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JilinLinyuanAutoSalesCo.,Ltd.INTERVIEWDATE:March13,2000INTERVIEWERNAME:BillHeIntervieweeNameMr.MaZhenghai,GeneralManagerCompanyandAddressChangchun,JilinTelephone/Fax0431-7643866BackgroundWesold2978JieFangtrucksin1999.WearetheNo.1JieFangtruckdealerinChinain1999.OursalesrevenuewasRMB380millionin1999.NetprofitwasRMB2millionincludingRMB3.8millionyear-endrebate.Inotherwords,wewouldhavelossmoneywithouttherebate.Wesold1988JieFangtrucksin1998.Westopdoingbusinessthelasttwoweeksinayear.Wetakethetimetoanalysethemarketandtopredictwhichmodelswillbebestsellersinthenewyear.Also,wedonotselltrucksonthelastdayofamonthtodothesamething,analysingthemarket.Wehave13employees.Exceptthe2employeesinaccounting,allotherpeopleinvolveinthesalesoftrucks.Oursuccessinthepastwasduetothehistoricalreasons.Wehavetobuildthe“Four-in-One”capabilitysincewewanttosustainthesuccess.Theprojecthasbeenkickedoffalready.OurnewlocationisveryclosetotheFAWcentralwarehouse.WetrytobuildthefacilitytogetherwithourRedflagfranchise.TheprojectwillbefinishedbytheendofAugust.ThetotalinvestmentisaboutRMB6million.WewillrecruittheservicepersonnelinJune.Sincewehavesomanydealersnow,thepricewarisunavoidable.Therearemorethan3,000entitiesinChangchunsellingcars.Thebestwaytosolvetheproblemistorationalisethedistributionchanneltoeliminatetheinter-territorysales.Thereisstillonebigproblem,though.Theproblemiswecannotforcethecustomersfromotherprovincestogobacktheirownprovincesandpurchasethetrucksfromtheirlocaldealers.Only500ofthe2978trucksIsoldin1999wereusedinJilin.TherestweresoldtoHeilongjiang,Neimeng,Hebei,Jiangsu,Anhui,Shandong,andotherprovinces.Manydealershavetheabilitytobuild“Four-in-One”.However,someofthemarestillmonitoringthewholesituationandsomeofthemsimplycannotfindgoodlocations.1