FAW-urumuqijidian_0308.docVIP免费

UrumuqiMechanicalandElectricalCompanyINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMr.DuanYiPositionGeneralManagerCompanyandAddressNo.21HeilongjiangLuTelephone/Fax0-13909929836BackgroundUrumuqiMechanicalandElectricalCompanyisalargetraditionalSOEvehicledistributioncompanywhosellseveryOEMbrandinChina,includingJieFang,HongQi,Jetta,XiaLi,Santana,BeijingJeep,DongFeng,etcItusedtohaveaJVwithFAWtosellJieFangtrucks,however,FAWhasdecidedtowithdrawfromtheJV.JiDianhasdecidedtoclosetheJV,andmaketheJieFangsalesdepartmentoneofitsmanysalesdepartmentsSalesTotalsalesin1999wasRMB800million,including:700JieFangtrucks,orRMB60million263DongFengtrucksInadditiontovehicles,italsosellsparts.However,itdoesnotsellanyJieFangpartsChannels:Over80%ofJiDian’sJieFangtrucksalesaretodirectendusers.TherestaresoldtolocalmechanicalandelectricalcompaniesinXinjiangregionThetwore-fittingfactoriesaccountforover50%ofJiDian’scustomerbasebecausetheybroughtincustomerforJiDianProfitability:Totalprofitin1999wasonlyRMB2million.ForJieFangsales,itbarelybrokeeven.BecauseitdoesnotmakeanyprofitsforsalestotherefittingfactorieswhichaccountforlargeshareofJiDian’ssalesJiDianneedstopayFAWforthechassisitpurchasebeforetheycantakethemtotherefittingfactories,andthefactoriesnormallytake1-3monthstofinishtherefittingwork.TheworkingcapitalrequiredfortheFAWbusinessisaroundRMB6million,whichincursalotoffinancialexpensesforJiDian1“3in1”capabilities:JiDiancurrentlyonlyhas“3in1”capabilitiesforTianjinXiaLi,butthisisbecauseTAICinvestedoverRMB6millioninaRMB12millionJVwithJiDiantoprovide“3in1”serviceJiDianplanstosetupsomesortofa“3in1”capabilitiesbysettingupalargedisplayareaforFAWJieFangtrucks,aswellassettingupsimplerepairservicecapabilitiesinthesamerepairshopwhereBeijingJeepiscurrentlybeingserved.ProblemswithFAW:FAWisnotabletocontrolpricecompetitionamongitsdealers,whichhashurtdealerprofitability.BecausesomedealersareabletogetsalesrebateanddoesnotoweFAWmoney,theyareabletogetsalesrebatefromFAW,thesesalesrebateenabledthemtolowertheirtruckpricestogetcustomersFAWisnotinvestingenoughinadvertisingandpromotioninXinjiang.2