This has injected more vitality into the vigorous development of the Chinese engine market.
“The biggest challenge for Cummins in China is the price of spare parts. In my opinion, the price of our parts and the price of spare parts for Chinese domestic engine companies cannot be compared. The situation and speciality in China are totally different from those in foreign countries. The price of foreign engine parts is very high, but China is very cheap, but its quality is excellent. I am honored to participate in such a market and participate in competition." Mr. Cao Side is highly respected by competitors in the Chinese market.
[next]"Green" opportunity
The fierce competition has caused the Chinese market to emerge in a separatist manner. In healthy markets, opportunities are an essential and important factor. At this time, Cummins is also facing opportunities while improving its strategic layout.
With the continuous improvement of China's emission standards and the imminence of the State IV, the technical advantages have allowed Cummins to see the direction of future development and to strengthen its confidence in the development of the Chinese market.
“U.S. regulations are the most rigorous in the world, but now China has made very rapid progress in narrowing the gap in emissions levels since 2000. Cummins has such an experience in the world. If there are more stringent regulations, every company must invest. In terms of technology, equipment, and our price, whether it's engines, parts, or vehicles, the price has also increased. This is a very big challenge. But the challenge can also be said to be an opportunity if we get rid of short-term benefits. With the shackles of confinement and further vision, we can see that the various opportunities that emission development can generate are far greater than short-term losses.†In the face of rising emission standards, Mr. Cao sees not the crisis but the crisis. opportunity.
On July 1, 2008, China implemented the national three emission regulations for trucks over 3.5 tons, and on July 1, 2009, 3.5 tons of downloaded trucks also implemented the national three emission regulations. At this point, China's commercial vehicles have all implemented the National III emission regulations. Every upgrade of emission regulations has always brought tremendous shocks to the industry and increased technology. The battle between EGR and high-pressure common-rail technologies in the triple-card market in China last year has not yet come out of our sights, and the National IV emission regulations are in front of us. Not far away in 2011 we greet us grimly. The upgrading of the Fourth National Emissions Regulation will not only raise product prices, affect the trend of the industry, but also involve more complex technological breakthroughs and the construction of more extensive supporting facilities. It requires the government, automobile manufacturers, ancillary products companies, and consumers. Such as many parties work together to promote.
On June 19th, 2009, Shaanxi Automobile's Cummins-type IV heavy truck was first listed on the market, indicating that China's National IV standard heavy trucks began to enter the market in batches, and Cummins won the top spot on the starting line of the same emission standard. Wang Hongjie, vice chairman of Cummins (China) Investment Co., Ltd., has full confidence in Cummins's future: “Although the National V Standard has not yet been implemented, Cummins is still prepared for the country V. Our basic technical routes and standards are more The reference to Europe. In the United Kingdom, our factory has been able to produce the Euro V standard engine, and some of our export engines also meet the Euro V standard. We have confidence in Euro V."
"Strict implementation of emission standards is to promote the spring breeze throughout the industry." Mr. Cao Side has his own opinions on the improvement of emission standards.
“Higher emission standards will also increase the competitiveness of our local companies in the global market. We all know that all regions have different environmental protection requirements, and some are more stringent, but if we can meet more stringent oppression, We are more competitive globally and the green driving force will also lead to a new round of investment and economic growth. Emissions upgrading will require every industry to further increase technology investment to reduce emissions and optimize the The product performance of the vehicle, thereby enhancing the competitiveness of the product."
Green is the representative of healthy colors. The Chinese engine market faces the green revolution that is about to emerge. Challenges and opportunities coexist. When markets such as the United States, Japan, and Russia are panting under the financial crisis, the Chinese market is thriving.
In Thousand Worlds, only China has a Pure Land. Seize the "green" and seize the pulse of the development of China's engine market.
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