Commercial Vehicle Joint Venture Must Strengthen Cultural Integration


In recent years, many domestic commercial vehicle companies have entered into joint ventures with multinational corporations. The cooperation between Volvo and CNHTC and the cooperation between Dongfeng and Nissan have attracted attention. However, joint ventures that produce “1+1>2” effects have been rare. The author believes that the joint venture of commercial vehicle companies must also strengthen the integration of Chinese and Western cultures.

Yu Zhuoping, Dean of the School of Automotive Engineering at Tongji University, said that China’s commercial vehicles do need to improve their technological level. However, China is a developing country. It is not that the higher the technology is, the more effective it is. The joint venture does not necessarily need to bring the highest-end technology to the market and it must combine with the Chinese market. The characteristics of the existing brand vehicles to put up, and maintain the appropriate price, will have the market competitiveness. Unsuccessful joint ventures are often desperately engaged in technology transfer. The cost has been very high. Naturally, they have to raise prices and eventually lose the market.

The unsuccessful joint venture of commercial vehicles and the difficulty of integrating Chinese and Western cultures are an important reason. For example, SAIC Iveco Hongyan has both the fusion of Chinese and Western cultures and the fusion of Chinese and Western cultures. A diesel company in Shanghai tried to establish a joint venture with a Western company, but it was unsuccessful because of poor cultural integration.

According to Xu Xingyu, former chief engineer of FAW Group, FAW Group had hoped to establish a joint venture with Mercedes-Benz to produce commercial vehicles. Initially, FAW was highly motivated and hoped to launch three brands together with Mercedes-Benz: FAW's “liberation” old brand, “mixed” brand, “ Mercedes-Benz" brand. But then there was an irreparable rift between the two sides: FAW hopes to use Mercedes's strength to overwhelm other strong rivals. Mercedes-Benz hopes to use FAW to consolidate its brand position, that is, there will be no FAW with Mercedes; FAW hopes to use the old factory building a joint venture, Mercedes-Benz is Hope to start another new green space. Xu Xingzhao said: "The two sides have caused a lot of misunderstandings due to cultural differences and the final cooperation has also turned into a bubble."

Xu Xinglu believes that the reason for the breakdown of the negotiations between FAW and Mercedes-Benz is mainly due to differences in Chinese and Western cultures. Chinese and Japanese cultures are close to each other and communication is relatively easy. However, it is difficult to communicate with Europeans and Americans, especially Germans, and they will not make concessions. Of course, as long as the agreement is signed, the Germans are unconventional and have strong complementarity with the Chinese.

It can be seen that while China's commercial vehicle companies are making strides every year to “go global”, it is important to strengthen communication and understanding with their partners. In recent years, due to the advancement of transportation and communication technologies, the pace of global integration has gradually accelerated, and cultural exchanges between countries have become more frequent. However, cultural differences between China and the West are objective facts that cannot be changed in a short time. This requires China. The car companies quickly understood the culture of the partners and allowed the fusion of the two cultures to become boosters for economic cooperation.



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