New joint venture between TRATON and CNHTC to localize MAN heavy-duty truck in China
TRATON GROUP and Chinese CNHTC Group announced a further expansion of their long-term partnership whereby MAN and Sinotruk would a joint venture to localize a MAN heavy-duty truck in China and “evaluate and intensify technology and procurement cooperation.” MAN and Sinotruk have been working together successfully since 2009. Since the beginning of the partnership, MAN has held a 25% stake plus one share in Sinotruk, one of the leading heavy-duty truck manufacturers in China.
“Sinotruk is amongst the strongest players in the Chinese heavy-duty market. The challenges the transportation sector is facing require joint forces and close alliances. Increasing transport volumes, regulation and digitization require change and flexibility. Partnerships are the right answer to turn these challenges into opportunities,” said Andreas Renschler, chief executive officer of TRATON AG and member of the Management Board of Volkswagen AG responsible for Commercial Vehicles.
“The cooperation with MAN has always been highly satisfactory. The technology of MAN has been a key success factor to succeed in the heavy-duty segment. We are therefore looking forward to extending the partnership between our companies. We are very confident that we will be able to achieve further successes,” said Cai Dong, president of Sinotruk.
“We are very proud of our track record of working together with Sinotruk. The partnership has been very accretive for both parties for almost a decade now. Evaluating how we can leverage our joint capabilities further is therefore logical. Our new plans together are currently taking concrete shape. As MAN, we are eager to increase our cooperation,” said Joachim Drees, chief executive officer of MAN SE as well as MAN Truck & Bus AG and member of the management of TRATON AG.
At the core of the increased cooperation is a planned joint venture between MAN and Sinotruk. Supported by the new joint venture, MAN plans to localize a heavy-duty truck in China, the largest heavy-duty truck market in the world.
Furthermore, opportunities with regards to technology cooperation will be evaluated. Among the areas expected to be explored will be powertrains, electrification, autonomous driving as well as buses. Beyond the planned joint venture, TRATON and Sinotruk also intend to extend their efforts to benefit from synergies.
TRATON AG, formerly Volkswagen Truck & Bus AG, is a wholly-owned subsidiary of Volkswagen AG and a leading commercial vehicle manufacturer worldwide with its brands MAN, Scania, Volkswagen Caminhões e Ônibus, and RIO. In 2017, TRATON GROUP’s brands sold around 205,000 vehicles in total. Its offering comprises light-duty commercial vehicles, trucks, and buses which are produced at 31 sites in 17 countries.
Sinotruk (Hong Kong) Limited is a company incorporated in Hong Kong with limited liability, and the securities of which are listed on the Main Board of the Stock Exchange. China National Heavy Duty Truck Group Company Limited (CNHTC Group) is the controlling shareholder of the company. Sinotruk and its subsidiaries are one of the leading trucks manufacturers in China, which specialises in the research, development and manufacture of HDTs, LDTs and related key parts and components. It owns the brands of SITRAK, HOWO, HOHAN, and STR etc. The trucks sales volumes were 263,903 units in 2017.