SHANGHAI – Dongfeng Motor Co., Ltd. (DFL) and the German company Schmitz Cargobull AG signed a letter of intent on April 20 at the Shanghai auto show to establish a joint venture for production and sales of semi-trailers and truck bodies, according to a company press release.
DFL is one of the largest manufacturers in the world and has comprehensive expertise in the truck and tractor sectors. Schmitz Cargobull possesses a comprehensive range of know-how for trailers and bodies in a diverse spectrum of transport sectors including general cargo, temperature-controlled freight (foodstuffs), bulk goods and, intermodal (containers). By working together, the two companies will be able to offer customers the benefit of the optimal use and availability of the vehicles, as stated in the company press release.
“Dongfeng is the leading truck manufacturer in China and Schmitz Cargobull is the leading semitrailer manufacturer in Europe. The combination of the best truck with the best semi-trailer will provide the greatest value for our customers with a one-stop shopping solution,” stated Gary Huuang, president of Dongfeng Commercial Vehicle Co., Ltd. (DFCV)
“Dongfeng Motor Company Ltd. is a partner which matches our strategy with regard to both high quality and also customer-oriented engineering, stated the Schmitz Cargobull board member, Ulrich Schöpker. “With our innovative know-how in the trailer construction sector and Dongfeng’s own customer-specific know-how in China’s markets we want to pursue the expansion in these markets together.”
“We are seeing a great opportunity brought by the growing transport market of China,” said Andreas Schmitz, board member of Schmitz Cargobull. “The initial goal of the JV includes high-quality production according to state-of-the-art industrial standards as well as setting up a dense sales and service network with innovative services in China.”
With registered capital of ¥16.7 billion ($2 billion) and 50 percent equity for each party, DFL was formally established on June 9, 2003 as the result of the strategic cooperation between Dongfeng Motor Corp. (DFM) and Nissan Motor Co. DFCV, as the commercial vehicle business division under DFL, it sold 313,000 vehicles last year, including 249,000 heavy-duty trucks.
Schmitz Cargobull AG was established in 1892 and has developed into the European trailer and body manufacturer with the highest turnover in the commercial vehicle branch. In the 2010-2011 business year (from April 1, 2010 to March 31, 2011), it produced around 36,000 vehicles and had a turnover of €1.3 billion, according to the company press release.