CIMC facing major reshuffle in Australia

2016-10-31 10:59:50 admin 244

Melbourne’s CIMC Australia Road Transport Equipment (CART) Group is reportedly set to undergo a major restructure.

In line with the re-organisation of parent company, CIMC Vehicles, the local Australian operation will not cease to exist, but take on a different shape come October, a CIMC Vehicles spokesman told CRTNews.

“Australia is one of the key markets for our global expansion plan [and] we will not stop our operation here,” the source said.

“Inversely, we are in the process of restructuring our operation and investing more in Australia to upgrade our facilities.”

According to CIMC Vehicles, the invigorated organisation will led by Chairman in-waiting, Danny Ye.

In an exclusive Global Trailer interview published last week, CIMC Vehicles General Manager, David Li, had announced a reshuffle of the Chinese powerhouse, with a strong focus on “regionality” instead of manufacturing logistics and economies of scale.

“Our vision is based on what we call intercontinental manufacturing – and I’m glad to say it’s not just a mind game but already in the making,” he told the magazine.

“The idea is that no one trailer is built to 100 per cent in the same location anymore. Instead, we want to divide the workload globally so we can make best use of our internal resources and maximise utilisation of our capital-intensive machinery.”

He added, “Put simply, it’s a three-pronged approach: Firstly, we produce what we can in a central Lighthouse Factory in China that everyone has access to, using world-class technology.

“Secondly, we use our economies of scale to source key components globally, much like the automobile industry. Finally, we produce locally what we know will need local input.”

A local CIMC representative was not available to comment.

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