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Going abroad is the established strategy of Foton Motor, and the integration and use of the world's automotive manufacturing resources is a proper part of the strategy. This time, Futian and Cummins took the second handshake in Brazil, strategic cooperation, and its own internal factors.
On June 5, Wang Jinyu, general manager of Foton Motor, and Luis Paquet, vice president of Cummins, signed a strategic cooperation cash network agreement in Rio de Janeiro, Brazil. China’s commercial vehicle boss shakes hands with the world’s engine giants across the ocean. Cummins is one of the three largest engine manufacturers in the world. The traditional field is heavy-duty diesel engines. The cooperation between Foton Motor and Cummins can be traced back to 8 years ago. At the beginning of this century, the huge demand for light engines in emerging markets represented by China enabled Cummins to lay its ground, adjust its strategy, extend its products downward, and developed light-duty diesel engines: ISF2.8L and ISF3.8L. These two engines are only produced in Futian and are not produced in the United States. This is the Foton Cummins engine. At the time, the industry commented that Cummins changed because of China. Beijing Foton Cummins Engine Company was established in 2008. The annual production capacity of 400,000 units has now reached the Euro IV standard, and the technical reserves of Europe 5 and Euro 6 have also been completed. The Fukang engine has good applicability and applicability in Europe and the United States. The engine is suitable for high-end light trucks, light passengers, high-end MPVs, SUVs, and pickup trucks. Because of its high technological content and high price, the current domestic sales volume is only 50,000 units. However, Foton Cummins is not only facing the domestic high-end engine market, but also the global market and the future market. In 2012, Fukang's engine exports accounted for 69% of the total sales. This may be the common intention of Foton Motors and Cummins engines eight years ago. Going abroad is the established strategy of Foton Motor, and the integration and use of the world's automotive manufacturing resources is a proper part of the strategy.
This time, Futian and Cummins took the second handshake in Brazil, strategic cooperation, and its own internal factors. First, Brazil introduced a new tax policy in 2012. Foreign brand cars can enjoy the same preferential policies as Brazilian brands in terms of technology and R&D, attracting multinational car brands to land in Brazil. Fukuda Motors, which is implementing the 2020 strategy, and its well-known brand, Heavy Truck Auman, are on the verge of catching the beach. Second, the Brazilian auto market, which is also the BRICS country, is equivalent to the 10-year scenario of China and is in an ascending period. In 2013, its auto sales will reach 3.7 million units, an increase of 9% from 2012. In 2014, the Football World Cup and the 2016 Olympic Games were held in Brazil. Huge infrastructure demands more commercial vehicles. Third, the cost control, market development capability of Foton Motors and Cummins Engine's quality, brand influence, and mature distribution network are the same as each other. Fukang joins hands to create advantages in products, markets and services. It said that the market cultivation period could be shortened. Foton Motors entered Brazil, including the Fukang engine export, the vehicle exporter loading the Foton engine and the KD spare parts Brazil assembled in three forms. The construction of the Futian Light Truck KD Plant and Pickup KD Plant will commence operation at the end of next year. It is reported that multinational companies that have entered Brazil, including the German public, have included the Fukang engine in one of their standard configurations. Fukang Brazil teamed up again and it was a stone with three birds.