Alliance Cummins Fukuda International Speeding

Together with Cummins, Foton Motors is more powerful. (Left first: Cummins president and CEO Long Yuewei, second left: Beiqi Foton general manager Wang Jinyu)

Futian Cummins Engine Co., Ltd. will have an annual production capacity of 400,000 units. According to the Futian plan, it will build an annual production capacity of one million sets of the world's largest engine production base in the Beijing area.

Compared with the turmoil in the auto market, it is not a concern for the engine industry because the joint venture between Foton Motors and Cummins of the United States to establish the largest domestic engine company has attracted more attention.

On March 26, Beijing Foton Cummins Engine Co., Ltd., the first Sino-foreign joint venture company under Beijing Foton, held its inauguration ceremony at the headquarters of Foton Motor in Changping, Beijing. After the completion of the joint venture, the annual production capacity will reach 400,000 units, which is currently the largest domestic engine manufacturer. It is expected to be completed in August. The first batch of 3.8L engines will be ready for trial production in May, and 2.8L engine products will be trial production in September.

With the establishment of this large-scale engine manufacturing company in Beijing and the existing production base of 100,000 units of Foton Aoling Power, the Beijing region already has an annual production capacity of 500,000 engines. According to the planning of Foton Motor, In the future, the world’s largest engine production base with an annual output of 1 million units will be built in the Beijing area.

Enhance the competitiveness of Foton light vehicles

In alliance with Cummins, Foton Motor began negotiations and signing contracts in 2004. The joint venture negotiations in the area of ​​heavy trucks continue, and the first joint venture in the field of light vehicle engines reflects the fact that Futian is trying to consolidate the light vehicle market that is being approached by competitors as it focuses on the heavy truck market.

According to reports, Foton Cummins Engine Co., Ltd. is invested by Foton Motor and Cummins Inc. at a 50:50 equivalent ratio. The total investment is more than RMB 2.7 billion. The main products are Cummins' latest generation 2.8L and 3.8L inline four-cylinder high pressure. Direct-injection light diesel engine, suitable for light trucks, pickups, SUVs, MPV utility vehicles, small construction machinery, off-highway equipment, and power systems.

The 2.8L and 3.8L models that are about to be put into production are all new products that have never been put into operation in any place including the United States, and are Cummins’s huge investment in the development of European and other international markets. Performance light diesel engine meets Euro IV and above emission standards.

Judging from the camp of Futian products, the joint venture project with Mercedes-Benz's heavy truck has not been completed, but the basic board has been nailed, and Fukuda heavy truck has made great achievements in the past few years, to move closer to the first group of heavy trucks, then in addition, how Enhancing the competitiveness of light trucks, pickup trucks, SUVs, and MPVs is a must for Fukuda.

Although light trucks remain the No. 1 in the country, competitors cannot be overlooked. Pickups, SUVs, and MPVs are the markets that Futian should expand in the future. At present, the domestic light vehicle market is highly homogenized. With the establishment of an engine company with Cummins, Fukuda can Greatly improve the competitiveness of light vehicle products.

Futian International Strategy Speeds Up

With the establishment of the Foton Cummins Engine Joint Venture, Foton Motor finally has an engine position that matches its status in the automotive industry, which will greatly enhance the quality and image of Foton Motor products.

The successful joint venture with Cummins not only received two world-class light-diesel engines, improved its own power system, but more importantly obtained the “pass” to enter the developed markets, which undoubtedly greatly contributes to its international operation. .

It is understood that the two engines of the joint venture company are at the top level in the world, and Cummins Inc. took the lead in introducing it into Chinese production, which fully demonstrated its attention to the Chinese market and its confidence in the cooperation of Foton Motor Company.

At the foundation-laying ceremony, the person in charge of Foton Motor and Cummins Co., Ltd. all mentioned that "to build a world-class automotive engine operating agency." This shows that the Futian Cummins Engine project is aimed not only at the Chinese market but also at the global market.

Due to technical barriers in emissions and other aspects, most of China's auto exports are currently concentrated in Southeast Asia, Africa, and Latin America where the auto industry is underdeveloped. The Cummins engine to be put into operation can meet Euro IV and above emission regulations, and Cummins has a worldwide after-sales service network, which will further help Foton Motors products accelerate the pace of entering the markets of developed countries such as Europe, America, Japan and South Korea.

Foton Motors is China's largest manufacturer of commercial vehicles. Its products cover a full range of commercial vehicles. Cummins is the world's largest independent automotive engine manufacturing company. The two companies will jointly build a world-class automotive engine operating organization. Industry experts pointed out that such cooperation is extremely beneficial to both parties.

Cummins completes its layout in China

The Futian Cummins Engine Joint Venture project has attracted wide attention not only because it is the first Sino-foreign joint venture of Foton Motors, but it is also Cummins's only light diesel engine production base outside the United States.

Mr. Long Yuewei, president and CEO of Cummins of the United States, spoke highly of the great significance of the Foton Cummins Engine joint venture project. He said: "This cooperation is a key step in the development of Cummins' business in China. Cummins is looking forward to this project for a long time. Today's foundation laying ceremony not only means that Cummins has achieved a full range of diversified product patterns in China. It also opened up a new era of environmental protection and energy saving for commercial vehicles."

In the 1970s, Cummins began to enter the Chinese market and was one of the first US companies to seek commercial cooperation in China. In the following 30 years, Cummins has owned 9 companies and more than 20 institutions through sole proprietorships and joint ventures in China. It is the largest foreign investor in the Chinese diesel engine industry. In the past two years, Cummins’ turnover in China has continuously exceeded US$1 billion, which accounts for more than 10% of its global business. China has become one of the fastest growing overseas markets in the world.

The responsible person stated that with the continuous rise in oil prices and the intensification of the global warming effect, the adoption of energy-efficient, environmentally friendly diesel engines has become one of the mainstream trends in the development of the international automobile industry, and the Chinese government has accelerated the “energy saving reduction” in recent years. Pai work, which provides a broader market for green diesel engines, Beijing Futian Cummins Engine Company was born in this context.

According to the agreement between the two parties, Foton Motor will purchase engines from the joint venture company and assemble it on Futian and its sub-brand vehicles. Cummins can also purchase engine sales from the joint venture company to non-Fukuda OEMs in China and worldwide.
View related topics: Cummins - world-class engine manufacturer

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