FAWBeijingFirstServiceStationINTERVIEWDATE:March2,2000INTERVIEWERNAME:BillHeIntervieweeNameMr.QianHeqinPositionServiceExecutiveCompanyandAddressBeijing,BeijingTelephone/Fax010-62929883BackgroundThisisthebestservicestationwehaveseensofar.Theparentcompany,BeijingAutomotiveRepairmentCompanyNo.1Factory,owns10servicestationsfordifferentbrandsofsedanandtruckincludingJieFangtruck.TheFirstServiceStationwasfoundedin1982.TheybegantoserveFAW’sJieFangtrucksincethen.Theyoffer24hour,7daysaweekservice.ForFAWpaidservice,theFirstServiceStationhadserved2304JieFangtrucksin1997,2763in1998,and4755in1999.Forcustomerpaidservices,theyhadserved3250trucksin1997,3928truckin1998,and4078trucksin1999.Forcustomerpaidservices,90%areJieFangtruck.Thefollowingaretheirrevenue,costandgrossprofitinthepastthreeyears:YearRevenue(RMB)Cost(RMB)GrossProfit(RMB)199912,199,0006,027,0006,172,000199810,480,0004,976,0005,504,000199710,022,0005,219,0004,803,000Becauseofitsequipmentandexpertiseintruckrepairment,FirstServicestation’sbusinessisgood.MosttrucksownedbyenterprisesinBeijingcomehereforservice.Trucksownedbyindividualsalsocamehereforservicefrequently.TheFirstServiceStationisoneofafewservicestationsinBeijingwhichcanhandlethemostcomplicatedservicesofJieFangtrucks.Theyofferwarranteeoftheirservicestocustomer.Forexample,forthepowertraintheyserved,theyoffer10,000KM/3monthswarrantee.Theydoselltrucks.However,theyonlysold2trucksin1999.Theirsalestargetin2000is100trucks.TheFirstServiceStationhas73employees.,23servicetechnicians,6engineersandevaluationspecialists,18othertechnicians,12salesmen,and14admin.Accordingtocustomer’sfeedback,JieFangtruck’squalityisgood.However,minorproblemscauseinconveniencetothecustomers.1OverallcustomersaresatisfiedwithFirstServiceStation’sservice.Thecompliancerateislowerthan8%.CustomersalwaysintroduceothercustomerstoFirstServiceStationsformostcomplicatedproblems.Theyonlybuy,sell,anduseoriginalpartsfromFAW.Theirhourlylabourchargeisalsohigherthanotherservicestations.KeyIssuesFirstServiceStationissostronginservicethattheymighthavedifficultytofocusontrucksales.Theyonlysoldtwotrucksin1999.Moreover,theorganisationstructurealsopreventsitfromsellingtrucksindependently.Theydon’thaveindependentbankaccount.Theprofittheymakeintrucksaleshastobesubmittedtotheparentcompany,BeijingAutomotiveRepairmentCompany.FirstServiceStationdoesnothaveenoughsalesexpertise.Alloftheirsalespeopleusedtoworkintheservicedepartment.ConclusionTheFirstServiceStationisapremierservicestation.Theycanhandleanytypeofservice.Wehavetodecideiftheyhavetobea“Four-in-One”dealer.Ifyes,theyhavetore-organisetheservicestationtomakeitmorefinanciallyindependentbeforetheycanselltrucks.Alsotheyhavetoacquiresalesexpertise.Theydon’thavefinancialandtechnicalproblemstobea“Four-in-One”dealer.2