The cooperation between Yuchai and MTU is a new type of cooperation. This kind of cooperation will not only bring economic benefits that can be directly realized, but more importantly it will promote the overall improvement of the core competitiveness of the company.
Not surprisingly, the news of Yuchai’s cooperation with MTU swept across the circle of friends.
Yuchai Joint Venture Products
Three days ago, the signing ceremony for the joint venture between the two sides ended. In the past few days, major media reported that it was an important moment both inside and outside of Yuchai. At present, many of the details of cooperation have not yet been disclosed. What are the implications of this cooperation that have yet to be understood? What changes will result?
Who is MTU?
First we have to start with MTU. MTU is not particularly famous in China. The general public may not understand it, and many people still mistakenly think that it is still a company under the Daimler-Benz Group.
In fact, MTU enjoys a good reputation in the field of non-road high-speed high-power diesel engines worldwide. As early as a hundred years ago, the company's predecessor produced the first high-speed high-power diesel engine. Then it has made achievements in the field of ships and power generation engines. One of MTU's best-known products is the MB873 Ka-501 engine fitted in the German Leopard 2 tank. This engine has better acceleration performance, and it only takes 7 seconds to accelerate from zero to 32 km/h. Coupled with its reliability advantages, MTU has always occupied the high-end engine market.
In the past five years, various enterprises in China have strengthened the research and development and upgrading of high-speed and high-power diesel engines. Yuchai is a typical representative of them. In recent years, Yuchai has increased R&D investment and market development in the high-marine ship power market, and its market influence and share have gradually increased. However, Yuchai’s current power generation is mainly concentrated below 1500 kW, and it cannot meet the market demand of more than 1,500 kW. The cooperation with MTU can undoubtedly put Yuchai's product chain in high-end layout and occupy an industry leading position.
The non-road area is a field that Yuchai has focused on in recent years. Yuchai is the first enterprise approved by the national defense measurement metrology three-level technical organization in Guangxi Minkou Enterprise, and it is also the enterprise with the most accredited qualifications for national defense in Guangxi Minkou Enterprise.
It can be said that the cooperation with MTU is meaningful.
What is the difference in cooperation mode?
On the other hand, from the cooperation model between Yuchai and MTU, it is also worth looking forward to.
People who know the industry all know that the current domestic companies generally adopt the following three methods for international cooperation: First, they buy, buy, and buy everything; they buy products, brands, technology, and intellectual property directly through overseas dips. This is where Geely buys Volvo. The second is to buy only product production licenses. Only responsible for production, all intellectual property rights are owned by the foreign party. The third is the establishment of joint ventures to build production products. The intellectual property rights and brands have not changed.
Apart from the first, these three methods may bring about major changes, but they are costly. Moreover, the technology blockade imposed by the developed countries on China is not overnight, and many technologies are not intended to be bought.
The cooperation between Yuchai and MTU is different: they invest and build factories in joint ventures, and are responsible for the development of different market sectors, and the production of products will also promote the promotion of both brands in different market segments. This not only protects the market interests of both parties, but also promotes the brand's influence each other. It really can be said to be complementary cooperation and win-win cooperation.
Bringing four changes
Not only that, when interviews were held at the top of the two sides, both parties disclosed that the joint venture company will definitely develop new products! This means that Yuchai and MTU will jointly carry out product research and development. There is no doubt that this will be the Yuchai’s R&D system. And the product structure has brought about major changes!
In addition, the two parties will also build new plants and production lines in accordance with MTU standards. The improvement of manufacturing level is not an overnight success. For over 60 years, generations of people Yuchai efforts to enhance the level of manufacturing in 2015, Yuchai manufacturing projects selected for intelligent manufacturing pilot project the Ministry of Industry, through the cooperation with MTU, the introduction of German Industry 4.0, is expected to explore a Made in China 2025 New path.
The improvement of China's manufacturing level is a long way to go. As Yu Ping said, the gap between China and international advanced companies is mainly the gap of the entire manufacturing system. For the Yuchai and MTU projects to be successful, in accordance with the joint venture company's goal of localizing parts and components, it must lead the transformation and upgrading of the engine industry upstream and downstream.
At present, China is vigorously advancing supply-side reforms. The definition of supply-side reform is to eliminate capacity, destock, de-leverage, reduce costs, and supplement short-cuts. Is it not an important part of this cooperation between Yuchai and MTU that the transformation of backward production capacity and the development of technical shortcomings in the industry?
This is why Yuchai promotes this project and calls it "an important moment."
As the cooperation between Yuchai and MTU signing ceremony falls, Yuchai’s transformation and upgrading in the field of non-road engines has finally reached a new starting point for development. However, Yuchai does not stop there. In the future, what will Yuchai have? What's new? Let's wait and see.
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