Qingling cooperated with Isuzu to launch a new phase of cost competitiveness around 700P

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Qingling Automobile Co., Ltd. and Japan’s Isuzu Automobile Co., Ltd. jointly announced that: Isuzu’s latest global strategic model, the 700P medium-sized commercial vehicle, was formally rolled out of Chongqing Qingling and will be launched into the Chinese market on the same day. The introduction of this car marks the market competition of Qingling, which is mainly engaged in the production and sales of light and heavy commercial vehicles, and has officially entered the new stage of strategic cooperation between Qingling and Isuzu.

Domestic medium-sized commercial vehicles generally carry 5 to 7 tons of load and are widely used in regional logistics markets. They can also be converted into high-value-added vehicles such as refrigerated trucks, fire engines, sweepers, garbage collection vehicles, and airport vehicles. Last year, China sold a total of 230,000 commercial vehicles of this type with an annual growth rate of more than 10%. It is the fastest-growing model in the commercial vehicle sector. Qingling’s launch of the 700P midsize car is precisely to make a difference in this market, so that Qingling has formed a full line of light, medium and heavy commercial vehicle products. At the off-line ceremony, Qingling did not announce the market price of 700P. However, the person in charge of the company said that Qingling plans to use three years to allow 700P to occupy more than 10% of the domestic market share.

Qingling’s confidence comes from Isuzu’s important strategic model, the 700P. This high-end mid-size commercial vehicle, which was launched in Japan and plans to achieve 350,000 sales in overseas markets, has a rated load of 6 tons and a maximum container volume of 35 cubic meters. Leading Isuzu 4H diesel engine, 175 hp. The fuel consumption is 18 liters per hundred kilometers, which is 22% lower than that of similar domestic models. The vehicles are 850 kilograms lighter than similar models. When the total vehicle mass is the same, it can pull 850 kilograms of goods, which can create direct economic benefits for users in 1 year. Yuan; Emissions up to Euro III standards and potential to meet Euro IV and V emission standards; Safe and comfortable, with a new wide-body cab, humanized interior and exterior trim design; Low maintenance costs, annual maintenance costs over domestic use The same model saves 53%; the life-cycle cost is low, that is, the total cost paid by the user during the entire life cycle from the purchase, use, and end-of-life of the vehicle is 20% lower than that of the domestic similar models.

The release of Qingling 700P also indicates that the cooperation between Qingling and Isuzu has entered a new era. Isuzu had several partners in China. In the commercial vehicle market, various "bells" gathered. At the ceremony of the Qingling 700P's off-line ceremony, Vice President of Japan's Isuzu Minto Minh officially stated that Qingling was the only company to use Isuzu’s latest technology to produce Isuzu products in the Chinese market. He introduced that Isuzu’s two other partners in China, Guangzhou Isuzu, have terminated their cooperation, and Jiangling Motors’ Isuzu Co., Ltd. has already dropped to 12.5%, and there is no import of parts and assembly products and new product technology cooperation.

In the process of continuous strategic cooperation between the two sides, since 2005, the two sides have built a mutually beneficial win-win situation and jointly operated new mechanisms. They have continued to produce results: In 2005, Isuzu increased holdings of Qingling Co., Ltd., launched the 700P project in 2006, and established a new engine joint venture in 2007. the company. With the offline of 700P, Qingling became the first manufacturer of Isuzu Global Partners to achieve mass production at the same time, indicating that the cooperation relationship between Qingling and Isuzu has entered a new stage of development, with a wider and deeper scope of cooperation. .

The past traditional practice of joint ventures is the cooperation model of vehicle introduction, KD parts trading, and parts localization. In recent years, the cooperation between the two parties has been transferred to market research, product development, manufacturing processes, quality management, cost control, and after-sales services. The marketing network and resource sharing, parts and components, and global adjustment of the assembly are all-round and integrated with new cooperation models. In this process, Qingling also quickly trained its own technology and management team, which greatly enhanced the company's ability to innovate.

The implementation of the 700P project is a reflection of the process of change. The two parties are making the 700P more suitable for the use environment and conditions of Chinese users and participating in the fierce competition in the domestic commercial vehicle market. It is based on the 700P prototype and guarantees the Isuzu technical quality standard. Next, local adaptability secondary development will be carried out jointly at the place where the vehicle is used. Including the optimization and improvement of the engine oil supply system to effectively solve the engine oil plugging problem; the use of Qingling chassis manufacturing advantages, the development of different wheelbase, different cargo volume of products to meet the diverse needs of Chinese customers.

The two parties cooperated around the 700P cost competitiveness to maximize the use of Qingling’s existing assembly and component bases and manufacturing platforms, adaptively develop parts and assemblies, and avoid duplication of investment; both parties are rational about 700P parts. With division of labor and complementary resources, in accordance with the requirements of “one standard and two markets”, the 700P parts produced by Qingling are supplied to Qingling and 700P manufactured in Japan, which maximizes the output of 700P components and reduces the total vehicle volume. cost.

In addition, the two parties also jointly conducted 700P market surveys, improved after-sales service systems, improved spare parts supply systems, and strengthened sales networks.



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