FAW-_chongqing999_0307.docVIP免费

999EnterpriseGroupChongqingAutoSalesCompanyINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMr.GouYongjunPositionGeneralManagerCompanyandAddress116DaPingZhengJie,ChongqingTelephone/Fax0-13708315999BackgroundChongqing999AutoSalesCompanyusedtobelongtoSichuanAutomotiveIndustryCompany,afterChongqingbecameanautonomouscity,itdecidedtojoinalargeenterpriseinsteadofjoiningeitherChongqingSichuanAutomotiveGrouporChongqingMechanicalandElectricalCompany.Becausethe999Groupwasactivelyseekinginvestmentopportunitiesintheautomotivebusiness,itdecidedtojoin999Group.ItsdirectparentisShenzhen999AutomotiveSalesCompanyChonging999sellsFAWJieFang,ShanghaiSantana,FAW-VW,ShenyangJinbei,NanjingIvecoandYueJin,aswellassomeotherlighttrucksandagriculturaltrucks.SalesTotalsalesin1999was2,000vehicles,including:700SVWSantanacloseto300NanjingAutovehicles,includingIvecoandYueJintrucks60JieFangtrucks(itsoldover170JieFangtrucksin1997).Mr.GouattributedthesharpdeclineinitssalesofJieFangtruckstothefollowingreasons:Internalorganisationalrestructuring,whichhasdistractedtopmanagement’sattention.Lackofcapital.Becausethe999GroupwasslowinhonoringitscapitalinjectionpromisetheChongQing999,itdidnothavethecapitalrequiredtodevelopitsJiefangbusiness.Limitedshowroomandparkinglotspaceatitscurrentlocationbecauselocalgovernmenttookawaythelandinfrontofitsbuilding.Chongqing999doesnothaveshowroomspacetodisplayitsJieFangtrucks,asmosttruckcustomerswanttoseeproductsfirstbeforetheymakethepurchasedecision,Chongqing999wasnotabletoconvertcustomerenquires.1FAWincreaseditstruckpricethreetimewithinthelastyear.JieFang’s“2tonKing”waspopularlastyearandChongqing999receivedalotofenquires,however,FAWincreaseditsprice3times,whichcausedalotofconfusionamongexistingandpotentialcustomersStrongcompetitionfromDongFeng.DongFengdidnotincreaseitstruckpricelastyear,andaccordingtoMr.Gou,debttrucksinChongqingwasnotbad,anddidnotreallyhurtdealerprofitability.ComparedtoJieFangtrucks,DongFengonaverageisRMB3000-10,000cheaperInadditiontovehiclesales,Chongqing999alsosellparts.Totalsalesofpartsin1999wasRMB10million,including:RMB2.9millionofSantanapartsRMB800KofDongFengpartsRMB2millionofJieFangparts,only20-30%ofitspartsarefromFAW’sChengdupartscenter,themajorityofpartscomefrompartssuppliersdirectly.BecausemostpartspricefromFAWpartscenteris20-30%higherthansupplierpriceChannels:Over80%ofChongqing999’sJieFangtrucksalesaretodirectendusers.TherestaresoldtolocalmechanicalandelectricalcompaniesForcomponents,thebreakdownbetweenwholesaleandretailis50:50.Mostwholesalesaresoldtolocalpartsshopsinthe“componentstreet”Profitability:Chongqing999didnotmakeanymoneysellingJieFangtrucks.Becauseitonlysold60trucks,itdidnotqualifyforanyretailsalesrebate(FAWrequiresquarterlysalesofatleastRMB4milliontoqualifyforsalesrebate).ItwasnotabletoincreaseitssalespricebecauseotherdealersinthereasonwhoqualifyforsalesrebateloweredtheirpricetocompeteforcustomersItisonlyabletomakeRMB200-300perSVWSantanasold,includingallsalesrebate.NanjingYueJinGroupisChongqing999’smostprofitableOEM.Onaverage,Chongqing999makesRMB3,000foreveryNanjingIvecosold,andforNanjing’s0.5tonJinBao(2-3tontruckindisguise),Chongqing999makesaboutRMB500-1,000profitpertruckbeforesalesrebate,whichiscalculatedeveryquarterandattheendoftheyear.However,NanjingYueJindoesnottelldealersrega...