FAW-yinchuan_0314.docVIP免费

FAWYinchuanTradingCompanyINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGaoIntervieweeNameMr.WangXipingPositionManagerCompanyandAddressNo28.,BeiGuanZhengJieStreetTelephone/Fax0-13709587352BackgroundMr.WangjustrelocatedtoYinchuanfromBeijingofficewherehespenttwoyears,priortothat,hewasmanagerforFAW’sGuizhousalesofficeInadditiontoMr.Wang,thereisonlyoneotherpeopleintheYinchuanoffice,whoisinchargeofsalesplanningandcoordinationwithFAWinChangchunandQingdaoforvehicleorderinganddeliveryThereisatthemoment,nopartscenterinYinchuan,servicestationsneedtoorderfromFAW’sXianpartscenter.SalesinYinchuanIn1999,salesinYinchuanreached380,whichwasahistoricalrecord,becauseinpreviousyears,saleshoveredaround200unitsperyear.InadditiontosalesbyYinchuandealers,therearealsoaround200unitssalesinYinchuanbydealersinotherprovinces,e.g.,InnerMongoliaOldmodel5-tontruckssellwellinYinchuanbecauseoftheirlowcosts,andbecauseDongFeng’s5-tontruckusesChaoyangDieselenginewhichdoesnothaveanyperformanceadvantageoverFAW’sDalianandWuxienginesFAW’s8tonand15-tontrucksdonotsellwellinYinchuanbecauseofqualityproblemsandpooraftermarketservice.Thequalityproblemsaremostlywithenginefilters(duetodustyenvironmentinYinchuan)andrearaxles(duetooverloading)Yinchuansold10DeutzenginetrucksbuttheycouldnothandlethetoughenvironmentandworkingconditionsinYinchuan,andservicepartsavailabilitywasverypoor,asaresult,manycustomershaveswitchedtobuyDongFeng’struckswithCumminsenginesChannels:Atthemoment,therearetwodealersinYinchuan.YinchuanFAWSalesCompany,whichisa70:30jointventurebetweenYinchuanMechanicalandElectricalCompanyandFAW.In1999,itsoldover240FAWtrucks.1ItsadvantageisthatFAWkeepsaturn-overvehicleinventoryinitswarehouse,whichhelpeditreduceanyworkingcapitalrequirements.ONaverage,thereare50trucksinthewarehouseYinchuanAutomotiveTradingCompany,whichisunderYinchuanTransportationDepartment.Itsold130trucksin1999NoneofthetwodealersisanexclusiveFAWdealer.BothcarrymultipleOEMbrands,includingDongFengtrucksNoneofthetwodealershasanysecondtierdistributionnetworkinotherpartsofYinchuan,andrelyonlargeinstitutioncustomersandwalk-inindividualcustomersforsalesCompetition:Keycompetitorintheregion,asiselsewhereinChina,isDongFeng,whotraditionallyhaashighermarketshareinYinchuanthanFAW.However,lastyear,FAWsoldaboutthesamenumberoftrucksasDongFenginYinchuan.MostDongFengsalesintheregionweredebttrucks,itstwodealers(whoarethesametwodealersasFAW)onlysoldlessthan200trucksChinaHeavyTruck’ssteyralsosoldaround50trucksinYinchuan,primarilytooilfieldsandlargeinstitutions.ChinaHeavyTruckofferseverycustomerinstalmentpayment,asaresult,itsprofitabilityandA/RcollectionisquestionableCustomers:SimilartootherregionsofChina,customerstodayareprimarilyindividualcustomerswhousethetrucksintransportationbusinesses.TheindividualsnormallytieupwithSOEorprivatetransportationcompaniesinordertogetaccesstocredibilityandtransportationbusiness.InYinchuan,therearealsosomelargeoilfieldsandcoalmines,whoarebiginstitutionalcustomers.Mr.Wangestimatedthatinstitutionsaccountfor40%ofalltrucksales“3in1”capabilities:Noneofthetwodealershas“3in1”capabilities.ServiceandpartssalesrelyonthethreeservicestationsinNingxia,whicharelocatedinYinchuan,WuzhongandGuyuanOfthethreeservicestations,onlytheoneinWuzhongisprivatelyownedandingoodfinancialcondition,andoffersgoodcustomerservice.TheothertwoservicestationsarebothattachedtoSOEtransportationcompanies,whoseparentsareinverybadfinancialconditionsanddeprivetheservicestationsofanycapitaltoreplenishtheirpartsinventoryProblems:Tradepoliciesarenotconsistentlyappliedandchangesrapidly.Forexample,FAWraisedits2-tontruckpricethreetimeslastyear,whichgreatlyimpactedsales2SeniormanagersplayfavorcertaindealersbylocatingFAW’sinventoryintheirwarehouse,allocatingmorepopulartruckstothem,whichmakeitunfairforotherdealersLackofcoordinationbetweensales,serviceandpartsfunctions.ServicestationsnormallydealdirectlywithFAWChangchunforwarrantyservicequestions,whichgreatlyincreasedserviceresponsetimeLackofaccesstoproductionandinventoryinformationatheadofficeinChangchun.Quiteoften,theregionalofficehasnoideawhat’savailableinChangchunandwhentheywillbecomeavailableuntiltheymakeseveralphonecallsbackhome,andeventhen,theyneedtohavegoodrelationshipwithcertainindividualsinChangchuntobeallocatedpopularproducts.FAWtruckqualityisnotconsistent,especiallyitsengines,whoarenotdesignedtoworkinthedustyenvironmentliketheNorthwestregion,consumesmoreoilandaremorenoisythanDongFeng’sCumminsengines.FAW’sadvertisingcampaignisnottailoredtolocalmarket.Forexample,“JianTou”truckssellwellinNingxia,however,FAW’sadvertisinginlocalnewspaperonlyhas“PingTou”trucks.AndsometimeFAWadvertisestrucksthatarestillindevelopmentandtestingstage,whichcausedalotofconfusioninthemarket3