FAW-_shuguang_0302.docVIP免费

ChengduShuguangEnterpriseCompanyINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMr.JiaBoPositionGeneralManagerCompanyandAddressNewCenturyAutoMarket,JiuxingRoadTelephone/Fax0-13808021739BackgroundShuGuangbelongedtoChengduMaterialsBureau,andusedtomanageFAW’swarehouseinChengdu.WhenMr.JiabecametheGMofthecompany,hestartedtotakeadvantageofShuguang’saccesstoFAWvehicleinventorytogetintothevehiclesalesbusiness.ItisnowthelargestFAW-VWdealerinSichuan.However,Mr.JiaisaverytrickybusinessmanforFAWtocontrol,especiallyforthetruckbusiness,asaresult,FAWmoveditsinventoryfromShuGuangtoChengDuNo.1ShuGuangjustwentthroughanorganisationalrestructuringwhichfreeditselffromitsstatedownedparentcompany.Itisnowanindependentlegalentitywhosesharesarepartlyownedbyitsseniormanagement.Atthemoment,ithasfourbusinessunits:ShuguangAutoTrading:DealerofFAW-VWandJieFangNewCentury:anopenairautotradingmarketjointlyownedwithlocalgovernmentandotherpartnersWarehousingandlogistics.Shuguangownsalargewarehousewithaspaceof60000squaremeters.IthandleswarehousingandlogisticserviceformanylocalcompaniesinfertiliserandtobaccobusinessAutoservicebusiness:Shuguangpurchasedanautoservicebusinessfromitsparentcompany.Atthemoment,itmainlyservesforklifts,butitalsoservesalotofothervehicles,thoughitisnotanauthorisedservicestationofanyOEMTotalsalesofShuguanginthepastthreeyearsareasfollow:volumerevenue19971124150million19981324(500JieFang)170million1999931(350JieFang)139millionLastyear,itsold500Jetta,makingitthelargestJettadealerinChengdu.Ofthe350JieFangtruckssold,200areorderedfromFAW-SouthwestTradingcompany,theothersarefromFAW-Qingdao,LiuZhou,etc.1Itisstartingconstructionofa“3in1”dealershipofFAW-VWbasedonblueprintssuppliedbyFAW-VW,Mr.JiaestimatethetotalinvestmentswillbeintherangeofRMB8-9million,whichincludes:OfficeBuildingandgarage:RMB4-5millionServiceequipment:RMB1millionLandcost:RMB4millionThereasonMr.JiaisinterestedininvestingsignificantcapitalintoFAW-VW’s“3in1”dealershipare:HemakesaroundRMB7,000perJetta(includingannualsalesrebate)ServicemarginfortheJettaisaround25%Partsmarginisaround15%FAW-VWoffersitsdealers0.6%ofsalesinadvertisingandpromotionalsupportFAW-VWpaysitsdealersalesrebateeverymonthonatimelybasis,thisisinsharpcontrasttoFAW-Tradingcompanywhotypicallywaitfor6monthsbeforeitpaysdealersalesrebate.Itiseasytoobtainbankfinancingforpassengercarsales.LocalbankhasextendedhimwithacreditlineofRMB20millionforvehiclefinancing.However,fortrucksales,thebankrefusestofinanceanypurchasefromoutsideChengduurbanarea,butmosttruckpurchasetodaycomefromthecountryside.Mr.Jiaattributedhis“JieFang”salesdeclinetointernalorganisationrestructuringlastyear.Inaddition,sinceheowesRMB10milliontoFAWtradingcompany,FAWisreluctanttoextendanycredittohim.AlmostallShuguang’ssalestodayareretailsales.Atthemoment,over85-90%ofitscustomersareindividualcustomersfromthecountrysidewhousethetrucktogetintothetransportationbusiness.Mr.JiamakesaboutRMB1,000perJieFangtruckinprofit,andhemakesanotherRMB1,000inannualsalesrebate.Whenaskedaboutwhyhedidnothaveservicecapabilitiesandwhetherheplanstoaddservicecapabilities,herepliedthathewantedtoaddservicecapabilities,however,FAWTradingcompanydoesnothaveasystematicapproach/requirementfor“3in1”dealershipasFAW-VWdoes.Heneedsguidancebeforehemakestheinvestment(heshowedmetheFAW-VWblueprintfor“3in1”dealership,whichisaveryimpressivepackagewithheavypaperandcolorprints)ComparedtoDongFengtrucks,MrJiathinksFAWdoesabetterjobinmakingsurethatitdoesnotbartertradewithitssupplierswithitstrucks.DongFengrepaiditsdebtstosupplierswithvehicles,whichweresubsequentlysoldatlargediscountbyitsdealersinthemarketplace.Thishurtsitsdealersintheregion.Mr.JiaspeculatedintheDongFengmarketlastyearbypurchasing200DongFengtrucksatdiscountedprice(15%)fromDongFengsupplierswhogotthetruck2fromDongFeng.However,otherDongFengsuppliersbegantodumpDongFengtrucksat20-25%discount,Mr.Jiasufferedhugelossintheprocess.Intermsofproductquality,hethinksDongfengandJieFangarecomparable.JieFanghasbetterchassisthanDongFeng,however,DongFengtruckshavebettermediumrangeengines(Cummins)thanJieFang(DalianandWuxi).DriverscomplainaboutJieFangtrucksasgas-guzzlers.Inaddition,FAWpriceistoohighcomparedtoDongFeng.Foracomparableenhancedversion2-tontruck(actually5tontruckdisguisedas2-tontruckinordertopaylesshighwaytollandvehicleregistrationfee),FAWpriceisRMB99,000,andDongFengpriceisRMB70-80K(forlighttrucks,FAWenginesareperceivedasmorereliableandbetterqualitythanDongFeng)Mr.JiaalsovoiceddissatisfactionwithFAW’ssupportofChengduNo.1.Inhiswords,“ifIgotthesamesupportfromFAW,Icouldselljustasmanytrucks”.HealsocomplainedaboutFAW’sslowreactiontomarketanditsSOEmentality.Overall,Mr.Jiaseemstobeaverysavvybusinessman.However,heisverysneakyandnotreliable.3