When Tengzhong Heavy Industries Co., Ltd. takes a shot, it will need to buy foreign cars from the brand to the production line and all the workers. At present, some domestic mature auto companies adopt another method when they conduct overseas acquisitions.
Following Geely's acquisition of Australian automatic transmission company DSI in March, Beiqi Foton announced the use of Cummins Engine Co., Ltd. to send troops overseas. The two new light-weight engines jointly produced by the two parties began mass production. With an annual output of 400,000 engines, the company plans to 1/3 were sold overseas. Zhao Jingguang, deputy party secretary of Beijing Foton Motor Co., Ltd., said: "The power system is the key to improving our core competitiveness."
Experts believe that the core technologies and automotive design of key auto parts are the weaknesses of Chinese auto companies. Choosing internationally renowned companies in this field to cooperate will not only help market breakthroughs, but also break the blockade and achieve technological breakthroughs in related fields. Zhang Xiaoyu, executive vice president of China Federation of Machinery Industry, said: "What we lack now is technology and management."
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