“Lighttower Project” to “Magellan Program” “Magellan to Project” “Lighttower

Exploration of Advanced Manufacturing from from Manufacturing Advanced of Exploration

in North America North in

CIMC Vehicles Group’s Game-Changing Journey Journey Game-Changing Group’s Vehicles CIMC

Semitrailer Manufacturer Retlan Manufacturer Semitrailer

www.cimc.com CIMC Vehicles Acquires UK-based Leading Leading UK-based Acquires Vehicles CIMC

Semitrailer Industry Semitrailer

CIMC Vehicles: the Re-shaper of the World’s World’s the of Re-shaper the Vehicles: CIMC 2016 December Total No. 216 No. Total December 2016

中集车辆专刊 CIMC Vehicles Special Issue Special Vehicles CIMC

中集车辆 ：重塑全球半挂车格局 2016 年 12 月 总 第 216 期

中集车辆并购英国半挂车领导者Retlan www.cimc.com 中集车辆的北美破局之路 探索先进制造 ：从“灯塔”到“麦哲伦” 目录︱ CONTENTS

20 Case 1: CIMC Vehicles Group’s Game-Changing Journey in North America CIMC Today Issue No. 216 CONTENTS 《今日中集》是中集集团编印的季 度通讯。欢迎积极投稿，并提出您 的意见和建议。 CIMC Today is published quarterly by 01 Editor’s Note CIMC. We welcome all comments, suggestion and contribution of 02 Foreword of Recommendation articles. 03 David Li , Managing Director of CIMC Vehicles Group 主编︱ Editor-in-Chief 马天飞︱ Timothy Ma 毛 弋︱ Flora Mao 04 CIMC Vehicles Today 27 Case 2: LAG and Tonghua: European Technology and Products “Made in China” Reinforce 执行主编︱ Executive Editor-in-Chief 04 CIMC Vehicles: the Re-shaper of the World’s CIMC Vehicles’ Position on Saudi Arabia Market 李 勋︱ Kevin Li Semitrailer Industry

编辑︱ Editor 张路丁︱ Luding Zhang 谭玲娟︱ Lingjuan Tan 刘坤领︱ Kunling Liu 袁 巍︱ Wei Yuan 刘 伟︱ Wei Liu

08 Three Strategic Investors Hold New Shares of CIMC Vehicles 10 News Updates 30 Advanced Manufacturing and Industry 4.0

10 CIMC Vehicles Makes Spectacular Presence at the 30 Exploration of Advanced Manufacturing from “Lighttower Project” to “Magellan Program” 登记证号︱ Registration No.: 2016 IAA 粤内登字 B 第 10163 号（内部发行） Yue Nei Deng Zi B No. 10163 12 Seeking to Transform in a Fragmenting Global Trailers (Internally distributed) Market ——David Li, Managing Director of CIMC Vehicles Group 主办︱ Sponsor Speech delivered at the “China Day” Forum at the IAA 2016 中国国际海运集装箱（集团）股份 有限公司 14 CIMC Vehicles Acquires UK-based Leading Semitrailer China International Marine Containers Manufacturer Retlan (Group) Co., Ltd. 16 CIMC Vehicles to Build a New Production Facility in Bahrain 编辑部︱ Edit 地址︱ Add: 深圳蛇口港湾大道 2 号中集集团 18 Global Operation Local Knowledge 研发中心 Global Operation Strategy and Best Practice Cases 34 Media Focus CIMC R&D Center, No. 2, Gangwan Avenue, Shekou, Shenzhen 35 Precedent for Perseverance 18 Global Operation Local Knowledge 电话︱ Tel: 0755-26802178 ——《Global Trailer》Exclusive Interview with David Li 邮编︱ Postal code: 518067 邮箱︱ Email: [email protected] 38 Milestone

41 Our Products

内部资料 免费交流 Internal materials for free exchange Editor’s Note

“CIMC Today is an important news service-oriented journal, an important information organ of the CIMC Group, and an important platform for building up the CIMC’s international communication capacity. I hope this journal will be able to draw a clear picture of CIMC Vehicles’ new image and its business values, and then present the picture to our stakeholders, our clients, partners or employees. ” Mr. David Li, Managing Director of CIMC Vehicles Group commented in the meeting with CIMC’s PR Office. This expression aspired “CIMC Today – CIMC Vehicles Special Issue”.

In this Special Issue of CIMC Vehicles, we walked into CIMC Vehicles Group second largest business segment, and tried to present something beyond your imagination to you.

To tell a better story, the editorial team of CIMC Today has visited several CIMC Vehicles’ subsidiaries in USA, Europe and China, to find out the operating principle and business value of CIMC Vehicles. No matter in Vanguard, CIE and CRTI in America, in LAG and SDC in Europe, or in the Lighttower plant in China, what impresses us most is PEOPLE. Of course, we admit that the nicely made semitrailer products, the advanced digital designs and the unparalleled production systems are stunning, really amazing. But it is all about people, the experts and management talents that have been contributing their “Local Knowledge” on the “Global Operation” platform of CIMC Vehicles to make CIMC Vehicles a respectable chaser, a valuable competitor, and a remarkable winner. “Global Operation Local Knowledge”, one comma, two idioms and four words, is often presented in PPT like an empty talk. But in fact, it is not. For each and every, any and all production facilities, R&D centers and subsidiaries of CIMC Vehicles across the world, “Global Operation Local Knowledge” is a principle, a belief, a voice and a commitment.

It also surprises us that many overseas colleagues, although they are from companies that were acquired and then merged into CIMC Vehicles, yet they are in more favor, respect and love of it than we had thought. “I have worked here since 1985, and gone through three bankruptcies. When my men and I were in desperation, CIMC Vehicles came in. It launched the ‘Project Midway’, and this gave us hopes. The project worked pretty awesome, and we survived. Now, CIMC Vehicles has become a major player in the US market, and this is a real thrill indeed. I have worked for the Group over 13 years, and I am proud of it. I believe that CIMC Vehicles will have a bright future, and the Group deserves it. ” Kenneth E. Huff, Acquisition Manager of Vanguard told his story with pride and honor.

From China to Western Europe, from the east coast to the west coast in the US, we have travelled thousands of miles. The reason is simple: we are looking for an answer, an answer to the very questions – how has CIMC Vehicles done this, and what makes the Group what it is today? We finished the series of interview in Los Angeles, and then return to Shenzhen with doubts and thoughts, thread and pride. And then, we are working on this Special Issue. We intend to present to you, dear readers, the professional people, the high-quality products, and the advanced principle, in a vivid but also a candid manner.

From its courageous attempts in China, its game-winning interceptions in the US, and its glorious triumph on the world’s semitrailer market, CIMC Vehicles’ failure and success, challenges and guts, struggles and options, are all here, in this CIMC Today – CIMC Vehicles Special Issue. Hopefully, it will touch you and enlighten you, in a quiet afternoon, or at a quieter midnight.

Editorial Office of CIMC Today 推荐序︱ Foreword of recommendation

First of all, I’d like to thank CIMC Today and quickly through acquisition and integration elites of the world’s semitrailer industry its editorial team. It is their concerted and the major facilities of the industries of China. on the basis of “Local Knowledge”, grown dedicated efforts that made this Special Issue The second stage is from 2010 till today. In into a global company with extensive possible. This publication offers latest and this period, we started our global operation expertise, an engine that drives economic Hello! precise information and facts about CIMC strategy. Through consistent integration and social development of countries where Vehicles and its business values. of overseas resources, we have built up we have made investments, a member that production facilities and sales network creates jobs for local residents and benefits We are very honored Also, I am honored by the privilege to successfully that will serve our clients communities, and a model that is honored recommend this Special Issue to you, the worldwide in North America, Europe, Asia, and respected. to recommend this stakeholder that we have cherished over the Africa and Oceania, established the business years. In this journal, you will read the stories layout characterized by global operation, and With your support, CIMC Vehicles has special vehicle issue about the way of growth and development of achieved the recognition and acceptance in become a leading company in the world’s CIMC Vehicles, and hopefully it will help you the major markets via our technologies and semitrailer industry after years of efforts... know more about us. We will be thrilled and products. Whatsoever in the past, present or in the CIMC Today to you. appreciated if you trust us a little bit more future, we always grow together with your after reading this issue. From making investments in Chinese stay. We commit to achieving sustainable mainland to establishing a global operation development and organic growth that will be CIMC Vehicles has been competing system, CIMC Vehicles has been witnessing driven by innovative concepts and cutting- Managing Director of vigorously worldwide since its inception in and taking advantage of historical edge technologies and creating new values CIMC Vehicles Group 2002, and we have done this on the merits of opportunities and social evolutions after for you. our products, services and principles. There China’s entry into WTO. Today, CIMC Vehicles David Li are two stages of our development. The first is no longer just a Chinese company that We hope that, on our way ahead, both of us stage is from 2002 to 2010. In this period, we invests and operates overseas. On the will work together to strengthen cooperation entered into the semitrailer business, we rose contrary, we have pooled together the and create a win-win for a better tomorrow.

02 CIMC today 今日中集 CIMC today 今日中集 03 今日中集车辆︱ CIMC Vehicles Today

It’s a big move from ocean to service industry. Afterwards, Mai Boliang Vehicles successfully won the order for land and his managers and technicians visited 13,000 container transportation semitrailers CIMC Vehicles: the Re-shaper of Australia and the US for on-site investigation from Maersk Line in 2003, the world’s largest CIMC Vehicles is the second largest business and communication, set up a semitrailer container shipping company. This order was unit of CIMC Group. The parent company was project team, and worked on the new and the largest of the year, and it has been the the World’s Semitrailer Industry established in 1982 at Shekou, Shenzhen. thrilling business undertaking. largest ever in China so far, representing Though CIMC had a period of rough time that CIMC Vehicles’ semitrailer products after it was establishment, yet it quickly After several years of surmounting technical successfully accessed to international Writer/Photographer ︱ Kevin Li found way-out thanks to the State’s reform difficulties and conducting technical research markets. and opening-up policy and its dedicated and development, CIMC Vehicles was marketization and internationalization efforts. established in 2002. In the same year, CIMC In the next few years, as China’s economy held “CIMC Semitrailer & Van Trailers Launch rapidly developed, its semitrailer industry In the face of economic slowdown in China, Statistically, the Group respectively sold Sales of Special CIMC Vehicles It became the world’s biggest manufacturer Conference” at Shekou, Shenzhen, marking embraced high-speed growth. China a right business pattern means almost 102,900, 115,300 and 113,900 special vehicles and seller of containers in 1996, and has been Total Operation Revenue the formal start of CIMC’s semitrailer business. gradually became one of three core everything for the manufacturing industry. in 2013, 2014 and 2015, and received total ranking the first place ever since. The company, which had contributed to the semitrailer markets in the world, and kept In the context that China has suffered from operating revenue of 2.08 billion, 2.26 billion 115,300 units development of domestic logistics service pace with North America and Europe. weak demands and the manufacturing and 2.13 billion US dollars. Especially, CIMC 113,900 units However, CIMC’s top leaders were not industry with its ocean shipping equipment, Annually, over 200,000 semitrailers were industries have not bottomed, CIMC Vehicles Vehicles’ semitrailer products accounted for 102,900 units content with the achievement. Driven by would contribute more to the improvement sold on China’s market. Within this period, has outshined in CIMC’s diverse business over 10% of the world’s total in 2015. So far, the impulse to diversify CIMC’s businesses, of logistics service efficiency with its road CIMC Vehicles established its competitive layout, with its operating revenue continuing more than 50% of the Group’s semitrailer $2.26 billion they decided to take a step forward: besides $2.13 billion transportation equipment. advantage by making full use of China’s to grow in 2016 despite the slowdown of products have been exported to a numbers $2.08 billion maintaining the leading position of its economic surge. According to the Global other business segments. CIMC Vehicles’ of major markets including the US, the UK, containers for ocean shipping businesses, Semitrailer Market Analysis and Forecast development of its loss-hedging ability and Holland, Belgium, Japan and Australia, and a it would manufacture road transportation Business operations and released by ACT Research in 2014, CIMC implementation of global operation strategy number of emerging markets including the equipment. In 1999, CIMC’s CEO Mai Boliang performances on China’s Vehicles’ sold 46,700 semitrailers on Chinese over the past few years have effectively Middle East, Southeast Asia, South America spent his Spring Festival holiday in Australia. market domestic market, owned about 22% of protected the Group against the influence and Africa. 2013 2014 2015 Occasionally, he came across van trailers domestic semitrailer market shares, ranking of the recession on a single market and from running along the highways. They looked nice Since 2003, CIMC Vehicles successively the first place in China. the fluctuation of exchange rates. Thanks Over the years, CIMC Vehicles has grown from and had high transportation efficiency. Most acquired a number of major players in to the strong growth in North America over a newcomer into an industrial leader. Its birth important of all, they were like “containers on domestic special vehicle industry, including Besides consistent improvement of its the past two years and the acquisition of and growth have tremendously affected, wheels”. Considering the low-efficiency and Yangzhou Tonghua, Zhumadian Huajun, production facility layout, CIMC Vehicles has the UK-based Retlan Group, the biggest in or even reshaped the layout of the global backward logistics services in the Chinese Jinan Kogel, Wuhu Ruijiang and Luoyang established over 600 4S shops and service the global semitrailer industry in recent ten semitrailer industry. mainland and CIMC’s development strategy Lingyu. In September 2003, Shenzhen CIMC centers as well as 7 vehicle gardens that will years, CIMC Vehicles has further enhanced to “provide equipment and services for Special Vehicles Co., Ltd. held the foundation serve the major regional markets across the its leading position in the world’s semitrailer modern transportation industry”, Mai Boliang laying ceremony for its production facility country, aiming to create perfect commercial industry. decided to develop the semitrailer business, at Pingshan Town, Longgang District, apply the successful experiences gained from Shenzhen, marking that the company, a core vehicle sales and service network for the operation of container business to the member company in the entire strategic domestic clients. new business, and promote the all-round layout, formally stepped on the way of upgrading of vehicles for China’s logistics development. It is noteworthy that CIMC

04 CIMC today 今日中集 CIMC today 今日中集 05 今日中集车辆︱ CIMC Vehicles Today

Three secrets to successful Future-oriented advanced As more and more digital plants are built and put into operation, CIMC Vehicles Production & sales global operation: global manufacturing system will successfully shape the layout of on European market supply chain, crossover “manufacturing advanced parts and ranking among the design and cross-border While consistently making business industry's top 3 components in China and supplying such manufacturing breakthroughs, CIMC Vehicles keeps on making R&D attempts in its digital design and parts and components all over the world” to production, aiming to create an advanced meet the demands of its operation platforms Global supply chain, crossover design and manufacturing system that will enable the on North American market, European inter-continental manufacturing are three Group to outperform its competitors in the market and emerging markets, a vital link secrets to CIMC Vehicles’ successful global future. of its “inter-continental manufacturing”. In operation. the future, CIMC Vehicles will carry out the Production & sales upgrading of technologies on the basis of Production & sales In the early 2015, CIMC Vehicles unveiled on North American In more than ten years, with the fast growth the “Lighttower Project” and may set up a on China's market its first “Lighttower Project” in Dongguan, market ranking among of the Group’s businesses in the world, its number of advanced parts and components ranking 1st in Guangdong Province. There is an unwritten the industry's top 5 parts and components suppliers in the US, the industry common understanding in special vehicles manufacturing centers across the world to China and other countries have intensified segment that the European standard is give support to its global operation. It is their efforts to keep up with CIMC Vehicles, superior to that of the North America, and believed that the Group’s consistent efforts gradually improved their international supply the North American standard is superior to explore the advanced manufacturing abilities, and finally formed mature and to those in other countries and regions. system will contribute to the upgrading of developed global supply chain system for the CIMC Vehicles has a forward-looking manufacturing of the world’s semitrailer parts and components of semitrailers. During review the “Industry 4.0”, and launches the industry and lift the technologies and this process, on one side, the parts and “Lighttower Project” – an advanced parts and product quality of the whole industry to a components suppliers have extended their components manufacturing center at proper higher level. reach into wider regions and thus achieved time, so as to meet the global standards rapid growth; on the other side, since for parts and components including the Today, CIMC Vehicles has become an they are closely located to CIMC Vehicles’ German standard. The deeper exploration industrial leader. But the semitrailer market production facilities, the supply efficiency of the “Lighttower Project” in industrial is currently being fragmented. Therefore, has been improved, the supply costs have automation and information digitalization to achieve sustainable development, CIMC been lowered, which have further improved Business operations and exceeding US$800 million. Besides Vanguard, Vehicles’ resource synergy and cross-border will promote the all-round integration among Vehicles will accelerate its localization abilities the comprehensive competitiveness of the CIMC Vehicles successively established or manufacturing ability. In the future, SDC, LAG the three-dimensional digital design models, on major markets, shift from China-oriented performances on world’s Group. markets acquired a number of semitrailer companies, and CIMC Trailer in Poland will complement structural digital techniques and advanced operation to world-oriented operation, adopt including CIMC Reefer Trailer and CIMC each other in terms of locations and markets. manufacturing hardware and processes digital manufacturing processes instead of CIMC Vehicles’ strategy to return to the At a CIE plant, we have witnessed the miracle the traditional manufacturing processes to, In 2003, CIMC Vehicles acquired and Intermodal Equipment. A series of acquisitions, managed by the EMS system and achieve the European markets is now working much of inter-continental manufacturing. In China, and turn from a functional organization into restructured Vanguard in the US, marking consolidations and business transformations digital management of product life-cycle. The better than expected. the plant completes the production of an adroitly organization, so as to create more the formal start of the Group’s access to have turned CIMC Vehicles from a newcomer success of the “Lighttower Project” will be a major steel structures and the assembly of values for its clients. For CIMC Vehicles, its overseas markets. After more than 10 years into one of the top five semitrailer suppliers great support to the advanced manufacturing In addition, besides the three major electrical parts and brake lamps for Tandem future will be challenging, but promising. of efforts and endeavors, CIMC Vehicles in the US. At present, the Group mainly sells of parts and components for semitrailers in markets, namely China, North America and chassis; with thorough logistics schemes, has extended its business from China to Tandem chassis, van trailers and reefer trailers the context of global operation. Europe, the emerging markets including the parts and components of several units North America, Europe, Australia, Southeast on American market. Among them, the Australia, Africa, Latin America and Asia have of semitrailers are put into one container, Asia, the Middle East, Africa, and other Tandem chassis has an overwhelming large become more important than ever before. shipped to the US, assembled into complete countries and regions. As of November 30, market share. In the past three years, CIMC Vehicles has vehicles in the American plant and then sold 2016, CIMC Vehicles has established 25 achieved high-speed business growth on on the US market. The use of CKD pattern, production facilities that could meet the CIMC Vehicles has also done a good job on emerging markets, with annual growth rate a very mature one in car-making industry, demands of clients in North America, Europe, European markets. In September 2016, the of operating revenue and net profit both has greatly lowered the production costs Australia, the Middle East, Southeast Asia UK-based SDC, a new member of the CIMC above 20%. In 2015, the operating revenue while ensuring the high quality of products. and Chinese mainland, preliminarily created Vehicles’ family in Europe, joined its hands from emerging markets exceeded US$300 The pattern has won recognition and trust the cross-border business operation layout with the Belgium-based LAG at the IAA million. So far, CIMC Vehicles completed from the US clients and brought the Tandem that features global interaction, reasonable 2016. The joint exhibition at the important the construction of production facilities in chassis to an overwhelmingly advantageous distribution, mutual complement and sharing industrial event heralds CIMC Vehicles’ 10 emerging market countries and regions, position on North American market. of resources, and boasted annual production coming back to the European market and and established operating network in many capacity of 200,000 special vehicles. Giving its determination and intention to local the countries and regions, including Australia, In addition, with the Group’s global operation full play to the operating principle of “Global European business. After SDC became a Thailand, Saudi Arabia, Bahrain, Malaysia, platform, the member companies in different Operation Local Knowledge”, CIMC Vehicles new member of the Group, CIMC Vehicles’ South Africa, Russia, Vietnam and Hong Kong. countries are able to conduct extensive has made splendid achievements worldwide. total sales volume in Europe exceeded interaction in product design, research and 11,000 units, making the Group one of the It is believed that the “One Belt, One Road” Initiative and the top down design that aims development, fully study and integrate the Since 2015, as the American economy picks top three in European semitrailer industry. to help China’s enterprises access to the main strong points of semitrailers sold on the US, up, its semitrailer market has had marked Through professional management and coverage countries of the initiative will bring Chinese and European markets, and come up increase. Today, the US has become the biggest business transformation, LAG has turned new markets and opportunities to CIMC with an array of crossover designs, which has regional market for the Group. It is estimated from a local semitrailer manufacturer into a Vehicles and benefit its development a great also effectively raised CIMC Vehicles’ product that in 2016, the business revenue from North leading tank truck manufacturer that serves deal on emerging markets. competitiveness and customer satisfaction. American market will represent 40% of the neighboring countries, the whole Europe Group’s total, with its operating revenue and even the Middle East by fully using CIMC

06 CIMC today 今日中集 CIMC today 今日中集 07 今日中集车辆︱ CIMC Vehicles Today

Three Strategic Investors Hold New Shares of CIMC Vehicles

Writer ︱ Kunling Liu

The efforts of CIMC Vehicles, the second that the introduction of new investors has Today it is an inevitable choice for China’s and Sumitomo. The introduction of the It is noteworthy that the round of funding largest business unit of CIMC, to introduce created a diversified yet well-balanced enterprises to make best use of the new investors will tremendously improve was also backed by CIMC Vehicles’ strategic investors, have been properly multi-shareholder structure, shifted the country’s unique advantages in the global CIMC Vehicles’ ability to expand its business management team, who held 1.544% of the rewarded. The three new investors, namely Company’s shareholding structure from manufacturing industries and build up their across the world and acquire and integrate Company’s shares after purchasing newly Ping An Trust, Shenzhen Nanshan Dacheng a highly centralized pattern of single core competitiveness by means of operating upstream and downstream resources. The issued shares at the same market price as CIMC shares and Sumitomo Corporation respectively shareholder and ownership to a relatively globally. CIMC Vehicles has, as was shown Company will cooperate with Ping An Group the strategic investors had afforded. This has accounted for 16.822%, 1.544% and centralized pattern with the existence of by market analysis, done a remarkable job in in finance, investment management and shown their confidence in the sustainable 80.705% 0.929% of the Company’s shares after the relatively controlling shareholder, which this regard and preliminarily completed its lease businesses; in the application of light development and further progress of the acquisition of newly issued shares. With their will improve the Company’s internal and global layout thanks to the development and materials, financial business and overseas Company. investments, CIMC Vehicles’ shareholding external governance mechanisms including resource integration in more than ten years. business expansion with Nanshan Group; structures will be further optimized, favorable the incentive mechanism, supervision The introduction of three strategic investors in the product and service extension to for the improvement of its internal and mechanism and the mechanism for will provide CIMC Vehicles an efficient upstream and downstream of the industrial external governance mechanisms. connection with external capital markets. mechanism to safeguard against periodic chain and the layout of sales and service network on emerging markets. Also, the three Ping An Trust 16.822% The introduction of strategic investors will economic volatility facing a single economic CIMC, the parent company of CIMC Vehicles, bring sufficient cash, enabling the Company entity. new strategic investors will share resources of Shenzhen Nanshan Dacheng 1.544% and a pioneer of mixed ownership economy to enhance its overseas market penetration practical values with CIMC Vehicles to jointly Sumitomo Corporation 0.929% in China, has realized that the shareholding and expansion through acquisition and other Respectively, Ping An Trust, Shenzhen achieve its target that the Company will make structure with a shareholder holding majority cooperative forms and to optimize its global Nanshan Dacheng and Sumitomo effort to become an excellent and world-class of shares cannot give CIMC Vehicles a strategic layout through comprehensive Corporation are member companies of trailer manufacturer. perfect and efficient corporate governance strategic cooperation with the new investors. well-known groups: Ping An, Nanshan, structure. CIMC Vehicles’ executives said 08 CIMC today 今日中集 CIMC today 今日中集 09 最新动态︱ News Updates

SDC and LAG made a joint run its own business. This has shown CIMC LAG and Yangzhou CIMC Tonghua Special presence at the 2016 IAA Vehicles Group’s rich and unusual experience in Vehicles Co., Ltd. was regarded as the “Model of CIMC Vehicles Makes Spectacular national and international exhibition events. CIMC”. Alan Zhang expressed that the success Normally, the weather in Europe at the end of of the business pattern would be attributable September is little bit colder, but it goes well Mark, CEO of the UK-based SDC, said in an to the three indispensable factors: firstly, Presence at the 2016 IAA during the 2016 IAA. The UK-based SDC, a new interview that SDC’s van trucks and curtain CIMC Vehicles Group’s successful innovation member of the CIMC Vehicles Group in Europe, side semitrailers were popular in the UK, in the business pattern; secondly, LAG’s joined its hands with the Belgium-based LAG at Northern Ireland, and Northern European decades of proven track record in the technical Writer ︱ Kunling Liu the 2016 IAA for the first time. market including Scandinavian Peninsular due competence at the market segment; thirdly, to geographical and historical factors, and its the ability of domestic plants to live up to the At the outdoor exhibition areas, SDC displayed clients and market performances were not European standards and to conduct advance impacted after the Company was acquired by a manufacturing. He estimated that LAG’s profit of China’s economy and the international its van trucks and curtain side semitrailers, At the “China Day” Forum: David Chinese company. Mark showed his confidence would reach a record high in 2016. Hannover, Germany – The 66th IAA economic turbulence after the Brexit. In order while LAG showed its classic liquid tankers. Li made an in-depth analysis of in SDC’s consolidation into CIMC and in the Commercial Vehicles 2016 (2016 IAA), to effectively cope with such new tendencies, In addition, SDC specially refitted its curtain global trailer market trends fulfillment of the business objectives in the The Poland plant, one of the three major a leading international trade fair for the localization of businesses will become one side semitrailers into areas for receptions and financial years of 2016 and 2017. production facilities of CIMC Vehicles Group in mobility, transportation and logistics of important strategies after the golden period business negotiations. Also the pallet business and a get-together for the entire CCPIT is a national foreign trade and investment Europe, well adapted to and took advantage of globalization came to its end. CIMC Vehicles jointly invested by CIMC Vehicles and Modern commercial vehicle industry, was held promotion agency under the leadership of Jiang CIMC Vehicles appointed Alan Zhang as CEO of of the tendency that European automakers will also make preparations from its overseas Logistics were shown at the Fair. in Hannover from September 22 to 29. Zengwei, the former Vice Minister of the Ministry LAG after the acquisition of the Belgium-based gradually shifted their manufacturing layout, exploitation of international markets David Li, Director of the Board and of Commerce of the People’s Republic of China. company, carried out a series of reconstruction businesses to low-cost East European countries. and innovation of business growth patterns to Surprisingly, members from the Chinese General Manager of CIMC Vehicles At the invitation of CCPIT’s Automotive Industry measures, and turned losses into gains in 2015 At the 2016 IAA, CIMC Vehicles Group’s three efficiently solve future problems. shareholding team will not stay long in SDC’s Group, attended and made a keynote Committee, David Li delivered a keynote speech exhibition booth, because they take extra care and 2016, in which the business profit in 2015 European production facilities had a joyous speech at the “China Day” Forum held at the “China Day” Forum on the afternoon was the best-ever performance over the past 15 gathering and showed the ambition to obtain The Assistant of General Manager of CIMC to maintain the local characteristics of the UK by China Council for the Promotion of September 23 (local time) on behalf of the years. The Sino-European interaction between more market shares in Europe. Vehicles Group Mr. Andrew Yang and Danny Ye, company and respect its right to independently of International Trade (CCPIT). Two special vehicles industry. This was one of the CIMC Vehicles HR Manager Ms. Flora Mao, team of CIMC Vehicles Group’s foreign important events that CIMC Vehicles Group was leader of the “Lighttower Project” Mr. Li Xiaofu, subsidiaries, namely the UK-based present at the 2016 IAA. SDC and the Belgium-based LAG, The MD of CIMC Vehicles Europe Mr. Wolfgang made spectacular presence at the Fair. Schuster, and the CEO of LAG Alan Zhang also David Li, in his keynote speech of Seeking to In addition, over 40 representatives attended the forum. After the meeting, the transform in a fragmenting global trailers from the business departments of famous media outlet in China’s auto industry market, expressed his thoughts about the CIMC Vehicles Group’s headquarters, Home of Trucks (www.360che.com) had an global economic integration and elaborated Shenzhen CIMC Special Vehicles Co., exclusive video interview with David Li. Ltd., Yangzhou CIMC Tonghua Special on the new tendencies in the world’s economy Vehicles Co., Ltd. and CIMC Vehicles from such perspectives as the basic facts Shandong Co., Ltd. attended multiple events at the 2016 IAA.

10 CIMC today 今日中集 CIMC today 今日中集 11 最新动态︱ News Updates

Seeking to Transform in a Fragmenting Global Trailers Market

——David Li, Managing Director of CIMC Vehicles Group Speech delivered at the “China Day” Forum at the IAA 2016

I am honored here to deliver a keynote speech have been considerable changes to the men's for the second time. The first time, I talked about wear in China. I believe, in the next 30 years, how to make full use of “Local Knowledge” China’s semitrailer market will change like this. It to organize operations on global markets is an inevitable result of globalization, no matter effectively. In the past two years, we all have it is in the golden period, the transitional period witnessed the dramatic changes on global or a period of being fragmented. semitrailer markets. China’s current economy has entered a new phase that is different from In 2015, CIMC maintained robust growth and the high-speed growth pattern exhibited in the gained annual revenue of 58.7 billion yuan. In past; the demands in emerging markets are 1994, CIMC was listed on the Shenzhen Stock weakening due to the price slump of crude oil Exchange; in 2012, it was listed on the Main and other commodities; European countries Board of the Stock Exchange of Hong Kong. So are working hard to minimize the downside far, CIMC has over 50,000 employees in China risks from Brexit; the United States will have and about 7,000 overseas. Its businesses include connections, and know much better about local oil and gas transportation equipment is illegal, The equation is now leading our way ahead. a new president in 5 months, but both of the containers, road transportation vehicles, energy, suppliers. We do not directly get involved in the and now Chinese government has tightened its As for capital expenditures, we successively candidates are not “globalization” enthusiasts. chemical and food equipment, offshore and operation of a local company, but local talents control, requiring oil and gas operators to buy invested in building 6 overseas plants in 2014 airport facilities. with proven track record will do. compliance vehicles. In general, China’s market and 2015. We built plants in Germany, Saudi In my point of view, the world’s economic is now characterized by two-speed economy Arabia and Vietnam in 2014, and State of boom started with the “globalization” after the CIMC Vehicles Group has only 14 years of Now, let’s review the changes of globalization. and in particular, it has a two-speed special Virginia, the US, South Africa and Poland in collapse of Berlin Wall, and the golden period of development since its establishment in 2002. These are some descriptions of the relevant vehicles segment. In the US, the outlook for 2015. We did this to further enhance and perfect globalization ended in 2014. After the two years’ CIMC Vehicles has 13,000 employees, including changing periods, and I will explain them one by new trade agreements (for example, the TPP) is our global operation layout. In 2016, we built transition, we are now in an era of globalization 10,000 in China and about 3,000 overseas. It has one. In China, the domestic economy has gone not that optimistic; in Europe, its markets have the second plant for CIMC Vanguard, acquired that is currently being fragmented. Now a large 25 production facilities worldwide. If to describe through the process from high-speed growth to become more region-oriented; in emerging the UK-based SDC, and built the “Lighttower number of semitrailer builders are working on our business performance in one world, “global” the “new normal” state. For me, the “new normal” market, most of the regions are in great need of Project” plant in Dongguan, China. These efforts their global operations. Unfortunately, they find may be the most appropriate. The revenue from is the combination of two kinds of economic the localization of production. are based on the merits and guidance of the that the accumulated knowledge in the golden China’s market account for about 45% of the situations, as shown by the blue line and the equation, and yield generous returns. period has worked, but in an opposite way. company’s total. In 2015, we sold over 100,000 red line in the following diagram. From the blue In view of these facts, we know that the golden semitrailers on international markets, and I line, we can see that since January 2013, the period of globalization has come to an end, At last, I want to share the experience with Today, I would like to talk about how to seek believe that we will sell more this year. PMI of China’s service segment is above 50%, and we should do something different. Today, you that: firstly, transforming is like walking. new wisdom about global operation in a global indicating the industrial boom of the service since the world’s semitrailer markets are being The result depends on how many steps you market that is being fragmented. These are our major production facilities in segment. For example, China’s E-commerce fragmented quickly, we must establish and have walked, but not about how far a step can different parts of the world. These are five major business has a skyrocketing growth. At the develop the ability to realize the localization of cover; secondly, transforming is like sailing in We will start with the brief review of how CIMC plants in China, and these are their products. same time, the red line represents that the production in major markets so as to achieve an unfamiliar course. To a larger extent, the Vehicles established its global operation layout We also have a large number of subsidiaries in PMI of the manufacturing segment is much sustainable business growth. Since 2013, success of transforming depends on how much in the golden period. And then I will show the other countries and regions. For example, CIMC lower than that of the service segment, and it CIMC Vehicles has its revenue from overseas people have prepared for the worst before achievements that CIMC Vehicles Group has Vanguard and CIMC IE are our two subsidiaries continues to decline, causing the drop of PMIs business increased from US$610 million to US$ they pursue the best; thirdly, transforming made in this golden period of globalization and in the US. They are responsible for running CIMC of coal, energy, highway and other relevant 1,200 million, and the number of employees needs a profound transformation of your in the transitional period afterwards. At last, Vehicles Group’s business in North America. industries. It is like the weather of Melbourne, overseas increased from 1,500 to 3,000. We are organization, from a function or matrix one to we will explore how to transform in a global They sell about 40,000 van trailers, reefer trailers for people there can have four seasons in now shifting from China-centered operation to an adroitly one. The transforming will produce semitrailer market that is being fragmented. and Tandem chassis annually. Besides, we have a single day. Now, we are experiencing the the world-oriented operation, from traditional more crossover designs, stimulate cross-border got LAG in Belgium, MLI in Australia, to name economic boom and the economic gloom in manufacturing process to digital manufacturing manufacturing activities, promote global supply In China, this golden period went throughout just a few. a single country. The same thing also happens process, and from a functional organization to chain management and global fund flow the very 30 years of the nation’s reform and in the special vehicles segment. The sales an adroitly organization. For me, these shifts are management, and bring us more opportunities opening-up process. CIMC, China International It is not easy to manage a company, let alone growth of refitting vehicles has tremendously all about transforming. to work together with our business partners for Marine Containers (Group) Ltd., was established 25 production facilities in different countries, dropped. Fortunately, we stopped it 4 years win-win. in the 1980s, the beginning of the golden with different cultures, and subject to different ago. However, we find something with growth Now, I will talk about what we have done about period. These pictures show the changes of laws and regulations. On this point, I think I potential in semitrailer business, such as the the transforming, and how we did it. As is I am convinced that with our concerted efforts, men’s wear in the past 30 years. We can see that have got a valuable experience, and it did work transportation vehicles of hazardous chemicals, shown in the transforming equation, we focus we will have the transforming fruits. there is almost no change to the men's wear in pretty awesome. That is, to recruit local talents. logistics vehicles for E-commerce operators, on digital manufacturing and global operation, Europe within this long span of time, but there They are familiar with local markets, have and long-distance transportation semitrailers. and set for them the targets and strategies from Oil tank truck is also a new growth point. But four dimensions, namely product, production, it does not mean that China consumes more management and operating revenue. oil and gas. It is because that previously, many

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CIMC Vehicles Acquires UK-based Leading Semitrailer Manufacturer Retlan

Writer ︱ Lingjuan Tan Photographer ︱ Kevin Li

CIMC Vehicles Group announced that it has The acquired company has an amazing 10 percent market share and the adjustments and adapt to local customers’ Retlan Group registered a revenue of solely taken over the Retlan Manufacturing good quality assets and its first place in the world. However, if CIMC Vehicles demands with more accurate market strategies. Limited (“Retlan Group”), at £91.7 million (over businesses fit well in CIMC could not make it to the top three on European Previously, a stand-alone company may serve a £198 million 800 million yuan) in June, 2016. Retlan is a UK’s and American markets, its ranking was not that larger area in Europe featuring regional market during the last financial year leading semitrailer manufacturer and owners Vehicles Group’s strategies convincing. integration, but in the future, the European of SDC Trailer and MDF Engineering, Thanks to markets may become more differentiated. CIMC Vehicles started business talks with including a profit of the deal, the biggest in the global semitrailer “A differentiated market means considerable Retlan at the beginning of 2015. Retlan Group The acquisition helps CIMC industry in recent ten years, CIMC will be able challenges for China’s enterprises, and only is the largest semitrailer maker in the UK. It is a Vehicles speed up and improve £14 million to extend its reach into the UK’s market, expand those capable ones will be the winners in specialist in the production of semitrailers such its strategic layout and bring its business growth on European markets, the fierce competition. CIMC’s excellent track as flat transportation semitrailers and curtain- and retain its position as a semitrailer leader its business on European records in pursuit of globalization will do side semitrailers; it has production plants at worldwide. markets to a higher level good to us. I am confident that for CIMC, a Antrim in Northern Ireland and Nottinghamshire differentiated Europe means an opportunity in England and nearly 1,000 employees. CIMC It is noteworthy that the acquisition took place instead of a tragedy”, David Li said. Vehicles finds close connection in business with at the time of Brexit referendum. Though the Retlan Group, which will complement to CIMC Britain’s departure from the European Union In a macroscopic view, CIMC Vehicles Vehicle’s semitrailer business portfolio in the is totally unexpected for most of the media implemented its European strategy in a UK with its advantages in local markets, and outlets worldwide, CIMC’s acquisition team planned manner as early as in 2014. It tactically provide CIMC Vehicles with a springboard to the said that they have made full preparation for penetrated the European markets with the European markets. the outcome during the acquisition process. In help of its previously acquired LAG in Belgium the long run, Brexit will impose no obviously and through the setup of a production plant in Necessary investigations to finalize the mega adverse impact on the acquisition, on the Poland. After the successful acquisition of Retlan deal revealed that Retlan has been trading consolidation between the two groups and on Group, the three positions, geographically in successfully in recent years. It achieved sales further implementation of CIMC’s European a triangle shape, will be complementary to revenue of £198 million and profit of £14 million strategies. CIMC Vehicles will continue to one another, which will bring CIMC Vehicles for latest fiscal year. balance its resource allocations across the world. significant business growth on a European scale At present, the group’s resource allocations on and put it in an advantageous position. SDC’s The acquisition cost CIMC Vehicles more than American, European and emerging markets consolidation into CIMC Vehicles tremendously 800 million yuan, but the Group’s top leader are able to minimize the risks of exchange improved the parent company’s business commented that the deal is worth a lot more: it rate fluctuations, an approach that CIMC has performance and raised CIMC Vehicles’ ranking is an acquisition of best overseas assets in recent developed and proved to be effective. in the European market to the third place, only years and marks an important new chapter in after the European giants Schmitz and Krone. CIMC Vehicles’ globalization strategy, because CIMC’s resolution to seek business growth and CIMC Vehicles’ brand awareness built up among the major buyers of semitrailers are from Europe expansion in Europe will not be shattered by the local markets, clients and suppliers. and America. CIMC Vehicles ended its 2015 with Brexit, but it may make necessary strategic

14 CIMC today 今日中集 CIMC today 今日中集 15 最新动态︱ News Updates

CIMC Vehicles to Build a New Production Facility in Bahrain

Writer ︱ Lingjuan Tan Photographer ︱ Kevin Li

On September 6, 2016, CIMC Vehicles that its refrigerator trucks will be formally industry, we will provide CIMC and other build a new plant here. Bahrain has ideal CIMC Vehicles has made magnificent components manufactured by Qingdao Group (the Vehicles Segment of CIMC) launched on the Middle East markets as a global manufacturing companies with a infrastructure and huge cost advantage, breakthroughs in its businesses in Saudi CIMC Special Refrigerator Truck Co., Ltd. announced that it will build a production major product based on its success of oil series of favorable conditions so that they and it closely connects with Saudi Arabia, Arabia and other Middle East countries, By doing so, CIMC Vehicles will be able to facility in Bahrain. The new plant is mainly tank trucks in the region. can give full play to their advantages and Gulf Cooperation Council and other and cumulatively won orders for 1,000 greatly lower down the costs for exporting to meet the demands of clients on the improve their business in the Gulf Region. I countries in the Middle East. These are aluminum alloy oil tank trucks over the complete trucks, and extend the reach Middle East markets for refrigerator Mr. Khalid AI Rumaihi, Chief Executive am very proud that EDB, with its dedicated all very important to us. We believe that past two years. Also, the communication into the core areas of the Middle East and trucks. Bahrain government extends Officer of the EDB, said: “CIMC, welcome efforts over the years, has succeeded in with skilled workers and open business with clients indicated that there was big even to some countries in North Africa warm welcome to CIMC Vehicles Group’s to Bahrain! In my point of view, CIMC’s attracting CIMC’s investments into Bahrain environment here, CIMC Vehicles Group market for refrigerator trucks. Since CIMC after the Bahrain plant is formally put into investment. The Economic Development investment has shown the Group’s and creating good jobs for my people. has already found a perfect platform for Vehicles has made great success in the USA operation. Board (EDB) of Bahrain, a government recognition of the favorable transport I hope that CIMC can further expand its future development. ” and other countries based on its unique agency responsible to attract inward conditions, developed supervision and business in Bahrain very soon. ” CKD pattern, the Group decides to build investment into Bahrain, fully supports management systems and skilled workers According to Ji Yuan, a CIMC Vehicles’ a refrigerator truck assembling plant in the building of the new plant. CIMC in Bahrain. As a part of EDB’s consistent CIMC Vehicles Group’s Financial Director leader responsible for the Bahrain program, Bahrain that will assemble the parts and Vehicles Group’s investment represents support of the development of logistics Ms. Teresa Tan said: “it’s a wise decision to

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Global Operation Local Knowledge

Writer ︱ Kevin Li

britain

belgium Poland

America China

bahrain saudi Arabia Thailand

south Africa Australia

CIMC Vehicles Group has been committed to In recent years, due to the gloomy economic and the inter-continental manufacturing familiarized themselves with and understood economic imbalance across the world in the Covering providing high-quality semi-trailers to clients prospect, the exchange rates was in a turbulent combines the manufacturing capability and the characteristics of local markets seriously. long run. CIMC Vehicles hopes that, through worldwide since its inception. Over the past 10 fluctuation, the trade protectionism and integrated operating competence of the In some regions, the Group creates and tailors the balanced development, the Group will 25 manufacturing years, the Group has successfully established international trade barriers gradually prevailed, Group’s network – all of the three factors scientific and reasonable board of director be able to have 20 to 40 percent of revenue 25 manufacturing and R&D facilities in China, and the world’s semitrailer markets are being are essential for the Group’s success in its governance structure, gives sufficient authority from its regional centers in China, America, and R&d facilities North America, Europe and emerging markets fragmented. In the face of such complexity implementation of the global strategy. In to its subsidiaries and respects the right of Europe and emerging markets, and develop in China, North America, Europe and created the service network that is and difficulty, CIMC Vehicles gradually shifts its addition, as a Group that always aims higher, local management for independently making the loss-hedging ability, so as to ensure that and emerging markets accessible and available to users in different international operation mode with “Made in CIMC Vehicles has set off the journey to explore decisions on operational affairs. The top-down will achieve organic and sustainable business regional markets across the world. With the China” as the core to the global operation mode the design, production and manufacturing of design enables the management group that growth. process, the Group has developed its operating featuring “localized production”, so as to adapt digitalized products, so that the information are familiar with customer demands and staff principle, the one later known as “Global more to local market segments and better and flow will be functioning in different parts of the culture to give full play to their initiative and David Li, Managing Director of CIMC Vehicles Operation Local Knowledge” in the industry. faster meet the individual needs of customers. Group’s global operation and contribute to the working enthusiasm, which has tremendously Group, has ever commented the operating consistent improvement of its product quality enriched and upgraded the connotation of principle “if the operating principle is a necklace, “Global Operation” is not merely about Whatever the change is, global supply chain, and operation management efficiency. “Local Knowledge”. then ‘Global Operation’ is the string, while arranging business geographically, more crossover design and inter-continental ‘Local Knowledge’ is the pearls. Without ‘Global importantly, it reflects CIMC Vehicles’ strategic manufacturing have always been the focus. The Another factor crucial for the successful The seemingly old-fashioned but actually Operation’, ‘Local Knowledge’ will lose its value; considerations of the tendencies on global global supply chain makes localized production “Global Operation” is people. Therefore, CIMC advanced wisdom that do not put all your eggs without ‘Local Knowledge’, ‘Global Operation’ markets, and the evolution and transformation possible, the crossover design pools together Vehicles has been always taking the “Local into one basket has become an important will lose its luster.” of the connotation of Group’s global strategy. the knowledge of technicians on this planet, Knowledge” of expert managers that have fully strategic countermeasure to solve the

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CIMC Vehicles Group’s Game-Changing Journey in North America

Writer ︱ Lingjuan Tan Photographer ︱ Kevin Li

CIMC Vehicles Group has an “American go so far? Over the years, CIMC Vehicles by competitors. And then, he behaved like a HPA Monon, the eighth largest trailer were laid off, and the rest had a pay cut by 10 has been running at full capacity. In 2015, Dream”, while ambition may be more Group keeps a low profile and seems a little “peacock”: our tandem chassis ranks No. 1, manufacturing company in the US, at a low to 20 percent. But the management promised the company began to build its second plant accurate. The Group intends to be a major bit mysterious. However, as CIMC becomes dry van trailer ranks No. 5, and reefer trailer price. Afterwards, CIMC restructured the that as long as the company fulfilled its in Trenton. In September 2016, the Trenton player on the semitrailer market of the US. more global, and domestic companies ranks No. 4, and our vehicles are in the same company into Vanguard – the Group’s first business targets, the pay cuts would be Plant was put into operation. On seeing much Today, its ambition has been fulfilled, maybe are enthusiastic in investing in foreign quality, if not better than, as those of our semitrailer production facility in the US, and refunded as bonuses, and they also set a more spacious factory buildings and newer not completely, but largely. companies, it is necessary to summarize competitors. then began its semitrailer business in the number of efficiency improvement targets. equipment, we are convinced that Vanguard CIMC Vehicles Group’s secrets of success so country. However, Vanguard did not perform The decisive strategy was named the “Midway will be able to make more achievements. It all started in 1999, when Mai Boliang, that followers will have less grief on their way CIMC Vehicles Group, a company that is as smoothly as expected. Due to the lack Island Scheme”. CIMC’s CEO and President, thought about the ahead. mainly dedicated to the production of of experiences and understanding of local Vanguard’s success also drew great attention possibility of starting new vehicle business, the semitrailers, has found its place in the US, the markets, CIMC’s semitrailer business was on And, it worked. In December 2010, one year from the top leaders of the Chinese container manufacturing giant firstly visited In the middle of November 2016, we visited world’s largest semitrailer market, and one of a tortuous journey. In particular, severely after the implementation of the “Midway government in 2016. David Li was invited to two regions to gain specific data and in-depth the Group’s three subsidiaries in the US. the markets with standard operations. In the impacted by the subprime crisis in 2008, Island Scheme”, Vanguard’s business attend the China-US Business Roundtable understanding of relevant technologies The vehicles line up in the showroom and US, the top semitrailer manufacturers all have Vanguard suffered a huge loss and faced a indicators turned a little bit more positive, as the representatives of the Group. In and markets, and North America was one of the workshops busy with production were established worldwide reputations. Among crisis: to live or to die. In 2009, David Li (David and the company significantly reduced particular, China’s Vice Premier Wang Yang them. Two years later, CIMC established its eye-catching, but what impressed us most the world’s top ten trailer manufacturers, five Li) was appointed as general manager of the its loss and met the loss cut target. In the specially took CIMC’s success as an example representative office in America – CIMC USA. was our American colleagues’ trust in CIMC are from the US, and they all have decades American subsidiary, and he became the end, the employees lost their pays for three in his speech, and gave a thumbs-up to In 2003, CIMC Vehicles Group began a series and their confidence in future, and that is or even nearly one hundred years of history. “Captain America”. months, but they got their bonuses of six CIMC’s successful restructuring of Vanguard, of cooperation, acquisitions, establishments something really matters. But CIMC Vehicles Group seems to be a month in return. By 2011, Vanguard got out a purely American company. The top leader’s of new production facilities and new sites. On total different species. The Group acquired “When I entered the office, I had only got two of the mire of loss and stepped onto the way recognition filled David Li with great pride. of profit-making. In 2011, Vanguard achieved Charles W. Mudd, CEO of Vanguard National the journey to fulfill its ambition, the Group Restructuring of Vanguard: an American semitrailer company in 2003, options: to close the company, or to make has undergone tremendous ups and downs. and now becomes a member of the top five it smaller through job cuts and salary cuts”, a NOPAT (net operating profit after tax) of Trailer Corp, was also present at the event, Fortunately, the odds were in CIMC Vehicles From a loser on the edge of semitrailer manufacturer club, the number recalled David Li vividly at the 2016 China-US US$4.38 million. When CIMC Vehicles Group and he was extremely excited. He said: “I’ve Group favor. Today, CIMC and its American bankruptcy to a top five winner one seller of semitrailers in the world. Its Business Roundtable. made less profit on China’s market, it received never thought that our work is so meaningful. brand Vanguard are the top ones on the in America business performance and product quality steady returns from the US. I am proud to contribute my share to the semitrailer markets in North America. So far, both have been enormously recognized on Today, when we looked back at the whole success of CIMC and its American subsidiary.” the American subsidiary has become one of When we are driving on American highways, local markets. Surprisingly, it made thus far thing, the decision was not merely about Vanguard’s profits continued to go up in The concerted and dedicated efforts of the the top five companies in terms of output we find that, gorgeous transportation within only 13 years. the death or survival of Vanguard, it was 2013, 2014 and 2015, and peaked in 2015: it China-US management team have paid back. and sales volume, with its revenue exceeding vehicles with CIMC or Vanguard logos will more about the business prospects of CIMC sold 12,000 vehicles and ranked fifth in the US$500 million and some products ranking pass by from time to time. Each time such Seemingly the success comes so easily. But Vehicles Group in the US. Ultimately, David Li US, and its turnover amounted to US$477 first places in the region. a vehicle passing by, our tour guide will it’s not. and his management team decided to make million, with a profit of US$ 18 million. Over become a little “annoying”. He always asks to Vanguard smaller: 50 percent of employees the years, Vanguard’s first American plant What on earth has CIMC Vehicles Group gone find the difference between a vehicle carrying In 2003, CIMC, through its American business through in the US? What made the Group a CIMC or Vanguard logo and a vehicle made unit – CIMC USA, acquired the bankrupt

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The CKD pattern leads CIMC Vehicles Group’s brands Denny Williams, COO of CIMC USA, said problem, but also built up Vanguard’s brand to strong product are popular in the US “though our sales volume is not as large as awareness among clients in North America competitiveness those of the top three companies, yet we and demonstrated CIMC’s confidence to let For a long period of time, when Chinese have unrivalled advantages, for example, the quality speak for the product. The testing the flexibility.” He continued “different clients result sheet is not kept as a treasure of history Vanguard’s success has justified CIMC products are marketed in the US, they are focus on different things. They may care and memory of the special time and event in Vehicles Group’ further attempts. The Group often lowly priced so as to gain popularity about prices, the complete array of functions, the company. decides to introduce its reefer trailers into and competitiveness. CIMC Vehicles Group higher quality, delivery, after-sales service, the US, since it has mastered the core adopted the same method at the beginning. etc. Vanguard’s strength is to meet all these FaJingyan, manager of CRTI’s California “foaming technology” of insulation boards. As a newcomer, it gave up some of its profits, needs whatever they care about. Charles W. plant, said confidently “at the beginning, we With its unparalleled leading positing in the aiming to gain more clients. However, a low Mudd considers the same way. He believes took advantage of Vanguard’s reputation refrigerated containers segment, CIMC is price is not an eternal strategy. To some that the reason that Vanguard achieves the when we promoted the reefer trailers in the in possession of considerable advantage in extent, it is only a “ticket”. CIMC Vehicles outstanding business performance is that the US, but now they complement each other. developing reefer trailers. Group’s management team has realized that if the Group wants to gain and retain its company cares about the needs, including Furthermore, the reefer trailers are widely the personalized needs, of every client.” used and become much more popular in Thanks to Vanguard’s success, the reefer clients, especially the ones in North America, the eastern part of the US, so it also helps trailer business goes relatively smoothly. trustworthy quality and outstanding service But it was totally different when Vanguard’s Vanguard to extend its brand influence in In 2009, CIMC Reefer Trailer Inc. (CRTI) was should come first in the long run. products were sold on American market, North America.” established in the US, and adopted the CKD especially the reefer trailers, a high-end pattern that the parts and components are Now CIMC Vehicles Group can proudly product in the semitrailer industry. After the As the reef trailer has successfully improved manufactured in China, and the complete CIMC Vehicle’s Tandem chassis gradually of containers, CIMC naturally has the most declare that its brands and products on reefer trailers were launched, there was a its brand awareness in the US, more and vehicles are assembled in the US. In just a came to a leading position, and Direct profound understanding and special American markets all feature first-class rumor that the product had a thermal leakage more big clients prefer CIMC Vehicles Group’s short few years, CIMC Vehicles Group has Chassis became a US subsidiary of the Group, adaptation ability in ocean shipping.” quality, and some technical indicators problem, meaning that under the same heat products. Last year, Target Group, the second eclipsed most of its reefer trailer competitors CIE has attained a dominant position and have even become the benchmark of the preservation requirement, if a reefer trailer supermarket after Walmart, acquired over that have almost one hundred years of outperformed its competitors. To satisfy Ding Xin’an, deputy general manager of industries concerned. has a thermal leakage problem, when its 300 reef trailers from CIMC Vehicles Group, history. From 2013 to 2015, the CRTI reefer the increasing demands of users in North Qingdao CIMC Special Reefer Co., Ltd, who refrigerating machine stops working, the and placed an order for nearly 200 more at trailer under Vanguard Brand ranked fourth America, CIE built two plants in South Gate, is responsible for the production of CKD “When our product quality are accepted and less time it spends, the more electricity it will the end of the year. The big contract is the place on American market. CRTI built its California, and Emporia, Virginia. CIE’s output parts and components in China, introduced recognized in the market, clients no longer consume. That is to say, CIMC Vehicles Group’s clients’ trust, and the demonstration of CIMC second production facility in Moreno Valley, reached a record high in 2015. The company that at the beginning, CIMC Vehicles Group come and talk to us again and again crying did not have a trustworthy core technology Vehicles Group’s ability to supply a large California in 2013. Today, CRTI has annual produced 28,000 units of products that year, transported completely assembled reefer for low prices any more “, David Li said in about reefer trailers. If the rumor was found number of reefer trailers at one time to major production capacity of 4,000 reefer trailers, and had them sold and distributed all over trailers to the US, but then we found that a confident tone. In particular, after CIMC to be real at last, CIMC Vehicles Group’s reefer clients. representing about 6 percent of market the US. it was hard to barely meet the ends meet. Vehicles Group has initiated the Lighttower trailers would have to be kicked out of the shares in the US. However, if we use containers to transport Digital Plant Project to build automation- The CKD pattern refers to a mode of the parts and components of reefer trailers, and digitalization-oriented plants in Chinese American market. What is noteworthy is that as the Tandem chassis, dry van trailers and reef trailers On the other side, CIMC Intermodal inter-continental manufacturing that is we could realize tremendous savings in Mainland since 2014, its manufacturing But CRTI quickly presented the most have established their reputations in the US, Equipment (CIE) was restructured from the based on the cost advantage of China. CIE cost. Besides, we have optimized the design technology special for Tandem chassis for convincing evidence. According to Wang CIMC Logo was fixed onto the distinctive US Dire Chassis that was acquired by CIMC and CRTI have some parts and components of panels of the reefer trailers, so that the North American markets have got thumbs-up Jiehui, Operation Director of CRTI, with the places of CIMC Vehicles Group’s products, Vehicles Group in 2011. Today, its Tandem of their Tandem chassis and reefer trailers problem of container transportation has from American competitors, and this has arrangement of CIMC Vehicles Group’s top clearly showing the confidence of a chassis ranked first place in the US. Long respectively manufactured in China, acquired been fixed, and the design of products has completely made CIMC Vehicles Group leaders, the company randomly selected a Chinese enterprise in its products. Today, before the acquisition, Direct Chassis was the rest in the US, and then assembled them become more flexible. For the transportation more confident in its products. When Frank reefer trailer and sent it to THERNAL KING, CIMC is known to American transportation an agent of CIMC Vehicles Group and sold together at the local production facilities. of Tandem chassis, CIMC Vehicles Group Sonlaza, CEO of CIE, showed clients around a world’s leading test authority. The testing enterprises and intermodal companies. the Group’s Tandem chassis products in the Shi Wen, CIMC Vehicles Group’s Tandem adopts similar design methods, and thus the factory, would introduce the products results were exceptionally astonishing. The Through the improvement of product quality, US. With the low cost and high quality, the chassis business manager in North America, gained unparalleled advantage. This is the with great pride “these are from CIMC heat preservation performance of CIMC the Group has gradually changed American products were popular with big container considers that the CKD pattern as CIMC’s manifestation of CIMC’s strategy to “diversify Lighttower Plant. Its cutting precision, its Vehicles Group’s reef trailers was even better companies and consumers’ idea and clients and increased its market shares. As biggest and unparalleled strength, saying relevant industries”, that’s to say to extend the smooth finish and its warranty period are “besides the cost advantage of ‘Made in reach into relevant industries after there has superior to those of our competitors.” than those of the No. 1 manufacturer. This impression about products “Made in China”. China’, as the world’s No. 1 manufacturer been sufficient strength in a certain industry. not only quashed the rumor of heat leakage Such confidence in products can been found in every product of CIMC Vehicles Group’s subsidiaries in the US. When asked about the brand influence of Vanguard, Charles W. Mudd always reacts immediately “this is a top brand in the van trailer segment, and it enjoys great reputation among our clients. Besides, for some features, Vanguard has imposed stricter requirements than the competitors ahead of us do.”. He further says “Vanguard is the first company that uses galvanized sheets on anti-collision frames, supporting brackets and the tops of its products in North America. It brings good anti-corrosive performance and satisfies clients’ requirements, so our competitors have to do the same at last.”

22 CIMC today 今日中集 CIMC today 今日中集 23 全球营运 地方智慧︱ Global Operation Local Knowledge

Secret to success: Global Charles and his mates. After the success of Although Frank works in the new company Operation Local Knowledge the “Midway Island Scheme”, David Li seldom for only 6 months, he has done something flies to Vanguard except the annual meeting remarkable. With the valuable experiences To some extent, the recognition of American for board of directors. But for important he had accumulated in big companies, he employees is far more important than the issues, Li will have audio and web meetings instructed that there should be a quick business success that CIMC Vehicles Group with the local management team. “This is response code for a vehicle, and a 24-hour has achieved over the years, because the amazing. In return, we work hard to create hotline available to the public. These whole process is full of the management values for the Group”, said Charles. value-added services have won him great wisdom. So, what on earth makes CIMC respect in the company. CIE’s CFO Hu Dong Vehicles Group a giant on American markets In his point of view, CIMC was a pretty good has witnessed the growth of the company. He over the past ten years? This is something container maker when it came to the US, thinks that Frank’s rich marketing experience commanding more attention. but it was not that good with semitrailers. means a lot to CIE. Therefore, as a Chinese However, CIMC got one thing pretty immigrant in the US for many years, he also “Global Operation Local Knowledge”, right: it gave sufficient authority to local helps Frank with the operational affairs other this is the most respected operating management team. “To find a right candidate than those about finance, and becomes principle, and the biggest secret, for David and then put him at the right place” is Frank’s “best No. 2”. Li and management team in the American the core of CIMC Vehicles Group’s “Local subsidiaries. Knowledge”. The Group fully understands Conclusion the importance to have local management “Global Operation” is more about the support talents in its team, because they know much CIMC Vehicles Group’s management believes of resources rather than bureaucratic better about the markets and how to deal that its success on the US market represents management and control. In the meantime, with local employees. significant meaning. The restructuring “Local Knowledge” means a great deal to give experience of Vanguard was later applied Frank, General Manager of CIE, is such a two men recalled the past with a tinge of Vanguard’s purchasing manager Kenneth E. full play to the initiative of each subsidiary. to other subsidiaries in Europe, Asia and American employees make no local management talent. He had worked emotion. To lay off 50% of employees was Huff is an old employee. When CICM acquired For David Li, the two principles cannot be Australia, and in David Li’s words, “it fits pretty effort to hide their love for for over 20 years in PSI, and served as its vice definitely too hot for the management team. HPA Monon, he had worked there. Now he is separated. He said: “if the operating principle well and the results are fantastic.” David Li CIMC president for a long period of time. Frank was It was done with complaints, curses, tears and coming to the full retirement age. Kenneth is a necklace, then ‘Global Operation’ is the and his mates also find from the success quite familiar with American transportation grudges. Mark Roush, the deputy technical had gone through three tough times of the chain, while ‘Local Knowledge’ is the string on American market that, the volatility of What also impresses us is that though CIMC markets, and he was well-connected. Last supervisor, said plainly “I did not like David at company, during which the company was of pearls. Without ‘Global Operation’, ‘Local global market is a normal phenomenon, Vehicles Group is a Chinese company, most of year, when the CEO of CIE retired, David all. I dislike him the moment he walked into on the precipice of bankruptcy. But the third Knowledge’ will lose its value; without ‘Local the volatility of local market is not totally middle-level and top leaders of its American Li approached Frank and invited to work the office”. Before the layoffs, Mark Roush time, CIMC Vehicles Group appeared, and Knowledge’, ‘Global Operation’ will lose its the same, so if the Group has maintain a subsidiaries are foreigners. Vanguard is the for CIMC. However, Frank failed to make a had 7 employees directly reporting to him. David Li appeared, and the company was luster.” balanced development in different regions, most one, because we find no Chinese here. decision within a week. When he received a After the layoffs completed, he only got one. saved. At present, with company’s business that’s to say to compensate and balance out phone call from Li, he said very honestly “I But the successful restructuring turned out growth, he can expect a better future, and he To put it simply, “Local Knowledge” is to the volatility, the Group will be able to avoid However, our interviews with dozens of have no idea. I never thought about leaving be in Li’s favor. “David and I had supper not is satisfied to work for CIMC Vehicles Group. give the subsidiaries enough powers and more and more risks. Based on such findings, employees have revealed that they are all PSI. I have friends here, I work with them for very long ago. He suddenly said ‘I know you respect the local management's rights of CIMC Vehicles Group purposefully divides proud and fond of CIMC Vehicles Group, a so many years, I recruited them, trained them, hated me that time. I laughed, ‘Yes. But I like Charles W. Mudd said that in his mind, CIMC independent operation and decision making the global markets into four major regions: multi-national company that has its roots in attended their wedding ceremonies, and you now.’” Now Mark Roush’s department Vehicles Group is not merely a Chinese under the Group's governance structure of China, North America, Europe, and emerging China. “I like CIMC, because I have found what gave gifts to their kids. Now, I am fighting has the same number of employees before company, but a multi-national group. To be the board of directors. This has been seen markets. “Hopefully, on each regional market, I am capable of here. I like my colleagues, with my memories and emotions. “David the layoffs. As the company’s business goes working here has widened his vision. This clearly in Vanguard. Its management team we will be able to make 20 to 40% of the including those guys who get and keep Li talked with Frank over the phone for 45 up, his department became much more year, he was invited to join in the board of has no Chinese, but the high-caliber talents total operating revenue of the Group. When in touch with me from China.” Almost all minutes. At last, Frank said Yes. “David told important than before. Marl Roush is working directors of SDC, a newly acquired semitrailer recruited from across the US. According to the business goes up, for example, in the interviewees give the same answer. American me, Frank, you’ve said that you were the best with CIMC Vehicles Group’s engineers in giant in the UK. The opportunities to Charles W. Mudd, once he had a meeting US, we can make nearly 40%; when the employees’ answers are straightforward, No. 2 in your company. Now, you have the China on aluminum platform trailers. He is participate in cross-border communication in his office, and he found that most of the business goes down, we hope the ratio will simple, real, and emotional. chance to be the best No. 1 in my company.” happy with Chinese engineers and thinks and global operation fill the man with great 30 participants all have decades of working not drop below 20%. If so, we have much This made me change my mind. their technical competence is surprisingly pride. experience in transportation sector. CIMC more power to minimize or even eliminate American management team’s recognition amazing. Vehicles Group’s management fully trusts some risks. At the same time, by doing so, we is closely connected with David Li, CIMC’s will be able to give full play to the resource chief representative to the US. The memory advantages on different regional markets and of Li’s coming to the US for discussion about make them contribute more to the business the fate of Vanguard in 2009 does not fade growth of the Group. Previously, our CIMC’s away for Charles and Denny, two operators global operation was the one based on the of Vanguard. The three men, the top three advantage of “Made in China”; but what decision-makers at that time, together we have done and we are doing now are a worked out the decisive “Midway Island global operation of higher versions, and it is Scheme”. In the few years, Charles and Denny the target, the strategic layout that we are were full of great respect for David Li, an making each and every effort and endeavor entrepreneur with international vision, and to achieve.” David Li said emotionally. believed that the mutual trust was crucial to the successful shift of the company. Now no one has any doubt about CIMC “The trust does not come naturally. It is Vehicles Group’s “American Dream”. The created, nurtured and then promoted during question is: HOW BIG... cooperation. We like one another and trust Vanguard CEO: Charles W. Mudd CIE CEO: Frank Sonzala one another, and that is why we support one another until we got out of the trouble”, the

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LAG and Tonghua: European Technology and Products “Made in China” Reinforce CIMC Vehicles’ Position on Saudi Arabia Market

Writer ︱ Wei Yuan Photographer ︱ Kevin Li

G2, CIMC’s second-generation aluminum base of significant strategic importance. Since Accounting for about 50% of alloy oil tank truck, was launched at Saudi Aramco imported the first aluminum Dammam, the capital of Eastern Province oil tank truck from CIMC Vehicles in 2013, market shares and making it of Saudi Arabia, on October 11, 2015. It the Group has cumulatively exported over the Top 1 tank truck brand in is another major breakthrough CIMC has 1,400 aluminum tank trucks to Saudi Arabia, made on the markets of the Middle East. accounting for about 50% of market shares Saudi Arabia Abdulrahman R.Al-Rashid, Eastern Province and making it the Top 1 brand in the region. Chamber President, shook hands warmly with David Li, Managing Director of CIMC CIMC Vehicles’ success on Saudi Arabia market Vehicles Group. He expressed his thanks for should be attributable to the coordinated CIMC Vehicles’ efforts on Saudi Arabia market, effects featuring the combination of highly praising its aluminum oil tank trucks, “European designs, products ‘Made in China’, services and values for local users. and local sales services” within the Group’s global operation framework. Namely: Over the past few years, CIMC Vehicles European technologies provided by CIMC responded enthusiastically to the call of the Vehicles’ Belgium-based subsidiary – LAG Chinese government for the implementation Company, products “Made in China” provided of the “One Belt, One Road” Initiative, and by Yangzhou CIMC Tonghua Special Vehicles made great efforts to extend its reach in Co., Ltd., and local sales services provided by Middle East markets with Saudi Arabia as a CIMC Aribia.

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A combination of European to publicize the advantage of aluminum technologies and products tank trucks over carbon steel tank trucks. The aluminum tank trucks in the film were “Made in China” provided by CIMC Vehicles. CIMC Vehicles kicked off the campaign In June 2016, the Arabian Sun introduced to promote its aluminum tank trucks on in its headline, that Aramco praised markets of the Middle East countries. After CIMC Vehicles’ aluminum tank trucks for enormous communication and discussion, its advanced design, excellent safety, CIMC Vehicles and ZAHID, a well-established professional and timely after-sales company in the region, established the joint services, considered the products to be the venture CIMC Aribia, aiming to create a benchmarking one on Saudi Arabia market, favorable and stable platform for the export and believed that the products played an of CIMC Vehicles’ products to Saudi Arabia. important role in Aramco’s upgrading of American tank trucks. At the beginning of 2013, CIMC Vehicles Group set up an aluminum tank truck coordination project team special for Saudi An internal synergy within Arabia market. The team was led by the the framework of global Global Business Expansion Department under operation the Group’s headquarters and incorporated concerted efforts from different parties For the cooperation on Saudi Arabia project, concerned. LAG and Tonghua have entered into a technical transfer contract. According to the Saudi Arabia users trust European products contract, Tonghua will pay LAG the technical and technologies more than those from licensing or service fee for the transfer of China. However, due to higher prices and tank truck technology, equaling to 1% of the lower production capacity, European product price. In the meantime, Tonghua products do not have overwhelming undertakes the production of aluminum alloy advantages. Therefore, LAG, a technology tank trucks for LAG, which has tremendously specialist based in Europe; Yangzhou improved LAG’s production capacity and Tonghua, a manufacturing expert based offered LAG the cost advantage.,“The success In 2015, CIMC Vehicles Group implemented in China, cannot win any order from Saudi on Saudi Arabia market has given fresh hopes the strategic measure to create a business Arabia users if the two companies do to LAG, a subsidiary that was in the mire of complex. Therefore, LAG and Tonghua joined not join hands. In consideration of the loss for successive years, and considerably hands and established the business complex. characteristics of Saudi Arabia market, the boosted the morale of its employees. They Liu Hongqing, General Manager of Tonghua, coordination project team made specific believe that CIMC Vehicles Group is a reliable served concurrently as Chairman of the Board division of work: LAG was responsible for source of support and will be able to take of Directors of LAG. The business complex technical research and development as well them out of trouble,” said Zhang Ling, brings closer and more flexible synergy. The as relevant communication with users, and General Manager of LAG. In 2014, Tonghua cooperation mechanism clearly regulates: if a Tonghua was responsible for the production processed 150 aluminum alloy tank body product to be sold is under the brand of LAG, and manufacture of ordered products. LAG assemblies, which effectively eliminated Tonghua will be serving as a manufacturing has outstanding tank truck design abilities LAG’s bottlenecks in the production of tank unit of LAG; if a product to be sold is under and advanced manufacturing experiences, bodies and expanded LAG’s sales of complete Tonghua’s THT brand, LAG will be serving while Tonghua has the technical competence trucks on European markets. Thanks to the as a technical department of Tonghua. With in aluminum tank trucks, maintains steady cooperation, LAG turned losses into gains the clarification of roles, the two sides have product quality performance and possesses for the first time within 7 years after it was respective rights and obligations within the the ability to fulfill orders for large quantity acquired. cooperation framework. At present, LAG’s of products. Their combination brings 30% of tank bodies are provided by Tonghua. the aluminum oil tank trucks that feature The synergy between LAG and Tonghua excellent safety, large loading capacity, nice also helps Tonghua to build a world-leading Their synergy will enter a “LAG + era” very appearance and conformity with the ADR aluminum alloy tank truck production line, soon. On one side, extend the production (the European Agreement concerning the and brings Tonghua a net profit of more than lines from aluminum tank trucks to steel tank International Carriage of Dangerous Goods 100 million yuan. In addition, it improves truck and other products; on the other side, by Road) standard. In addition, CIMC Aribia the R&D ability of Tonghua’s technicians and extend the cooperation to more markets. The provides comprehensive sales services manufacturing performance of its front-line two companies are now talking about the to users through its organic cooperation workers. Taking advantage of the internal joint development of tank truck business in with local partners. With the organization synergy, Tonghua has successfully lifted its Russia. and arrangement of the Global Business tank trucks into the markets for high-end Expansion Department, the project team products and enhanced its brand awareness. “To upgrade the manufacturing technology had numerous communications with Saudi and to maintain the cost advantage are Aramco Oil Company and helped it with essential for CIMC Vehicles to grow into a A business complex that world-class enterprise. Today, CIMC Vehicles the development of technical specification nurtures the two companies for products. In the end, CIMC Vehicles won does not compete with its rivals as a single Aramco’s product certification and became business unit, but a business complex that The success on Saudi Arabia market has will take advantage of the strength and one of the first appointed equipment taken the trust between LAG and Tonghua suppliers. resource of the Group,” said Liu Hongqing, to a deeper level. Over the years, the General Manager of Tonghua. Successful cooperation between the two companies CIMC Vehicles’ aluminum tank trucks synergy among companies cannot be has become more effective. Robert, LAG’s achieved without clear positioning, mutual impressed and surprised Aramco a great deal, operation director, has ever taken a business because the oil company had never thought complementarity and seeking of win-win. trip to Tonghua. He talked about it with The synergy between LAG and Tonghua is of that China was able to manufacture such great excitement, “when I learned that I was high-quality products. At that time, Aramco significant importance of reference for CIMC going to have a business trip to Yangzhou Vehicles’ global operation. was working on the publicity and promotion six months (weeks) ago, I was excited for a of the use of aluminum tank trucks. The oil couple of days. I have been looking forward company specially shot a advertising film to the opportunity to go there.”

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This is an era when innovations outweigh CIMC Vehicles has been focus on the the industrial trend, and keeps on benefiting experience. Companies that have not realized improvement and upgrading of technologies. from them. Since the inception, the “Lighttower Exploration of Advanced this tendency will probably be abandoned by Over the past few years, it has been working Project” team has explored the automatic the era. However, this will not happen to CIMC to improve the technical performances of its and digital production method, introduced Vehicles. The Company has been seeking to products. Its black-plate vehicles, silver-plate advanced information control system theories transform its manufacturing technology into an vehicles and environmentally friendly vehicles, from Siemens and ingenics, and studied the Manufacturing from “Lighttower automation-based, information-centered and have ever been popular on domestic markets. new knowledge around the clock so as to digital-oriented direction. master and renovate them as soon as possible. However, it is undeniable that CIMC Vehicles David Li said “we have no idea what it would be Project” to “Magellan Program” When CIMC Vehicles’ technical director Shen is created on the basis of CIMC’s advantage in in the end, but we know the direction is right, so Jianwen and Dr. Li Xiaofu prepared for the container industry. Therefore, its manufacturing we must have a try. And we must do something launch of the “Lighttower Project”, they had principles and production methods basically for the voyage, because the Lighttower has Writer ︱ Lingjuan Tan Photographer ︱ Wei Liu no idea what it would look like two years follow the standard procedures and rules indicated the direction.” later. But there was something in their idea, applicable for container companies. As CIMC Vehicle’s technical upgrading route: CIMC Vehicles gets to know more and more Achievement: the to optimize the semitrailer manufacturing about semitrailer markets and semitrailer “Lighttower” has preliminary technology with vehicle production techniques, technologies, it has realized that a semitrailer taken effect to gradually make its production more flexible is not so simple as to just put wheels onto a and more digital and to bring the Group’s trailer container. CIMC Vehicles’ technical director It would be fair to say that the “Lighttower technology up to a world-leading level. In 2016, Shen Jianwen raises the technical principle to Project” is a visionary attempt, and also a the first batch of products manufactured by the “manufacture semitrailers in the same way for pragmatic effort. “Lighttower Plant” was exported to the US, and making autos” after many years of technical the Americans were shocked. practices. The essence of the technical principle According to Dr. Li Xiaofu, team leader of the is: the innovation is not for complete vehicles, “Lighttower Project”, the project that costs “This is a path of discovery for CIMC Vehicles and it should be a combined one for parts and hundreds of millions of yuan has a complete to implement its 2025 strategy”, said David Li, components; with the use of high-precision and systematic plan. It will be supported by Managing Director of CIMC Vehicles Group, parts and components to assemble a semitrailer, three pillars. On the left, it is modular industrial “enterprises are very foundation for the ‘Made it is the modular production method. If the design; on the right, it is automatic “Intent of in China 2025’ strategy. CIMC Vehicles is an Group also uses automation and digital Things” (IoT) equipment; in the middle, it is the industrial leader, so if it does not have such technologies to improve its production information system that combines the left and visions, make such preparations and undertake efficiency, it will fulfill the target of scale-based the right. such missions, it will be a shame.” and standard production and satisfy the needs of customized and personalized products, and In simple worlds, the project team will, Common understanding: by doing so, the Group will be on the way to based on its profound understanding of the Technologies are more “flexible production”. manufacturing of semitrailers, study and important than ever design modules to meet the needs of different Jiang Qiwen, general manager of Shenzhen kinds of products and to be used for flexible In the era of Internet, the stories of falls and CIMC Special Vehicles Co., Ltd, says that what combination. So far, it has initially developed rises in different sectors have revealed to us is being done is to make good preparations modular designs for 8 sets of products, which that, experience is not that important at all. for the next 30 years of the Group. If there is could basically meet the needs of Tandem On the contrary, new technologies and new no transformation, there will be no promising chassis products sold in the US market. Jiang business models are could suddenly outweigh future. Qiwen said that the design of modules for experience in many cases, and make big special vehicles was very challenging, because troubles for those pioneers that have lived on After reaching the common understanding, it is intended for global markets. However, experience. CIMC Vehicles initiated the “Lighttower Project” different from those of cars, the functions of in 2014. Initially, the Group intends to build a different kinds of semitrailers vary a great deal Shi Wen, assistant to the general manager part and component manufacturing plant that since different countries have different road of the Group, said “technical innovations are will manufacture parts and components for transportation standards. Therefore, it is a tough more important than ever here. Today, China’s complete vehicles in a modular way, and send job to modularize all semitrailers and then cost advantages including the demographic them to the subsidiaries and subsidiaries all standardize them, and it requires many years of dividend and raw material dividend are not that over the world for assembly according to the expertise in the industries. clear. Once the globalization balances these actual market needs. The Group’s exploration advantages out, something terrible may happen coincides with the release of the “Industry 4.0” Secondly, it is necessary to introduce a set of to ‘Made in China’ products. From this sense, of Germany, the rise of the “reindustrialization” equipment that has interconnection features, the most important measure is to have our own concept in the US, and the draw-up of the “Made and can carry out automatic operations such technical barriers, and then reinforce them.” in China 2025” strategy. It is now a common as cutting, feeding, welding and spray painting. standing in the world to conduct the upgrading The equipment will, after receiving instructions In David Li’s strategic planning, the higher-level of the manufacturing industry. Experts even say transmitted from the interconnection system, globalization of CIMC Vehicles is to reasonably that the fourth industrial revolution has already complete a series of production processes, and allocate its advantageous resources among come. In this revolution, the world will step into timely feedback its production status. So far, the its subsidiaries and subsidiaries worldwide on the era featuring the intelligent manufacturing Lighttower plant has imported 44 sets of robots. the basis of a balanced global layout, and it will and intelligent products based on digital They can take the place of 45% of manual be supported by digital technology. This is the production. In the surge of the technical operations with higher standardization of common understanding reached among the upgrading, CIMC Vehicles’ closely follows the processes and higher precision of products. With management of the Group. implementation of the national strategy and these robots, the production efficiency

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can be improved by 66%, and the logistics product information, automatically pick the coating production line of the plant. For wear resistance, and surface smoothness. on the basis of real market demands, and costs hundreds of millions of yuan, it heavily efficiency can be improved by 90%. Li Xiaofu out the appropriate modular processes oily paint, this process has zero emissions of When Americans and Japanese visited the with the existing marketing demands relies on the achievements to be made on said “a good thing about the machine-based from the database, and send it to the EMS VOC and can raise the utilization rate of oily Lighttower plant, the foreigners that always in the US, the Project was mainly about real markets. But the “coaching workshop” production is to have fixed experience system. MES system is the abbreviation of paint from 40% to 90%; for water paint, it can worship the one with technical excellence the “provision of parts and components”. that costs less is more like a lab, in Which and processes, lower the randomness, and the manufacturing execution system. It can reduce the manufacturing cost by over 40%, immediately admitted that CIMC Vehicles From the perspective of the upgrading of CIMC Vehicles will carry out diversified reduce the reliance on manual operations. directly use all automatic and interconnected multiply the coating quality of products, and was the leader of the industry, and some technologies, CIMC Vehicles did not have big tests, check various possibilities, summarize From the prospective of humanity, the equipment, organize and arrange production, extend the warranty period from 5 to 7 years of them even claimed that CIMC Vehicles ambitions. However, during the process of different findings, and of course take the equipment mostly deals with heavy tasks, and deliver finished products in the end. to 10 years. were redefining and repositioning the the implementation, the constant technical risks of mistakes. If a test is successful, it can so it can liberate our workers from the risk of industry. At present, the Lighttower plant’s improvement, especially after the Project was be immediately copied to CIMC Vehicles’ dangerous working situations.” In the “Lighttower Project” plan, if all the tree So far, the Lighttower plant has been annual capacity of 30,000 sets of parts and shifted to fulfill the mission of digitalization production lines of the same type across pillars are built, the whole Lighttower plant formally put into operation. The project components basically meets the needs of of technologies, the Group raised its the world, and it is really something to look Thirdly, the information control system that will be a fully transparent, automatic and team is now working on the “gradeability American markets for Tandem chassis. understanding of the future upgrading forward to. combines the design and the production digital workshop. Managers will be able to commissioning and optimization of of technologies to a higher new level. equipment. The information system is put the entire production processes under automatic IoT equipment, on the solution With the success in the US market, now the Therefore, the “digital coaching workshop” In David Li’s mind, CIMC Vehicles will invest interconnected with a physical system. control in their computers, and find out of problems of the whole production line to Lighttower plants can expect more. Jiang was established, and CIMC Vehicles named 1 to 1.5 billion yuan on the upgrading of its Its core i the PLM system and the MES what happened if there is any problem, and improve its efficiency, and on the research Qiwen said “In the US, there is only market for it as the “Magellan Scheme”. This means that digital technologies in next 5 years, meaning system. With the outwardly connected promptly fix it. of the information system. The products existing businesses; the Lighttower plant will on the basis of the achievements made in the that there will be the digital upgrading ERP system, it will tremendously improve manufactured by the Lighttower plant target at the markets with business increment implementation of “Lighttower Project”, the of the connotation of current production the production efficiency of the plant It is noteworthy that the Lighttower plant have been continuously shipped to the US potential, such as the European market that Group has clearly known the development lines. The major target is that, through through the seamless connection between has innovatively introduced the KTL since this July. Satisfactorily, they were well has the world’s most rigorous standards, and tendency of digital production; under the the digital technological exploration, its operation, commissioning and information. (kataphorese-tauch-lackierung) technology received by local users and industrial experts. even the global market.” guidance of the “Magellan Program”, the production efficiency will be doubled; The PLM system is the abbreviation of the into its production process. At present, Frank, CEO of CIE, one of CIMC Vehicles’ Group will, brave the winds and waves and under the condition of the same resources, product life-cycle management system. the KTL technology is widely used in the subsidiaries in the US, takes advantage of Future: From “Lighttower sail for new accomplishments. its production value will be doubled; its Its main function is to include all modular car-making industry, but it is seldom used every opportunity to recommend and praise Project” to “Magellan employees’ working efficiency will be designs and processes, something like a for semitrailers. The “Lighttower Project” the products from the Lighttower plant. In Program” For David Li, “digital coaching workshop” effectively improved, and their sense of database. Whenever an order comes, the team has successfully solved tough technical his eyes, the products are superior to those will be a real attempt to explore the digital happiness will be further enhanced. PLM system will immediately analyze the problems and applied the whole system to of competitors in terms of cutting precision, Initially, the “Lighttower Project” was initiated technology. Since the “Lighttower Project”

32 CIMC today 今日中集 CIMC today 今日中集 33 Precedent for Perseverance ——《Global Trailer》Exclusive Interview with David Li

(Editor’s note): On the quest to becoming the first truly would arguably suit an intrepid start-up global organization in the history of more than asset-rich manufacturing firm Global Trailer is affiliated to Prime Creative trailer manufacturing, CIMC Vehicles has operating in a time of extreme economic Media, and it was created in Australia. learned that staying true to a grand vision volatility. Global Trailer is the first business doesn’t preclude strategic flexibility. publication dedicated to the international Understanding the phenomenon that is trailer scene, a crucial business resource David Li, General Manager of CIMC CIMC Vehicles is therefore not so much for trailer industry managers and Vehicles, the trailer building arm of a question of mapping out the business executives. It has considerable influence China’s International Marine Container itself as it is one of getting to know the in the European and American trailer (CIMC) Group, isn’t quite what you’d man behind it – a scenario akin to US industries. expect of a man who has built a €1.93 start-up Tesla, which is largely dependent billion industrial empire from the bottom on the drive and vision of flamboyant Global Trailer had an exclusive interview up. Chief Executive, Elon Musk. with David Li, Managing Director of CIMC Vehicles Group. The reporter and Distinctly humble in his bearing and Quietly spoken and with a habit of Li had in-depth communication about refreshingly unpolished in his language, pausing briefly before responding to a the strategy of the enterprise, the the industry veteran is enveloped in an question, David Li might not subscribe to development of the industry, the study aura of authenticity and adventure that is the analogy, but there is a lot the Chinese and judgment of the markets and future much more silicon Valley than Shenzhen trailer OEM and the Californian electric tendencies. It is considered to be the Special Economic Zone (the official jargon vehicle company have in common: Each most thorough interpretation of CIMC for a giant business incubation area the is led by an enthusiastic, entrepreneurially Vehicles’ globalization strategies by Chinese government has set up across thinking individual, both hope to professional media outlets in recent years. the bay from Hong Kong to help local disrupt a highly diversified mass market The exclusive interview was published businesses connect more easily with the by outperforming a group of long as a cover story in the 30th special issue western world). established, slow moving behemoths; and of Global Trailer. Also, Global Trailer both have a vision that is transcending also released the List of Top 30 Trailer As such, there is nothing imperious the realm of industrialization. Builders in the 30th Issue. CIMC Vehicles about Li laying out his plan to build the ranked the first place with sales volume world’s first international trailer building As a result, Li is regularly forced to of 100,300 in the year of 2015, 36,000 company – only genuine excitement in break new ground and venture into units more than the No. 2 company did. an idea so captivatingly grand that it unchartered territory where risk is CIMC Vehicles takes the first place with overwhelming advantage.

CIMC today 今日中集 35 媒体报道︱ Media Focus

growing exponentially to yield and 135,000m2 facility to produce semi-trailers on to cut his losses and find a new way However, Li’s quick and decisive response To investigate the trend and ensure CIMC setbacks must be tolerated as a natural GT: Why do you think going global is for the European market, but shelved the to make his dream come true in Europe. to the Silvergreen debacle in Europe has Vehicles is ready to embrace the digital side effect of entrepreneurial audacity. widely considered unattainable for a trailer project in mid-2014 when he recognized Following a very Silicon Valley-esque already attracted many a comment on his age, Li has installed a cross-departmental manufacturing business? The automobile With that in mind, it is telling that Li is industry has mastered globalization long ago, that servicing the old continent from one ‘fail fast’ ethos, he is now focusing on leadership style, with some considering taskforce comprised of trusted Chinese quoting a Musk favourite – Leonardo Da after all. central location would prove too complex “regionality” instead of manufacturing him a hopeless romantic who doesn’t businessmen and acclaimed experts Vinci – to explain CIMC Vehicles’ evolution and, therefore, too costly to formulate a logistics and economies of scale. While quite grasp the limitations of trailer from Siemens, Cisco and McKinsey. LI: You can’t compare the two. A car is over the past half-decade or so. With relatively easy to standardise, but there is unique selling point. not supposed to negate his grand vision, manufacturing, and some admiring him The – interim – result of that effort global vision and broad horizon, he taps no standard trailer, unfortunately – you have CIMC Vehicles’ revised plan of attack for not giving up on the grand vision of may not be quite as headline-making into the ancient wisdom of the world with to take it region by region. That’s why it’s a It was a major setback on the way of places more value on local specifications building the first globally operating trailer as the Tesla project, but as opposed to the hope to revolutionise it. lot harder to create the same economies of global operation of CIMC Vehicles. Li and preferences, he explains, while scale brand in history. Musk’s futuristic ventures, David Li has scale, and with it the same profit margin and supply chain efficiency. says it “hurt” when he realized project is to be created on the backend with consistently operated in the black over “Obstacles cannot crush me, as every Silvergreen would not come to fruition view to finance, design and business the past half-decade, generating a solid obstacle yields to stern resolve,” he says GT: So why bother at all? in the same way a 2003 venture dubbed administration. €88.9 million profit in 2015 – despite a with a youthful smile that doesn’t quite LI: That’s a valid question. Our venture in Vanguard worked for the US market. “I severe slowdown of the Chinese domestic GT: In line with that, how have you dealt with southern Germany has shown that going reveal the sincerity behind the message, felt lost after Silvergreen, it wasn’t a good “Instead of servicing a whole continent all the crises you had to face around the world, market and substantial investment in global is risky and expensive, but I think and eloquently disguises what he is really time,” he says with the same, inscrutable from one central location, we have split from the Eurozone meltdown and the recent additional production capacity in both we’re getting very close to cracking the code. stock market rout in China all the way through trying to say – that CIMC Vehicles has Even though it might make me sound naïve, I smile. “We had a plan and thought we Europe into four key regions that can be North America and China. to Brexit? been plagued by growing pains of late think there is something incredibly inspiring had done our due diligence, but we didn’t served by four “local” businesses covering about trying to build a global operation – and found itself impaired by a challenging quite understand the actual dynamics of the north, east, south and west,” he says LI: By not losing sight of our original plan As such, it’s safe to say the ever-expanding regardless of the challenges that come with. and vision and continuing to diversify political environment that doesn’t quite Thinking globally is empowering, there’s the European market until we got there – – revealing that the west will be serviced CIMC Vehicles empire is quickly gaining regionality. The good thing of a broad global allow for the kind of rampant expansion something extremely energetic about it. If and by then it was too late.” by LAG, a Belgian company that joined ground on its peers in the automobile operation is that well performing markets you’re just focusing on the domestic market that made Chinese manufacturing the CIMC stable as part of the Burg deal, usually help balance our pockets of slow industry – with David Li adopting a and follow the same business cycle over growth, which is why our revenue remained flourish in the first place. and over again, there is no true progress. while the east will soon be covered by a mind-set Jim Cantrell, SpaceX’s first almost unchanged since we last spoke, even I hope by exploring how to make trailer new brand that is expected to emerge engineer, also noticed in his Californian though there were several major setbacks building work at a global scale – against all But, what it also says is that Li is GT: What does that strategy look like now? from the ashes of the Silvergreen project in certain regions during this period. By counterpart: “Most of us can’t conceive odds – we can inspire the entire automotive more convinced than ever to grow and operate out of Poland. the way, what has changed is the share these things working, while he can’t community. CIMC’s trailer building arm into a LI: The goal is still to build a global operation of revenue coming from overseas – which conceive them failing.” by tapping into local knowledge with strong is a good sign that we made progress in world-spanning empire that will bring regional brands such as Vanguard for the US While the south is officially still becoming more global and proof that you corporate globalization to a market and now SDC for the UK – that’s always been unaccounted for, Li says the north will need to stick with your goal if you want to find last success. traditionally considered un-scalable. The For Li, last year’s sale of a fully functional our value proposition. What we’ve learned, be covered by CIMC Vehicle’s latest near-constant surge of political, economic though, is that you cannot see Europe as a acquisition, Irish company SDC trailers. factory in southern Germany – which the single, unified market – you need to be even and social crises he had to overcome company never officially moved into – more regional in your thinking. The €112 million acquisition will help it In stark contrast to Musk, however, since he took on the job in 2003 may have was one such game-changing moment. serve the UK, Ireland and Scandinavia, US-educated Li is only just exploring how changed his game plan along the way, After taking over Dutch OEM Burg and and might also support the company’s to bring high technology to a strongly but they didn’t quite manage to move the forming a new stand-alone brand named expansion in the Middle East, Li explains commoditised market. After recalibrating target itself. Silvergreen, he had hoped to use the Much like South African Musk, who – admitting that the regional reshuffle is his expansion play for Europe, and with almost went broke in 2009 when trying still very much in project stage. the US operation going so well that to scale up Tesla while rolling out space Vanguard had to commission a whole exploration company SpaceX, Li went new factory (see breakout box), Li says Industry 4.0 and digitalisation are next on his agenda.

36 CIMC today 今日中集 CIMC today 今日中集 37 中集车辆里程碑︱ Milestone

Milestones of CIMC Vehicles Group Writer ︱ Luding Zhang

In December 1999, CIMC’s CEO and President Mai In 2003, under the guidance of the strategic thoughts to make On January 21, 2005, CIMC established Shanghai CIMC In April 2007, CIMC Vehicles began its very first operation As of December 31, 2011, In November 2013, CIMC According to ACT Research’s Global Trailer Market In October 2015, CIMC Trailer Poland sp.zo.o.had a Boliang formally proposed in his millennial plans the new scientific plans and reasonable allocations and to achieve regional Vehicles Logistics Equipment Co., Ltd, the country’s first 4S in Australia – the establishment of CIMC Vehicle Australia. CIMC Vehicles Group achieved Vehicles’ CIMC-Silvergreen won Analysis & Forecast 2015 Update, and the 2015 Trailer short but grand opening ceremony at Gdynia, a city in the development strategy with the provision of equipment coverage and uniform standards, CIMC Vehicle acquired a number shop for special vehicles. And with it, CIMC Vehicle acquired Australia’s most powerful sales revenue of RMB17.6 billion the European Transport Award Builders The World’s Top 30 published on the 30th issue Pomeranian Voivodeship of Poland. This was an important and services for modern transportation as the core at the of major players in China domestic special vehicle industry, tank truck manufacturer – Marshall Lethlean Industries. in total, for the first time above for Sustainability, and then the of Global Trailer, the most influential media in the milestone for CIMC Vehicles’ return to the European markets, working conference of the Group. Later, Mr. Mai successfully including Yangzhou Tonghua, Zhumadian Huajun, and Jinan Afterwards, CIMC Vehicles intensified its efforts to build RMB17 billion, and also a profit of European Business Awards for the world’s trailer industry, CIMC Vehicles ranked the first and a big move successfully operated under the guidance of came up with specific thoughts about the development of Kogel, which preliminarily made the Group rise in its strategic and extend its domestic marketing service network, and In May, CIMC Vehicles extended its reach to South Asian RMB756 million. This was a record Environment from the European place with sales volume of 100,300 in the year of 2015, “Global Operation Local Knowledge”. Trailer business. status in China’s special vehicles industry. gradually formed the marketing service expansion layout markets, and invested to build its production facility – CIMC high in terms of annual sales Commission. accounting for about 11.4% of the world’s total. This was of taking the major cities of different regions as important Vehicles Thailand. revenue and profit since 2004. the first time that CIMC Vehicles made it to the top. At the end of 2015, CIMC Vehicles Group finalized In May, CIMC USA, a wholly owned subsidiary of the Group in bases and the “Wal-Mart” park as the development pattern, its agreement with three strategic investors: Ping An, North America, was established. With it, CIMC Vehicles successfully and featuring the combination of single service station and In June, CIMC Vehicles marched into the European Also in 2015, CIMC Vehicles’ sales revenue on Nanshan, and Sumitomo. The three groups acquired newly acquired HPA Monon, the eighth largest trailer manufacturer regional service centers and then forming a full coverage. So markets, and acquired LAG Trailers N.V, a Belgium company overseas markets amounted to RMB7.2 billion, issued shares worth of RMB1.25 billion altogether. The in the US ever, marking the start of CIMC Vehicles Group's far, CIMC Vehicles has established 3 regional central shops, specialized in the production of tank trucks. accounting for 54% of the Group’s total and exceeding introduction of strategic investors has created a diversified implementation of global operation strategy. 25 provincial shops, over 600 service stations, so that clients that from domestic market for the first time. yet well-balanced multi-shareholder structure, and made could enjoy one-stop valued added services including In April 2008, CIMC Vehicles acquired and restructured the Group’s global operation and strategic decision-making September 2003: Shenzhen CIMC Special Vehicles Co., Ltd. purchasing, financing, insurance, maintenance, inspection, American DCLLC Company. With this acquisition, the Group In April 2015, the construction of the first phase more scientific, reasonable and efficient. held the foundation laying ceremony for its production facility at plate applications, and provision of spare parts within the established itself in the Tandem chassis markets of North project for Dongguan Lighttower Plant, the advanced Pingshan Town, Longgang District, Shenzhen, marking that the lifetime of their vehicles. America and began to stride along the road of global parts and components manufacturing center of core member in the entire strategic layout formally stepped on the operation. CIMC Vehicles, formally started at Wangniudun Town way of development. of Dongguan. Its production capacity is equivalent to over 30,000 complete vehicles a year. The With these efforts, CIMC Vehicles Group quickly established its Lighttower plant features digitalization of production competition advantages on domestic and foreign special vehicles management, flexible and automatic production and markets. As of November 30, 2016, CIMC Vehicles Group has environmentally-friendly production processes. Now, it established 25 production facilities that could meet the demands has become the benchmark for the upgrading of CIMC of clients in North America, Europe, Australia, the Middle East, Vehicles’ manufacturing technologies. Southeast Asia and Chinese mainland, preliminarily created the cross-border business operation layout that features global interaction, reasonable distribution, mutual complement and sharing of resources, and boasted annual production capacity of 200,000 special vehicles.

In July 2003, CIMC Vehicles successfully won the order for 13,000 container transportation semitrailers from Maersk Line, the world’s largest container shipping company. This order was the 2011 largest of the year, and it has been the largest ever in China so far, 2013 2015 representing that CIMC Vehicles’ semitrailer products successfully made inroad into international markets. 2007 2016

2012 2014 In March 2012, at the invitation of ACT Research, a 2005 2009 recognized leading commercial transportation research 2010 center in North America, David Li attended its 46th seminar, 1999 2003 and delivered the keynote speech Global Operation Local Knowledge. This was the first time that a Chinese special vehicles manufacturer ever spoke at the ACT seminar, a very influential event in the commercial vehicles business of North America, meaning that CIMC Vehicles had its brand 2004 2006 highly recognized on local markets. 2002 In March 2009, CIMC Vehicles’ Semitrailer Research In the same year, according to Trailer Builder, an Institute was established. This was the first product American publisher of everything about trailers, CIMC On April 16, 2002, CIMC held semitrailer products Vehicles ranked the fifth place in American special vehicles launching conference at Ming Wah International Convention technology R&D organization established by a business business. Centre, Shekou, Shenzhen. At the conference, President segment under CIMC. In January 2010, with the unveiling Mai Boliang announced the formal start of the special In June 2004, with the approval from National world’s largest semitrailer road simulation test laboratory On March 20, 2010, CIMC Vehicles held its election of , the 7th Statutory Congress of vehicles program, a business of strategic importance for the Development and Reform Commission and the State of the Semitrailer Research Institute, CIMC Vehicles’ vehicles new members of the board of directors. CIMC’s CEO and On April 19-20, 2012 China Association of Automobile Manufactures was held in Group’s second level of development. And CIMC got its first Administration for Industry and Commerce, CIMC Heavy successfully a world’s leading vehicles test center with total President Mai Boliang was elected the chairman, and CIMC’s Beijing. CIMC Vehicles, the only one in the special vehicles semitrailer order on domestic market at the conference. Machinery Co., Ltd. formally changed its name to CIMC investments of RMB60 million. The Institute is a professional Vice President Li Yinhui was elected the vice chairman. industry, together with other automobile, motor, and parts Vehicles (Group) Co., Ltd., meaning that CIMC Vehicles’ In April 2006, China’s Ministry of Transport released the and positive R&D center, and it lays solid foundations for In June 2016, CIMC Vehicles Group acquired Retlan and components manufacturers and R&D centers, was businesses were to be conducted in a group management list for the first group of road cargo transportation vehicles CIMC Vehicles to grow into a world-class company. According to the resolution of the board of directors, David In March 2014, CIMC Vehicles held its 9th “Global Manufacturing Limited at £91.7 million. Retlan is UK’s elected vice chairman unit of the 7th Council, and David Li structure. and combination of vehicles. Among the 24 vehicles that Li was appointed the managing director of CIMC Vehicles Semitrailer Seminar” in Las Vegas. The Seminar, under the biggest semitrailer manufacturer. After Retlan became a new were recommended to the public by the top competent In September 2009, CIMC Reefer Trailer Inc., a subsidiary Group. was elected vice chairman. theme of “Using Global Wisdom from wider perspectives”, member of the CIMC Vehicles Group, the total sales volume In July, with the approval from National Development and authority, six of vehicles produced by CIMC Vehicles were specially serving users in American and Mexican markets, was attended by 400 participants from different countries in Europe exceeded 11,000 units, lifting the Group to the Reform Commission, CIMC Vehicles was appointed as the included in the list. This was the first time that the products was established in the US, and its production facility was As of December 31, 2010, CIMC Vehicles Group sold In June 2012, CIMC Vehicles formally established the and regions. This was the first time that the Seminar was third place on European special vehicles markets. This has operating principle of “Global Operation Local Knowledge” one and only special vehicles pilot manufacturer in China, manufactured by the CIMC Vehicles were recognized by the formally put into operation in the same period. With it, CIMC 155, 3000 special vehicles of different kinds in total, for the held overseas. At the Seminar, CIMC Vehicles and its global laid solid foundation for CIMC Vehicles to further expand its on its tenth anniversary and released the “Five-Year Brand and given the catalogue destination number of “ZY001”, and government, and promoted its reputation in national and Vehicles’ business in North America entered a comprehensive first time above 150,000 units. This was the highest sales partners discussed how to develop global operation business growth on European markets, and to maintain its Strategy Development Plan”. the product bulletin number and other resources would be international markets. development stage. volume of special vehicles since 2004. concepts and how to practice them from wider perspectives. leading position in the world’s semitrailer industry. shared within the Group, meaning that the importance of CIMC Vehicles and its products were lifted up to a national level.

On October 22, 2004, CIMC Vehicles held its first international seminar themed with the Inland Logistics of North America in Shenzhen in order to positively expand businesses on North American markets and create a platform that was more positive and beneficial for the sharing of information and for mutual communication between CIMC Vehicles and its business partners, and this became the beginning of a series of seminars on overseas semitrailer markets.

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