The Beijing-based Foton Cummins Engine Co., Ltd. (BFCEC), the first Chinese-foreign joint venture company of Beijing Foton Motor Co., Ltd. (Fukuda Automobile Co., Ltd.), was formally established and held a grand opening ceremony at the headquarters of Foton Motor in Changping, Beijing. After the completion of this engine joint venture, the annual production capacity will reach 400,000, which is currently China's largest engine manufacturer.
According to reports, Beijing Foton Cummins Engine Co., Ltd. was established by Beiqi Foton Motor Co., Ltd. and Cummins Co., Ltd. with a 50:50 equivalent investment, with a total investment of over 2.7 billion yuan. The main products are Cummins' latest generation 2.8 liters and 3.8 liters. In-line four-cylinder high-pressure direct-injection light diesel engine features high starting point, high performance and low emission, and is suitable for light trucks, pickup trucks, SUVs, MPV utility vehicles, small construction machinery, off-highway equipment, and power systems.
With the establishment of this large-scale engine manufacturing company in Beijing, together with the existing 100,000 production bases of Foton Aoling Power, the Beijing region already has an annual production capacity of 500,000 engines. According to the planning of Foton Motor, the world’s largest engine production base with an annual output of 1 million vehicles will be built in Beijing in the future. With the establishment of the Foton Cummins Engine Joint Venture, this pattern has taken off.
Foton Motors is China's largest manufacturer of commercial vehicles and a full range of product-covered commercial vehicles. Cummins is the world's largest independent engine manufacturing company. Together, the two companies will build a world-class light engine operating organization. Experts in the industry pointed out that this cooperation is extremely beneficial to both parties. Fukuda can use Cummins to successfully enter the markets of developed countries such as Europe, America, Japan and South Korea to accelerate the internationalization of enterprises, and Cummins completed its strategy in China through Futian. The layout achieved a full range of local production of heavy, medium and light diesel engines.
Not only that, the establishment of Beijing Foton Cummins Engine Co., Ltd. is a major strategic move for Foton Motor to learn and implement the spirit of the “17th National Congress†and implement the scientific concept of development. It implements the “Energy Saving and Emission Reduction†call and builds a resource-saving and environment-friendly environment for Beijing. A friendly society is of great significance. As an industry leader, Foton Motors has always been committed to meeting the overall needs of energy saving and environmental protection in the society. At the time of the Beijing Olympics, this move of Foton Motor fully demonstrated the corporate social responsibility and mission.
The world's top engine China took the lead in production
According to reports, the cooperation between Foton Motors and Cummins began in 2004 when Cummins was used as an engine supplier to provide part of the heavy-duty power for Foton Euro V buses and Auman heavy trucks. On July 26, 2005, the two parties signed a letter of intent to cooperate in the establishment of a light-duty diesel engine production company. On March 6, 2006, a feasibility study for the establishment of a joint venture company was signed. On October 19, the two sides formally signed a joint venture agreement. On April 16, 2007, Cummins Powered Auman ETX, Euro V, and Omar were simultaneously offline and formally launched globally. On September 6 and October 8, 2007, the National Development and Reform Commission and the Ministry of Commerce successively approved the joint venture report of this project. The joint venture project for the largest light diesel engine in the country finally settled.
According to the plan, Beijing Foton Cummins Engine Co., Ltd. will aim at building a “green environmental model factoryâ€. The factory building will adopt new materials and standardized advanced design. The construction will be in line with Cummins global plant standard requirements, and fully take into account environmental protection, safety and human care. And other factors. The factory is located on the north side of the headquarters of Foton Motor Company in Changping District, Beijing. It covers an area of ​​171,698 square meters, and the factory building area is 92,096 square meters. It is expected to be completed in September 2008. The first batch of 3.8L engine products will be available in May 2009. To achieve mass production, 2.8L engine products will be mass-produced in September 2009.
It is worth noting that the 2.8-litre and 3.8-litre models that will be put into production are all new products that have never been put into operation in any place including the United States. They are Cummins’s investments in Europe and the United States. The high-performance light diesel engine developed in the international market can meet Euro IV and above emission standards.
It is understood that these two engines are at the top level in the international automotive industry. Cummins Inc. took the lead in introducing it into Chinese production, which fully demonstrated its emphasis on the Chinese market and its confidence in the cooperation of Foton Motor Company. At the foundation-laying ceremony, the directors of Foton Motor Company and Cummins Company all mentioned that "to build an international engine operating agency." This shows that the Futian Cummins Engine project is aimed not only at the Chinese market but also at the global market.
A key step in Foton’s internationalization strategy
As we all know, the engine is the heart of the car, but also the core technology of the automotive industry. The automotive industry has a famous saying - those who get the engine have the world. With the establishment of the Foton Cummins Engine Joint Venture, Foton Motor finally has an engine position that matches its leading position in the automotive industry, which will greatly enhance the quality and image of Foton Auto's products.
In addition, for Foton Motors, the successful joint venture with Cummins not only received two of the world's top light diesel engines, improved its own power system, but more importantly obtained the “pass†to enter the developed markets. Futian Automobile Co., Ltd., which has been committed to the international management of the company, has a long-term strategic significance.
Due to technical barriers in emissions and other aspects, most of China's auto exports are currently concentrated in Southeast Asia, Africa, and Latin America where the auto industry is underdeveloped. The Cummins engine to be put into production can meet Euro IV and above emission regulations, and Cummins has an after-sales service network in 190 countries and regions around the world. This will help Futian auto products accelerate their entry into developed markets in Europe, America, Japan and South Korea. pace.
Relevant experts pointed out: "The cooperation between Foton Motor and Cummins is a combination of technology and market, and it is a win-win cooperation. The engine with international technical level will provide a better heart for Futian commercial vehicles, and will fully enhance the quality of Futian products. , brand and image, and enhance the competitiveness of Futian Commercial Vehicle's international market.â€
Foton Motor News spokesperson Zhao Jingguang said that the Foton Motor 2010 vision set out a goal to achieve 80-100 million vehicle sales, including overseas market sales will account for 20% of the share. To achieve this task, the Futian high-end light trucks equipped with Cummins engines will be indispensable for sharp weapons, and will lay a solid foundation for the future development of Foton Motors.
Foton Motors has enriched and improved its power layout through a joint venture with Cummins, which will at least guarantee the competitive advantage of Futian in China and even the world commercial vehicle market in the next 20 years. What is more significant in the industry is that the world-class competitiveness of Foton Motor is obtained under the premise of maintaining the autonomy of the brand, which has a strong demonstration effect on how the independent brands of the Chinese auto industry can achieve their internationalization strategy.
Cummins Completes Strategic Layout in China
The Futian Cummins Engine Joint Venture project has attracted wide attention not only because it is the first Sino-foreign joint venture of Foton Motors, but also as the only Cummins light diesel engine production base outside the United States.
Mr. Long Yuewei, President and Chief Operating Officer of Cummins Inc., spoke highly of the Foton Cummins Engine joint venture project: “This cooperation is a key step in Cummins’ business development in China. Together with China’s commercial vehicle and light truck leader, Foton Motor Co., Ltd. builds high-end The light diesel engine production base not only continues the tradition of Cummins insisting on strategic cooperation with outstanding Chinese companies for more than 30 years, but also creates a new era for Cummins to enter the field of light commercial vehicles, which fully embodies Cummins’s high regard for the Chinese market and our Confidence in the long-term development prospects of China's economy."
Relevant information shows that in the 1970s, Cummins began to enter the Chinese market and was one of the first US companies to seek commercial cooperation in China. In the following 30 years, Cummins has owned 14 companies and more than 20 institutions through sole proprietorship or joint ventures in China. It is the largest foreign investor in the Chinese diesel engine industry. In 2007, Cummins sold more than US$1.7 billion in China, accounting for nearly 10% of Cummins’ global sales, including joint ventures, and increased by 50% compared to 2006. China has become Cummins’ largest and fastest-growing company in the world. overseas market.
The responsible person stated that with the continuous rise in oil prices and the intensification of the global warming effect, the adoption of energy-efficient, environmentally friendly diesel engines has become one of the mainstream trends in the development of the international automobile industry, and the Chinese government has accelerated the “energy saving reduction†in recent years. Pai work, which provides a broader market for green diesel engines, Beijing Futian Cummins Engine Co., Ltd. was born in this context.
According to the agreement between the two parties, Foton Motor will purchase engines from the joint venture company and assemble it on Futian and its sub-brand vehicles. Cummins can also purchase engine sales from the joint venture company to non-Fukuda OEMs in China and worldwide.
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