CIMC Vehicles Group Australia has entered a stage of consolidation that will see the striving brand strengthen its presence in the Australian marketplace and lay the foundation for future growth. Next to changes on the staff level, the move will also include the expansion of CIMC’s Australian product portfolio.
Aiming to become a premium brand in Australia, David Li, CEO of CIMC Vehicles Group, has appointed Hector Ojea as Managing Director of both CIMC Vehicle Australia and Marshall Lethlean Industries, supported by David Li himself as Chairman and mentor.
“We have established a strong engineering team in Australia and gained a solid reputation in the customer service department, so I am confident that we are now ready to achieve that next level of sophistication,” David Li said when visiting Melbourne in mid-October.
David Li also used the occasion to celebrate the 30th anniversary of the CIMC brand, which was established in 1982 under the name of “China International Marine Containers Co.” in Shenzhen, China. Starting off in the manufacture of marine containers, the corporation through the CIMC Vehicles Group has become one of the most influential manufacturers of trailing equipment in the world, generating annual revenue of $10 billion and counting – and according to David, CIMC Vehicle Australia played a vital role in that development.
“CIMC Vehicle Australia has always been the driving force behind the trailer division. We owe a lot to Hector Ojea and the team in Australia,” he said when visiting Melbourne, not hiding that management has chosen a very pro-active approach to continue growing in Australia.
Despite stressing that growth would be secondary to perfecting the product, both David Li and Hector Ojea did not conceal that CIMC Vehicles is striving for global success first and foremost, as it would also support local development. Based on 22 international production sites, 150 subsidiaries and 63,000 staff across China, North America, Europe, Asia and Australia, the old ‘think global, act local’ has become the duo’s mantra.
“Our goal is to improve efficiency by 30 per cent throughout the corporation so we can focus our energy on growing in key markets like Australia, Europe and the US,” David said, revealing that the company is working on a modular design concept similar to the automotive industry.
The brand’s latest venture, German-based brand Burg-Silvergreen, is supposed to become a catalyst for that growth plan, according to Mr Li. “The German subsidiary will drive innovation as our think tank, and all other local subsidiaries will be able to tap that know-how. We believe that’s true globalisation in the field of trailer manufacturing.”
According to Hector Ojea, the German engineering hub will fuel product development across the board, and also help the Australian portfolio reach that next level. “From an engineering point of view, development is a great opportunity to learn from each other and exchange knowledge. We have a strong presence in Australia already, but the European technology will give us a new edge that could be a decisive factor in our quest for market leadership.”
The new, modular system developed in Germany is backed by a multi-million-dollar investment and will to boost CIMC Vehicles Group’s efficiency throughout the world. In the future, trailer production will be de-centralised with China producing components only, which can then be assembled locally, using local equipment to make sure the product is suitable for the destination market.
“The modular approach allows us to combine proven Australian design and new ideas from all around the world while still maintaining a high quality standard and a competitive price. And it will allow us to bring refrigerated trailers and tipping applications to Australia very soon,” said Hector, who has been chosen to facilitate that change after building up the brand in Australia since 2005.
“Hector is the leader we need right now,” said Mr Li when visiting the Melbourne branch. “He is able to lead the team in a time of change and inspire people to be part of our journey to become the number one brand in the country.”
However, both David and Hector believe it’s not all about market leadership. “We want to provide real value and help people improve efficiency and productivity so they can do a better job and grow their businesses,” said Li. “That’s why Hector is the right man for the job, as he is able to waive the ego and only concentrate on the client. At the end of the day, it’s all about bringing people together by creating better and stronger relationships, isn’t it?”
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