FAWDalianServiceStationINTERVIEWDATE:March6,2000INTERVIEWERNAME:BillHeIntervieweeNameMr.SongJiyongPositionManagerCompanyandAddressDalian,LiaoningTelephone/Fax0411-6871075BackgroundFAWDalianServiceStationisthefirstFAWservicestationinDalian.ItisalsoFAWAudi’sservicestation.ItsparentcompanyisDalianTransportationGroupIn1999,itsservicerevenuewasRMB1.5million,partssalesrevenuewasRMB1million,andFAW-paidservicerevenuewasRMB410,000.TotalprofitofthethreewasbetweenRMB200,000to250,000.TheDalianServiceStationhasabout100employees.Ithasabout50servicetechnicians,20supportingtechnicians,and30adminpeople.Itdoesn’thavebasesalaryfortheservicetechniciansbuthourlyratewageonly.Ifatechniciandoesn’tworkinamonthhiswageforthatmonthwillbezero.TheaveragemonthlyincomeofaservicetechnicianisRMB500.Itisundergoingalay-offprocess.AlmosthalfofthecurrentworkforcewillbegonebytheendofApril.KeyIssuesTheDalianServiceStationonlysold17JieFangtrucksin1999.Theythoughtitwasmainlybecausethemarketwasoutoforderbecauseoftheimpactof“debttruck”.TheDalianServiceStationwantsFAWtoputtheinventoryatitswarehousesotheycanshowsamplestotheircustomers.However,theydon’twanttobuythetrucksiftheycannotsellthemwithinsixmonths.Instead,theywanttoreturnthetruckstoFAWiftheyfailtosellthem.ThisisactuallySAW’spolicyandtheyhopeFAWcanhaveasimilar[policy.Theydon’thaveenoughworkingcapitaltopurchasethetruckbeforetheycanfindacustomer.FAW’soriginalpartsaretooexpensive.Thepartsmarkethasbeeninvadedbylessexpensivesubstitutions.FAWhastoloweritspartspricetoallowservicestationtoselltheoriginalparts.ConclusionFAWDalianServiceStationisoldservicestationwithsomemanagementproblems.Theyareverypassiveinfrontofchallengesanddifficulties.Onthecontrary,TheDalianNorthServiceStationaremorecompetentindealingwiththesameissues.1