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XianFAW-DalianDieselSalesOfficeINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMr.ChiZhaodePositionManagerCompanyandAddressNo28.,BeiGuanZhengJieStreetTelephone/Fax0-13909843162BackgroundDalianDieselhasfivepeopleinShaanxi.Mr.ChiisthemanagerinchargeofShaanxi,hisofficeisinthesamelocationasFAWAutoSalesCompany.Outoftheotherfourpeople,twoareservicetechnicians,1partsinventorypersonandadriverfortheservicetruckMr.ChihasbeeninXianfortwoyears,however,asDalianDieselisoneofsevenFAWsubsidiariesgoingthroughHRreformbyrequiringallkeypositionstobefilledthroughcompetitiveprocess(similartoFAWAutoTradingCompany).Heislikelytobereplacedbysomeoneyoungerinthenextdayortwo(soheisunderstandablynervousduringtheinterview)Responsibilities:Mr.ChiandhiscolleaguesinShaanxiisbeingevaluatedbyDaliandieselbasedontheirperformanceinthefollowingareas:FAWvehiclesaleswithDaliandieselengines.Thisyear,thetargetforMr.Chiis800engines(totalFAWvehiclesalestargetis2,400),ifheisnotabletoreachatleast60%ofthesalestarget,heisnoteveneligibleforhisdailyallowanceofRMB25perday.Ifheachieves60-100%ofhissalestarget,hisstandarddailyallowancewillbemultipliedbythepercentageachivedServicequality.ThebenchmarkisthatnocustomercomplaintstoDalianorFAW-ChangchunisacceptableComponentssalesvalueandavailabilityInformationfeedbacktoDaliandieselregardingenginequalityproblems.HeisrequiredtofilereportmonthlytoDaliandieselregardingkeyengineproblemsencounteredbyhiscustomersintheregion(however,hecomplainedthatDalianDieseldoesnotalwaysrespondtohisproblemreportinatimelymanner.SomeproblemsareneverresolveduntiltheybecomeseriousqualityproblemsaffectingFAWvehiclesales,e.g.,enginefilterdesignnotsuitabletothedustyenvironmentinShaanxi,whichreceivedalotofcustomercomplaintsbutwasnotpaidenoughattentionuntiladeputyGMofFAWGroupheardthecomplaintsandorderedasolutionbefound)1CollectionofA/Rs.Atthemoment,Mr.ChidoesnothaveanyA/Routstandingfromservicestations.CustomersFAWisDalianDiesel’soneandonlyOEMcustomerinShaanxi.Lastyear,around450FAWtruckswithDalianenginesweresoldinShaanxi,comparedto1,350FAWtruckssoldwithWuxidieselengines.ShaanxiusedtobeDaliandiesel’smarketasitwasFAW’ssoledieselenginesupplieruntil1995,however,sinceitsenginepricesarehigherthanWuxidiesel,itsshareofFAWbusinesshasbeenindecline.Nationally,FAWdividesitsbusiness50/50betweenDalianandWuxi,inShaanxi,however,theDalian’sshareisonly25%.Mr.Chiisalsotryingtodevelopothernon-automotiveOEMrelationshipsinShaanxi,hehassoldtwoenginestoalocalconstructionmachineryfactorywhoistestingtheenginesuitabilityatthemomentComponentsales:DaliandieselmaintainsacomponentwarehouseinShaanxi.ItislocatedinthesameservicestationasFAWPartscenterandWuxiDieselpartscenter,however,theyaremanagedindependentlyTotalsalesin1999wereaboutRMB1.5million.Mr.ChimaintainsaninventoryvalueofRMB800K,and220SKUs.SomeofhispartsoverlapswithFAWpartscenter’spartsMostofhiscustomersarethe16servicestationsinShaanxi.Salestoretailcustomersisminimalandatthemoment,therearenoFAWpartsshopsinShaanxiHeordersfromDalianmonthlyforparts.Onaverage,theordersideisaroundRMB100-120K.HeisrequiredtopayDalianbeforeshipmentwillbemadebytruckfromDalian.Normally,ittakes3-4daysfromtimeofordertodelivery.Mr.Chiclaimsaveryhighfulfilmentratioforservicepartsorderingfromservicestations,andhasnotencounteredproblemswithpartsavailabilityatDalianwarehouse.Service:Daliandiesel’swarrantyserviceisprovidedbyFAWservicestations(whoarealsoDaliandiesel’sservicestations).However,forkeypartsservice,Dalian’stwoservicetechnicianswillbepresenttoprovidesupport.SettlementofwarrantyserviceonenginesisfirstbetweenFAWandservicestations,thenonaquarterlybasis,FAWsettleswithDaliandieselForwarrantyserviceonDaliandieselenginesusedonotherOEMproducts,settlementwillbedirectlybetweenDaliandieselanditsservicestations.Typically,DaliandieselgivesitsservicestationstheoptionofacceptingeithercashorpartsTrainingofservicestationtechniciansisprovidedbyFAWitself.Daliandieselisnotinvolvedinthetrainingprogram.2ProblemswithDalianEngine:ThemostfrequentcomplaintsaboutDalianengineintheShaanxiregionare:Poorfueleconomy.ComparedtoDongFeng’sCumminsengines,DalianengineconsumesmuchmorefuelsHighnoiselevelEnginefiltereasilyblockedbydustComponentpricefromDalianisnotcompetitivewithdirectsalespricebyDaliandiesel’ssuppliers,whosepriceis15-20%lowerthanDaliandiesel’sprice(thoughDaliandieselisnotmakinganyprofitonitspartssales)3