MAN to release product range in China, in collaboration with Sinotruk Hong Kong Ltd.

A complex web of interests between industry giant Volkswagon AG, trucker makers MAN SE and Scania, famous for new vehicles as well as MAN and Scania used trucks, and Chinese firm Sinotruk Hong Kong Ltd. can be carefully unravelled, as MAN SE announce their partnership with Sinotruk.

MAN SE own 25 percent of Sinotruk Hong Kong Ltd., and chief executive officer Georg Pachta-Reyhofen revealed that they may increase that stake, on the back of the products that they plan to introduce into the Chinese market together.

MAN SE, itself part-owned by Volkswagon AG, has seen its figures improve significantly in recent months, as demand in Europe slowly begins to climb following the recession, and, more importantly, demand in Brazil rockets. Profits for the second quarter were almost seven times higher than in the previous year for the German firm. The net income was €153, up from a mere €22 million in the same period of 2009. The Latin American boom drove a 16 percent increase insales, to €3.6 billion. Pacht-Reyhofen stated that emerging markets such as Russia, Africa and Asia can be a huge market for the firm, and the collaboration with Sinotruk is part of the strategy to take advantage of these markets.

MAN SE and Sinotruck Hong Kong Ltd. plan to bring out a range of heavy duty trucks for the Chinese market in 2011, with no further information being released as yet.

The relationship between the companies is byzantine, with MAN SE owning 25 percent of Sinotruk, and Volkswagon AG owning 29.9 percent of MAN SE, which they acquired in order to assist Scania, the Swedish firm, in which they also own a majority stake, in resisting a hostile takeover by MAN SE. MAN now own 17.4 percent of Scania, and are interested in opening talks upon the subject of cooperation; a synergistic proposition which Volkswagon will surely facilitate.