FAW-urumuqifaw_0308.docVIP免费

UrumuqiFAWTradingCompanyCompanyINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMr.LiuShuzhengPositionGeneralManagerCompanyandAddressNo8.,ALeTaiStreetTelephone/Fax0-13809944238BackgroundMr.LiucametoUrumuqiinlate1998,andatthemoment,thereare9peopleworkingattheUrumuqiFAWSalesCompany,excludingthepeoplefromDalianDieselandWuxiDiesel,whoalsoworkinthesamebuildingatMr.Liu.SalesTotalsalesin1999was1,877vehicles,including:1,577newFAWmediumandheavydutytrucks300oldFAWtrucksfromdealerinventoryOver60%oftrucksthatwerebroughtintoXinjiangaretruckchassis.FAWhastwore-fittingfactories,XinjiangNo.1AutomotiveCompany,andXinjiangSpecialVehicleCompany,whoproviderefitthetruckchassisaccordingtocustomerrequirementsBestsellingmodelsinUrumuqiwere5-tonforwardcabtrucks(oldmodel)whicharenormallyconvertedtoself-loadingdumpers.The15-tonDeutzenginetrucksalsosoldwellinUrumuqibecausemanylargeinstitutionswhousedtobuyimportedtruckshaveswitchedtobuyinglocalmadetruckswithimportedenginesInadditiontovehiclesales,UrumuqitradingcompanyalsosoldRMB6millionofparts,whichwasasharpdeclineofover20millionfrompreviousyears,dueto:Highinventorylevelofobsoleteparts(overRMB10million,whichexceededFAWTradingCompany’slimit),whichlimitsUrumuqi’sabilitytobringinpartsfornewtruckmodelsPriceisnotcompetitivevsthosepartsfromFAW’ssuppliersdirectlyChannels:1Therewere13dealerswhenMr.LiucametoUrumuqiin1998.Hequicklyreducedthemto2dealersbyeliminatingdealerswhohadlargeoutstandingA/PstoFAW.Theremainingtwodealersare:XinjiangMechanicalandElectricalCompany,whichsold600trucksXinjiangBingTuanMechanicalandElectricalCompany,whichsoldover800trucksEventhoughmostofthevolumewentthroughthesetwodealers,thecustomerswereactuallydevelopedbyFAWTradingCompanyaswellasthesalespeoplefromthetworefittingfactories(eachfactoryhasover40salespeople).Theproblemwiththetworefittingfactoriesisthattheyarebothinseriousfinancialdifficulty,andeachowesFAWoverRMB50million.FAWhasstoppedshippinganychassistothesetwofactories,soevenaftertheyfoundcustomers,theystillneedtogothroughthetwodealerstogetthechassisbecausethedealersarerequiredtopayFAWbeforetheycantakethechassisoutofFAW’sownvehicleinventory.Profitability:Thetwodealersarebarelybreakevenlastyear,because:Theygetmostoftheircustomersfromthetwore-fittingfactories,andhadtoselltruckchassistothetwore-fittingfactoriesatthesamepriceastheygotthemfromFAW,hopingtogettheyearendrebatefromFAWBecausemostofthevolumeinXinjiangarechassisoflowvalue,andFAWpaysdealerrebatebasedondealer’ssalesvalue,notunitvolume,thedealersdidnotqualifyforthefulldealerrebate“3in1”capabilities:Noneofthedealershas“3in1”capabilities,anddidnotshowanyinterestindevelopingthecapabilitiesbecauseoftheirSOEsalesmentalityMr.LiuhopestoconvertthetwoservicestationsinUrumuqito“5in1”dealers(sales,service,parts,informationfeedbackaswellasrefitting,astheybothareattachedtothetworefittingfactoriesunderFAW).Competition:UrumuqiusedtobeDongFengandSteyr’smarket,however,lastyear,FAWoutsoldbothofthem.DongFengclaimedtohavesoldover1,000trucksinUrumuqi,however,alotofthevolumesweresoldtootherprovinces.ThetwoFAWdealersalsosoldDongFengtrucks(onesold30,anotheronesold200)ChinaHeavyDutytruckseesXinjiangastheirmostimportantmarketastheyhavelargeparcintheregion,andXingjiangisgoingtohavealotoflargescaleconstructionprojectswhichwillrequirealotoftrucks2CustomersFor5tontrucks,over90percentofthetrucksweresoldtoprivateindividualsForheavydutytrucks,mostofthepurchaseweremadebylargeinstitutionalcustomers,e.g.,oilfield,constructioncompanies,etcInstalmentpaymentandtruckleasinghavestartedtoemergeinXnjiang,especiallythisyear,asthegovernmentstarttoemphasisethedevelopmentofthe“WesternregionofChina”,banksareencouragedtoprovideconsumerloansforvehiclepurchasesProblems:Productqualityandcustomerservice.FAW’sDeutzenginetruckssoldwell,however,therearealotofproblemswiththeDeutzengines,andtheavailabilityofpartsispoor.ManycustomershadtowaitformonthsbeforethepartsandtechniciansareflowninfromBeijing(Deutzrepresentativeoffice)3