A LONG STANDING, STRONG, RELIABLE SINO-ITALIAN TEAM
Iveco activities in China date back to the 1980s. Since then Iveco has broadened its business and presence in China through industrial co-operation and joint venture agreements with major players. These long-term agreements have first required a transfer of technology and design expertise licensed from Iveco to its partners.
SETTING A MILESTONE FOR TEAM SPIRIT
The first collaboration between Iveco and China Manufacturers dates back to 1985. At that time Iveco and Nanjing Automotive Corporation (NAC) started an industrial co-operation that allowed NAC to produce the Daily light commercial vehicles under licence and form an extensive training program. This co-operation was set up in collaboration with the Italian Ministry of Foreign Affairs to be implemented over two years for about 400 NAC employees. Within this agreement, which focused mainly in the area of production, Iveco was to supply CKD kits to NAC, who is in-charge of the supply network.
Since then Iveco has been operating and proactive in China through the Iveco Fiat Representative Office in Nanjing, also responsible for supporting and representing Iveco in China.
READY FOR COMMITMENT
After 1992, Iveco displayed more interest in expanding its presence in China. The overall international strategy was to start production with major investments and transfers of know-how. In 1995, Iveco and NAC signed an agreement to set up Naveco in Nanjing and started operations in January 1996.
After setting up the joint venture in 1996, both partners pursued an increase in local technological content levels in order to meet local content legislation.
NAVECO: light commercial vehicles
READY FOR COMMITMENT
After 1992, Iveco displayed more interest in expanding its presence in China. The overall international strategy was to start production with major investments and transfers of know-how. In 1995, Iveco and NAC signed an agreement to set up Naveco in Nanjing and started operations in January 1996.
After setting up the joint venture in 1996, both partners pursued an increase in local technological content levels in order to meet local content legislation.
NAVECO: light commercial vehicles
SETTING RELIABILITY PROMISES
Since 2006, Iveco's involvement in China was further intensified when Iveco signed a new joint venture agreement with Nanjing Automotive Corporation (NAC). In the agreement, Naveco acquired the low-end light and medium commercial vehicle-related businesses of Yuejin Motor Company (YMC), which were controlled by NAC. Through the integration of Naveco and Yuejin businesses in a New Naveco, Iveco has also entered in the China market's high-volume segments of light and medium commercial vehicles for goods transportation.
New NAVECO: light and medium commercial vehicles
REACHING PERFORMANCE
A second agreement was signed between Iveco and Saic Motor Corporation in 2006 establishing a jointly owned investment company under the name of Saic - Iveco Commercial Vehicle Investment Company Ltd. (SI).
The Investment Company first act was to acquire a 67% share of Chongqing Hongyan Motor Co. Ltd, which was a subsidiary of the Chongqing Heavy Vehicle Group establishing the new company Saic–Iveco Hongyan company for the production of heavy commercial vehicles.
>> Visit Saic–Iveco Hongyan web site
Saic–Iveco Hongyan: heavy commercial vehicles
The signing of these latter agreements – New Naveco and Saic–Iveco Hongyan have represented two important events for Iveco and its Partners in China. This has encouraged the participation of higher echelons of the Italian and Chinese governments, as well as respective industry representatives.
TEAMING UP TO MASTER CHANGE
Iveco and Fiat Powertrain Technologies (FPT) have also set up a long-term partnership with Saic Motor Corporation and with Chongqing Heavy Vehicle Group Co. Ltd., for the production of three family groups of medium and heavy-duty engines for on-road and off-road use. The localisation of these engine families guarantees the offer of high-technological products at competitive prices on the China market, capable of supporting the plans of other Fiat Group companies and to make the most of every opportunity in a rapidly growing economy.
The new Shanghai branch, established in 2005, strengthens and develops the activities of the Representative Office operating in Nanjing since 1998. Its objectives are to promote, sell and service the FPT engines in the Chinese territory and to widen the local network of dealers and service centres.
The main application sectors are automotive, industrial, agricultural, power generation and marine. The sales network comprises of about ten dealers and 25 main service points spread throughout China.
Long-term partnership SAIC - Fiat Powertrain Hongyan Co. Ltd.: three families of medium and heavy-duty engines
Saic and Yuejin Automotive Group, the parent company of Nanjing Automobile Corporation (NAC), finalized a merger agreement on December 26, 2007.
According to the agreement, SAIC holds the controlling stake of NAC thus becoming Iveco’s partner also in the New Naveco and Iveco’s sole partner in China.
Iveco JVs Shareholding as of December 2007:
