FAWChangshaServiceStationINTERVIEWDATE:5May2025INTERVIEWERNAME:JaneXuIntervieweeNameMr.QuDade,GeneralManagerMr.Zhou,DirectorofServiceDepartmentMr.Zou,DirectorofComponentDepartmentCompanyandAddressFAWChangshaServiceStationTelephone/Fax0-13908480775ShortSummaryAlthoughthe“3in1”hasbeencarriedoutbyChangshaServiceStationbyyears,butthethreefunctionsseemstobejustsimplyputtogether,synergyamongthemhasnotbeenfullydiggedoutinthisonly“3in1”StationinHunan.IndexBackgroundServiceComponentAuto-salesBackgroundFAWChangshaistheonly“3in1”truckservicestationinChangshaFAWChangshaServiceStationisformerlyChangshaNo.1AutoReparationFactory,itchangedfromaSOEtothecurrentstockcompanyin1997,50%oftheshareareheldbyindividualstaffwhileother50%are"JiTiZiChan”;totalcurrentcapitalamount:52millionLastyear,Mr.QusolditsoriginalservicestationplatindowntownChangshaandmovedtothisnewplacewhichisclosetoNo.107wayThreemajordepartmentinsidestationare:ServiceDept.;ComponentDept.andAuto-SalesDept.Totalheadcount:around200Service:70Component:20AutoSales:30Admin:70SalesandRevenueBreakdownof1999RevenueProfitService24million(including217JieFangtrucksand110cars)-25millionComponent8million1+millionAutoSales1million1+million1JieFangSales:20FAWPassengerCarSales:10AccordingtoMr.Qu,loseinservicebusinessismainlyduetothedisconnectionwiththeold-clientafterbeenmovedtothenewplace;hesaidhewaspreparedtofacefuturethreeyear’snegativeprofitsinceheneedtimetorebuilthiscustomerbase,buttheestimatedmaximumserviceprofitwillnotexceed1millioninthefuturesincethelowmarketshareofJieFangtruckinHunanTotalmanagementcostin1999:3.2millionServiceBackgroundAccordingtoMr.Zhou(whohasbeenworkinginstationmorethan10years),thereare27servicestationinHunan,morethanhalfisattheedgeofbankruptcyduetoUnsatisfiedservicestandardHighservicecost:jobdelegationareoverdetailedinthosestations,acompletereparationforatruckneed20+differentworkersfor20+workingprocesses;FAWChangshaservicestationhasintegratedthejobfunctionsanddispatchpartoftheformerreparationworkerintothetrucksalesforceLowJieFangtruckmarketshareLongcompensationpaybackcirclehascausedhighcapitaloccupationinsideservicestation,somesmall-scaledstationevenaskedthecustomerpaythewarrantyservicefirstandthencompensatethemlaterwhenthecash/componentfromFAWarrivedlaterKeyIssuesCurrentservicespace:8000m2FAWChangshaServiceStation’skeycustomerbasisandrespectivecontribution2WithinWarrantyPeriodAfterWarrantyPeriodApproximately90%ofthecustomerswhoboughttrucksfromstationOldcustomerindowntownChangshaPassbyTrucks(MainlyfromNo.107Way)Countsfor55%ofthetotalrevenuewithinwarrantyperiodPassbytrucksCountsfor80%ofthetotalrevenueafterwarrantyperiodCountsfor45%ofthetotalrevenuewithinwarrantyperiodCountsfor20%ofthetotalservicerevenueCountsfor80%ofthetotalservicerevenueDiscountareprovidedatunfixedrateAccordingtoMr.Zhou,priorityofservicecriteriacouldbelistedlike:1)ServiceQuality;2)ServiceAttitute;3)PriceHedon’tthinkthecustomerwillkeeplong-terminterestonthelowqualitysubstitutesincemanyofthesubstitutebuyersufferedlotfromusingfakecomponentsandhavebeenbacktobuytherealthingThereisnoeffectiveinterfacecommunicationandco-operationbetweentheservicedepartmentandcomponentdepartmentinsidethestation—servicedept.merelycontactwithcomponentthroughbuyingthecomponentforthewarrantyserviceusageatthesetwarrantyparts...