The Mystery Surrounding Ford’s China Heavy Truck Joint-Venture Thickens

[kscarbel2]

August 19, 2015

Wabco has announced that the JMC-Ford joint venture has chosen them to supply brake valves and wheel ends to the going-nowhere-so-far JMCH truckmaking joint venture (http://www.wabco-auto.com/fi/media/media-center/press-releases-wabco/press-releases-single-view/news-article/wabco-enters-into-long-term-supply-agreements-with-new-customer-based-in-china-supports-jmch-to-exp/?cHash=0063bd5d185c94e1089e28cba3673ae2).

But, Belgium-based Wabco mentions the business is planned to begin in three years (no time soon), for the Chinese market and expected export to Southeast Asia.

The JMCH contract has Ford-Otosan supplying engines, Cargo cabs and chassis, but the Cargo cab and chassis which isn't really appropriate for China (or Europe) today will be blatantly uncompetitive in three years.

Which begs the question, is Ford using its time to create a next generation (larger and more relevant) Cargo heavy truck?

The JMCH joint venture is NOT a major truck manufacturer in China. Its production is so small that it doesn’t even show up on anyone’s radar. As China’s annual production drops from 744,000 (2014) to around 600,000 units annually going forward, as greater transport efficiency is employed, Ford’s heavy truck joint-venture in three years might have lost its opportunity to attempt an entrance into the country's heavy truck market.

Related reading:

http://www.bigmacktrucks.com/index.php?/topic/39301-ford-road-testing-heavy-trucks-in-china/?hl=cargo

http://www.bigmacktrucks.com/index.php?/topic/38795-fords-china-heavy-truck-joint-venture-plans-take-off-in-2016/?hl=cargo

http://www.bigmacktrucks.com/index.php?/topic/39301-ford-road-testing-heavy-trucks-in-china/?hl=cargo

http://www.bigmacktrucks.com/index.php?/topic/37456-update-on-fords-expansion-into-chinas-heavy-truck-market/?hl=jmch