FAW-_yunnanfaw_0305.docVIP免费

YunnanFAWAutoSalesCompanyINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMr.YangChunlinPositionGeneralManagerCompanyandAddress238RenminXiLuTelephone/Fax0-13908849025BackgroundYunnanFAWAutoSalesCompanybelongstoChinaAutomotiveIndustryCorporation’s(CAIC)YunnanBranch.ItusedtobejointlyownedcompanybetweenCAICandFAWuntil1997whenFAWtransferreditssharestoanentityunderthelocalYunnangovernmentAtthemoment,YunnanCAICowns40%ofitsshares,HuaXing(underYunnanProvincialgovernment)owns50%,therestisownedbyemployeesItisanexclusiveFAWdealerthatsellsJetta,HongQiandJieFangbrandproducts.Thecompanyjustwentthroughanre-organisationthismonth,andstartingfromnowon,itwouldonlyfocusonJettaandJieFangbrand.Itisa“3in1”Jettadealer,forJieFang,itonlyconductsvehiclesalesSalesTotalsalesin1999totalled1,106units,including:829Jetta23HongQi254JieFang,including:146mediumandheavytruck108lighttruckForbothJettaandJieFang,thecompanysells80%todirectenduders,wholesaleaccountsforlessthan20%ofitsbusiness.AsMs.Yangputsit:“ourparentcompanyhassecondtiernetworkthatcoversthewholeYunnanprovince,however,theyareallbrokeandweareafraidofsellingthroughthem”.In1999,Mr.Yangistargeting90%directsalestoendusersforJetta(FAW-VWrequirementis100%directendusersales)90%ofMr.Yang’scustomersarefromotherpartsofYunnan,Kunmingcustomersaccountforlessthan10%ofhisbusiness.HissalespeopletravelsalloverYunnantocultivatepotentialcustomerrelationships.TheirmajortargetsaretaxifleetandgovernmentpurchaseforJetta,andtransportationcompaniesforJieFang(thesetransportationcompaniesarenotstateowned,rathertheyarelooseallianceofprivatetruckowners)1ProfitabilityofoperationTheJettabusinessishighlyprofitable,lastyear,Mr.Yang’scompanymadeRMB2millionofaftertaxprofitfromtheJettabusinessalone.ThecompanymakesaboutRMB5,000grossprofitforeveryJettasold.Jettaoffersattractivesalesrebate:1.2%ofsales0.8%ifthecompanyreachessalestargetforthecurrentmonth.FAW-VWhasaverystrictvehiclesalesplanningpolicy:atthebeginningoftheyear,dealersreportmonthlyvehiclesalestargetanddeliveryscheduletoFAW-VWfortheentireyear.Ifthedealerisabletomeetatleast70%ofthemonthlytarget,heisentitledtothe0.8%monthlysalesrebate.0.6%quarterlyrebatedformeetingquarterlysalestarget(evenifthedealerfailstomeetsomeindividualmonthlysalestargetwithinthequarter,aslongashemeetthequarterlysalestarget,heisstillentitledtothequarterlycreditAnother1%rebateisgiventodealersisadvancepaymentismadetoFAW-VWFAW-VWisalsoverypromptinmakingsalesrebatepayment(everymonth).Thiswasnotthecasein1998whenFAW-VWexperiencedlongdelaysinmakingsalesrebatepayment(Mr.Yang’scompanyhadRMB2.54millionsalesrebateduefromFAW-VWthroughout1998,whichwasonlypaidattheendoftheyear)ComparedtoFAW-VW,JieFangsalesisbarelyprofitable.FAW-TradingCompanygivesdealersalesrebateiftheirquarterlysalesexceedRMB4million.However,duetoseriouspricecompetitioninthemarket,dealersdonotmakeanymoneysellingJieFangtrucks(sometimes,theyevenlosemoney),theyarebarelybreakingevenafterannualsalesrebate.IN1999,Mr.Yang’scompanyhadRMB250KofsalesrebatedwhichtheyreceivedinearlyMarchfromFAW.FAWTradingcompanyhadapolicyofprovidingadditionalquarterlysalesrebateisdealerspayinadvance,butinreality,thepaymentisonlypaidattheendofeachyear.ProblemswithFAWPoorservicequalityandpartsavailability:Mr.YangsaidthatcomparedtoDongFeng,FAW’sbiggestproblemisthati...