FAWHunanBranchINTERVIEWDATE:5May2025INTERVIEWERNAME:JaneXuIntervieweeNameMr.LiQuiguo,GeneralManagerMr.JiangLimin,DirectorCompanyandAddressFAWHunanBranchTelephone/Fax0-13607435355KeyIssuesSalestargetset&fulfillment1999salesvolumeofJieFangtruckinHunanis1060units,DongFeng4000unitsSalestargetsetforHunan2000is1500,Mr.LisaidFAWmakethetargetmainlyaccordingto1999salesvolume1060AnewdealerwhichisoriginallybelongtoQingdaoenterthenetworkinChangsha,itslastyearsalesvolume240Estimatedarounddemandincrease200200demandincreaseisjustaimpulsiveestimationwithoutrealmarketunderstandingSum:1500Basically,thereisaonemonth’sbargainingprocessbetweenprovincialbranchandFAWChangchunafterbranchreceivingthesalestarget,Mr.LiandMr.JiangcomplainthesalestargetforHunanistoohighAfteraccepttheannualsalesvolumetarget,FAWHunandelegatethesalestaskstoitsmajordealers,tothe3dealersinChangsha,theirsalestarget2000are:FAWHunanTradingCo.(Dealer1),2000:600;(1999:390)FAWHunanTradingCo.Ltd(Dealer2),2000:550(1999:261)FAWChangshaServiceStation(Dealer3),2000:300(1999:204)AccordingtoMr.Li,FAWHunanbranchsetthesalestargetfordifferentdealersmainlyaccordingtoDealers’lastyearsalesperformanceSalesperformancearemeasuredmainlyonthebasisofsalesvolume,Mr.Jiangsaidtheyalsotakethedealer’ssalesstaffquality,organizationdesignintoconsideration30%estimateddemandincrease(impulsiveestimationalso)Mr.ListronglyrecommendtheexclusivedealershipforJieFangtruck.Nownoneofthe3dealersinChangshaisexclusivedealerforJieFangtruck,theymoreorlesshavethetendencyofdelegatingmoresalesresourceonpassengercarbusinesswhereprofitabilityishigher.Last1year,3majordealersonlyfulfillaverage80%ofthesettrucksalestarget.NetworkdevelopmentUn-balanceddealershipnetwork:3outof4bigdealersinHunaniscurrentlylocatedinChangsha(theotherisinChengZhou),thishascausedmanyend-usersinXiangXiandXiangZhongbuyingthetruckfromnearbyprovinces(e.g.Hubei,Jiangxi).Mr.LiandMr.JiangsaidtheyfailedtofindthequalifieddealersinXiangZhongandXiangXi,theircriteriais:Capital>=RMB3million(Mostofthelocaldealersinthesetwoareasonlyhavethecapitalaround400Kto500K)Plat2000m2to3000m2FAWHunanbranchtendtoinvitethedealersinChangchuntoXiangXiandXiangZhongtoestablishtheJieFangnetworkDealerpotentialmeasurementMr.JiangandMr.Liregardtheexperiencedsalesstaffasthemostimportantfactoradealer’ssalespotential.ThustheythinkFAWHunanTradingCompany(dealer1)andFAWHunanTradingCo.Ltd.(dealer2)willdobetterbusinessthanFAWChangshaServiceStation(dealer3,theonly‘3in1’stationinHunan)inthefuturesincethestaffinlatterfirmdonothavemanysalesexperience—majorityofthesalesstaffinservicestationareformerlyreparationworkers,althoughtheyknowmoredetailsofthetrucktechpart,butthiscouldn’toffsettheirdisadvantageinsalesexperienceCompetitionMainthreatofJieFangtruckinHunanmarketisthecustomizedDongFengtruck.TherearehundredsofDongFengtruckcustomizedfactoriesinHunan,end-userscouldaskthesefactoriesassemblethetruckswiththecomponentaccordingtohisownwillingness,andit’seasyforthemtogetthepatentforthiskindoftrucksinHunan.(mostofthiskindoftruckscouldnotgetthepatentinotherprovincelikenorth-eastsincethetrucksarejust“over-customized”andareun-safety)2