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  4. Shaanxi Fast Auto Drive Group Company
  5. Shaanxi Fast Auto Drive Group Company FY2007

Shaanxi Fast Auto Drive Group Company FY2007

Business Highlights

Becoming the largest manufacturer of transmission systems used in heavy-duty vehicles
- The Company's production volume of transmission systems used in heavy-duty vehicles exceeded 430,000 units, which is the largest volume in the world. Among other items, the company's 12-speed and 16-speed fully synchronized twin countershaft transmission systems it recently developed in-house enjoyed strong demand, with monthly sales of 6,000 units (average monthly volume of exports was 1,000 units), becoming the company's new flagship products.

Weichai Power becoming the largest shareholder of Shaanxi Fast Gear Co., Ltd.
- In April 2007, Weichai Power Co., Ltd., a leading engine manufacturer in China, absorbed Torch Automobile Group. As a result, Weichai Power acquired the majority share, namely 51 percent, in Shaanxi Fast Gear Co., Ltd., which is a transmission production company established between the Company and the Torch Automobile Group in 2001.

Business alliance
- In August 2007, the Company and Baotou North-Benz Heavy-Duty Truck Co., Ltd. came to agreement on the framework to form a strategic business alliance. The two companies intend to form a comprehensive business alliance in the area of research and development and technical services. The signing ceremony took place in Beijing.

Calling off joint-venture project with Eaton
- In 2007, the Company and Eaton Corporation of the U.S.A called off their joint-venture agreement and dissolved Eaton Fast Gear (Xi'an) Co., Ltd., which they established in 2004.
Having introduced Eaton's Fuller Twin Countershaft Transmission technology in 1984, the Company has been seeking ways to continue collaborating with Eaton, while increasing its capabilities to develop its own technology. As the two parties failed to reach a consensus over this strategy, they decided to cancel their joint-venture agreement.

R&D

<Recent development>
In 2007, the company worked on developing automatic manual transmissions for heavy-duty vehicles. These activities form a part of the National 863 Project, a high technology development program China is promoting. 

<R&D structure>
- The Company's total amount of R&D spending per year is equivalent to approximately 5 percent of its overall sales. 
- The total number of R&D staff as of December 2007 is 500


R&D Facilities 

Facility
Gear & Driveline Research Institute
Processing Research Institute
Product Test Labs
Multi-condition test road for trucks

New facility (under construction)

Facility Remarks
Shaanxi Fast Auto Drive Engineering Technology Research Center - This facility is being constructed jointly with Jilin University and Shaanxi Industrial Technology Research Institute

Investment Activities

Major investment projects
Project Planned amount of investment Status
(as of Dec. 2007)
Building automatic forging lines in Caijiapo, Baoji City

400 million yuan

The facility is almost completed 

Establishing the Shaanxi Fast Auto Drive Engineering Technology Research Center

600 million yuan

This facility is under construction

MarkLines Customer Support

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infoshanghai@marklines.com
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+66-2-665-2840
IND India
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+91-124-4048779