Every time he opened an event in China, Ruvi von Meister, the president of Navistar (China), did not forget to prepare a special gift for guests: a 1 pen version of the 1953 banknote issued by the People's Bank of China. The earliest technical prototype of the liberated brand truck on this note was derived from Navistar's International truck.

"This was a truck given to the Soviet Union through the lending bill in World War II. It was later transferred from the Soviet Union to China." Wan Ruyi said.

This relationship with the Chinese auto industry often makes Navistar proud, but it also reminds them that when they return to China nearly 60 years later, compared with Japanese and European commercial vehicle giants, Vestas is already late.

However, Navistar was prepared for this time. “One of our most important technological cores is new energy emission technology, and China is gradually raising regulatory requirements for vehicle emissions. I believe this will be an opportunity for Navistar.” Navistar China's Chief Technology Officer Lei Ning Say.

In fact, Navistar’s “opportunity” has already appeared. In September 2010, Navistar and NC2 (a joint venture between Navistar and Caterpillar) signed a joint venture agreement with JAC to develop, manufacture and sell diesel commercial engines and commercial vehicles, completing specific procedural After the steps and signing of several supporting commercial agreements, the joint venture project between Navistar and JAC was formally finalized.

“The new energy vehicles advocated by the government are not able to get fired for various reasons, and automobile manufacturers only have to continuously conduct research in the field of automobile engine combustion and exhaust emissions. With subsequent national laws, stricter requirements in this regard, if the technology is good in the domestic market, The space is conceivable,” said a new energy industry analyst.

Obviously, although the production and sales of commercial vehicles showed a declining trend from the data in 2011, the cooperation between Navistar and Jianghuai Automobiles has taken a fancy to the market of “energy-efficient” commercial vehicles.

According to Huang Qi, deputy director of the China Enterprise Brand Research Center of the Ministry of Industry and Information Technology, there is still potential in the Chinese market, but Navistar's course will be very difficult.

In fact, up to now, Navistar and Jianghuai Automobile have jointly failed to pass the approval of the National Development and Reform Commission for planning the joint venture between the medium-duty truck and the engine. Some doubters have also proposed whether the North American high-end technology route represented by Navistar will meet “acceptable” in China.

Taking "Energy Saving" into China's Commercial Vehicle Market

As a North American commercial vehicle and engine production giant, as of the third quarter of 2011, Navistar’s share of the North American truck market accounted for 48%, ranking first in North America. Although it has not officially entered the Chinese market, this North American commercial vehicle giant has already made investigations and preparations for the Chinese market.

Daniel Ustien, chairman and CEO of the Navistar Group, said in an interview, “Where there is the largest market? There is no doubt that China and India are.”

It is understood that Navistar’s goal is to enter the top 5 truck manufacturers in China. The revenue of the Chinese market in the next 3-5 years will reach US$2.0 billion to US$3 billion, accounting for 15% to 20% of the company’s total revenue.

This may not be an easily attainable goal. According to statistics from the China Association of Automobile Manufacturers, sales of commercial vehicles declined in 2011, with annual production and sales of 393.36 million units and 4.0327 million units, respectively, down 9.94% and 6.31% year-on-year respectively. Among them, the production and sales of trucks in 2011 were 2,653,700 and 2,702,000, respectively, down by 7.04% and 4.57% respectively year-on-year.

Some doubters suggested that the current competition in the Chinese market is basically heating up. “In the early years, the Chinese government’s 4 trillion investment was basically in infrastructure construction, and the demand for heavy construction trucks was relatively large. Now that construction investment is slowing down, Navistar now enters the Chinese market and the prospects are not very promising.”

However, in Lenin's view, the current market downturn may not be an obstacle that cannot be overcome. “The Chinese economy is currently undergoing a period of economic transition, and the performance requirements for energy-saving and emission-reduction of automobiles will not change. We are bringing advanced technologies to make the performance and costs adapt to the Chinese market is the key.”

This may indeed be the case. On February 24, 2012, the Beijing Municipal Development and Reform Commission stated that Beijing will take the lead in implementing the more stringent five-country emission standards for motor vehicles in the country this year and strive to be in line with international standards in 2016. Equivalent to the new Euro 6 emission standard entry standards.

Navier Teams Up with Jianghuai to Hit the Beach for China's Energy-Saving Commercial Vehicle Market

"Policy guidance is very important, but raising emission standards requires time and technology," said Renin. "For Navistar, this is an opportunity."

It is understood that the world currently has three major automobile emission regulations in the United States, Europe, and Japan. Other countries mainly adopt these regulations and standards to varying degrees, and adopt more regulations in the United States and Europe. Compared with European standards, the rules of the United States are more stringent.
“The current EPA 2010 emissions standards in the United States are currently one of the most stringent exhaust emission regulations in the world.” According to Lei Ning, in the case of heavy-duty vehicle diesel engines, EPA 2010 stipulates that the emission limits of nitrogen oxides and particulates will almost approach zero, The upper limit of nitrogen oxide emissions for brake horsepower hours is 0.2g, and particulate emissions are 0.01g), which is far below the Euro 5 standard now implemented in Europe.

“Our share in the North American market just shows that Navistar Energy-saving and emission-reduction technology is leading,” said Yan Jingde, vice president of research and product development at Navistar. “But this does not mean that Navistar will put all The technology was copied to China, but it used its own advantages to develop low-cost products that can adapt to the needs of the Chinese market.”

Can "Super Truck" land in China?

In 2009, the United States Department of Energy organized a new technology project "Super Truck", and Navistar was designated as one of the partner companies. According to the agreement between the two parties, the five-year project will be funded by the Ministry of Energy and Navistar and its supplier partners of 37 million and 52 million U.S. dollars respectively, focusing on truck aerodynamics, engine combustion efficiency, waste heat recovery, and mixing. Dynamic research and other aspects of innovation.

This project will focus on reducing vehicle fuel consumption by 50%, of which 30% will be obtained from vehicle technology and the other 20% will be achieved through engine technology. At the same time, it is also planned to increase the thermal efficiency of the engine to 50%-55%.

“Navistar is a party to the 'Super Truck' initiative.” Raining said, “Navistar has had technical reserves in the past, and at the same time, it has energy-saving and emission reduction technologies for complete vehicles and engines.”

Such technical chips also made Navistar gaining favor in the Chinese market. "We do have the advantage of using Navistar's technology to occupy the future market." Jiang Lie, secretary of Jianghuai Automobile, said: "Whether it is a vehicle or an engine technology, Navistar has a certain degree of technological advancement, which is conducive to our satisfaction. The increasingly stringent domestic demand for emissions also helps us to develop the international market.”

It is understood that foreign car companies want to enter the Chinese market, according to the regulations need to find a domestic-funded cooperation platform, in many potential partners, Navistar "hands" Jianghuai Automobile.

According to an agreement between Navistar and JAC, the engine joint venture will introduce Maxwell's MaxxForce diesel engines, which will meet Euro IV and Euro V standards. The vehicle joint venture project will sell products of the JAC Gehl Development Heavy Trucks and Transtar multinational brands. With the help of Navistar and Caterpillar's technology and management experience, they will leverage JAC's understanding of the Chinese market and marketing network to jointly develop the products. For the Chinese market requires a new generation of medium and heavy truck products.

However, the Chinese commercial vehicle industry is affected by the policy, so the brand has a greater impact on sales. In contrast, the US-based car companies represented by Navistar have far less market share of Japanese commercial vehicles in China than in Japan and Europe.


“That's because American standards are more stringent and the distance to the Chinese market may be farther away,” explains Renin. “But the geographical conditions of the United States are similar to China in many aspects, unlike Japan and European countries.”

In response, Feng Liangsen emphasized that "JAC will not use Navistar's technology as a whole, and we will preserve its existing platform."

According to statistics from the China Association of Automobile Manufacturers, sales of the top 10 commercial vehicle manufacturers in 2011 accounted for 70% of the national total, of which Jianghuai Automobile ranked fifth in terms of 270,500.

"Navistar chose JAC because it was a fast-growing Chinese auto company." The aforementioned industry sources said that Jianghuai Automobile is willing to cooperate with Navistar, "the current domestic mainstream manufacturers of heavy trucks." The basics are Japanese, European, etc. Jianghuai may wish to change the direction of the market through this cooperation."

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