China National Heavy Duty Truck Group Jinan kunda auto sale limited company, headquartered in Jinan City, capital of Shandong Province, is the main production base of heavy-duty trucks in China, also the cradle of China's heavy truck industry, and is famous due to developing and producing China's first heavy-duty truck (Huanghe JN150) and introducing successfully Steyr heavy-duty vehicle production project and producing world class heavy duty truck in the joint venture with Volvo. Sinotruk has Steyr and HOWO brands of heavy duty trucks with following series: HOWO, Steyr Wangpai, Steyr, Huanghe Golden Prince, Huanghe Shaoshuai, Huanghe Commander, Hao Jun and Hao Yun, including trucks, military special vehicles, self-dumping trucks, towing vehicles, tilting trucks, coaches, cement mixing trucks, concrete mixing trucks, concrete trucks, special vehicles and chassis and other models. The company is the heavy-duty vehicle manufacturer with most complete drive modes and most variety of tonnages in China. At present, more than 1200 products have been listed in the national announcement issued by Ministry of Public Security. The engines are made by Sinotruk and the power ranges from 180 hp to 410 hp. The energy-saving and power take the leading position in China and represent world level technology. Over several decades of years, Sinotruk has provided hundreds of thousands heavy-duty vehicles to the society, in highway transport, water conservation, electric power, oil fields, mining, ports, construction sites, Sinotruk trucks are everywhere.

 

"Based on domestic market, international market oriented, Volvo project as an opportunity as the breakthrough to vehicle export, become bigger and stronger as quickly as possible, construct international well-known brand" is the international strategic policy of Sinotruk. By the end of October 2005, vehicle exports reached 3,564 sets and the foreign exchange through export was up to 100 million USD.

 

The strategic development target of Sinotruk is: Implement actively international strategy, technology leading strategy, regional strategy and high-quality low-cost strategy; realize gradually internationalization on product, market, capital, mechanism and brands; try to be top three heavy truck manufacturers in the world.

 

China National Heavy Duty Truck Group Co., Ltd.

China National Heavy Duty Truck Group Co., Ltd.(Hereinafter referred to as Sinotruk), headquartered in Jinan City, capital of Shandong Province, is the main production base of heavy-duty trucks in China, also the cradle of China's heavy truck industry, and is famous due to developing and producing China's first heavy-duty truck (Huanghe JN150) and introducing successfully Steyr heavy-duty vehicle production project and producing world class heavy duty truck in the joint venture with Volvo.

 

The predecessor of Sinotruk was former Jinan General Auto Works Plant, which was built in 1935 and produced mainly automotive components. The plant began independent research, design and manufacture of automobiles in 1956, entered the complete automobile manufacturing business. In April 1960, the plant developed and produced China's first heavy-duty truck (Huanghe JN150 8 tons heavy-duty truck). The history that China cannot produce heavy truck is over. In May 4th of the same year, Chairman Mao Zedong went to Ji'nan for inspection and had a look at this sample truck. Marshal Zhu De personally wrote "Huanghe" for this truck. In several decades of years, the plant had produced hundreds of thousands heavy duty vehicles and made significant contribution for the national economy development and national defense development.

 

In Jinan, Sinotruk has set up Sinotruk Jinan Truck Co., Ltd. in Jinan, Sinotruk Jinan Commercial Truck Co., Ltd, Sinotruk Jinan Power Co., Ltd., Sinotruk Jinan Axle and Tranmission Co., Ltd. Sinotruk Jinan Special Vehicle Co., Ltd., Passenger Car Company, Jinan Huawo Truck Corporation. These companies are mainly responsible for complete truck assembling and processing engines, axles, transmissions, wheel rims, drive shafts, automotive interiors, seats and other assemblies, as well as producing buses and special vehicles. Qingdao Special Vehicle Co., Ltd. in Shandong Province, Tai'an Wuyue Company, Jining Modified Car Co., Ltd. and Jinan Garden Machinery Factory produce special vehicles and refit vehicles. The companies outside Shandong Province include Sinotruk Hangzhou Engine Co., Ltd., Chongqing Pump and Nozzle Factory and so on. Technology Development Center located in Jinan headquarters is a state level enterprise technology center and provides strong technical support for developing and producing the products of Sinotruk. In addition, Sinotruk also has real estate company, import and export company, Hong Kong company, financial company, Xinhai Guarantee Co., Ltd., property management company and other class two companies. 

 

Part of Jinan Industrial Park of Sinotruk

On January 18, 2001, after reform and restructuring of Sinotruk, the enterprise was reformed and the operation mechanism was changed also, so the vitality of enterprise was stimulated.

 

Sinotruk production and operations achieved rapid development. The main business indicators maintained high growth for four consecutive years. Sinotruk has always realized: When the market demand is high, the company realized big growth; When the market demand is low, the company has substantial growth; When the market demand goes down, the company must maintain moderate growth. Technological innovation and patented technical results continue to emerge. Sinotruk takes efforts in the innovation of product development, improves the technological content of products, increases the innovation level and competitive power, makes the best of its technological advantages, absorbs extensively the advanced technologies of heavy trucks in the world, adheres to independent design, self-development, and makes efforts to innovate, makes its own product advantages in full power. The company developed successfully Feilong series in 2001; Steyr King series in 2002; Huanghe Prince series in 2003; HOWO -7 series; Huanghe Shaoshuai, Steyr Ш and other vehicle products in 2004; HOWO - 8 series, Steyr Hao Jun series, Golden Prince series, Huanghe Commander series in 2005. In complete vehicle development, the company also developed world class single drive axle, retarder and heavy duty truck disc brake and other important assemblies. And in special vehicles, private vehicles, coaches and other areas, the company realized continually new breakthroughs. There are more than 1200 vehicle models and the company becomes the heavy-duty vehicle manufacturer with most complete drive modes and most variety of tonnages in China. Especially the successful development of HOWO-7 series had a huge impact in the domestic and foreign heavy truck industry, praised as "heavy truck leader" by the professionals, narrowed the distance with major competitors, consolidated Sinotruk's technology leading position and market position. After four years of hard work, Sinotruk had reached three nationwide first: The first sales volume of towing vehicles in China; The first sales volume of high-powered engine above 300 horsepower; The first sales volume of heavy-duty trucks equipped with engines more than 10 liters.

 

On March 31, 2004, Volvo truck made by the joint capital was off the assembling line.

In the innovation of technology, Sinotruk pays close attention to intellectual property protection. While improving the internal system of intellectual property protection, in 2002, the company began to organize patent application. More than 600 national patents have been declared, achieving fruitful results, protecting effectively the company's intellectual property rights and core competitiveness. The company was awarded by Shandong Provincial and Jinan Municipal Intellectual Property Bureau as advanced unit, the patent application ranked top 20 enterprises nationwide, the company became the number one enterprise to declare the patents in nationwide machinery industry and automotive industry enterprises, also had won two gold medals and one silver medal in Kunming International Patent Fair. 　　Marketing service network continues to improve. In terms of market development, based on the enterprise’s rapid development and market changes, the company insisted on three changes of marketing concept, proposed the market network development concept of "big market and big marketing", continued to strengthen the marketing network construction, adjusted marketing structure, explored modern marketing mode and built up a sound marketing network system. Currently in all over the country, there are more than 50 marketing branches, more than 500 network agencies, more than 400 network refit enterprises, more than 80 4S shops and more than 800 maintenance and repair service stations. In 2004, the sales of heavy vehicles 15 tons above accounted for more than 35% of the total sales volume, 20 tons above accounted for more than 60%, 25 tons above accounted for about 80% in China. The marketing network and sales volume further established its market leading position in the domestic market of large tonnage and high-power vehicles.

 

On October 28, 2004, HOWO heavy duty truck with independent intellectual property rights was off the assembly line.

Sinotruk made the best of high and new technology to upgrade traditional industries in the past several years, implemented more than 100 technological transformation projects. The total investment in this aspect was over 4000 million Yuan. The upgrading and renovation project of National Technology Center was developed comprehensively. Jinan Industrial Park, Changqing Industrial Park and Zhangqiu Industrial Park had been completed one after another. International level CNC truck chassis production line, new final assembly line, HOWO welding line, painting line, final painting line and so on had also been put into operation. Jinan Power Co., Ltd. was founded in April 2006, with the investment nearly 1000 million Yuan, the design and manufacturing capability in same level as the international heavy-duty vehicle engine, the annual production capacity of 60,000 units, and becoming China's heavy truck engine production base.  

 

New assembling line

In heavy vehicle market fierce competition, focused on long-term development and enterprise stronger and bigger, Sinotruk carried out actively foreign technical and economic cooperation, implemented technology internationalized strategy, mastered the international advanced technology and management experience through study and promoted the faster development. Sinotruk set up successfully joint venture with Swedish Volvo Group, further upgraded the level of vehicle technology, enhanced independent product development ability, continued to maintain technology leading position in China, drove broader international technical cooperation with MAN, ZF and other world-renowned entire vehicle and spare part manufacturers, upgraded comprehensively the vehicle and parts development and manufacturing level. The global support and procurement were expanded rapidly.

 

International level engine machining center

"Based on domestic market, international market oriented, Volvo project as an opportunity for the breakthrough to vehicle export, become bigger and stronger as quickly as possible, construct international well-known brand" is the international strategic policy of Sinotruk. By the end of October 2005, vehicle exports reached 3,564 sets and the foreign exchange through export was up to 100 million USD.

 

After 2001, the accumulative investment on the hardware of information technology construction was nearly 45 million Yuan. The enterprise website and metropolitan scale enterprise network laid the foundation for information project. The company constructed and renovated mainly the local area network of Group's Headquarters, Sales Company, Truck Company and Technology Center. The network scale could meet basically the requirement of the company on distributed network applications and elevated quickly the enterprise management level.

 

Imported welding robot

Cooperated with foreign well-known companies in terms of product design and development, the company realized completely 3D design, developed independently the product list management system at domestic leading level, cooperated with domestic well-known universities on CAPP (Computer Aided Process Design) research applications. In the production and business process, the sales payment integrated system, after-sale service integrated system, enterprise resource planning TRP3000 system, supply chain management system, workshop production and operation management system and other application systems were developed independently with independent intellectual property rights. Sweden VOLVO delegation gave a high rating on this system when they visited Sinotruk marketing system and believed Sinotruk had reached the European level in this area.

 

Through information technology construction, Sinotruk realized a qualitative leap in the management and mass production and enhanced the core competitiveness of enterprise. When overall heavy truck industry had only about 13% growth in 2004, the various operational indicators of Sinotruk achieved more than 60% fast growth. The strong guarantee provided by the information technology construction had played a key role.

 

China National Heavy Duty Truck Group Jinan kunda auto sale limited company's information construction work had been supported and praised by the Ministry of Information Industry, Provincial Information Industry Department and Science and Technology Department, and named as model enterprise in "Using high technology to upgrade traditional industries" and "Manufacturing formalization" for several years by the provincial and municipal authorities. 　　At present, one company of Sinotruk has been listed in stock market, i.e. A Share "G Zhong Qi". Sinotruk continues to expand the development space in capital market.

 

At present, Sinotruk already has advantages in technology, brand, costs, price, talent, network and other many aspects, capable of scientific research, development, production, sales and services, is a key enterprise in China's heavy-duty vehicle production. Meanwhile, Sinotruk makes the best of capital to enter several industries and receive good returns. In Top 500 China Machinery in strength announced in July 15, 2005, Sinotruk ranked No.17. In Top 500 China Machinery in scale, Sinotruk ranked No. 15.

 

From 2004 to 2005, the state leaders Wu Bangguo, Wang Zhaoguo, Wu Yi and so on visited Sinotruk, praised the development of Sinotruk and presented great expectations.