Chinese joint venture to track lorries and trailers
April 26, 2017
Wabco Holdings and G7 are to form a joint venture in China to develop and sell fleet management systems for lorries and trailers.
Wabco is a Belgium-based supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles. Privately-held G7 is a Chinese fleet logistic technology company with a base of more than 400,000 connected vehicles. Each company will hold a 50 per cent stake in the joint venture.
Wabco is extending into China to leverage its portfolio of fleet management systems. As a full systems supplier, the company can connect lorries, trailers, cargo, drivers, business partners and fleet operators in real time, resulting in actionable management insights, while improving fleet safety, operating efficiency and asset use.
G7 provides 85 per cent of China’s largest logistics companies with real-time services that connect lorries, drivers, shippers and fleet managers. Through the platform, businesses access their data metrics to gain visibility into their transportation ecosystem. The cloud-based system handles order processing, asset tracking, dispatch and route planning, and fuel monitoring.
The joint venture will develop trailer fleet management products for the Chinese fleet market, drawing on Wabco’s capability in trailer telematics and trailer electronic braking systems as well as G7’s telematics expertise. These systems will capture and process real-time vehicle-control systems data, including roll stability support, braking performance, cargo and route optimisation, axle loading, and vehicle tracking.
“This joint venture agreement in China is another important step towards globalising Wabco’s fleet management systems business as we shape and seize opportunities in China,” said Nick Rens, Wabco president. “Our partner G7 will gain access to Wabco’s leading truck and trailer telematics capabilities, along with the sophisticated information for trucks and trailers that Wabco’s on-board systems provide. Together, we can offer unrivalled capabilities for fleets, particularly in vehicle and cargo management. Our new joint venture also represents the beginning of a stream of recurring revenues.”
In addition, the joint venture’s services will link with Wabco’s intelligent trailer programme, which monitors and controls more than 40 on-board functions. These include OptiTire safety assistance, OptiLock security and OptiFlow aerodynamic efficiency technologies. Customisable to individual fleet needs, the programme helps fleets reduce operational costs, save fuel, and increase the safety and comfort of drivers.
The joint venture will also aim to extend G7’s lorry fleet management systems, leveraging Wabco’s proprietary vehicle data, to set standards for cargo transportation safety, efficiency and connectivity in the Chinese fleet market.
“Partnering with Wabco, a major global technology leader in commercial vehicle control systems, will enable us to develop substantive and highly differentiated first-to-market solutions for trucks and trailers,” said Zhai Xuehun, G7 chief executive officer. “By leveraging the comprehensive data from Wabco’s on-board systems, we will be able to raise the bar on driver safety and truck security. We look forward to building new products together tailored to China’s evolving fleets and rapidly developing road transport network.”
Headquartered in Beijing, G7 has offices in Shanghai, Guangzhou and Chengdu with a nationwide installation and support network.
“Joining forces with G7, a recognised technology leader in China’s growing logistics sector, provides a significant single point of entry into the Chinese world of fleet management,” said Sujie Yu, Wabco vice president. “Combining our capabilities, we expect to be first to market in China with fleet management solutions for both trucks and trailers that are differentiated through mobile and web-based applications, which increasingly empower fleets to operate with optimal safety, efficiency and security.”
Wabco reported sales of $2.8bn in 2016. Headquartered in Brussels, the company has 13,000 employees in 40 countries.