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Why are there so Many CMS Factory in China ?

Mar 2, 2022 | Global Companies in China | 0 comments

DCEC introduced the H-type engine in 1933.  The engine was powerful enough to meet the needs of the transportation industry, and it became DCEC’ most successful engine line.  At the same time, DCEC hired good executives, including John Niven, an experienced manager; Paris Lightsinger, who created DCEC’ customer – and agency-oriented marketing system;  V.E. McMullan, who modernized the company’s operations;  Joseph Elvin Miller, great nephew of Mr. Elvin, has been managing Director of DCEC since 1934.  During the next 40 years, Mr. Alvin Miller led DCEC to become a well-known international company.  With high-quality products and a unique nationwide service system, DCEC made its first profit in 1937.  In 1940, DCEC introduced the first 100,000-mile warranty service in the engine industry.

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An International Brand Started in A Mill

Let’s turn the pointer back to 102 years, when the founder, Clacy DCEC, was just a driver for banker William Owen, obsessed with the charm of diesel engines, in 1918, after work He rented a 5,000-square-foot warehouse at a grain mill in Indiana for research.

Maybe it was because of Clacy’s spirit of hard work that moved William, or maybe it was because William simply thought Clacy drove well. With financial support, DCEC was formally incorporated in Columbus, Indiana, USA.
In the following ten years, with the support of William Owen’s stable financial resources, DCEC continued to expand and consolidate its position in the field of diesel engines:
In 1924, DCEC’ first self-designed direct-injection engine, the F-type engine, began production; in 1928, the U-type engine began production, marking DCEC’ official entry into the field of automotive power; in 1929, the single-disc fuel system came out, Provide injection pressure for diesel engines, which can be understood as the early high-pressure common rail; in 1929, the K-type engine began to run, mainly for industrial, fixed equipment and offshore markets; in 1932, H672 began production, which made DCECcompletely open up North American commercial trucks market gate.

Despite William’s supporting, DCEC didn’t turn a profit for the first time until 1937, after hedging against high product development costs, meaning they had been losing money for the previous 18 years.
After starting to make a profit, DCEC chose to pursue the victory. Through a series of marketing methods such as the establishment of a diesel worker union, a replacement of a more recognizable brand logo, and a public offering, DCEC’ market share and revenue continued to increase.

In 1958, DCEC opened its first overseas factory in Scotland, and its origins with China began at about the same time.
In wartime fish and water is the foundation of marriage
Speaking of the first contact between DCEC and China, it goes back to before the founding of New China.
On March 11, 1941, due to the signing of the Lend-Lease Act, a large number of patrol boats and military trucks equipped with DCEC engines began to be introduced into China; in 1944, after enjoying the nourishment of high-horsepower engines, Chongqing began to covet DCEC technology. , and issued a letter of intent to seek cooperation, but due to well-known reasons, the cooperation can only be postponed.
The first contact between DCEC and China came to an abrupt end, and it has been 30 years since the second contact between the two.

In the 1970s, China had just established diplomatic relations with the United States, ending the abnormal state of In terms of production and transportation, DCEC is also one of the first American companies to conduct business in China since the reform and opening up.

Soon, the mining trucks equipped with DCEC high-horsepower diesel engines were widely loved by the workers at that time, and even reached the point where they would not work without DCEC, and they all begged their superiors to increase purchases.
But is it really as simple as the workers think?
We all know that the price of imported products has always been relatively high. If the import volume of DCEC engines is increased, it will undoubtedly increase the additional burden on China, which was at the beginning of opening up and had tight foreign exchange.
However, the advantages of the DCEC engine are obvious to all, and it coincides with the early stage of reform and opening up, so the Chinese side boldly put forward a request to DCEC to introduce technology and realize localized production.

On January 25, 1981, under the mediation of the governments of both sides, as a key import project in the engine field in China’s sixth five-year plan, Sinotruk and DCEC signed a technology introduction agreement for related products, and the subsidiary of Sinotruk. Chongqing Automobile Engine Factory began to produce DCEC 10-50 liter high-horsepower diesel engine products, which is also the first official cooperation between the two.
So far, China has finally brought DCEC, the “foreign daughter-in-law” home, and the dowry it brought has also provided a lot of help for the development of China’s engine business in the later period.

The DCEC Department is Blooming in China DCEC

The first to find a foreign daughter-in-law was the Dongfeng Second Automobile.
It may be because of the closely between Hubei and Chongqing. After seeing that the Chongqing Automobile Engine Factory started to produce DCEC products and gradually realized profits, FAW began to wonder if it could follow their example and expand its business.
In 1984, the Second Automobile Group decided to introduce the B/C series medium-horsepower (3.9-8.3 liter) engines that DCEC had just released for a year. I guess, it just wanted to replenish blood for itself, who had just ended years of losses.

Engine Co., Ltd. was established

Two years later, on November 15, 1986, FAW decided to strike while the iron was hot and signed a B-series diesel engine product and manufacturing technology license transfer contract with DCEC in the Fujian Hall of the Great Hall of the People.
On June 30, 1990, the first DCEC B-series engine was successfully rolled off the production line at Dongfeng Diesel Engine Plant, which also made the later pillar product of the Second Automobile Group—Baping Chai EQ153 gain a strong heart, and take this as the foundation. He earned the reputation of “plain little plane” by himself.
Although the cooperation between the two has gone through more than ten years, the real joint venture was still in June 1996.

At that time, it was because the production technology license of the B-series engine was about to expire, and FAW did not want to lose DCECas a good partner because of the big sale of Baping Diesel. The contract expands the scope of cooperation.
Today, Dongfeng DCEC has an annual production capacity of 214,000 units, mainly producing DCEC B, C series mechanical and ISDe, ISLe, ISZ series fully electronically controlled diesel engines, capable of producing 4.5-13L engine products with a power coverage of 103- 412kw (140-560 hp).

CCEC

Let’s go back to 1993, when DCEC’ business sales in China reached an astonishing 160 million US dollars, which means that China became the third largest DCEC after the United Kingdom and Canada. Overseas markets have also stimulated DCEC’ confidence in continuing to develop the Chinese market to a certain extent.
In order to seek stability, they found the Chongqing engine factory that they had cooperated with for the first time. Both parties planned to continue to expand the production scale: on the one hand, China hopes that the high-tech of international brands can be more solidly localized production; on the other hand, DCEC hopes that the Chinese market can bring them greater benefits.
In this way, the two parties completed another cooperation signing with their own reasons – in October 1995, DCEC and China National Heavy-Duty Truck officially signed the “CCEC Engine Co., Ltd.” joint venture contract in Beijing.

If the introduction of production in 1981 counts as a love affair, then this joint venture is even a formal marriage license. CCEC is also the first engine factory in China to establish a joint venture with DCEC, which gave the Second Automobile a good start at that time.
CCEC mainly produces high-horsepower and large-displacement engines, including heavy-duty high-horsepower engines and generator sets with a displacement of 11-50L, with a power range of 175-2000 horsepower. Has a good market share.

CCEC Engine Factory

XCEC

Entering the 21st century, DCEC has also accelerated its own “localization” process.
On December 16, 2005, DCEC’ third joint venture engine plant in China, Xi’an DCEC Engine Co., Ltd., was registered and officially put into production in August 2007.

XCEC is quite special. It does not have as many products as other joint venture companies, but only produces ISM11 and QSM11 series fully electronically controlled diesel engines. Friends who don’t know it will definitely think that DCEC has begun to care for itself and refuse to give technology to XCEC.
But the truth of the matter is that the DCEC ISM 11L fully electronically controlled heavy-duty diesel engine is positioned as the flagship power of Europe and the United States, which you can understand as their high-end products.
Moreover, XCEC is the first overseas production base of this “flagship” engine outside North America. In my brother’s opinion, DCEC’ arrangement is like a master teaching a disciple to let you learn slowly, rather than making money all at once.
At present, the plant’s engine products are widely used in heavy trucks, medium and high-grade passenger cars, construction machinery, generator sets, ship power and other power equipment.

XCEC

BFCEC

It is followed by Beiqi Foton.
On October 19, 2006, Beiqi Foton invited DCEC to the Diaoyutai State Guesthouse in Beijing. Such a high-level courtesy was naturally to sign the joint venture contract of “BFCEC Engine Co., Ltd.”.
After two years of preparation, BFCEC was officially established on March 26, 2008, mainly responsible for the production of light, medium and heavy diesel engines, with an annual production capacity of 520,000 units.

In 2010, the Foton Aoling CTX equipped with an ISF3.8L engine and the Foton Aumark C280 equipped with an ISF2.8L engine were launched one after another. Everyone is proud of being able to drive light trucks equipped with BFCEC machines.
Although in the field of light trucks, BFCEC ‘s light trucks have a high installation rate and a good reputation, but it is undeniable that in terms of heavy trucks, BFCEC is not particularly popular.

In 2010, the Foton Aoling CTX equipped with an ISF3.8L engine and the Foton Aumark C280 equipped with an ISF2.8L engine were launched one after another. Everyone is proud of being able to drive light trucks equipped with BFCEC machines.
Although in the field of light trucks, BFCEC ‘s light trucks have a high installation rate and a good reputation, but it is undeniable that in terms of heavy trucks, BFCEC is not particularly popular.

For example, the Weichai machine of Foton Auman has just been put on the market and has been well received by users. However, after the ETX, GTL and other models were installed with Fukang in the later period, evaluations such as fast breaking and difficult driving came in, which led to the final failure of this classic model. Got a bad reputation.
At present, BFCEC mainly produces several engines including F series 2.8L, 3.8L light engine, F series 4.5L medium engine and G series 11L, 12L, X series 12L heavy engine, etc. If it wants to be in the field of commercial vehicle power To go to the next level, the in-depth research on heavy-duty machines is indispensable.

GCIC

On June 27, 2012, DCEC’ “localization” extended to the southwest of China – GCIC was officially registered and established in Liuzhou City, Guangxi Zhuang Autonomous Region, mainly producing 6.7L and 9.3L diesel engines for engineering.
GCIC is an engine enterprise jointly established with Guangxi Liugong Machinery Co., Ltd. It is positioned as an exclusive diesel engine manufacturer for construction machinery, and is also one of the largest non-road engine production bases in China.
Since the product has not been involved in the field of commercial vehicles, the presence of GCIC has not been very high.

GCIC Industrial Engine Company Established~1
Anhui Cummins ACEC

ACPL

Finally, let’s talk about the youngest DCEC joint venture company – ACPL.
In May 2018, DCEC signed a transaction document with JAC and Navistar. Navistar transferred 50% of the equity in the original joint venture with JAC to DCEC; then on December 26, the original JAC The Navistar joint venture company was officially renamed and registered as ACPL Power Co., Ltd.

It is worth noting that after ACPL took Hefei Engine Factory into the bag, the ACPL products currently available on the market are basically the previous 2.7L Ruijiete engine and 2.8L Isuzu engine. In fact, this is not difficult to understand. After all, research and development Absorption also takes time.
In the future, ACPL will further expand for the China VI market based on the previously introduced DCEC B series products, and strive to stand out among many DCEC series.
In addition to the six engine factories mentioned above, DCEC has also opened many parts factories in China, and China has become its largest overseas market.
“1994, Shanghai Fleet Processing Plant (joint venture); 1996, Wuxi Turbo Technology Plant (joint venture); 2000, Coors Lubricants Shanghai (joint venture) 2006, DCEC Shanghai Filtration System Plant; 2006, Wuxi Van Nievele Plant (joint venture); 2007, DCEC Wuhan Fuel System Plant;”

DCEC is More than Just an Engine Brand

There are two main reasons for the popularity of DCEC. One may be because of the historical background such as the Lend-Lease Act, which made the Chinese people in wartime feel the charm of high-horsepower diesel engines in advance, which was planted in the hearts of people at that time. Seeds that desire to own their products.
The second and most important point is that the joint venture of DCEC does not give you the eliminated technology like Mann did, but really treats you like a “married daughter-in-law”. In addition to the most core technology, Both sides play similar things, and develop and progress together.
Finally, to borrow the words of Brett Merritt, vice president of DCEC’ road engine business, as the end: “DCECdoes have unique features in the Chinese market. The platform creates synergies, customizing and developing different functions and performances according to the needs of different OEMs, markets and end users, maximizing the use of scale advantages, and ensuring that different OEMs get products and solutions tailored to them.”

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