SAIC Iveco Hongyan

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SAIC Iveco Hongyan Commercial Vehicle Co., Ltd.
Hongyan
FormerlyChongqing Hongyan Motor Co., Ltd.
TypeJoint venture
IndustryAutomotive
PredecessorSichuan Automotive Manufacturing Plant
FoundedJanuary 2003
Headquarters
Chongqing
,
China
Area served
Worldwide
Key people
Lou Jianping (General manager)[1]
ProductsTrucks
Production output
Increase 55,697 (2018)[2]
Owners
  • SAIC (56.96%)
  • Chongqing Electromechanical Holding (Chongqing municipality) (34%)
  • SAIC Iveco (9.04%)
Number of employees
5,000
Chinese name
Simplified Chinese上汽依维柯红岩商用车有限公司
Traditional Chinese上汽依維柯紅岩商用車有限公司
Hongyan
Simplified Chinese红岩
Traditional Chinese紅岩
Literal meaningRed rock
Websitewww.hongyantruck.com/en/

SAIC Iveco Hongyan Commercial Vehicle Co., Ltd. is a Chinese joint venture headquartered in Chongqing, China and owned by SAIC (as a majority holder), the Chongqing city and Iveco. SAIC Iveco Hongyan was established in January 2003 as Chongqing Hongyan and traces its origins back to a Chinese manufacturer established in 1965. The company is focused on producing Iveco-based heavy trucks which are mostly marketed under the Hongyan marque.

History[]

On 1 October 1965, the Chinese government started building an assembly plant for military vehicles in Chongqing, the Sichuan Automotive Manufacturing Plant. The plant began production in 1966, initially assembling Hongyan-badged military vehicles based on Berliet technology. In the 1980s, the plant used Steyr technology for heavy-duty trucks and entered into the civilian market. The plant launched new products and diversified its heavy truck offer during the 1990s,[3] increasing exports to foreign markets.[4]

The Sichuan plant was part of CNHTC until 2001, when financial difficulties forced CNHTC to divest it.[5] In December 2002,[6] Xiang Torch, a publicly-traded company involved in the automotive industry,[7] and state-owned Chongqing Heavy Vehicle Group formed the Chongqing Hongyan company as a joint venture based on the Chongqing plant.[6] The official establishment was in January 2003.[7] Xiang Torch owned 51%, its parent Delong 4% and the rest was owned by Chongqing Heavy Vehicle Group. Following Delong's stock collapse, Xiang Torch purchased its parent's stake. In December 2003, Xiang Torch signed a cooperation agreement with the Italian company Iveco, and Iveco and Chongqing Hongyan jointly developed and produced high-end heavy-duty vehicles. In 2005, Delong, the major shareholder of Xiang Torch, was broken. At this point, the Chongqing Municipal State-owned Assets Supervision and Administration Commission (ultimate owner of Chongqing Heavy Vehicle Group) forced out Xiang Torch and started the restructuring of Chongqing Hongyan.[6]

In December 2005, SAIC, Iveco and Chongqing Hongyan signed the "Joint Venture Cooperation Framework Agreement" in Chongqing, officially kicking off the joint venture cooperation. Iveco ended another Chinese joint venture, Changzhou Iveco, to avoid Chinese restrictions over more than two joint ventures producing the same type of vehicle, as it was already operating a joint venture with Nanjing Auto. In June 2006, the three parties signed a memorandum of understanding on the joint venture. In July 2006, Iveco announced that it had reached a joint venture agreement with SAIC to establish the equally-owned SAIC Iveco Commercial Vehicle Investment Co., Ltd. (SAIC Iveco). In August 2006, SAIC Iveco was officially approved by the Ministry of Commerce. On 18 September 2006, SAIC, Chongqing Heavy Vehicle Group and Iveco Commercial Vehicle Investment signed a strategic cooperation agreement at the Great Hall of the People in Beijing. In mid-October, the SAIC Iveco Hongyan company was finally operational and got the final government approvals in May 2007.[6] The official establishment date for the joint venture was on 5 June 2007.[3] SAIC Iveco held a 67% stake and Chongqing Heavy Vehicle Group a 33% stake. SAIC Iveco Hongyan began the construction of a new plant[6] and its first product, the Genlyon heavy truck, was launched in 2009.[8] A second truck, the Kingkan, was launched in 2011[9][10] and a third, the Gentruck, in 2015.[11][12] A medium-duty truck, the Genpaw, was introduced in 2018.[13]

A Hongyan Genlyon truck, pictured in 2018

In December 2016, it was announced that SAIC Iveco would reduce its stake in the venture to 12.08% while SAIC would hold a direct 53.92% stake and Chongqing Heavy Vehicle Group's parent a 34℅.[14] In 2018, SAIC acquired a further 3.04% from SAIC Iveco.[2]

Operations and products[]

SAIC Iveco Hongyan facilities are in the Liangjiang New District of Chongqing. The manufacturing plant, which has the capacity to assemble up to 80,000 vehicles per year, is modeled after Iveco's Madrid plant. SAIC Iveco Hongyan Axle Co., Ltd. is a wholly owned subsidiary able to produce up to 300,000 axles per year. SAIC Iveco Hongyan produces medium-heavy trucks ranging between 160 and 560 metric horsepower for highway logistics and engineering, construction and special-purpose heavy vehicles. In China, the company markets its products under the Hongyan marque while that for export markets it uses both the Hongyan and Iveco marques.[15] As of 2019, trucks produced by SAIC Iveco Hongyan include the Genlyon (based on the Iveco Stralis AS),[16] the Kingkan,[17] the Genpaw[18] and the Gentruck.[19]

References[]

  1. ^ "专访上汽依维柯红岩有限公司总经理楼建平" [Interview with Lou Jianping, General Manager of SAIC Iveco Hongyan Co., Ltd.]. 12gang.com (in Chinese). 19 April 2017. Retrieved 29 January 2019.
  2. ^ Jump up to: a b "SAIC Motor Corporation Limited. Annual Report 2018" (PDF). SAIC. pp. 17, 198. Retrieved 22 July 2019.
  3. ^ Jump up to: a b "红岩重卡承载品牌40年" [Hongyan heavy trucks have sported the marque for forty years]. 360che.com (in Chinese). 21 September 2011. Retrieved 26 January 2019.
  4. ^ "Initiating the historic transition from a planned to a market economy". Beijing Review. Beijing. 38: 32. 1993. ISSN 1000-9140.
  5. ^ Harborn, Mats; Xu, Tommy (2014). "The commercial vehicle industry in China: Scania being part of it". In Ebel, Bernhard; Hofer, Markus B. (eds.). Automotive Management: Strategie und Marketing in der Automobilwirtschaft. Springer-Verlag. p. 140. ISBN 9783642340680.
  6. ^ Jump up to: a b c d e Yan, Ming (20 June 2007). "上汽依维柯红岩商用车：一曲大江去" [SAIC Iveco Hongyan Commercial Vehicle: going to the big river]. auto.sohu.com (in Chinese). Retrieved 26 January 2019.
  7. ^ Jump up to: a b Zhu, Zhongqi (18 January 2005). "筑湘火炬彻底告别重庆红岩" [Xiang Torch bids farewell to Chongqing Hongyan]. finance.sina.com.cn (in Chinese). Retrieved 26 January 2019.
  8. ^ "SAIC-Iveco JV Launches Genlyon Heavy Truck for Chinese Market". chinatrucks.com. 23 March 2009. Retrieved 30 January 2019.
  9. ^ "SIH Kingkan set new post for heavy dumpers". chinatrucks.com. 27 October 2011. Retrieved 31 January 2019.
  10. ^ "Iveco's Joint Venture in China stellt ein neues Produkt vor: Kingkan" [Iveco's joint venture in China introduces a new product: Kingkan]. Kranmagazin (in German). 27 October 2011. Retrieved 31 January 2019.
  11. ^ "SIH Jie Series Trucks Compete for Medium Logistics Transport Markets". chinatrucks.com. 17 June 2015. Retrieved 31 January 2019.
  12. ^ "Historical romance". SAIC Iveco Hongyan. Retrieved 31 January 2019.
  13. ^ "Product presentation". chinatrucks.com. Retrieved 31 January 2019.
  14. ^ "Iveco and SAIC Restructure their Joint Ventures in China" (Press release). CNH Industrial. 16 December 2016. Retrieved 30 January 2019 – via PR Newswire.
  15. ^ "企业巡礼丨上汽依维柯红岩商用车有限公司" [Enterprise Tour. SAIC Iveco Hongyan Commercial Vehicle Co., Ltd.]. xuehua.us (in Chinese). 22 November 2018. Retrieved 30 January 2019.
  16. ^ "Genlyon". SAIC Iveco Hongyan. Retrieved 30 January 2019.
  17. ^ "Kingkan". SAIC Iveco Hongyan. Retrieved 30 January 2019.
  18. ^ "Genpaw". SAIC Iveco Hongyan. Retrieved 30 January 2019.
  19. ^ "Gentruck". SAIC Iveco Hongyan. Retrieved 30 January 2019.

External links[]

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