Making a profit of 4 billion! The old car company that was splashed with dirty w

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Making a profit of 4 billion! The old car company that was splashed with dirty w

Introduction

"Iveco has won big this year!"

When it comes to which brand of commercial vehicles has the strongest sales this year, Nanjing Iveco must be the one.

In just February 2024, Nanjing Iveco's total vehicle sales reached 13,557 units, an astonishing increase of 27.72 times compared to the previous month, surpassing the combined sales of other similar brands.

In the 1990s, with the construction of national highways, Nanjing Iveco was seen everywhere on the roads of China. It is synonymous with light passenger vehicles in China and is the only domestic passenger vehicle, apart from imported brands, capable of running at 120 km/h on highways.With its excellent performance, spacious interior, high cost-performance ratio, and flexible parking, Nanjing Iveco has been widely modified into specialized vehicles such as ambulances, engineering vehicles, logistics vehicles, and RVs, and has become a leading brand in domestic light trucks and VANs.

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However, 20 years ago, Iveco, which was too much in the limelight, was targeted by competitors' jealousy and was maliciously dubbed as a "hearse." For a time, the reputation of being a "dead man's car" caused a sharp decline in Iveco's sales.

From being popular nationwide to a decline, and now to its current resurgence, what has Nanjing Iveco experienced over the past 30 years?

Nanjing Iveco originates from Nanjing Automobile Corporation (NAC), which has a glorious tradition and can be mentioned in the same breath as FAW (First Automobile Works) in the history of China's automotive industry.

In the 1950s, China's automotive industry was still a blank slate, and Premier Zhou Enlai called for the vigorous development of the automotive industry. NAC took on the challenge and successfully developed China's first light truck in 1958, which was named "Yuejin" by the central government.A long journey tests the strength of a horse, and time reveals the progress made. Since then, Yuejin trucks have been extensively used in national defense equipment and various fields of national production.

After the reform and opening up, to fill the gap in China's light commercial vehicle market, Nanjing Automobile Corporation (NAC) was once again entrusted with an important mission.

In 1986, Rao Bin, then Chairman of China National Automotive Industry Corporation and known as the "Father of China's Automotive Industry," took NAC as the main body and introduced the series of light commercial vehicles from the then most advanced Italian Fiat Group's Iveco company to China.

This project was a major technological and economic cooperation between China and Italy, and it was also a particularly large project in the automotive industry during the "Seventh Five-Year Plan" period in terms of utilizing foreign investment, with a total investment of 1.45 billion yuan.

After five years of dedicated research, the first domestic Iveco was officially rolled off the production line in 1991. The first generation Iveco Turbo Daily (Chinese name: Deyi), known as the ancestor of the Chinese version of the European-style wide-body light commercial vehicle.Once the Iveco Daily hit the market, it received a flood of praise, overturning the stereotype of traditional light-duty vehicles being flat-nosed, low-roofed, slow-speed, and low-grade. Especially remarkable was the 40% localization rate, which was nothing short of a miracle at the time.

Subsequently, the Iveco product and technology introduction project was successfully accepted by the national authorities. In 1996, the joint venture between Nanjing Automobile and Italian Iveco, Nanjing Iveco, was officially established. In the first year of the joint venture, 18,000 Iveco light commercial vehicles were produced.

The Iveco Daily, equipped with a 5-speed gearbox and a four-stroke diesel engine, has a maximum output power of 72 horsepower, which was more than sufficient for the domestic market demands at the time. Its excellent performance in terms of power, safety, economy, comfort, and expandability through modification, as well as its outstanding space and load-bearing capabilities, earned unanimous praise from both the industry and the public.

In 1997, when Hong Kong returned to the motherland, under the world's spotlight, Nanjing Iveco served as the vehicle for the garrison troops in Hong Kong, crossing the Luohu Bridge in a grand procession. In 1999, during Macau's return, it also served as the vehicle for the garrison troops in Macau, witnessing history.

It can be said that the introduction of Iveco technology and the mass production of the Daily marked the beginning of a new era for China's light commercial vehicle industry, accelerating the diversification of this market segment and promoting the overall progress of China's light commercial vehicle industry."European style, Nanjing Iveco."

In the scene, an Iveco speeds towards the camera, with a foreigner with a prominent nose giving a thumbs-up and loudly praising it. After being repeatedly broadcasted on CCTV, Nanjing Iveco became a well-known and deeply ingrained brand.

During those years, many young people would ride in Iveco vehicles, listening to songs like "Heart Too Soft" and "Silly Child" playing inside, watching Hong Kong movies starring Stephen Chow and Andy Lau, traveling across the country to pursue their dreams and strive for their future lives.

In the 1990s, Iveco was a symbol of luxury vehicles. Apart from imported coaches, Iveco was the only passenger vehicle that could reach a speed of 120 kilometers per hour on the highway, equipped with air conditioning and audio-visual systems.

At that time, almost all intercity buses across the country were Ivecos.With its smooth and elegant design, spacious and comfortable space, and reliable and superior performance, Nanjing Iveco quickly monopolized the medium and short-distance passenger transport market, becoming the main force in the passenger transport market within 500 kilometers, with annual sales exceeding 20,000 units at its peak.

Iveco is well-deservedly known as the "King of Chinese Light Commercial Vehicles" and holds a milestone significance in the history of China's automotive industry:

The first European-style wide-body light commercial vehicle manufactured in China (1991)

The first light commercial vehicle model running on Chinese highways (1996)

The "First Crash of Chinese Light Commercial Vehicles" that promoted the introduction of China's light commercial vehicle frontal collision regulations (2000)

The first light commercial vehicle in China to reach one million kilometers without major repairs (2001)

The first company to introduce light commercial vehicles with National III emission standards (2003)Not only that, but because Iveco adopts a ladder frame chassis similar to that of a truck, it can be equipped with either a closed cargo box or a panel truck box, making Iveco versatile in models such as light passenger vehicles, light trucks, and van-type trucks.

Therefore, Iveco's status in the history of China's automotive industry is comparable to that of the Santana, especially in terms of localization.

If we say that the localization of Santana was achieved with the efforts of the entire country, then the localization of Iveco was accomplished with the strength of a single factory.

From today's perspective, Santana undoubtedly opened a new era for China's passenger car industry, while Iveco has become a banner for changing the backward situation of light commercial vehicles and remains a leader in the industry to this day.

Iveco's unique excellence leaves its competitors far behind, especially the Japanese vehicles competing with it, which are overwhelmed and struggling to keep up.In 2000, Nanjing Iveco seized the opportunity and grandly launched the second-generation light commercial vehicle "Turin". Compared to the first-generation "Triumphant", the "Turin" boasts stronger power, lower noise, and more comfortable space.

After the reform and opening up, Guangdong has always been Iveco's largest market due to its economic prosperity and vibrant trade. Once the "Turin" was introduced in the Guangdong region, sales skyrocketed.

Faced with Iveco's significant advantage, competitors were extremely envious and constantly looking for opportunities to strike back. They finally got their chance.

At that time, a large funeral home in Guangdong publicly tendered for funeral vehicles. Japanese car manufacturers and dealers wanted to take the opportunity to undermine Iveco, so they won the bid at a price lower than the tender price, subsidizing the purchase of a batch of Iveco "Turins" and delivering them to the funeral home.

Since then, Iveco became known as a funeral vehicle in the Guangdong region. People mistakenly believed that the "Turin" was a hearse, which was considered very unlucky for the Guangdong people who value feng shui. From then on, no one was willing to buy or ride in an Iveco anymore."Iveco is a hearse, inauspicious."

After Iveco was tarnished, rumors spread, and its once positive image in the minds of users plummeted. From then on, Iveco's glory faded, and its performance quickly declined.

As one's fortunes wane, others rise.

In the light commercial vehicle sector, Jiangling and Ford seized the opportunity to collaborate, launching the "Transit" light commercial vehicle product. Compared to "Turin," this name is indeed much more auspicious and has been warmly received by the market.

In the light truck category, the flat-nosed light trucks from Isuzu of Japan, with their excellent economic performance, are highly favored by users. In contrast, Iveco has become outdated and less competitive.Additionally, although Iveco has created a trend in the high-speed passenger transport market, as more and more long-distance luxury coaches emerged, the relatively small body size of Iveco and its inferior comfort level began to stand out.

A few years later, new stars such as Jianghuai Xingrui, SAIC Maxus, Dongfeng Yu Feng, and Nanjing Golden Dragon emerged. The increase in competitors led to a continuous decline in Iveco's competitiveness.

In 2007, the declining Nanjing Iveco was merged by SAIC, becoming an important part of the commercial vehicle sector of Shanghai Automobile, and entering a new period of development.

Since the merger by SAIC, to meet the diversified vehicle needs of users, Nanjing Iveco has undergone three modifications. In the process of updating and upgrading, it has repeatedly driven technological innovation in China's light commercial vehicle industry.

In the view of Yang Junhu, then General Manager of Nanjing Iveco Automobile Company, Iveco uses diesel power and a wide-body short-head design, which, compared to the Japanese flat-head models that were at their peak at the time, has a broader scope for modification and expansion.Thus, the intelligent and hardworking Iveco people extensively introduced the mature modification experience based on the van platform in Europe, providing new options for high-speed passenger transport, urban logistics, and specialized modifications in addition to trucks, minibuses, and vans.

Subsequently, Iveco's presence has covered more than a hundred types of industry-specific vehicles, such as cold chain, engineering, ambulance, motorhome, and troop transport, meeting the personalized vehicle needs for specialized vehicles in various industries such as logistics, medical, engineering, power, and national defense.

Nanjing Iveco not only has civilian versions but also military versions. Two models specifically developed for national defense have directly elevated the People's Liberation Army's vehicles to a new level.

According to Yang Junhu, taking national defense as an example, on China's more than 20,000 kilometers of land border, there are currently over 2,000 Iveco patrol vehicles in service, which is equivalent to one Nanjing Iveco for every 10 kilometers of border.

With the development of the express logistics industry, Iveco took the lead in introducing European-standard integrated van trucks and logistics transport vehicles with separated front and rear compartments, solving the safety issues of personnel and cargo transportation, and becoming a recognized model among major logistics companies.In 2018, Iveco launched an all-new generation of "Eurocargo," equipped with a pure imported eight-speed fully automatic transmission, the same as that used in Maserati, with a maximum engine power of 146 horsepower, setting the industry benchmark for light commercial vehicles in China.

Nanjing Iveco not only carries the passion of the Chinese people for automobiles but is also closely related to the development of the country.

During the 1998 Yangtze River floods, Iveco engineering vehicles were on the front line of flood control and rescue; in 2003, during the SARS epidemic, they appeared on the front line of the fight against the epidemic as specialized medical rescue vehicles; in 2008, during the snow disaster, they fought side by side with power engineering experts combating the snow disaster.

During the pandemic, one after another, Iveco's intensive care ambulances, negative pressure ambulances, and nucleic acid testing vehicles were urgently dispatched, building a solid barrier for epidemic prevention and control.

During the Beijing Winter Olympics, Iveco provided 5G mobile CT treatment unit service vehicles, which provided timely examination and diagnosis for the participating athletes, providing strong support for the successful completion of the event.After the successful landing of Chang'e 5, the escort vehicle team, modified from Iveco, guarded the "lunar samples" all the way back to Earth, protecting the extraordinary space gift.

Known as the "master of versatility," Iveco has won the high recognition of many industry users in various fields such as business travel, passenger and cargo dual use, professional logistics, engineering modification, and national defense and military.

For more than thirty years, Nanjing Iveco has never stopped on the road of innovation and development, continuously upgrading and iterating its products from appearance, power, chassis, control, to new energy and intelligence.

"Different body combinations can evolve into 25 models and thousands of modification plans, capable of handling various usage scenarios. Users can choose and install according to their own characteristics with confidence."

Yu Qionggen, General Manager of Nanjing Iveco Automobile Co., Ltd., is full of confidence in the future. In 2023, Nanjing Iveco achieved a revenue of 4.02 billion yuan, and in 2024, Nanjing Iveco's performance soared, returning to the top ranks again.In December 2023, at the "China on Wheels" Annual Selection Gala, Nanjing Iveco won the prestigious awards of "National Power," "Urban Mobility Pioneer," "Business Reception Pioneer," and "Efficient Logistics Tool," becoming the most dazzling star of the Chinese automotive industry for the year.

From being the sole standout and the pride of the industry in the 1990s, to being slandered and falling from grace, and now regaining its strength and making a triumphant return, Nanjing Iveco has gone through more than three decades of ups and downs.

"Travel to the ends of the earth in an Iveco Eurostar motorhome."

In recent years, Iveco's "Eurostar" has introduced the most popular motorhomes and campervans of the moment. For less than 400,000 yuan, one can purchase a large C-class motorhome with five beds, which has been warmly welcomed by the market and favored by car enthusiasts.

When planning your next vacation, would you consider an Iveco motorhome?

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