JMC Jiangling heavy truck - JMCH (former Taiyuan Changan Heavy Vehicle - CCAT)

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Founded in 2007, Taiyuan Chang’an Heavy Vehicle Co., Ltd. (the former Taiyuan Nanfang Heavy Vehicle Co., Ltd., renamed in September 2009), a wholly-owned subsidiary of China Chang’an Vehicle Group Co., Ltd., integrates development, production and sale into a whole. Its main products include various dump trucks, tractors, highway transportation automobiles, gas vehicles and special vehicles.

Located at the south end of Taiyuan Economic and Technological Development Zone, the company, with a floor area of 750mu (1mu=666.67 square meters), is the largest product base for commercial vehicles in Shanxi Province. The company boasts its advanced equipment and complete process arrangement. Besides, the company owns a large-scale heavy vehicle general assembly workshop which carries out intelligent and informatization management and has a total productivity of 50,000 sets.

The company has set a research center in Beijing together with Tsinghua University, and a provincial research center in Taiyuan. Passing the certification of ISO9001-2000 Quality Management System, the company has expanded its business in all over the country and exported its products to many countries. The company absorbs talents by a talent mode of “Selection, Use, Cultivation and Retaining”. Through the implementation of SPS Lean Production Management System, the company stably promotes enterprise production operation by strengthening lean management and deepening staff training. In the philosophy of “Pioneer, Excellence, No Excuse, Instant Action”, the company will produce top-quality and unique products in the work style of constant improvement to make contribution to revitalization of Chinese heavy truck industry. At present, according to a currently applied “Top 5 and Ten Billion” development strategy, the company plans to be one of Top Five Enterprises in China Heavy Vehicle Industry, create the output value and income of more than 15 billion yuan, realize the aim of full revitalization Shanxi automobile industry and forge excellent brand of China heavy vehicle in three years within 5 to 6 years.

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http://en.chanatruck.com.cn/


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[CCF mod]

Taiyuan Changan was acquired by JMC.

Jiangliang Motors Co, Ltd. took actions after lurking for years.
On August 8th, 2012, the Agreement Signing Ceremony for Jiangling Motors Co, Ltd. (herein referred to as “JMC”) acquiring 100% of Taiyuan Changan Heavy-Duty Truck Co., Ltd (hereinafter referred to as “TYHT”), and JMC cooperating with Shanxi Taiyuan Municipal Government was held in Taiyuan, Shanxi province. The leaders presented at the ceremony were Mr. Li Xiaopeng, Executive Vice Governor of Shanxi province; Mr. Wang Xigao, Chairman of JMC; Mr. Dave Schoch, Chairman of Ford Motor Corporation (China) and Vice Chairman of JMC; Mr. Zou Wenchao, President of China Changan Automobile Group (hereinafter referred to as CCAG); Mr. Chen Chuanping, Taiyuan Municipal Party Secretary; and Mr. Lian Yimin, Mayor of Taiyuan, etc..

TYHT is jointly owned by CCAG and China South Industries Group Corporation, the former owns 80% of the equity, while the latter owns 20%. After the acquisition, the new TYHT will become a wholly-owned subsidiary with independent legal personality, and will continue its current heavy truck production and business operations. Acquisition of TYHT can accelerate JMC's entry into heavy truck business. Mr. Wang Xigao, Chairman of JMC, claimed at the signing ceremony that JMC will introduce JMC branded heavy truck product as quickly as possible and improve market competitiveness of TYHT’s existing products after the acquisition.
With commercial vehicle as its core competitiveness in China automobile industry, JMC focused on its business in participated segments and gave full play to its advantages in all segments; therefore, JMC became deserved leaders in these areas. Its sales and production volume also maintained a steady growing momentum. In 2008, JMC production and sales volume were still below 100,000 units. While in 2011, JMC whole vehicle sales volume exceeded 190,000 units with sales revenue of 17.5 billion. Consequently, JMC has been ranked as one of China Top 100 Listed Companies for 8 consecutive years. JMC has expanded its products line from light bus, light truck, pickup to SUV.
JMC also signed cooperation agreement with Taiyuan Municipal Government for the construction and planning for TYHT production base. Shanxi province, rich in raw materials and energy and being an important market for heavy trucks, provided a good platform for heavy truck business. The powerful association between government and enterprise will deliver win-win results. On the occasion of the falling of heavy truck encumbered by state macro-control, JMC’s acquisition of TYHT reflected the uniqueness of this acquisition. On the one hand, JMC can respond to Chinese government's policy of encouraging industry consolidation through merging and restructuring to gain supports from government and other relevant parties. Especially, Shanxi has a strong demand for industrial programs facing the evolution transformation with rich resources. On the other hand, JMC can realize its expansion in commercial vehicle segment with relatively low cost on occasion of the industry downturn. The acquisition will allow JMC to expand its commercial vehicle business into the heavy truck segment by leveraging its existing core competencies. It is also helpful for JMC to enrich its product line so as to grow bigger and stronger in commercial vehicle segment.
Mr. Yuan-Ching Chen, President of JMC, claimed that currently the commercial vehicle business, especially heavy truck business, is experiencing a negative growth. However, the demand of heavy truck product will increase steadily under the long term infrastructure construction and economy growth in China, its total volume and development potential are attractive enough for a newcomer and an enterprise with advantages.

It’s worth noting that JMC declared in its acquisition announcement that this acquisition had gained full support from its major shareholder, Ford, who has good experience and strong product lines and technologies. The support Ford provided for JMC to develop heavy truck in the future, including the possibility of introducing Ford heavy truck product and technology, will undoubtedly add weight to JMC for becoming a strong competitor in heavy truck field.
In recent years, JMC’s position in china automobile market, especially commercial vehicle market, improved progressively as the sustainable growth of sales volume and the scales expansion. JMC has a strong product development, manufacturing and sales system. Its advantages in lean production, quality control, and cost management not only help JMC dominate a leading position in domestic automobile industry, but also enable JMC to compete with the international advanced standard. JMC has formed its core competitiveness of self-development through its cooperation with its strategic partner-Ford’s global platform. The recognition of state-level technology center, national high-tech enterprise, the first-class whole vehicle emission laboratory in Asia-Pacific region arose and developed from nothing.
The kick-off of a series of new programs in recent years led JMC to the strategic transformation, which indicated that JMC has entered a phase of speeding up its layout. The new generation Kairui light truck, Yusheng S350 SUV, world leading power 3L diesel engine, self-developed gasoline engine, etc.-JV brands and JMC self-owned brands constitute dual dives. 2011 witnessed the launch of the first self-owned passenger vehicle brand-Yusheng, which started JMC’s expansion in its business. The Xiaolan 300,000 units whole vehicle base under the investment of 3 billion is about to be ready. The other newly constructed facilities include a product development center, the laboratory, and test track. The advanced process, lean and high efficiency, automation of production line and equipment, and flexibility degree in the new plant are targeting the advanced international standard.
JMC’s entering into heavy truck business by leveraging its years of accumulated advantages in China commercial vehicle market demonstrated its strategic deployment has taken a solid step forward. Future-oriented JMC is ambitious to grow bigger and stronger. It is marching forward steadily towards a wider field.

http://www.jmc.com.cn/english/new/detail.asp?id=1136