Invested 700 Million Red Rock Wants to Launch Axle Market

On March 25th, 2013, the reporter learned from SAIC Iveco Hongyan Automobile that the company will invest 700 million yuan to build a 300,000 axle project on the original site of its old factory. These parts will not only be built for Chongqing. Red Rock and Iveco Motors will also introduce Iveco technology to re-enter the heavy truck axle market.

Following the joint venture between Hongyan and SAIC Iveco, after relocating to the Auto City of Liangjiang New Area, it is located in the old factory area of ​​Shuangqiao and is gradually becoming its key spare parts production base. “We will re-enter the truck axle industry.” Xiong Weiming, general manager of SAIC Hongyan Iveco, said that the project investment will reach more than 700 million yuan and its area will reach 300 acres. It will start at the end of next year. After the project is completed, it will produce 300,000 axles per year, with an output value of 4.5 billion yuan. Xiong Weiming said that the axle of the Hongyan truck had been the biggest selling point of its products because of its durability. However, due to fierce market competition, the Red Rock did not make more investment in the axles at that time, resulting in apparently weak stamina. Xiong Weiming said that this time the Italian Iveco axle will be introduced to produce a series of products after digestion and absorption, in order to provide axles for highways and industrial and mining trucks.

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