Heavy diesel engines form the "eight-nation coalition" situation in the end who is causing troubles?


Before the beginning of the text, there is still a quote from Mr. Pulitzer:

“Ifacountryisasailingboatinthesea,andjournalistswhoisthebowoftheobservation. (If a country is a ship sailing in the sea, a journalist is the bowman.)

Why does the vast majority of heavy-duty diesel engines produced in China come from foreign technology platforms? Is industrial policy the culprit? Is Shang Fei Hong the initiator? Is new energy an influencing factor?

As mentioned above, the manufacturing platform for China's heavy-duty diesel engines comes from nine multinational companies in eight countries. In the end, why did this happen? After all, who is the chief culprit of the "eight-country coalition"?

In the following, the origin of this phenomenon is analyzed in three aspects to facilitate the search for ways to improve.

Is industrial policy causing disaster?

It should be said that the state's access to the heavy truck industry is still relatively strict, that is, the threshold is relatively high. There is an important condition for applying for the qualification of heavy trucks - that is, there must be matching engine production capacity.

What are the consequences of this policy? That is, many companies that have no intention or ability to dry their engines but want to build heavy trucks either do not make exits; or they introduce technology or platforms from abroad.

In fact, there are many independent suppliers of diesel engines in China. Among them, the most representative of Weichai and Yuchai have existing engines. Then, why do companies that build heavy trucks must have the ability to build engines? The development of China's auto industry for so many years, one of the major drawbacks is "big and full" and "small and all", why the industry development policy also encourages "big and full" and "small and all" it?

Weichai Engine


On the contrary, if domestic heavy-duty truck engines can be jointly developed (What does this mean? Is it said that heavy-duty trucks are co-developed with engine plants?), so that the costs can be diluted, allowing companies to invest more money and manpower in engine R&D. Material resources.

But now, domestic heavy-duty truck companies are popularly making home-made engines. However, the domestic domestic heavy-duty truck companies generally have low profit margins. Even if their annual sales volume is comparable to cross-border heavy truck companies, their profits are often less than one-tenth of each other. With such a low profit, how can a heavy truck company invest heavily in research and development of a self-made engine project?

Perhaps it is the development policy of the Chinese automobile industry that encourages heavy truck companies to produce their own engines. However, many companies can only embark on the path of introducing foreign engines and skip research and development when their own financial strength, technical strength, and talents are insufficient. Directly into the production phase.

In 1994, Article 32 of China’s first "Development Policy for Automobile Industry" stipulated that: "The proportion of Chinese-foreign joint ventures and cooperative enterprises that produce automobiles, motorcycles, and engine products should not be less than 50 "The reason why the engine joint venture company and the vehicle company has a 50% equity requirement is because the engine, as the core component, is the core competitiveness of the car.

However, in 2004, the new "Automobile Industry Development Policy" was promulgated and implemented, and Article 48 stipulates: "The proportion of China's shares in Chinese-foreign joint venture manufacturing enterprises for automobile vehicles, special vehicles, agricultural transport vehicles and motorcycles shall not be lower than 50 percent. "This means that after the implementation of the New Deal, the engine joint venture no longer needs the hard condition of "China's stock ratio of not less than 50%."

As a result, SAIC Fiat Hongyan, which was established in 2007, became the “beneficiary” of this policy. In its equity ratio, foreign Fiat accounted for 60%, SAIC accounted for 30%, and heavy-duty Hongyan accounted for 10%. China’s total share is 40%.

A few years later, that was the situation we all saw in 2015: SAIC Iveco Hongyan, a vehicle manufacturer, was losing money, and the foreign party accounted for 33.5%; while SAIC Fiat Hongyan, producing engines, was profitable. The foreign party accounted for 60%.

Filipino Corso engine


Speaking of SAIC Fiat Hongyan, it is not only the first "beneficiary" after the change of industrial policy, but also may be the "leader" of the new waves of heavy-duty diesel engines in China.

Is Shang Feihong the initiator of the new wave of introduction?

Some people say that Shang Fei Hong is the "starter" of the new wave of heavy firewood. Although, I do not think so, but combing out the history of the introduction of domestic heavy-duty diesel engine, it is still very necessary.

Why do Chinese heavy trucks need to introduce foreign engine technology? The reason is simple, that is, foreign engine technology is advanced. Due to the large gap between domestic and foreign diesel engine technology, the domestic heavy truck companies' introduction of foreign engine technology is tantamount to standing on the shoulders of giants.

In the 1980s, after the introduction of Steyr vehicle and engine technology by China National Heavy Duty Truck, it changed the status of the domestic auto industry "deficient". Since then, Weichai has continuously optimized and improved on the basis of the Steyr engine, making it once a heavy-duty diesel engine occupying half of the heavy-duty truck market.

Steyr Engine


Unfortunately, after 30 years of development, until 2015, Weichai's new 13-liter, 500-hp + engine is still being upgraded on the introduction of the Steyr WD615 platform. At the Beijing Auto Show, Beiben, Liuqi, Xugong and many other heavy-duty truck companies had their engines fitted with Weichai.

Similarly, in the 1980s, Dongfeng Cummins, which introduced Cummins technology, has also achieved great success in the medium-heavy engine sector. At that time, Dongfeng Bapingchai, equipped with a Cummins engine, became a market leader. Until now, Dongfeng Cummins still has a large proportion of supporting shares in the Dongfeng system. The auto show, Dongfeng flagship of Dongfeng Commercial Vehicles, Dongfeng Liuzhou's H7 tractors, and Dongfeng Cummins are all equipped with engines.

If we say that before the engine plant was introducing foreign technology, then from the index into the department, they all became the situation where the heavy truck OEM introduced foreign engine technology.

In 2007, after the establishment of SAIC Fiat, it first introduced the Corso 9 engine, and then introduced the Corso 13-liter engine. This auto show released the gold-exposed Cosel 11-liter engine. It can be said that the Corso engine introduced by SAIC Fiat Red Rock directly pulled up several “LEVEL” of “Made in China” heavy-duty diesel engines.

Corso 11-liter engine


With Corso example, other vehicle companies that want to do their own engines, they must also create engines that are in line with the world's engine trends. Since then, China’s heavy-duty truck companies have started to look for foreign aid in various forms of joint ventures and cooperation, introducing various advanced engines.

In 2008, Foton and Cummins of the United States established Foton Cummins. In 2010, they began to work on heavy-duty diesel engines. In 2014, Foton Cummins developed 10 litre and 12-liter ISG engines in the United States. At the Beijing Auto Show, among the cars in the Foton Daimler, there are three models that have Foton Cummins.

Germany


In 2009, Germany's Mann acquired 25% of the shares of Sinotruk Hong Kong listed company, while CNHTC purchased German Mann TG vehicle and D20 and D26 engine technology. In 2012, the engine of China National Heavy Duty Truck Technology entered the mass production phase.

In 2012, Beiqi Foton and German Daimler formed a joint venture company. Before the Futian, the Auman heavy truck was transferred to the joint venture company for production. The joint venture company did not introduce Daimler's vehicle models and technologies, but it introduced Daimler's Mercedes-Benz OM457 engine. This engine has been mounted on the Auman Super Edition GTL truck, and the entire vehicle and engine are also exhibited at this Beijing auto show.

In 2012, Jianghuai established a joint venture with Navistar USA. After that, all JAC Group diesel engines will be produced by this company. After the establishment of the joint venture company, it introduced the 3.2-liter, 4.8-liter and 7.2-liter engine from Maersk of Navistar, and it is expected to introduce the Maasfu high-powered engine in the future. At the JAC Commercial Vehicle Show at the Beijing Auto Show, the Maasfu engine and its full vehicle were exhibited.

In January 2013, Sichuan Hyundai, a joint venture between Sichuan Nanjun and South Korea’s Hyundai, also introduced modern heavy-duty vehicles, minibuses, and diesel engines. This year, it will also introduce modern light-duty vehicles. These models and engines have shown modern generation engines at this Beijing auto show.

This means that since the establishment of the joint venture of Shang Fei Hong and the introduction of Kosso Heavy Diesel Engine, there have been five engine platforms for heavy truck companies in China that were introduced and mass-produced. The five engines are Corso, Cummins ISG, Mann's D26, Mercedes-Benz OM457, and modern Glomus.

Mann D26 engine


Count the previous joint ventures: Hino, Higashiko Cummins and Ximium Cummins produced by Shanghai Hino, Cummins ISZ and ISM, ISL; coupled with Dongfeng introduced Renault DCI11, Weichai introduced Steyr WD615. Now the source of domestic engine technology is really more than "eight countries."

(Actually, from a commercial point of view, Hongyan’s introduction of SAIC and Fiat, and the introduction of more advanced models and engines from abroad, is not right or wrong. As a company, for the sake of a bigger market and higher profits, it is certainly understandable. However, 2016 coincided with the tenth year of its joint venture.10 years after the joint venture, Hongyan not only failed to exceed its own brothers, CNHTC and Shaanxi Automobile. In a loss situation.

The establishment of Shang Yihong, the introduction of the Jieshi model and the Corso engine, indeed promoted the technological advancement of heavy trucks and engines in China. Therefore, the joint venture between Chinese heavy truck companies and the introduction of foreign engines was accelerated. However, Hongyan apparently did not reach its pre-joint idea.

This may be somewhat analogous to the "depression illusion" in economics: Many companies want to increase their share by lowering prices, but these companies in the formulation of price reduction strategy, it is assumed that competitors do not cut prices. In fact, after these companies cut prices, their market share has not risen accordingly because their opponents have also followed the price cuts. As a result, profits have been lost after price cuts, but share and sales volume have not improved as well.

The joint venture of China's commercial vehicle companies and heavy-duty diesel engines is also somewhat similar to the "price illusion." Many companies think that joint ventures can “market-for-technology”. As a result, after the joint venture, the technology and grades of their products have been improved, but the share has not increased correspondingly, and there is no technology.

In fact, if you look at 2015, who is the biggest winner in the market? FAW liberation. Although there is no joint venture liberation of FAW, although it has experienced a lot of ups and downs, but also to adjust quickly, once the sales volume rises, the market share increases, its vehicle companies and engine companies have become a source of profit. In addition, FAW Jiefang can have a good performance in 2015, but also because FAW Xichai is enough to force, can at any time according to market changes, launch the most competitive products. For example, a 100,000-kilometer-long oil change, solid-chain high-power engine brakes in the cylinder, and high-power engines.

Therefore, is a joint venture a shortcut to success? Really not necessarily, not to mention Jie, even if it is not "path" can not say. )

Does new energy impede China's development of diesel engines?

Speaking of why China's heavy-duty diesel engines are so much more imported and developed less? One reason is, of course, that the technological gap between Chinese and foreign parties is large, and it is not as easy as catching them up. It is not as direct as “taking on the doctrine” and can be on the shoulders of the giants; but there is also an important reason that new energy vehicles are the general trend. More than 100 years of the automotive industry, which is dominated by internal combustion engines, have been developed, or they have become electric drives.

It is precisely because of the future trend of this auto industry. As a result, many Chinese automobile companies prefer to invest more capital and energy in the research and development of new energy power systems and vehicles. They are more willing to use the power of diesel engines.

Cummins Engine


For example, Beiqi Foton, Yutong Bus and other companies. Beiqi Foton, through its cooperation with Cummins, can share the profits of the engine. Its entire vehicle is also near the water and has the core competitiveness. At the same time, Futian invested more funds and energy into the research and development of new energy power systems and vehicles; Yutong Bus insisted on refraining from engines. For this reason, the opportunity to lose access to the heavy-duty truck industry did not hesitate (fortunately, it did not enter). In recent years, Yutong buses have seen rising research and development expenses, and a large part of them have been invested in the powertrain and vehicle research and development of new energy buses.

Perhaps it is the development of new energy vehicles in full swing in recent years, not only vehicle companies in the investment in the engine is very cautious, even the domestic engine companies continue to increase investment in diesel engine research and development, but also some tangled.

If some companies are investing their resources in new energy sources instead of traditional diesel engines, perhaps many domestic heavy truck companies do need to introduce foreign engine platforms. The problem is not so serious.



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