FAW-xichai_0313.docVIP免费

XianFAW-WuxiDieselSalesOfficeINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMr.SuChunfangPositionManagerCompanyandAddressNo28.,BeiGuanZhengJieStreetTelephone/Fax0-13709258885BackgroundWuxiDieselhasfourpeopleinShaanxi.Mr.SuisthemanagerinchargeofShaanxi,hisofficeisinthesamelocationasFAWAutoSalesCompany.TheotherthreepeopleareservicetechniciansMr.SuhasbeeninXianforonlylessthanayear,however,hewasbasedinXianfrom1995-1997whenWuxidieselexperiencedrapidgrowthinsalesvolume,overtakingWuxidieselastheleadingsupplierofenginestoFAWinShaanxiResponsibilities:Mr.SuandhiscolleaguesinShaanxiisbeingevaluatedbyWuxidieselbasedontheirperformanceinthefollowingareas:FAWvehiclesaleswithWuxidieselengines.Thisyear,thetargetfor75%ofallFAWvehiclesales(totalFAWvehiclesalestargetis2,400).Ifheisnotabletoachievehissalestarget,hewillnotbeabletogethismonthlybonusServicequality.InformationfeedbacktoWuxidieselregardingenginequalityproblems.HeisrequiredtofilereportmonthlytoWuxidieselregardingkeyengineproblemsencounteredbyhiscustomersintheregionCollectionofA/Rs.Atthemoment,Mr.ChidoesnothaveanyA/Routstandingfromservicestations.CustomersFAWisWuxiDiesel’soneandonlyOEMcustomerinShaanxi.Lastyear,around450FAWtruckswithWuxienginesweresoldinShaanxi,comparedto1,350FAWtruckssoldwithWuxidieselengines.ShaanxiusedtobeWuxidiesel’smarketasitwasFAW’ssoledieselenginesupplieruntil1995,however,sinceitsenginepricesarehigherthanWuxidiesel,itsshareofFAWbusinesshasbeenindecline.Nationally,FAWdividesitsbusiness50/50betweenWuxiandWuxi,inShaanxi,however,theWuxi’sshareisonly25%.Componentsales:1WuxidieselmaintainsacomponentwarehouseinShaanxi.ItislocatedinthesameservicestationasFAWPartscenterandWuxiDieselpartscenter,however,theyaremanagedindependentlyTotalsalesin1999wereaboutRMB2million.Mr.ChimaintainsaninventoryvalueofRMB800KtoRMB1million,and150-160SKUs.SomeofhispartsoverlapswithFAWpartscenter’spartsAccordingtoMr.Su,95%ofWuxiandWuxienginepartsarecommonpartswhichcanbesharedMostofhiscustomersarethe16servicestationsinShaanxi.Salestoretailcustomersisminimalandatthemoment,therearenoFAWpartsshopsinShaanxiHeordersfromWuximonthlyforparts.Onaverage,theordersideisaroundRMB100-120K.HeisrequiredtopayWuxibeforeshipmentwillbemadebytruckfromWuxi.Normally,ittakes3-4daysfromtimeofordertodelivery.Mr.Suclaimsaveryhighfulfilmentratioforservicepartsorderingfromservicestations,andhasnotencounteredproblemswithpartsavailabilityatWuxiwarehouse.Service:Wuxidiesel’swarrantyserviceisprovidedbyFAWservicestations(whoarealsoWuxidiesel’sservicestations).However,forkeypartsservice,Wuxi’sthreeservicetechnicianswillbepresenttoprovidesupport.SettlementofwarrantyserviceonenginesisfirstbetweenFAWandservicestations,thenonaquarterlybasis,FAWsettleswithWuxidieselForwarrantyserviceonWuxidieselenginesusedonotherOEMproducts,settlementwillbedirectlybetweenWuxidieselanditsservicestations.Typically,WuxidieselgivesitsservicestationstheoptionofacceptingeithercashorpartsTrainingofservicestationtechniciansisprovidedbyFAWitself.Wuxidieselisnotinvolvedinthetrainingprogram.ProblemswithWuxiEngine:ThemostfrequentcomplaintsaboutWuxiengineintheShaanxiregionare:Poorfueleconomy.ComparedtoDongFeng’sCumminsengines,WuxiengineconsumesmuchmorefuelsHighnoiselevelEnginefiltereasilyblockedbydustPriceofWuxienginepartsisnotcompetitiveagainstdirectsalesbyitssuppliers.Typically,Wuxidieseladd15%margintopartssourcedfromsuppliers,butwhenitsellstoservicestations,itreducesitsmarginby8%anddoesnotchargeshippingcost(whichistypically3-4%ofpartsvalue).SOWuxidieselonlymakes3-4%marginonpartssalestoservicestationsFAWowesbothWuxiandDaliandiesellargeamountofenginepayments(RMB350milliontoDalianandRMB280milliontoWuxi).BecauseWuxiandDalianareowedlargeamountbyFAW,ithas2difficultypayingtheirsuppliersinatimelymatter,asaresult,suppliersoverchargethemforparts,whichincreasedtheirenginecostandmadetheirpartssalespriceuncompetitiveWuxidieselengineisaboutRMB10KcheaperthanCumminsengine,however,FAWtruckisnormallyatleastRMB3-10KmoreexpensivethanDongFengtruckswithCumminsengines(whichillustratesthatFAWisnotdoingagoodjobinreducingitstruckmanufacturingcost)Averagefirstoverhauldistanceis100,000KMforwuxienginevs300,000forCumminsengines.Onaverage,truckdriversdrivefor150,000-200,000KMperyearandrecouptheirinvestmentineightmonths,afteroneyear,theywillselltheirtrucksandbuynewones.Thismeansthattheydonotneedanyengineoverhaul(whichcostRMB5-6K)iftheydriveCumminsengines,butwillneedanengineoverhauliftheybuyFAWtruckswithWuxienginesMostofFAW’sservicestationsareinverybadfinancialcondition,whocannotaffordtobuypartsfromFAWorWuxidiesel,asaresult,partsavailabilityratioforcustomerservicerequirementislow,whichhashurtFAW’sservicequalityimageandturnedcustomerstootheralternativechannelsforparts3