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Sinotruk Profits Down 40% In H1.

According to this report. In the first six months of this year, the company's total turnover dropped 16% to RMB 14.2 billion, and its heavy duty truck sales volume fell 21.4% year on year to 53,195 units.

We regard the addition of MAN to CNHTC's portfolio as being more rather less likely as VW looks to restore its books post Porsche, so quite what Sinotruk's numbers will look like once the Munchenois start their day by chanting the March of the Volunteers remains to be seen.

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Comments (1)

Kevin Scarbel:

With MAN getting involved in things again at CNHTC (referencing their long ago licensing of Steyr products to CNHTC), it will be interesting to see where things go. But I'll say this, the parts and build quality of CNTHC's principle product, the Howo (not the new Howo A7), has really gone down hill as a result of the price war CNHTC has led in China over the last 2 years. Quality was much better during the first year of production. For China it's okay, in that Chinese customers would rather get a "good enough to get the job done" truck for a low price, than get a high quality but expensive truck, one reason being they are going to brutally overload the truck anyway and throw it away in 4-5 years (that lifespan is slowing growing in the maturing Chinese market). Still for the overseas market, global customers generally will not appreciate the way the truck's quality has gone down rather than improved (the usual direction). I saw the new Howo A7 (a poor quality FH16 clone) and was very disappointed with the design and parts quality. It's only impressive from a distance. With MAN's re-engagement, the product range gets even murkier at CNHTC, what with the old Steyr-based models (Steyr and Steyr King), Howo, Howo A7, Hania (ugly attempt to mimic Scania), MANS (the old MAN L2000 cab reproduced very poorly), Huanghe (raised L2000 cab to accomodate large engines), Hoka (the old MAN F2000 cab), and soon some MAN TGA-derived models in production.

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