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Xichai and Xiwo , one of the active entrants to the passenger car engine market, and one of the loyal defenders of domestic high-end passenger cars. Will the combination of the two change the pattern of China's high-end bus market? Will China's passenger cars upgrade their high-end power levels?
In this regard, at least two people are confident. On December 11, 2012, in Xi’an, Qian Hengrong, the director of Wuxi Diesel Engine Plant of FAW Jiefang Automobile Co., Ltd. and Liang Chaojun, president of Xi’an Xi Wo Bus Co., Ltd. merged the water from Taihu Lake and Weihe River, respectively. Firmness shows their determination to seek a breakthrough. "This is the cooperation between the two central enterprises." Wei Anli, deputy secretary-general of the China Internal Combustion Engine Industry Association, attaches great importance to this cooperation between Xichai and Xiwo. He believes that the cooperation between the two central SOEs and subsidiaries of FAW Group and AVIC Group is powerful and worth combining. It is worth looking forward to.
Deeper cooperation
The theme of this event is "Hui Ying Ying - Xi Woxi Diesel High-end Power High-end Power Summit." It can be seen that this is not a simple cooperation ceremony, but Xiwo and Xichai really want to find the development trend of the high-end power market for high-end passenger cars and jointly seek a better cooperation model.
According to Liang Chaojun, “The cooperation between Xiwo and Xichai began six years ago and this time it is seeking deeper cooperation.â€
What is deeper cooperation? Liang Chaojun said that the cooperation between Xiwo and Xichai is not only supporting engines, but also includes joint research and development. The two sides communicate, coordinate and integrate in various aspects such as team technology and philosophy. In particular, it seeks breakthroughs in the “single order†phenomenon of users in the passenger car market. "If all kinds of engines are used, there is no energy for research and development. Xiwo hopes to develop high-end passenger cars with Xichai that are more in line with the needs of customers, providing the best passenger cars and the best power combination for users."
It is reported that from 2013, Xiwo and Xichai will discuss common development concepts and jointly seek better solutions for operations. "Good horses have good saddles." Qian Hengrong described the cooperation between Xiwo and Xichai. He also stated that Xichai Engine already has intelligent remote service functions, and in this respect can cooperate with West Bus to provide users with remote fault diagnosis and fleet management functions.
Industry experts believe that Xiwo is a representative of high-end passenger cars in China, and Xichai is a leading player in the internal combustion engine industry in China. The cooperation between the two can achieve breakthroughs in the development of China's high-end passenger car market and the localization of high-end power buses.
Xichai brand promotion
Qian Hengrong summed up the characteristics of Xichai in four sentences. The oldest diesel engine enterprise with the most achievements and talents, the diesel engine company with the strongest R&D capability, and the most focused on diesel engine companies.
Xichai has become famous in the domestic truck engine market. "In the truck market, under the same circumstances, heavy trucks equipped with Xichai engines cost 10,000 to 20,000 yuan more than models equipped with other branded engines, and users have already accepted them." Qian Hengrong said proudly.
However, in the passenger car engine market, Xichai's advantage is not obvious. Xichai conducted an in-depth study of the passenger car market. They believe that during the 12th Five-Year Plan period, the passenger car market in China will continue to grow at a relatively fast pace. Large-scale and branding will be the development trend of the passenger car market. Therefore, in recent years, Xichai's adjustment strategy in the passenger car engine market is no longer pursuing a large number of scales. Instead, it strives to shape the brand and shift from product marketing to brand marketing. “XiWo is a high-end passenger car brand. Cooperation with Xiwo provides a good vehicle for the promotion of brand influence of Xichao Aowei products in the field of passenger cars. It has the promotion and leading role and helps establish the high-end power of Xichai Bus. Brand image." Qian Hengrong said that in the future, Xichai will build a dedicated engine for passenger cars and provide physical examination services around the needs of users.
Professor Shen Fulin, deputy director of the expert committee of the China Road Society Bus Branch, pointed out that the world bus technology development trend is energy saving, environmental protection, safety, comfort and intelligence. For Chinese passenger cars, the requirements for energy conservation and environmental protection are particularly urgent.
Energy saving and environmental protection are the technical advantages of Xichai Engine. According to Qian Hengrong, creating high-end power is always pursued by Xichai. Currently, Xichai engine can achieve a fuel consumption of 2-3 liters lower than that of a domestic engine of 100 kilometers. The NVH noise control level is even better than that of some joint venture brands. In terms of emissions, Xichai’s technical reserves have long exceeded national standards.
Qian Hengrong said: "From this year's Hannover Commercial Vehicle Show, I saw the hope of China's commercial vehicle engines. The Xichai Engine has reached or even surpassed international counterparts in some technical indicators."
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The need for strategic transformation in Sivo
Xiwo was once one of the few joint ventures in commercial vehicles in China. Since it took the high-end route, its sales volume has been small. In 2011, Xiwo’s equity was changed. China bought the equity of Volvo in the joint venture company and assumed full management responsibility. In order to better adapt to the needs of the Chinese market, Xiwo hopes to take various measures to solve the problem of cost reduction. “It is now a strategic transition period for Xiwo.†Liang Chaojun said that there is still much room for development in the domestic high-end passenger car market. Xiwo will expand the market in road passenger transport, reception vehicles, conference vehicles and other fields.
Of course, Siva will not reduce manufacturing standards, and will still produce passenger cars in accordance with the design requirements and technical level of Volvo Buses. Liang Chaojun said that any cooperation is based on the consistency of both parties’ basic concepts and goals. In the early stage of cooperation and negotiation between Xiwo and Xichai, the bus professional evaluation department specialized in Xichai to evaluate the relevant hardware and software resources of the factory, and believes that Xichai's R&D capabilities and production standards meet the most stringent technical standards and meet Xiwo's requirements for quality, safety, and safety. The core values ​​of environmental protection have laid the foundation for good technical cooperation between the two sides. The positioning of Xichai's “National Brand, High-end Power†is particularly in line with the original intention of Xiwo to develop its own brand under the joint venture background, and hopes to join hands with Xichai to achieve a breakthrough in the high-end bus industry in West China.
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