FAW-urumuqibingtuan_0308.docVIP免费

UrumuqiBingTuanMechanicalandElectricalCompanyINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMr.LiuJianjunPositionGeneralManagerCompanyandAddress85XiBeiLuTelephone/Fax0-1399913860BackgroundBingTuanMechanicalandElectricalCompanybelongstoXinjiangBingTuan’sMaterialCompany,andusedtohavesub-branchesalloverXinJiangItcurrentlyhas79employees,andhandlesFAW,DongFeng,BeijingJeep,TianjinXiaLi,ShanghaiSantana,andQinglingsalesinXinjiang.Inadditiontoautomotiveproducts,italsosellsconstructionmachineriesaswellastractors(itisadealerforNewHolland)SalesTotalsalesin1999was4,000vehiclesorRMB300million,including:839JieFangtrucks,whichisasharpincreasefrom210in1998and110in199730DongFengtrucksItdoesnotsellpartsorprovidevehiclerepairserviceatthemomentChannels:Over80%ofChongqing999’sJieFangtrucksalesaretodirectendusers.TherestaresoldtolocalmechanicalandelectricalcompaniesinotherpartsofXinjiangThetwore-fittingfactoriesaccountforover50%ofJiDian’scustomerbasebecausetheybroughtincustomerforJiDianCompetition:Mr.LiubelievesthatFAWisdominantinthe5tontrucksegment,butisbehindDongFenginthe8tonsegment,becauseDongFeng’sCumminsenginesareperceivedashavinghigherqualitythanFAW’sWuxidieselengine.INtheheavydutysegment,FAW’sDeutzenginetrucksareseenasareplacementfortheSteyrtruckswhicharewidelyusedinXinjiang.However,itsDeutzengineshaveseriousqualityandpartsavailabilityproblem,andcausedmanycustomercomplaints1DongFenghas7dealersinXinjiang,includingtwothatalsosellFAWtrucks.ManyofthedealersareDongFeng’sdebtorsinHubeiwhogottrucksfromDongFengfordebtpayment,whousedtogetasmuchas25%discountforthetruckstheygotfromDongFeng.Profitability:Onaverage,BingTuanmakesaboutRMB1,000pertruckwhenitsellsdirectlytoendusersWhenitsellstosecondtierdealers,itmakesaroundRMB500pertruckAlloftheseprofitsarebeforeFAW’syearendsalesrebateForDongFengtrucks,itmakesonaverageRMB1,500-2,000pertruck(theydidnotgetanyrebatebecausetheyonlysold30trucks)“3in1”capabilities:BingTuandoesnothavepartsandservicecapabilitiesatthemoment,anddoesnotplantoaddservicecapabilitiesatthemomentbecausetheythinksettingupservicecapabilitieswouldrequiretoomuchcapitalinvestmentandtheydonotthinktheywouldbeabletocompetewiththeservicestationswhohavestrongtechnicalcapabilitiesProblemswithFAW:FAWhastoomanyrequirementsfordealerstoqualifyforsalesrebate,includingnobaddebt,quarterlysalesvolumemustreachRMB4million.FAWisnotabletocontrolpricecompetitionamongitsdealers,whichhashurtdealerprofitability.BecausesomedealersareabletogetsalesrebateanddoesnotoweFAWmoney,theyareabletogetsalesrebatefromFAW,thesesalesrebateenabledthemtolowertheirtruckpricestogetcustomersProductqualityandcustomerservice.FAW’sDeutzenginetruckssoldwell,however,therearealotofproblemswiththeDeutzengines,andtheavailabilityofpartsispoor.ManycustomershadtowaitformonthsbeforethepartsandtechniciansareflowninfromBeijing(Deutzrepresentativeoffice)2