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COVER STORY
PRECEDENT FOR
ON THE QUEST TO BECOMING THE FIRST TRULY GLOBAL ORGANISATION IN THE HISTORY OF TRAILER MANUFACTURING, CIMC VEHICLES HAS LEARNED THAT STAYING TRUE TO A GRAND VISION DOESN’T PRECLUDE STRATEGIC FLEXIBILITY.
[Story & Interview by Sebastian Grote]
PERSE VERANCE
David Li, General Manager of CIMC Vehicles, the trailer building arm of China’s International Marine Container (CIMC) Group, isn’t quite what you’d expect of a man who has built a €1.93 billion industrial empire from the bottom up.
Distinctly humble in his bearing and refreshingly unpolished in his language, the industry veteran is enveloped in an aura of authenticity and adventure that is much more Silicon Valley than Shenzhen Special Economic Zone (the official jargon for a giant business incubation area the Chinese government has set up across the bay from Hong Kong to help local businesses connect more easily with the western world).
As such, there is nothing imperious about Li laying out his plan to build the world’s first international trailer building company – only genuine excitement in an idea so captivatingly grand that it would arguably suit an intrepid start-up more than an asset-rich manufacturing firm operating in a time of extreme economic volatility.
Understanding the phenomenon that is CIMC Vehicles is therefore not so much a question of mapping out the business itself as it is one of getting to know the man behind it – a scenario akin to US start-up Tesla, which is largely dependent on the
FAST FACT
CIMC Vehicles’ US subsidiary, Vanguard, is currently finalising construction of a second factory in Trenton, Georgia. The €32 million manufacturing plant will eventually employ 400 people and produce 10,000 semi-trailers annually.
18 / GLOBAL TRAILER / ISSUE 30 WWW.GLOBALTRAILERMAG.COM / GLOBAL TRAILER / 19 safholland.com SAF TRAKr E-Axle System for recuperation Every huge E-Mobility-Concept starts with a small detail: The new E-Axle System by SAF-HOLLAND – your first progressive step into the right direction. Get ready for the most sustainable way running your business and start to develop your fleet towards more efficiency, safety and responsibility for the future.
OUT OFsaf-21006_AZ_SAF_Global_Trailer_e_Achsen_200x265_DR.indd 1
MIND
FAST FACT
According to Russian Economy Development Minister, Aleksey Ulyukaev, the country’s economy is set to grow in the near future, as “the situation in the real sector of economy is improving and the dynamics of industrial production are positive”.
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Global trailer
2021 | ISSUE 62
www.globaltrailermag.com
ISSN 1839-5201
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9 771836520000 INNOVATION
Hyva Tippers Energy Axles Hallco Moving Floors Aspöck Systems Lighting BUSINESS Executive Interview: CIMC Vehicles SA Market Report: Belgium Performance-Based Standards Report Carrier Trailer Refrigeration
www.globaltrailermag.com ISSN 1839-5201 06 01.12.21 13:45 INNOVATION Built To Task: CargoMatic Trailer Design: Valk Welding Carrier Trailer Refrigeration Lecitrailer Reefer Tech BUSINESS Executive Interview: BERGER Market Report: Singapore Special Report: Coffee Crop Industry Voice: SAF-Holland Dubai NEWS Acquisitions & Mergers Special Trailer Projects Retirements & Successions Solutrans Previews
9 771836520000
www.globaltrailermag.com ISSN 1839-5201 05 INNOVATION Krone Telematics Kässbohrer Silos, Tankers Valk Welding FlexLED & RDC BUSINESS Executive Interview: SERCO Industries Market Report: Austria Special Report: Food Security SAF-Holland’s NUFAM Preview NEWSGlobal OEM Ranking List CIMC Vehicles On The Rise Wielton’s Green Focus Trailer Deliveries
2021 | ISSUE 60
9 771836520000 NEWS
Acquisitions & Mergers Events Megatrends Solutrans Review
31.03.21 16:17
MARKET UPDATE
A KEY TALKING POINT OF THE 2014 IAA COMMERCIAL VEHICLE SHOW, THE BRUISED RUSSIAN ECONOMY HAS FAILED TO TURN ITSELF AROUND IN TIME FOR THE NEXT EDITION OF THE ICONIC EVENT. WILL IT STILL CONTINUE TO OWN THE CONVERSATION, THOUGH? [ Story by Sebastian Grote ]
Muddling through the longest recession since the turn of the century, Russia has racked up a sizeable budget deficit and is on track for yet another year of negative growth. Meanwhile, the prospect of fiscal relief is growing distant, with oil in a bear market after closing below $40 a barrel in August – theoretically making for a highly dramatic narrative in the lead-up to the largest transport industry gathering on the planet.
But if you ask Denis Krivtsov, head of Russian OEM, Tonar, the country’s fragile economic state doesn’t necessarily mean it will become as prominent a topic as it was in 2014, when the Ukraine conflict and the annexation of Crimea were still fresh in mind and the European Union (EU) put an abrupt hold on west-east trade.
According to Krivtsov, much of the western trailer community has since found new growth potential in the heart of Europe and the still-sprawling east of the continent, leaving Russian businesses alone in dealing with what could be the most severe market slowdown in a decade or two. As a result, he says it is now up to the domestic transport equipment community to consolidate ahead of the parliamentary election in mid-September, which is hoped to give the battered economy a much-needed boost.
“The Russian economy hasn’t really improved much since the last instalment of IAA. In fact, many local businesses have since folded as they simply refused to learn from the last crisis,” he explains – pointing to the EU’s recent decision to prolong economic sanctions against Russia until 31 January 2017.
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PEOPLE TO WATCH
THE HUMAN
ELEMENT
ALBEIT A SUBSTANTIAL BUSINESS EXPENSE, VISITING A TRADE SHOW LIKE IAA IS A UNIQUE OPPORTUNITY TO MEET SOME OF THE MOST INFLUENTIAL PEOPLE IN COMMERCIAL ROAD TRANSPORT IN THE FLESH – A KEY ADVANTAGE IN
THE DIGITAL AGE. [ Story by Sebastian Grote ]
From wireless connectivity to electric mobility, the digital world is slowly infiltrating every aspect of commercial road transport. Yet although high technology is expected to dominate the conversation at this year’s IAA Commercial Vehicle Show in Germany (see page 52), it will be people that ultimately set the narrative. In fact, there is a distinct irony to the rise of technology in the manufacturing, according to best-selling US author, Daniel Pink, who has found that forging personal relationships is becoming ever more important as skill-sets evolve and demand more cognitive proficiency.
So-called ‘thought jobs’, as Pink puts it, require a higher level of creativity, problem-solving prowess and out-of-the-box thinking, meaning that in order for a business to be successful, leveraging the unique human element behind each employee is key.
As such, he says fostering personal relationships in real life, for example in the context of a trade show, will ultimately help businesses become more profitable.
In line with Pink’s assumption, Global Trailer has selected ten prominent individuals that have the potential to put their mark on the 2016 edition of the largest global transport industry gathering – either by attending it or as the subject of intense discussion.
www.globaltrailermag.com
58 / GLOBAL TRAILER / ISSUE 30
JEFF BEZOS, AMAZON.COM
In August 2016, the Financial Times publically wondered whether Amazon CEO
Jeff Bezos was intending to drive everyone else in US retail crazy. The reason: Bezos is on a mission to re-define the classic concept of retail logistics. Instead of outsourcing the whole process, he set up a complex in-house transport network that has been aggressively expanding its reach, capabilities and capacity in the logistics and distribution arena over the past year or so. As part of the process, the Seattlebased company is now operating thousands of trailers emblazoned with Amazon’s logos acrosss North America. In Europe, Amazon is expanding rapidly as well, potentially making it a key talking point of the next IAA.
ALEXANDER DOBRINDT, GERMAN FEDERAL GOVERNMENT
Germany’s Federal Minister for Transport and Digital Infrastructure, Alexander Dobrindt, is slated to officially open the 66th IAA Commercial Vehicle Show in Hanover. Dobrindt recently made headlines in Germany when he proposed self-driving vehicles in Germany should be fitted with a black box that is able to record specific details of an
accident, much like in the aviation industry. According to newswire, Reuters, his proposal
would require drivers to stay seated in front of the steering wheel, even tough they may not have to pay attention to traffic or actually steer. Despite that cautionary measure, Dobrindt approved six German cities – Hamburg, Munich, Ingolstadt, Düsseldorf, Dresden and Braunschweig – to become testing grounds for self-driving vehicles as part
of a US$89 million (€80 million) project.
İIFFET TÜRKEN, KÄSSBOHRER
As the Executive Board Member responsible for Business Development at German OEM Kässbohrer – which is part of the Tirsan Group, the largest trailer manufacturing company in Turkey – Türken is considered one of the most influential personalities in European trailer building, and one of the most powerful women in the global transport equipment industry. The now 44-year-old joined the Tirsan Group in 1996 after graduating from Bogaziçi University in Istanbul and has since been stirring up Europe’s trailer building landscape – helping establish the Kässbohrer brand amongst the top ten in Europe.
PETER SIJS, TIP TRAILER SERVICES
Overseeing the procurement processes for a 71,000-unit strong fleet that covers some five billion kilometres every year, Sijs, Services and Sourcing Operations Leader Europe at TIP Trailer Services, is considered one of the most influential people in Europe’s transport equipment industry. Having to replace up to 15,000 trailers annually, TIP Trailer Services
spends an average of €30 million per year on parts alone – prompting Sijs to work closely
