After nine years, Foton and Daimler finally ended the marathon of “love”.
On February 18, Beijing Foton Daimler Automotive Co., Ltd. was established. Nine years of hard work eventually became worthwhile. Foton and Daimler wrote the legend of the industrial alliance between giants, adding a pair of strong wings for Foton to achieve the dream of “Global Foton Global Creation”.
Alliance between Giants Laid the Milestone of the Automotive Industry
Masters exhibit real skills during the contest, and only the alliance between giant’s leads to speed development.
The cooperation between Foton and Daimler is the case. The former is a global commercial vehicle sales champion, and the latter is a world-class commercial vehicle enterprise. The medium & heavy-duty truck joint venture built by such two outstanding companies owns high-quality genes of the both and lays a solid foundation for the joint venture and the two parties to march toward the broader market.
In the past, the traditional joint venture of China’s automobile industry was the introduction of foreign mature model. And the joint venture in China was mostly only an assembly plant whose products were for domestic demand. Foton and Daimler will set up joint ventures step by step in Russia, South Asia, Central and South America, and other countries and regions after the founding of Beijing Foton Daimler Automotive Co., Ltd. The operations center of global business cooperation will be located in Beijing and be responsible for management, decision-making, research and development, production, supply chain management, and marketing management, while joint ventures in Russia and other places will serve as regional production and sales centers.
The future Auman vehicles produced by joint ventures will be sold through Daimler sales system in overseas market. The indigenous Daimler heavy-duty truck engine can be equipped to Auman heavy-duty trucks to upgrade their competitiveness in Chinese and emerging markets, which can achieve the complement and benefit-sharing between the two parties of joint venture in the global market.
By working together with Daimler, Foton achieves a new leap forward in the business of globalization, and protects the company’s future sustainability. After the establishment of the joint venture, Daimler and Foton will invest abroad to circumvent trade barriers and obstacles often encountered by Chinese auto companies when setting up factories in foreign markets, and thus be able to grasp the favorable opportunity to occupy overseas markets.
In addition, by cooperating with Daimler, Foton will have the opportunity to digest, absorb, and utilize Daimler company’s advanced R&D technology, global operational experience and resources, which can improve the international competitiveness of Foton products across the world and provide the support in brand reputation and marketing networks for Foton to achieve global leapfrog development.
Build a World-class Automotive Brand
Although the joint venture of Foton and Daimler can be called a milestone in the domestic commercial vehicle sector, Foton has already had successful joint venture experience with world-class enterprises before. Early in 2009, Foton already cooperated with Cummins on the light engine and successfully built a high-end brand of light commercial vehicles. Through the technology and management upgrades, Foton enhanced its global competitiveness in the field of light commercial vehicles.
After several years of running, Foton is very productive in joint venture. After successfully earning the first pot of gold from joint venture, Foton shifts its sights to the broader international heavy-duty truck market, intending to achieve another success and continue to be the model of alliance. So, today, Beijing Foton Daimler Automotive Co., Ltd. comes into being.
As the world’s largest truck maker, Daimler has the technical advantage of the high-end truck and engine production and global marketing network, which deeply attracts Foton who wants to enter the global medium & heavy-duty truck market. Moreover, the leadership position of Foton and cost advantages in the Chinese commercial vehicle market also attracts Daimler.
Both parties fit in easily and quickly. By complementing each other’s advantages, Foton and Daimler will jointly make overseas investment after the establishment of the joint venture company to avoid trade barriers and obstacles, and thus they are able to grasp the favorable opportunity to occupy overseas markets and achieve a new leap forward in the globalization business.
Foton, a commercial enterprise with world-class production and sales, is building a global brand and world-class auto company with a world-class partner.
Focus on Beijing and Plan for the Globe
Since its establishment in 1996, after more than ten years of development, Foton has become a large enterprise with the management center in Beijing, whole-vehicle and parts divisions in Beijing, Tianjin, Shandong, Hebei, Hunan, Hubei, Liaoning, Guangdong, and Xinjiang, and R&D branches in China, Japan, Germany, Taiwan and other countries and regions
Foton is constantly expanding the development territory outward, however, whether how rapid the development is, the unshakable strategic foundation of Foton is always “the globalized control mode of taking Beijing as the global business management center and setting up regional operation centers in world’s major industrial countries”.
The Foton and Daimler joint venture company is located in Beijing, China, once again showing the status of Beijing as the strategic center of Foton. With the business expansion of Foton Motor, the position of strategic center will become more prominent.
Focusing on Beijing, Foton is making its strategic layout of China and the world in an orderly manner.
In 2011, for example, Foton was “fruitful” in domestic and overseas development. Domestically, in April 2011, the utility vehicle production base of Foton in Miyun, Beijing, China with the investment of RMB 3.77 billion yuan went into operation. In September 2011, Foton AUV Bus Division Guangdong Factory went in operation, marking that Foton formed the layout of focusing on Beijing and working in concert with two new-energy automobile production bases in Beijing and Guangdong. Globally, in 2011, Foton started its plant construction project in India, making it China’s first commercial vehicle enterprise with an overseas plant.
Indian factory is just the first step of Foton Motor’s global layout. According to the planning, Foton will respectively construct a factory with an annual output of 100,000 vehicles in Russia, Brazil, Mexico, Indonesia and other key countries in the secondary global market. It is expected that by 2015 Foton will finish the construction of five overseas factories, form a perfect overseas manufacturing center, and thus achieve global production and global sales.
“5 +3 +1” Escorts the Process of Globalization
The strength is the capital of development while the target is the motivation for advance.
In just over ten years, Foton gradually achieved the leading position in light truck, medium and heavy-duty trucks, new energy and other fields, and ranked first in 2009 for global commercial vehicle sales. For current Foton, to enter broader market areas and to build a world-class vehicle brand become a more important strategic objective.
To speed up the process of globalization, Foton will implement the “2020” Strategy with the core of “5+3+1” in which “5” refers to constructing 5 overseas factories with an annual output of 100,000 vehicles in Russia, India, Brazil, Mexico and Indonesia respectively; “3” refers to constructing a series of key projects, adjusting the product structure, and producing high-end car and engine products, ultimately entering the 3 world’s most high-end auto markets in the European Union, North America, and Japan-South Korea, and becoming the first Chinese car brand to enter developed countries’ markets; “1” refers to obtaining the leadership in Chinese market, becoming the leader of Chinese commercial vehicle market and the industry standards setter, achieving leapfrog development in passenger car, and becoming the best self-owned brand of Chinese auto industry.
In order to achieve the “2020” Strategy, Foton spares no efforts to cultivate the world-class brand in development, production, marketing and services. In research and development, Foton cooperated with two major world-class partners – Daimler in Germany and Cummins in America and owned the first-class R&D ability and level. Apart from Beijing, Foton established leading research and development centers in Japan, Germany and other countries through the integration of local resources;
In sales and services, Foton built a global marketing and service network and the entire “hassle-free” world-class service system; In manufacturing, Foton constructed Second Auman Factory, Utility Vehicle Plant, Heavy Machinery Factory and other eight projects in China with the world-class technology and manufacturing levels, thereby safeguarding the quality of products; The construction of overseas plants in Russia, India, Brazil, Mexico and Indonesia created the global manufacturing and sales network.
“In future, Foton will focus on Beijing, take China as the center, and become a truly world-class mainstream car brand through the strategic alliance with world-class companies of Daimler and Cummins.” Zhao Jingguang, Deputy Party Secretary and spokesman of Foton, bears high hopes for Foton Motor’s international strategy, “Global Foton Global Creation will become a business card of Foton.”