Having engine technology is the king of heavy trucks

With heavy fines for over-limit overloading and oil price surges after the implementation of fuel taxation in various parts of the country, heavy truck companies have increasingly focused on economics and safety. In particular, on November 26, 2009, on the eve of the Copenhagen conference, the Chinese government publicly promised to quantify emission reduction targets for the first time, and decided to reduce greenhouse gas emissions per unit of GDP by 40% from 2005 to 2020. -45 %.

Under this background, in accordance with the national implementation plan for the emission standards of automotive pollutants, China began to implement national IV emission standards for heavy vehicles on July 1, 2013. For State III products, the country only recognizes three typical engines such as high pressure common rail systems. The Ministry of Environmental Protection implements the management of yellow and green targets for new and in-use vehicles. New cars must be listed in the environmental protection catalogue. Otherwise, they may not be able to get a license and cannot be sold. This initiative on domestic and foreign factors to actively make more stringent conditions for domestic heavy trucks, forcing domestic heavy trucks quickly in line with international standards.

With the application of a large number of high-tech technologies in heavy-duty vehicle manufacturing, the technological content of heavy-duty vehicles has been greatly improved. The technological development trend of its products is characterized by low pollution, safety, and ease of operation, which will further improve The vehicle's power, reliability, and reduced unit transport cost economy.

As we all know, the level of automobile emissions in China lags far behind Western developed countries such as Europe, America and Japan. As early as in 2005, the European Union had already implemented the implementation of the national IV emission standards, so in order to achieve the national emission reduction targets, the implementation of the national IV emission standards for automobiles is urgent. However, at this stage, heavy-duty domestically-manufactured domestic engines are difficult to implement in environmental protection catalogues due to their technical bottlenecks. This opens the door for overseas trucks and engine predators to the Chinese market.

Heavy-duty truck engines have relatively high technical barriers, making it difficult for them to research and develop, and it is difficult to obtain user recognition without brand guarantee. For the heavy-duty truck industry, the core supporting resources, especially the engine, have become an important factor in determining their own market position. One point has become the consensus of heavy truck companies. Heavy truck companies do not have their own "heart" - the core technology of the engine, will certainly repeat the mistakes of the South steam Ling Ye and Nanjing Chunlan heavy truck, and was eliminated and the outcome of self-destruction!

In recent years, heavy-duty engine downstream customers will gradually get rid of the dependence on professional engine manufacturers. The engine business will gradually start to develop. Along the industrial chain, the upstream engine will be extended and the driving force for cost reduction. The vertical integration process of the host heavy truck industry will show an accelerating trend. The car engine has become an inevitable trend. Companies such as China National Heavy Duty Truck Group, Beiqi Foton Motor, Jianghuai Auto, and other host car companies set up joint ventures to produce engines. The plans for rapid development and implementation of these engines are gradually escaping from the dependence on externally purchased engines and reducing the risks, so as to gain a leading edge in the competition.

At present, in addition to the large-scale automobile enterprises such as FAW, Dongfeng, CNHTC and Shaanxi Auto, which produce their own engines in the heavy-duty vehicle industry, other heavy-duty truck owners have little engine business because they do not have economies of scale. The engine is mainly purchased from professional engine manufacturers such as Cummins, Weichai, Yuchai, Shangchai, Dachai, Xichai, and Hangchai. Since the engine is the core component of the automobile, the gross profit rate is 25%-30%, which is about twice that of the entire vehicle. Therefore, one-third of the profit of the vehicle OEM is eroded and shared by engine companies.

On August 7, 2009, Foton Motors and Daimler signed a letter of intent for cooperation and the two parties established a 50:50 joint-venture joint venture with a heavy truck. The joint venture will produce Futian Auman heavy trucks and Mercedes-Benz OM457 ("MBOM457") heavy-duty engines. Among them, the Daimler OM45712 litre diesel engine with an emission standard up to Euro V was introduced to Daimler by technology license. At the end of 2011, production of the OM457 engine was put into production. In mid-2012, the entire vehicle (with OM457 engine) was put into production. The engine will be equipped with Fudan Auman high-end models.

On September 29, 2009, Jianghuai Automobile and NC2GlobalLLC signed a framework agreement for joint-venture cooperation between the two companies. It is planned to establish a joint venture company to produce and sell medium and heavy-duty trucks and parts and components at a ratio of 50%:50%. NC2 is a joint venture between Caterpillar and Navistar, whose main business is the engine. The joint venture company will also have relevant engine strategies to support the development of JAC's medium and heavy trucks. It plans to use its own capital of 50 million yuan to invest in diesel engines for 1.9 LCTI passenger vehicles; at the same time, it plans to work with Navistar in the engine of medium and heavy trucks. Through joint ventures, it has obtained world-class business support for products, technology, and management in the engine field to enhance the technical performance and scale of existing engine products of JAC, and has a positive effect on the realization and value enhancement of its long-term strategy.

In 2009, the heavy-duty truck engine plant of the joint venture of Wuhu United Trucks Co., Ltd. and Yuchai Power officially started. The first phase of the investment is 500 million yuan, with a production capacity of 50,000 sets of heavy-duty engine production lines, which will be completed by December 31, 2010. The second phase of annual production of 100,000 heavy-duty vehicle engine production lines will be completed by 2015, and will eventually be completed with an annual output of 20 Wantai heavy-duty vehicle engine production line. It created a precedent for the construction of heavy trucks and heavy machinery projects that started at almost the same time.

On February 2, 2012, Xingma Motor announced that “Anhui Hualing Motors Co., Ltd. has received approval from the Development and Reform Commission and agreed to build an annual production capacity of 50,000 heavy-duty truck engines for Anhui Hualing Automobile. The total investment of the project is RMB 1.73 billion. After completion, it will form an annual output of 50,000 sets of heavy-duty environmental protection high-power engine production capacity." Mr. Liu Hanru, the head of Valin Auto, revealed that “the engine of Hualing is ready to start is the Euro IV emission, after which the Euro five emission engine will be produced. Power section, ready to produce more than 400 hp engines........"

All the world's famous heavy truck manufacturers, such as Man, Mercedes and Scania, all have their own engine core technology. At present, multinational trucks and heavy-duty engine manufacturers, including Renault, Volvo, Mercedes-Benz, Iveco, Mann, Duff DAF, Navistar, and Caterpillar, and possibly entering the Chinese market in the future, are involved in technical cooperation, joint venture or upcoming joint ventures. Konia, etc., have all introduced or jointly researched and produced high-power engines at the joint domestic heavy-duty vehicle manufacturers. This also fully proves that three years ago the author had asserted that "heavy trucks have to get the engine to get the world."

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