Menu
Share
Share this story
Close X
 
Switch to Desktop Site

At Chinese truck factory, it's look out Daimler-Benz

(Read article summary)
View video

Ng Han Guan/AP

(Read caption) Chinese workers assemble a bus at a factory owned by Chinese auto manufacturer Foton Motor Group in Beijing Friday. China's recovery gained momentum in August as stimulus spending helped boost industrial output, investment and retail sales in the world's third-largest economy, offsetting a slump in exports.

View photo

CHANGPING, CHINA – When you’ve lived in China for awhile, you tend to get accustomed to just how fast things move here.

You forget to notice daily changes in the cityscape – three massive new shopping arcades within a couple of miles of my home, for example – or in the nation’s foreign reserves – up from $1 trillion to $2 trillion since I got here in 2006.

About these ads

So it is worthwhile, from time to time, to take the sort of trip I went on this morning. It was a press visit to Foton, at their factory an hour’s drive north of Beijing.

“Fo-who?" I hear you asking. Well, as I found out, Foton is the second-largest commercial vehicle manufacturer in the world, churning out 440,000 trucks, buses, and vans in the first half of this year.

But what was most surprising was their founding date: 1996.

This company has been going for only 13 years, and already it is snapping at the heels of the world’s biggest producer, Daimler-Benz. Messrs. Daimler and Benz lodged their first automobile patents in 1886, 123 years ago.

This kind of pace blew Kent Molen away, too. He is a long-time employee of Cummins, the US engine makers, and he came to China last year to be plant manager for the new joint venture that Cummins and Foton have set up.

“When I came here in January 2008, there were 16 beams up, that’s all,” he recalls. “I was told we’d be producing engines by November, and I thought, ‘How the heck is that gonna happen?’ "

But it did. The first engines rolled off the line in early December. “I was absolutely amazed that this building came together so quickly,” Mr. Molen admits. “We went from ground to a producing facility in a year.”

About these ads

He was also pretty impressed by the cost. The million-square-foot, state-of-the-art plant designed to turn out 400,000 engines a year cost only $400 million. “That’s incredible,” he says.

How much would a similar factory cost in the United States?

“I don’t know,” he replies. “Too much.”

_____

Thinking about buying a Russian car?

A Canadian-Russian consortium has taken a majority share of GM's Opel unit. Read about the potential impact on Russia's car industry.
_____