The integration of Chinese and Western cultures is beneficial to the successful joint venture of commercial vehicle manufacturers
In recent years, numerous domestic commercial vehicle manufacturers have entered into joint ventures with multinational corporations, but few have achieved the expected synergy of "1+1>2." For instance, the heavy trucks developed by Volvo and the China Heavy-Duty Vehicle Group sold only 100 units in the first half of the year, while the trucks from Dongfeng and Nissan managed to sell no more than 400 annually. Industry experts suggest that the successful integration of Chinese and Western cultures is crucial for these partnerships to thrive.
Yu Zhuoping, Dean of the School of Automotive Engineering at Tongji University, recently pointed out that China's commercial vehicles do need technological advancement. However, as a developing country, China cannot assume that higher technology always leads to better results. Instead, it should focus on enhancing the technology of existing domestic brands while maintaining competitive pricing. Many failed joint ventures have focused too much on transferring advanced technology, which often leads to high costs and inflated prices, ultimately losing market share. These failures are often linked to difficulties in integrating Chinese and Western cultures.
Xu Weida, former general manager of Shanghai Diesel Engine Co., Ltd., believes that the success of Sino-foreign commercial vehicle joint ventures largely depends on cultural compatibility. He cited SAIC Iveco Hongyan as an example, where both cultural and technical integration has been successfully achieved. In contrast, Shanghai Diesel Engine once attempted a joint venture with Western companies but failed due to poor cultural alignment.
According to Xu Xingyu, former chief engineer of FAW Group, FAW had initially planned to collaborate with Mercedes-Benz to produce commercial vehicles. The plan involved launching three brands: FAW’s “Jiefang†(Liberation), a new “hybrid†brand, and the “Benz†brand. However, a major conflict arose: FAW wanted to use Mercedes-Benz’s strength to compete against rivals like Dongfeng and Futian, while Mercedes-Benz aimed to leverage FAW to strengthen its own brand presence. This fundamental disagreement led to the collapse of the partnership.
Xu Xinglu further explained that the breakdown between FAW and Mercedes-Benz was largely due to cultural differences. While Chinese and Japanese companies tend to be more flexible in communication, dealing with Europeans and Americans can be more challenging. Germans, in particular, are known for their strong adherence to principles and reluctance to make concessions. However, once an agreement is signed, they are generally open to collaboration and complementing Chinese business practices.
At the end of the first half of this year, SAIC, Italy’s IVECO, and Chongqing Heavy-Duty Truck Group jointly established SAIC Iveco Hongyan Co., Ltd., officially based in Chongqing. Yang Shuyi, the general manager of SAIC Iveco Hongyan, noted that Italians are considered "Orientals in the West" due to their relatively easier communication style compared to other Western countries. This cultural ease was a key factor in the successful collaboration among the three parties.
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