Iveco, SAIC to restructure Chinese joint ventures
CNH Industrial's brand Iveco and SAIC are restructuring their joint ventures in China to address the rapid evolution of China’s commercial vehicle market.
Naveco, a 50:50 joint venture between Iveco and SAIC, will be entirely focused on the Iveco brand. The Yuejin brand business will be separated from Naveco.
SIH (Saic Iveco Hongyan) is a joint venture between SI (a 50:50 JV between SAIC and Iveco), which holds 67% of the equity share, and CME (Chongqing Machinery & Electronics Holding Group), which holds the remaining 33%.
The equity structure of this joint venture will be revised with SAIC directly entering into the capital with 53.92% of the shares, CME increasing to 34% and SI reducing its participation to 12.08%.
Iveco and SAIC undertook this restructuring to address the changes in the industry driven by China’s economic growth, and to meet the evolving demands of customers.
Iveco APAC the Head Michele Lombardi said: “As the largest commercial vehicle market in the world, China has always been a strategic market to Iveco.
“With this restructuring, we are able to prioritize our investments and focus on the Iveco brand business in China, taking the lead in the transition towards sustainable transport. Iveco offers a wide range of commercial vehicles and buses that deliver advanced technologies, low TCO (Total Cost of Ownership) and high performances, making them the ideal business partners for Chinese customers.
"This strategic re-alignment will enable us to bring the best Iveco technologies and products to the Chinese market and to develop export opportunities for the vehicles produced by our joint ventures in China.”
SAIC vice president Lan Qingsong said: “Integrating the Yuejin business and increasing equity share in SIH are important to SAIC’s "13th Five-Year" plan.
"These adjustments will help SAIC complete its commercial vehicle product range, strengthen the integration of its resources and achieve scale efficiencies in order to fulfill the target of its commercial vehicle business by 2020.”
Iveco and SAIC will continue to leverage on their respective strengths as they work closely together to develop the businesses of the two joint ventures, focused on the changing requirements of their customers.
Source: Company Press Release