Foton Motors Incudes Cummins to Reduce Reliance on Weichai Power

Recently, Cummins ISG series heavy-duty engines were put into production at the new plant at Cummins, Beijing. The new plant has a designed capacity of 60,000 units. At present, this series of engines are mainly carried on the Auman GTL Super Edition models that Foton has just listed. At this point, Foton Motor (Fukuda) has finally overcome its short board on heavy-duty engines and reduced its dependence on Weichai's power.

Make short board Foton Cummins <br> <br> early as 2010, Cummins and Foton already started working for ISG engine program. Prior to this, Fukuda originally wanted to obtain large displacement engine technology from Daimler. Since 2003, Fukuda has begun contact with Daimler and wants to establish a joint venture with it to obtain large-displacement engine technology, but it was not until 2010 that the two parties established a joint venture. In 2012, the two parties reached an agreement on the production of engines. However, the actual implementation of the engine has been dragged on. The original scheduled production in 2014 has not yet been realized.

The slow progress in cooperation with Daimler has forced Fukuda to seek additional partners to get rid of dependence on Weichai as soon as possible. As a result, Cummins, who originally had a cooperative relationship, became a new goal for Foton Motor’s cooperation.

According to the plan, Fukuda will jointly invest 2 billion yuan in Cummins and Fukuda Daimler to manufacture ISG engines at manufacturing sites in Brazil and China, and to support Fukuda Daimler's global facilities. This means that the future Foton Cummins engine will digest production capacity in both domestic and overseas markets.

At present, ISG series engines are produced at the new plant of Beijing Foton Cummins Engine Co., Ltd. Its total investment is 2.2 billion yuan, and its annual production capacity is 60,000 units, which can be increased to 120,000 units.

Futian's heavy-duty engine, which is about to be put into operation, has a displacement of 10.5L and 11.8L, which can meet Euro IV, IV and Euro V emission standards, and can also upgrade the same platform to Euro VI emission standards.

Eager to get rid of dependence on Weichai In 2013, Foton heavy truck sales increased by 32% year-on-year to 115,000 vehicles, making it among the first camp in the heavy truck industry. However, at the same time as sales volume increased, the lack of engine products became a short board for Foton Motor. In the first camp of heavy truck industry, Foton is the only company that does not have engine core technology.

Previously, Foton Heavy Trucks mainly relied on the procurement of Weichai engines, and Weichai had an absolute advantage in the heavy truck engine supporting field. Weichai Power's 2013 financial report showed that Foton Daimler Motors was the largest customer of Weichai last year and contributed RMB 6.708 billion to its orders, accounting for 11.5% of its total sales.

A person in charge of a heavy truck company introduced that Fukuda was eager to overcome its own shortcomings in the engine's core technology. On the one hand, it hoped to reduce its dependence on Weichai Power. On the other hand, after Weichai purchased Weichai Heavy Industries, Having its own vehicle factory, Weichai is both a partner and a competitor to Futian.

Weichai's market share has gradually declined. The data shows that in 2010, Weichai had a market share of 40% in the heavy-duty engine supporting field, and it declined to 36.2% in 2013.

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