In 2008, the Foton Auman Ou Kang Cup National Truck Race entered its sixth year. At this time, Shangchai Power, as a sponsor of the truck race, has also been providing power for the car racing for five consecutive years. In a truck race, the car has to perform a variety of difficult maneuvers. It needs to provide much higher power requirements than usual. This is a kind of power required by the car. It is the Chaiou that provides this demand. Kang power.
Over the past few years, the perfect display of the Shangchai engine in the Cascade field has won wide recognition, and Shanghai Diesel Engine Power has gradually become known. In fact, in 2008, Shang Chai’s identity also changed quietly. In April this year, SAIC officially completed the acquisition of Shangchai, and Xiong Weiming, who was the head of the Shanghai Automotive Group Co., Ltd.'s Shangchai Project as early as October 2007, was appointed as Shanghai Diesel Engine Co., Ltd. in January this year. General manager.
Because of the background of SAIC's commercial vehicles, even in the past, they did not believe that they could possibly enter the diesel group's first group, Shijiazhuang. After Xiong Weiming's appointment for six months, it obviously had greater ambitions.
Leveraging SAIC will not change its original intention
“The main purpose of SAIC’s acquisition of Shangchai is to look at the engine of China Diesel Engine. There is no doubt that SAIC Motor has decided to develop a commercial vehicle in the past two years. The layout of the vehicle has basically been put in place. With Nanjing Automobile, Hongyan, etc. With the addition of commercial vehicles, the entire vehicle has been deployed in good condition, and now there is a shortage of engines.In terms of engines, on the one hand, SAIC has taken the road of a joint venture; on the other hand, SAIC has obviously felt that this is not enough to support SAIC’s autonomy. The development of the branded commercial vehicle eventually led to the decision to acquire Shangchai. For Shangchai, the choice to enter SAIC Motor was mainly the need for the development of the vehicle engine for Shangchai.†Xiong Weiming made a concise clarification of the background of Shangchai joining SAIC, which attracted attention at that time. The merger and acquisition case made a clear note.
After Shangchai entered SAIC, one of the most concerned issues of the outside world may be whether Shichai’s strategic priorities will shift. Xiong Weiming’s remarks gave us the best answer. He said: “We will not give up this market for construction machinery because we have been painstakingly operating for more than 60 years in this market.†Xiong Weiming’s use of “in the expansion of engineering machinery business†On the basis of the consolidation, we must develop such a phrase. It can be seen that Shangchai will continue to be determined by the suppliers of construction machinery engines.
When asked how Shangchao’s future will balance and treat the construction machinery and automotive market, Xiong Weiming said: “Into SAIC, we will further expand the share of Shangchai’s vehicle engine. We mainly do it on the basis of construction machinery. Addition, the two are not contradictory.In the automotive market, we proposed to develop rapidly.After joining SAIC, not only won a good development opportunity for Shangchai, but also SAIC can support funds, technology, and management. The rapid development of Shangchai."
From the interview, we can clearly feel that Shangchai has not changed its position in maintaining the “multi-field diesel independent supplierâ€. Entering SAIC, it is just a matter of giving Shangchai a more abundant role. That means that Shanghai Diesel will become an important member of SAIC's commercial vehicle industry chain. This will undoubtedly provide Shangchai with more flexibility in the field of automotive engines. Good development opportunities. As one of the three major auto groups in China, SAIC Motor Co., Ltd. has not changed its determination in the development of its own-brand commercial vehicles, which will inevitably lead to the development of its diesel engine.
Three major advantages
SAIC Holding Co., Ltd. has no doubt contributed to the development of Shangchai. However, Shangchai’s desire to catch up is not an easy task.
Under the current competitive market environment in the diesel engine industry, how to further expand the market share of Shangchai in the construction machinery market, the automotive market, and ships and generator sets while maintaining the existing market share; in the face of strong competitors Whether Chaichai can catch up with and surpass his opponents; how to build Shangchai’s core competitiveness... These are all important issues that are placed before Shangchai and General Manager Xiong Weiming.
View related topics: SAIC commercial vehicle expansion
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