Guangzhou Automobile Commercial Vehicle Planning Has Focused on Heavy Truck Projects


“Guangxi has always attached no importance to passenger cars.” One source commented on the GAC Hino joint venture project. “The joint venture company will put the introduction of heavy truck products first.”

Recently, a message disclosed on the website of the Guangdong Development and Reform Commission made it possible for the conjecture surrounding the Guangzhou Automobile Group to create a commercial vehicle to finally come to an end. In contrast to the pending state of cooperation between Guangqi and Modern, the cooperation between Guangzhou Automobile and Hino finally won the “approval” from the National Development and Reform Commission.

According to public information, the National Development and Reform Commission has formally approved and agreed that Guangzhou Automobile Group Co., Ltd. (hereinafter referred to as Guangqi) and Hino Automobile Co., Ltd. (hereafter referred to as Hino) will jointly establish GAC Hino Motor Co., Ltd. As a precondition for the commencement of construction and production, the two sides promised to complete the assets reorganization of Guangzhou Yangcheng Automobile Co., Ltd. and the acquisition of shares of Shenfei Hino Automobile Manufacturing Co., Ltd.
Guangqi Hino cooperation has long been finalized

"Commercial Automotive News" reporter learned from sources that Guangqi and Hino have established cooperation in the commercial vehicle field as early as two years ago. In March and April of this year, GAC and Hino established several models for the production of vehicles (that is, the localization rate was determined).

An industry source told reporters that at the beginning of 2005 it was reported that Guangqi had acquired Shenfei Hino and cooperated with Hino. In September 2005, GAC and Hino signed a basic agreement for cooperation and determined that the GAC Hino commercial vehicle project will be located in the west area of ​​Pearl Industrial Park in Conghua City, Guangdong Province. In October 2006, when the top level inspection of the Pearl Industrial Park was conducted by the Japanese High-level Industry Bureau, the Mayor of Conghua City, Liang Jianqing, stated that the project was listed as “Project No. 1” by Conghua City, and he began to promote land acquisition and demolition, project planning, infrastructure construction, and land prequalification. jobs. However, since the Guangqi-Hino commercial vehicle project had not yet been approved by the National Development and Reform Commission, the joint venture company had not been set up to operate, so the construction of the plant infrastructure and land leveling and other aspects had been in a waiting state.

"Products are expected to be launched by the end of this year." The source told reporters that Guangzhou Automobile Co., Ltd. and Hino Motor Co., Ltd. started construction from chemical plants in October, and Guangzhou Automobile Co., Ltd. and Hino started recruiting component manufacturers. It is understood that Guangzhou Automobile will recently go to Tokyo, Japan to hold a special investment promotion meeting for Hino component manufacturers.

The primary goal is heavy truck

According to the disclosed information, the National Development and Reform Commission agreed that Guangqi-Hino Automobile Co., Ltd. (tentative name) will introduce the production of the Hino 700-ton truck series tractors, general trucks and their associated P11C and E13C series 11L and 13L diesel engines at the Conghua base, retaining the Yangcheng brand. The capacity of light truck products is 30,000 vehicles/year, and an annual output of 20,000 heavy-duty trucks and 25,000 matching engines (of which 5,000 are supported by buses in the Shenyang plant area).

A person familiar with the matter told the reporter that GAC has always wanted to build a heavy truck and established a joint venture with Hino. The main reason is to produce heavy trucks, take high-end routes, and fully participate in domestic and foreign competition. Prior to the joint venture negotiations with Hyundai, GAC Chairman Zhang Fangyou once said that the first models that Guangzhou Automobile hopes to introduce are medium and heavy trucks.

According to Tan Xiuqing, an expert from the China Association of Automobile Manufacturers, Hino Heavy Trucks has the highest market share in Japan. From the product point of view, Hino's technology and reputation are still good. Guangzhou Automobile Co., Ltd. and Hino Co., Ltd. jointly manufacture 700 series heavy trucks. The main reason is whether the prices can be lowered or not. This depends on the localization rate. In this regard, Guangzhou Automobile did not disclose the positioning and specific models of heavy trucks.

It is understood that with the entry of the entire vehicle project, the supporting engine project is expected to significantly reduce the vehicle price. In the announcement, one point caught the attention of reporters. The P11C and E13C series engines will also be produced in Conghua. Prior to this, Shanghai Hino had P11C series diesel engines that could be used for cards and passenger cars. Shanghai Sunfield Sales Minister Sun Gangxin told reporters whether the P11C engine has not yet been determined in Conghua production. Therefore, how to operate the Guangzhou Automobile Heavy Truck project is still a mystery.

How to Integrate Bus Assets

The approval of the joint venture project enabled GAC to add a short board to the commercial vehicle and have corresponding products in the light medium- and heavy-duty trucks as well as in the mid- to high-end buses. It can be said that in the field of commercial vehicles, GAC has basically completed its layout.

However, the integration and adjustment of many passenger car projects of GAC is still unknown, including the future direction of Denway, Shenfei Hino and Guangzhou Isuzu.

It is understood that in 2006, GAC had integrated its passenger car segment and merged Yangcheng Lightbus into Guangzhou Denway Bus Co., Ltd., enabling Denway's product line to cover urban bus series and road passenger cars from 5.9 to 12 meters. Series, Yangcheng also escaped the bondage of light passengers and focused on light trucks.

For the only remaining Guangzhou Isuzu, GAC Group's attitude is rather subtle. It is understood that Guangzhou Isuzu’s Japanese personnel have left. A person familiar with the matter said that GAC has traditionally paid insufficient attention to the passenger car project, so its support has been insufficient. Guangzhou Isuzu's products are good, but due to the slow response to the market and the price has remained high, sales are not very good. Since Denway is positioned as mid- to low-end and Isuzu is already available in high-end and mid-range buses, it is time to add Shenfei Hino, a medium and high-end passenger car. How GAC integrates these companies in the mid-to-high-end passenger car project? A problem that must be solved in the future.

He told reporters that at the beginning of the 1980s, the Hino Bus had been “leading the way” in the high-end tourist bus market in China. Therefore, at the beginning of the establishment of Shen Fei Hino, the market’s acceptance of its products was quite high, just because the concepts of the Chinese and foreign parties were inconsistent. The sales policy was not flexible enough to lead to the suspension of production of Shen Fei Hino. After GAC took over, if it is able to change the operating mechanism and introduce new products, Shen Fei Hino still has a certain degree of competitiveness. “At that time, the production line of Shen Fei Hino was the most advanced in the country, but it did not play a role.”

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