One of the less obvious booths at last month's IAA commercial vehicle
exhibition in Hannover, Germany, amidst all the glitz and glamour of the various commercial vehicle displays,
was that of the ASIMCO Group.
The booth, one of the largest booths in
China's component display, demonstrated the extent of the group's
expertise.
Six operating
companies attended the show and showcased their latest products on the important occasion in the commercial vehicle calendar.
Components
included ASIMCO Shanxi's vermicular graphite cast iron (CGI) cylinder heads of the 13-litre engines for the heavy commercial vehicle from JMC, which has close ties with Ford Motor Company.
It will be
recalled that in 2013 Jiangling Motors Corporation, Ltd (JMC), China's leading
producer of diesel engined vans, light buses and light duty trucks, announced
that it had entered into a technology supply agreement with Swedish process
control specialist SinterCast for the installation of a SinterCast Mini for development - technology
that would allow its foundry to produce graphite iron (CGI) products.
Other
products on show by the China-based company include ASIMCO NVH's engine
mounting system for Isuzu Motors, ASIMCO Camshaft's steel camshafts for
France's FPT, and ASIMCO Tianjin's turbocharger air intake pipes for Daimler
AG.
ASIMCO notes
that all the products attracted the attention from many professionals.
ASIMCO
Group's leaders including president and chief executive officer Wang Bin and Vice Presidents like
Wilson Ni and Wu Yingxue, ASIMCO Shanxi's general manager Tian Guozhu and the
representatives from other four operating companies attended this exhibition.
ASIMCO also
notes that during the show the company entertained a number of prominent
customer executives including JMC's general manager and his team, Yuchai
Group's vice president and his team, Cummins China's chief technical officer,
Paccar/DAF's procurement leader, the procurement directors of Daimler AG in Germany and China, and finally Ford Motor Company's
operations procurement leader of the company’s operations in Turkey, namel Ford
Otosan.
All visited
the booth with intention of learning about the Group's products and latest
developments, and to negotiate on current projects and explore the cooperation
potentials.
ASIMCO claims
that "all the clients were deeply impressed by the group's large product
line, devotion to proprietary R&D, and internationalized business
layout."
Cylinder
blocks and heads
Earlier this (in
February) ASIMCO announced that following ”concerted effort” by all employees
“to conquer all the hardships”, ASIMCO Shanxi had handed over 50 samples of 13-litre
cylinder heads and 9-litre cylinder blocks and heads with vermicular graphite
iron (compacted graphite iron – CGI) respectively to JMCH in late January
2016.
The
company said this signalled the company's access to new material field and
new product market. The CGI cylinder blocks and heads, which are used in the
new engines co-developed by JMC and Ford, claimed the world's leading
technological advantages, environmentally friendly production and energy
conservation, with outstanding quality. Once the official production is
launched, the competitive advantages will be created. The company took this
chance to lay a solid basis for their future market presence.
The
company used MAGMA software to simulate the new technique of each product on
more than one occasion, and even used Sintercast's technology for the first
time in the research and test. All the departments worked closely for five
hard months to develop the high-quality castings, thus earning the clients'
trust and respect.
ASIMCO
added that with this “new landmark”, the success of CGI cylinder blocks and
heads had consolidated the company's status as “China's largest independent
supplier of automotive cylinder block and head casting”.
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JMC’s
partnership with Ford
The presence of a representative from Ford Otosan
was not without its significance. On 5 February 2015 Ford’s China partner Jiangling announced joint
venture plans to continue ramping up investments through 2015, and in
2016 to prioritize the finalization of a technology
license contract for the JMC-branded J19 heavy truck project with Ford Motor Company, Ford Global Technology, and
Ford Otosan as its single most important investment for
2016.
It was aid that JMC would gain a technology license for the design,
manufacture and service of Ford Otosan "Cargo" brand heavy trucks
including chassis, cab, and related parts and components.
Under the July
25, 2014 agreement, JMC would pay Ford Otosan an initial licensing fee of €8
million, plus an additional €330 to €485 for each chassis constructed with Ford
Otosan-licensed components, and €20 to €40 for each truck completed with a Ford
Otosan Cargo cab.
Ford’s joint
venture deal with Jiangling Motors Corp. (JMC) dates back to 1997 to build
European Ford Transit so-called full-size vans. Ford increased its stake in JMC
to 31.5 per cent in 2013. Located in East China's Jiangxi Province, the
JMC-Ford joint venture also builds JMC-branded SUVs, pickups, vans and light
trucks (Ford also has a passenger car joint venture with Changan Automobile Co.
in Chongqing).
In August
2012, the JMC-Ford joint venture acquired a small, new truck maker called
Taiyuan Changan Heavy Truck Co. Ltd. (founded in 2007) for US$42 million and
renamed it JMC Heavy Duty Vehicle Co. Ltd. (JMCH).
JMC’s acquisition represents a great
opportunity to continue to expand the breadth of our business in China
across vehicle segments,” at the time said Dave
Schoch, chairman and chief executive officer, Ford Motor China. “A strong heavy
truck operation like Taiyuan will complement Ford’s existing passenger car and
light commercial vehicle operations here in the world’s largest and
fastest-growing vehicle market.”
“With Ford’s support, JMC will quickly
introduce new products and improve Taiyuan’s (JMCH) existing truck products in
order to bolster the competitiveness of Taiyuan Heavy Truck,” said Schoch.
“Ford has enormous experience and world-class products and technologies,
including in the heavy truck business, which can be deployed to support JMC
after the acquisition.”
On 24 Apri
2013, JMC signed a 12-year technology license contract with Ford Otosan to
produce the latter company’s 7.3 and 9.0 litre Ecotorq diesel truck engines
(JMC code-named J17) for the upcoming Ford Otosan Cargo-based heavy trucks (JMC
code-named J19).
It is known
that Ford Otosan uses compacted graphite iron (CGI) engine components.
In the heavy Cargo range, Ford Otosan has been offering the 10.3-liter
Fiat Powertrain Technologies (FPT) Cursor 10 engine found in Iveco trucks.
Ford Otosan is now ramping up to produce the 11.1-liter Cursor 11 and
12.9-liter Cursor 13 under license in Turkey (The Cursor 11 replaces the Cursor 10). For the JMC-Ford joint venture
to find success in China’s heavy truck market, these larger engines will be
essential.
JMC agreed to
pay Ford Otosan an initial licensing fee of €1 million, plus an additional €150
to €190 for each Ford Otosan-based J17 engine produced. JMC agreed not to
directly or indirectly design or develop a competing engine to the contractual
products during the contract term.
Engine
production at the JMC/Ford joint venture’s new US$82 million facility was
expected to launch in the second half of 2015 and initially build up to 10,000
engines a year.
The two
agreements were supposed to commence with the 2016 model year, be extended
every three years and have 12-year terms.
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