On June 1, 2011, the Chengde Municipal Government of Hebei Province, Beijing Automotive Group, Foton Motors, and Beijing Jianlong Heavy Industry Group signed a cooperation agreement in Beijing. The four parties will jointly establish Beiqi Foton Chengde Engine Parts Manufacturing Center in Hebei. It is understood that the engine parts manufacturing center mainly produces engine core castings and chassis related parts and other related components.
Chengde City Government, Beijing Automobile Group, Foton Motors and Beijing Jianlong Heavy Industry Group signed a cooperation agreement in Beijing
It is reported that Beiqi Foton Chengde Engine Parts Manufacturing Center has a total investment of 500 million yuan, of which Foton Motors has invested 255 million yuan, accounting for 51% of the shares, and is a controlling party. At the signing ceremony, Foton Motor stated: “Fukuda has continuously strengthened the R&D and manufacturing capabilities of its core components during its rapid development. The establishment of a new component company marks the integration of Futian’s entire vehicle and components. Accelerating the process. In the future, Foton Motor will make full use of spare parts supply channels, improve internal support systems, and create conditions for improving the core competitiveness of the vehicle business.â€
Foundry company enhances the competitiveness of Foton Motor
The engine is the core component of the car. Large-scale auto companies at home and abroad have engine factories and foundries that supply high-quality castings for the engine.
Foton Motors has a deep understanding of this and established a foundry as early as 1999. For more than a decade, the foundry provided an important boost to the development of the Foton engine and the entire vehicle. However, with the rapid development of Foton Motor, the demand for engines has greatly increased, which in turn places higher demands on the number, variety, and quality of engine castings.
From an industry perspective, the rapid development of the automotive industry not only imposes strict requirements on the number of castings, but also on the quality of castings (such as light weight, thin wall thickness, toughness and toughness). Only modern and large-scale foundry companies can meet the requirements. The needs of automotive companies can be successful in the fierce market competition.
Therefore, the only foundry of Futian Company is far from meeting the future development needs of Foton Motor, and it is extremely urgent to expand and enhance the casting capacity. The establishment of a new company and the establishment of a specialized and high-volume production model are the requirements for adapting to market competition and are in line with the development direction of the automotive foundry industry. At the same time, this is also an opportunity for Foton Motor to adjust its industrial location. After many consultations and efforts, the new foundry company eventually settled in Chengde, Hebei.
According to reports, Beiqi Foton Chengde engine parts manufacturing center will have an engine casting capacity of 150,000 tons and an automotive chassis casting of 150,000 tons. The engine castings mainly meet the casting requirements of Olympian engines, Lovol engines, Foton Cummins engines, Mercedes-Benz heavy truck engines, and Beijing Automotive Group's engines.
The relevant person in charge of Foton Motor pointed out: “The large-scale production of engine castings can rapidly reduce costs, the cost of engines and entire vehicles will drop, the profits of bicycles will increase, and the quality level of engine casting products can be greatly improved, and the entire vehicle can be improved. Product market competitiveness."
The Fukuda Zero Integration Process Accelerates
The establishment of Beiqi Foton Chengde Engine Parts Manufacturing Center can be seen as a sign of speeding up of the integration process of Futian Automobile's entire vehicle and parts.
In recent years, Foton Motor has accelerated the process of horizontal integration while improving product quality and product technology content in the vertical direction. The entire vehicle and components have been arranged with each other and coordinated development. The self-sufficiency rate of key components has been increasing year by year.
Previously, the most important power company of Foton Motor was Beijing Futian Environmental Protection Co., Ltd. Most of the gasoline engines and diesel engines used by the Foton, Landscape, Ao Ling, and Times brands owned by Foton Motor were provided by the company.
In 2008, Foton Motors joined hands with Cummins Inc., the world's largest independent engine manufacturer, to establish Beijing Foton Cummins Engine Co., Ltd., with a designed capacity of 400,000 light diesel engines. In June 2009, the joint venture was officially put into production. Beijing Foton Cummins Engine Co., Ltd. is the first Sino-foreign joint venture company of Foton Motors and is an important measure for Foton Motor to create high-end power, improve product quality, and promote zero-integration development.
In the past two years, Futian Omega Light Trucks equipped with Futian Cummins Engine has demonstrated strong growth in the market. Analysts pointed out that with the production of 400,000 units of Foton Cummins 2.8L and 3.8L light-duty diesel engines, Foton Motor will gradually complete its power layout in the global automotive market. The Cummins engine with international leading level will provide more for Foton light trucks. To strengthen the international competitiveness of Foton light trucks for a strong heart.
After completing the power distribution of light vehicles, Foton Motor also accelerated the pace of layout in the field of heavy commercial vehicle power. On July 16, 2010, under the joint witness of German Chancellor Angela Merkel and Chinese Premier Wen Jiabao, Foton Motors and Daimler signed a "Joint Venture Contract" at the Great Hall of the People in Beijing. In the future, after the establishment of the joint venture company, it will introduce its Mercedes-Benz medium and heavy truck technology and heavy-duty engine technology. Among them, the OM 457 heavy-duty engine that adopts Daimler's technology to meet Euro V emission standards will add chips for upgrading Futian Auman's heavy truck technology and winning more fierce market competition in the future.
At present, Foton Motors already owns many key components factories such as environmental protection power plants and Foton Cummins. With the addition of a new foundry factory, the Foton auto parts industrial chain is gradually improving. “We hope to make full use of spare parts supply channels and improve the internal supporting system so as to continuously improve the core competitiveness of the vehicle,†said the person in charge of Foton Motor.
Helping World-class Foton Development
The promotion of zero-integrated integration is the need for Foton Motor to focus on long-term development and build a world-class automotive company.
Last year, Foton Motor proposed the development plan of "Futian 2020". That is, by 2020, Foton Motor will strive to become a comprehensive international automobile company with a high degree of integration of fashion technology and humanistic environmental protection. It will have an annual production and sales of 4 million automobiles and will be one of the top 10 auto companies in the world, thus becoming China's first world-class automotive brand.
In order to achieve this goal, Futian Automobile will continue to adhere to the business principles of content growth, structural adjustment, and globalization in the coming years. It will focus on the development of independent brands and actively promote international cooperation to foster international competitiveness. Promoting the integrated layout of the entire vehicle and components is to provide assistance for the construction of the world of Futian.
Throughout the world-renowned auto companies, the self-sufficiency of key components has ensured their position in the global automotive industry. For example, now the vigorous German Volkswagen, is relying on its TSI supercharged direct injection engine and DSG dual clutch automatic transmission, in the world's auto market to attack the city slightly. The main reason behind the relative backwardness of China's auto industry is the lag in the development of parts and components. To date, many self-owned branded car companies are still using Japanese Mitsubishi engine technology in the 1980s.
The establishment of Beiqi Futian Chengde Engine Parts Manufacturing Center not only satisfies the current development needs of Foton Motor, but also focuses on future market competition and serves Futian Automotive's long-term development plan. According to statistics, 25% of cast iron parts in the world and 60% of cast aluminum parts are used in the automotive industry, and over 30% of castings in China are used in the automotive industry.
With the high-end foundry factory, high-end engine production can be ensured; with the support of high-end power, it can ensure the quality of Foton auto technology. “Futian will continue to promote the integration of complete vehicles and parts and components, and strengthen the adjustment of industrial location layout. This will lay a solid foundation for the promotion of Foton Motor, a self-owned brand automobile company, to the world-class companies.†Foton Motors Full of confidence.
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