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Despite the highly cyclical nature of the truck manufacturing industry, Mark Pigott, who had been CEO of the PACCAR Group since 1997, still maintains a profit record for the company. By 2010, Pekka Has been profitable for 72 consecutive years.
But Pekka already felt a bit of pressure. The profits he had managed in 2009 plummeted. The reason was simple. Demand for trucks in Europe and North America fell sharply, and this is the main battlefield for Pekka's sales.
At the same time, the Chinese truck market has developed rapidly. In 2010, among the trucks with more than 6 tons, the Chinese market accounted for 46% of the world's sales. This made the Pegasus Group, which appeared at the Shanghai Auto Show in April 2011, very active.
After promoting the DAF brand that is about to enter the Chinese market, Daryl Simon, Pekka's China Business Director, said: "We will bring the engines and vehicle products to China in the form of showrooms. Show it to customers permanently."
This is just a beginning. Since January 2011, Pekka has contacted and selected China's local parts suppliers. It gave instructions to these suppliers that Pecca will land in China within 18 months. This means that before the end of 2012, Pekka's models will be opened from the Chinese production base.
About Pekka, the Chinese know little about it. The largest automobile manufacturing companies in the United States are GM and Ford, but this refers to the field of passenger cars. Pekka is a big brother in trucks. Seattle-based Pekka is not only the largest truck manufacturer in the United States, but also ranks second in the world behind Daimler in world-class truck companies. 
The three major brands of Pegas Group include Kenworth, Peterbilt and Duff. Kenworth Trucks produces high-level commercial cargo cards in markets such as the United States, Canada, Mexico, and Australia; Peterbilt Motors designs, manufactures, and sells high-end commercial vehicles for the United States and Canada; Duff Truck Manufacturing Throughout the Netherlands, Belgium and the United Kingdom, products are sold throughout the East and West Europe markets.
Duff, which originated in the Netherlands, has a 50-year history of researching and developing engines and was once the only manufacturer to focus on the engines of developers. The current core business is the development, production, promotion and sales of medium-sized and heavy commercial vehicles. Even if Pecca cannot quickly drive Duff’s sales in China, its engine can also be profitable through domestic production. In the past few years, Duff Engine has been the award-winning star at the China Bus Show. 
The Pegas Group brought to China a full range of Duff LF, CF, and XF products. LF is a mid-tier card that focuses on the urban distribution market, CF is targeted at the construction market, and XF has advantages in long-distance logistics transportation. All three cars are closed logistics vehicles. There are only a few competitors in China. Only Dongfeng Commercial Vehicles made a concept display at the 2009 Shanghai Auto Show. Now, Peca brought mature products. In 2010, Duff achieved a 15.2% share in the European 15-ton truck market.
However, from the perspective of production, Pekka's risk is not small. In September 2009, the Zhengzhou Municipal People's Government, China Hengtian Group, the United States Pekka International Holland Duff Motor Company, and Red Eagle Technology Development Co., Ltd. signed a strategic cooperation framework agreement to promote the Duff localization project.
The four parties plan to use the China Hengtian Group heavy truck production platform, as well as Duff's truck technology and main components, to produce DAF technology heavy trucks in China, and finally to reach the Chinese market with Duff brand trucks and engines and to achieve localization in China. The goal of production. 
The most recent documented connection between Zhengzhou and Pecca was in May 2010. Pigot visited Zhengzhou. After that, in June, the Hengtian Group's heavy-duty truck project started construction in the Zhengzhou Economic and Technological Development Zone. The Hengtian Group has invested 4 billion yuan to build a three-phase project with an annual output of 100,000 heavy-duty trucks, engines and accessories. The construction period is five years.
The heavy truck project invested and built has been listed as an important project to promote the economic development of Zhengzhou. The first phase will invest 1.8 billion yuan and produce 30,000 medium- and heavy-duty trucks annually. It will be completed by the end of 2011 and will have an annual output of 30,000 trucks by 2015. The main business income was 8.1 billion yuan.
Before this, the production of Henan trucks was still in blank. Now they are working with the US Peca International, Dutch Duff Trucks, and Red Eagle Technology Development Co., Ltd. to jointly promote the strategic cooperation of the DAF trucks. The project takes high-end European products as benchmarks, absorbs and integrates mainstream heavy truck technologies and mature supporting resources at home and abroad, develops high-end products for trucks, and will produce first-class trucks in the world, striving to become a heavy-duty truck within 3-5 years. The first phalanx in the field of cargo vehicles and special-purpose vehicles.
This means that Pekka has selected Zhengzhou and Hengtian as domestic bases and partners. The two partners have a problem: For Zhengzhou, they have not participated in any heavy truck projects before and there are no reasonable supporting structures around them. However, although Hengtian is ambitious, in fact, their heavy truck projects are only Based on the private company Zhengzhou Hongda Automobile Industry Co., Ltd., its experience and strength are doubtful.
In the entire global market, Peica Group has always focused on sales of high-end products. Peca is a high-end product that provides the lowest total operating costs in Europe and the United States. This is an advantage and will always adopt this business philosophy.
This proved to be effective in the past 72 years. In 2010, Peca achieved a revenue of 10.3 billion U.S. dollars and a net income of 457.6 million U.S. dollars. Due to continued profitability, stable balance sheet, and good cash flow, Peica won the Standard & Poor's A+ credit rating.
However, in China, Pika had to face a new problem: cost and price. His high-end positioning does not necessarily mean that he will be able to sell to Chinese customers at high prices. Trucks with more than RMB 1 million will not sell well in the Chinese market. Prior to Pecca, Man, Mercedes, Scania, and Volvo failed to achieve success.
The market is indeed beautiful. In 2010, China’s demand for more than six tons of trucks reached 1.1 million, and it is expected to reach 1.3 million by 2015. In 2010, Pega sold 78,800 vehicles worldwide, of which Duff sold more than 25,000 units. In the 2012 annual report, we should be able to see whether the old Chinese truck company’s Chinese dream can be realized. Our silica dioxide, a natural material that can be found in quartz or sand. We change the original silica dioxide's chemical parameters to make it turn into different types silica Matting Agent that are suitable to use in different using areas like water based pigment.
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