HarbinServiceStationJixiServiceStationINTERVIEWDATE:March9,2000INTERVIEWERNAME:BillHeIntervieweeNameMr.JinZhengqi,Manager,HarbinServiceStationMr.LiuFengqing,Manager,JixiServiceStationCompanyandAddressHarbin&Jixi,HeilongjiangBackgroundHarbinServiceStationhas54employees.16servicetechnicians,4inpartssales,3inmaterialwarehouse,3inaccounting,4inmanagement.Therestareadmin.HarbinServiceStationisasubsidiaryofHarbinTrolleyCorporation.Theservicerevenuein1999wasRMB1.9million,aboutRMB1.1millioninFAWpaidserviceandRMB800,000incustomerpaidservice.SalesofpartswasRMB600,000in1999.Theservicetechnician’shourlywageisRMB2/laborhour.Onaverage,atechnician’smonthlyincomeisRMB800/hour.Thereare28,000trucksinHarbin,4,000ofwhichareDongFeng.3000areimportedandtherest21,000areJieFang.Ourservicestationserved1,700trucksunderFAWpaidserviceagreementin1999.Afewbigcustomershadstrongdemandinservicein1999.ThepriceoftheoriginalpartsfromFAWistoohigh.Thepriceofsubstitutionsisverylow.Moreover,FAW’scontractorschargeFAWhigherpricesforthesameproductstheyalsoselltothemarket.IfthepartsarefromFAWitself,notcontractors,FAW’spriceisstillcompetitive.TheHarbinServiceStationalsohasincentiveprogramforthepartssalesmen.Theircompensationisbasesalary(RMB400+bonus).Usually,thebonusisabout50%ofthebasesalary.TheHarbinServiceStationexamsthetrucksfortheHarbinareadealer.However,theexamfeeistoolow:RMB5pertruck.TheHarbinServiceStationdoesnotwanttobeadealerbecause:HarbinistooclosetoChangchun.MostofthecustomersprefertobuyfromChangchundirectly.ToomanyJieFangtruckdealersinHarbinareaalready.Currently,FAWconvertallexpensesofFAWpaidservicetopartsanditdoesnotgiveanycashtoservicestations.However,FAWdoesnothaveallthepartstheservicestationsneed.Thisisespeciallytrueforthenewmodel.1Sometimes,FAWevendoesnothavepartnumbersofsomenewpartsonthenewmodels.TheJiXiServicestationhassimilarissuesastheHarbinServiceStation.2