Construction Machinery Automotive Industry Alliance Accelerates XCMG to World Class

The machinery industry is the "big pillar" of China's national economy, and construction machinery and the automobile industry are among the fastest growing and most profitable industries in the numerous categories of the machinery industry. China is a big industrial country. However, over the years it has played only a role as a "processing factory" on the world stage. "Made in China" has never completed the transformation of "China Creation." This is a pain in China's construction machinery industry and it is also a car industry. The best. In order to speed up the realization of “world class”, the construction machinery and automotive industries seek alliances and jointly promote the dream of “Made in China” to complete the “world class” of several generations.

On July 8, the two major industrial giants Xugong Group and Shanghai Automotive "hands in" the development of bulldozers and other construction machinery host business, although Xugong has not released details of specific cooperation, but informed sources revealed that "it is definitely a holding company." On the same day, XCMG reached an agreement with the U.S. Commercial Vehicle Group and chose it as the seat supplier for the Group's construction machinery products. In the construction machinery and automotive industry, XCMG and Shanghai Automotive are among the top 10 global companies. The CV Group is a well-known supplier that provides comprehensive integrated system solutions worldwide. With the two major industrial alliances between construction machinery and automobiles, XCMG has steadily progressed toward “world-class” and China’s construction machinery has accelerated the transition from big countries to powerful ones.

In the past 21 years, XCMG has always maintained its leading position in the construction machinery industry in China. Although it has experienced such disturbances as the acquisition of Carlyle, the division of Caterpillar shares, and the reorganization of the Ordnance Group, XCMG has always stood firm in the Chinese construction machinery industry. . XCMG has become a “Made in China” card to the world. Every step taken by the company has attracted the attention of the industry and is considered as a benchmark for the Chinese construction machinery industry. The cooperation between Xugong Group and Shanghai Automotive and American Commercial Vehicle Group is of great significance to Xugong and China's construction machinery industry.

One hundred billion level goals

To achieve a "world class" leap, we must first complete the goal of 100 billion yuan, but the "100 billion yuan" does not mean that it will surely develop into a "world class," and construction machinery companies need to achieve all aspects of capital, products, management, and services. Only by upgrading will it be possible to finally achieve a "world class" dream. Recently, many construction machinery companies put forward the "one hundred billion" target. Xugong also said that by 2015 it will achieve a business income of more than 100 billion yuan, ranking among the top five global engineering machinery companies.

XCMG is an equipment manufacturing company with the most complete product series and the best set of equipment to provide users with optimal construction configuration. In order to achieve the goal of 100 billion yuan, Xugong has made detailed deployments in terms of expanding production capacity, upgrading technology, and increasing capital. This year, XCMG set up Xugong Construction Machinery Company, Basic Machinery Company, Railway Equipment Company, etc. through internal structural adjustment and external reorganization, invested 2 billion yuan to build a production base in Xinjiang, and expanded truck cranes, construction and maintenance machinery, and road construction machinery. Production scale of truck cranes and small construction machinery; XCMG and Doosan joint venture to develop engine business, invest RMB 430 million to build Jiangsu Xuzhou Construction Machinery Research Institute, take the lead in launching independently developed fourth-generation road construction machinery and equipment, K series loaders into domestic 5-ton loaders The main force and large-tonnage cranes are highly favored by users all over the country; XCMG has accelerated investment and financing, and cooperation with well-known domestic and foreign companies is both a fusion of capital and a provincial level of technology.

The cooperation between XCMG and Shanghai Automotive is an upgrade of the construction machinery and automobile industry. Why is it called "upgrade"? Because the two parties agreed to develop the engineering machinery host business based on Pengpu Machinery Factory Co., Ltd., Pengpu Machinery Factory Co., Ltd. is one of the four most complete and most powerful crawler bulldozer manufacturers in China and is a well-known domestic construction machinery company. In 2004, it was acquired by Shanghai Automotive as its holding subsidiary. XCMG cooperates with SAIC Motor to develop bulldozers and other engineering machinery mainframe businesses, relying on XCMG's strong technical support and sales network, which will surely lead to a win-win situation for both parties. At the same time, XCMG has also expanded product categories, enriched product lines, and improved overall competitive advantage.

Wang Min, Chairman of XCMG Group, stated that “this cooperation has created an open window for XCMG in Shanghai’s cosmopolitan metropolis. The company can make full use of Shanghai’s talents and geographical advantages, establish R&D centers and export bases, and at the same time serve as the capital of the company. The effective practice of the operation, this cooperation has accumulated valuable experience for the implementation of new M&A projects in the future, and it has far-reaching strategic significance for the major industry of XCMG Group's construction machinery.”

World-class new starting point

Completing the “world-class” leap is a dream for all companies. This not only represents the company’s higher “position” and “discourse power”, but also means that the company will receive “priority treatment” for the distribution of government and social resources. However, achieving "world-class" goals is not an easy task. Enterprises need accumulation of capital, technology, and products. It is a long and systematic process. After the company gradually embarked on the world stage, the beautiful halo gradually disappeared and replaced with new problems. To embark on the world stage is a leap and a turning point. It is a new starting point.

In the top 50 of the global construction machinery industry in 2010, Xugong entered the top ten for the first time. This is the pride of XCMG, and it is also the pride of the national brand of Chinese construction machinery. However, it is well-known that "high ground is not overwhelming". Xugong shoulders the historical burden of "Made in China" toward "World Class". It also faces the test of the 100 billion-level goal and faces Caterpillar, Komatsu, and Terex. And other international well-known companies "seeing." On the world stage, competition is fiercer, and it is far from being comparable to the domestic market. Therefore, XCMG needs to strengthen its independent innovation capabilities. From technology to management models, to business value concepts and brand promotion, we must form a development route with its own characteristics. At the same time, XCMG must seize the market opportunities, make forward-looking judgments on the industry, get help from the government and industry companies, and support all parties to accelerate the development of XCMG.

"World class" is a common dream of Chinese companies. It is impossible to accomplish this great vision by going it alone. XCMG needs to join forces with the same industry or companies in different industries. Automobile is the ideal partner. The industrial chain of construction machinery and automobile industry has a long industry chain, a high degree of correlation, a wide range of employment, and a large consumer pull. There are many similarities in the aspects of product technology and marketing network. On February 24, 2010, Chery, one of the leaders in independent innovation in China's automobile industry, entered the manufacturing industry of forklift trucks. The new forklifts successfully went offline on June 1. This time, Shanghai Automotive entered the construction machinery industry and joined forces with XCMG to formally see the development prospects of China's construction machinery industry.

From the perspective of the overall performance of the industry in the first half of 2010, the prospects of China's construction machinery industry are much better than expected. Although the country recently introduced policies to regulate and control credit and regulate real estate, 4 trillion investment, urbanization, “new 36” Under the influence of comprehensive factors such as regional planning, affordable housing and export recovery, the development trend of China's construction machinery industry is still good. The two major industrial alliances of construction machinery and automobiles will promote "Made in China" to shine on the international competitive stage and accelerate the realization of a "world class" dream!