FAW-xiandealers_0311.docVIP免费

XianFAWDealersDiscussionINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameGMsfrom3dealersandoneworkshop,Mr.MaandMrSunPositionGMsCompanyandAddressNo28.,BeiGuanZhengJieStreetTelephone/FaxBackgroundBecausetodayisSaturday,henceFAWdealersandservicestationsdonotwork(howcantheybeexpectedtoselltrucksandprovidegoodservicewhentheydon’tevenworkonweekends.Mr.MacalledintheGMsofthreedealersandoneservicestationtohaveagroupdiscussionregardingthemarketandtheirplansforthefutureTheDealersJieFangAutoTradeCompanywasfoundedin1987.ItwaspartofChinaAutomotiveTradingCompany’s(CATC)ShaanxiBranch,andinitiallywasaJVbetweenCATCandFAW(FAWhassincewithdrawnfromtheJV).JieFangAutoTradeCompanyonlysellsFAWproducts,includingJieFangtrucks,HongQiandJetta,aswellasFAW’slighttruckandlightbuses.QinYingAutoTradeCompanyusedtobepartofthelocalmilitary,andwasfoundedin1993.Itusedtobeavehiclerepairfactory,andhasaddedvehicleandpartssalescapabilitiestoitsbusiness.Soitisnowtheonly“3in1”FAWdealersinShaanxiChangZhengAutoSalesCompanyusedtobepartofXianMechanicalandElectricalCompany.Ithassincesevereditstiestoitsparentandbecomeanindependentautosalescompany,whichhandlesFAW,DongFengaswellasotherOEM’sbrands.FAW’sShaanxivehiclewarehouseisalsolocatedinChangZheng’swarehouseFAWXianServiceStationispartofXianTransportationCompany’svehiclerepairfactory.MrMaisintheprocessoftryingtoconvertitintoa“3in1”dealer.However,itneedstobecomemoreindependentfromitsparent,whoisinbadfinancialshape,bysettingupitsownlegalentity,bankaccount,etc.ItisanexclusiveFAWservice/parts/salesstations.Channels:AllthreedealersandtheoneservicestationarelocatedinXian.Theydonothavetheirsecondtierdealernetworksandrelyon1theirsalespeople(whorarelywalksoutsidetheiroffices)andcustomerwalk-insforvehiclesales.Foralmostalldealers,retailsalesaccountforthevastmajorityoftheirsales(over70%).Theircustomersaremostlyindividualcustomers,withlocalmechanicalandelectricalonlyaccountforlessthan30%oftheirsales.Fortheservicestation,Mr.MahassetupaservicestationalliancewhereallotherservicestationsinShaanxiwouldgothroughtheXianservicestationtopurchasetrucks.TheXianstationwouldsellthetrucksatthesamepriceasitgetsfromFAW,therebypassingthemarginstotheotherservicestations,hopingtogettheyearendrebateasitsprofit.CertaindealershavestartedtoworktogetherwithSOE/privatetransportationcompanies,whogetloansfromChinesebanks,andleasethemtoindividualdrivers,whocanhaveownershiptothevehiclesafterupto10monthsofleasepayment.Accordingtothedealers,thetransportationcompaniesmakeuptoRMB10,000profitpertruck.Competition:AlldealersthinktherearetoomanydealersforFAWinShaanxi,particularlyinXian.ThereisstrongcompetitionamongFAW’sowndealersforthesamecustomergroupbecausenobodyhassecondtierdistributionnetworkinotherregions,theyallrelyonwalk-incustomers,whonormallycomparepricesatalldealersandforcedealerstodroppricestogetthesales.AlmostalldealersmakeonlyuptoRMB500pertruckofprofitfromsalestoend-usersanduptoRMB500-1000pertruckafteryear-endsalesrebate.However,becausemanydealersoweFAWlargeamountofmoneyandhavenotbeenabletorepaythedebtatregularpace,theyarenotqualifiedfortheyearendrebateAlldealersareconfidentthatifFAWisabletocontroltheinternalcompetitionamongitsdealersandstabiliseitstruckprices,thereshouldnotbeanyproblemsellingtheFAWtruckseveniftheyaremoreexpensivethanDongFengtrucks(whichth...