On April 21, 2008, SAIC, a leading automaker in China, and IVECO, a world-class commercial vehicle manufacturer, gathered in Beijing, holding the “SAIC-IVECO Cooperation Strategy Media Briefing” at the new premise of the China International Exhibition Center, announcing the comprehensive upgrading of their cooperation. As a strategy publishing initiative for the strong-strong combination between two major domestic and international automotive enterprises, the briefing was attended by the major leaders from the two companies including Mr. Xiao Guopu, vice president of SAIC Motor, and President Paolo Monferino of IVECO, Fiat Group.
Under the cooperation strategy between the two parties, SAIC-IVECO-Hongyan and Nanjing IVECO will give full play to the bi-brand differentiated product positioning strategy. While enhancing the IVECO brand, the competitiveness of Yuejin and Hongyan products will be improved quickly through internationalized quality and technologies and services and localized cost strategy. Currently the historic Yuejin and Hongyan brands will shine again in the domestic market as the independent brands of the joint ventures, reflecting the successful cooperation strategy between the two parties.
To quickly improve the technological level of the product and enhance the operational and managerial capability, the commercial vehicle sector of SAIC carried out a series of significant cooperation with IVECO, which has medium to high-end mature products and technologies and a marketing and service network with worldwide coverage. The two companies are jointly committed to developing commercial vehicle business in China. In December 2005, SAIC, IVECO and Chongqing Heavy Duty Automobile signed the cooperation framework agreement; in September 2006, SAIC and IVECO established a joint venture named SAIC-IVECO Commercial Vehicle Investment Co., Ltd.; In September 2006, witnessed by both Chinese and Italian Premiers, SAIC, IVECO and Chongqing Heavy Duty Automobile signed the cooperation contract and agreement at the Great Hall of the People; in June 2007, SAIC-IVECO-Hongyan Commercial Vehicle Co., Ltd. and SAIC-Fiat-Hongyan Engine Co., Ltd. were formally established. With the formal execution of the SAIC-NAC comprehensive cooperation agreement, Nanjing IVECO Automotive Co., Ltd. becomes a new starting point for both parties to cooperate in the light duty commercial vehicle sector in China.
As one of the most well-know commercial vehicle companies in the world, IVECO has 27 production bases in 16 countries, and China signifies the brightest among them. In fact, as early as 1986 since the first IVECO light-duty bus went down from the production line, IVECO has started its journey in China. In more than ten years, its pace to be localized in China as an international player has been steady. In 2007, IVECO proposed clearly its “China First” development strategy – SAIC-IVECO Commercial Vehicle Investment Co., Ltd., SAIC-IVECO-Hongyan Commercial Vehicle Co., Ltd. and SAIC-Fiat-Hongyan Powertrain Co., Ltd. were established in succession – thus IVECO becomes the first international commercial vehicle company with a complete layout in China. This time the upgraded cooperation with SAIC reflects the confidence of IVECO in the future of China. It can be forecasted that IVECO will move forward faster in China based on the foundation established by SAIC.
Currently, the cooperation between SAIC and IVECO has entered the strategic deepening stage. The cooperation strategy of SAIC and IVECO will have far-reaching impact on the commercial vehicle market of China, and the commercial vehicle sector of SAIC will step onto a new stage of advanced technology and excellent management.
