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2025-05-05
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FAWWuhanServiceStationINTERVIEWDATE:March8th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMr.YiHe-pingPositionDirectorCompanyandAddressFAWWuhanServiceStation,Telephone/Fax(027)8383324301397104235BackgroundKeyProcessesKeyIssuesConclusionsBackgroundWuhanServiceStationwassetupin1981,originsfromWuhanTransportationsystem.Currentlyithasmorethan50FTEsworksforFAWservicing,with28technicians,7managersandrestofthemisforpartssales.Partssalesinrecentyearsaredecliningfrom10MillionRMBto2MillionRMBinrecentyears.Serviceincomeislessthan1Million,with50%comesfromFAWwarrantyservices.Thoughthestationownsbusinesslicensefortrucksales,currentlytheyhardlysellanytrucks.KeyprocessesMostofthepartsaresourcedfromWuhanPartscenter,butstillsomepartsaredirectlysourcefromFAWlocalsuppliers.Thereisatotalof1.1Million-RMBinventory.Now20-30%ofthemareobsolescence,mostofwhichare141gasolinetruckparts.2ndservicereviewonlycovered50%oftotalservicesasmostoftrucksarejustpassers-byandishardtotrackdown.Pricingofpartsonceisfrom15%-25%,nowdecreasedto10%asmarketcompetitionbecamekeener.KeyIssuesFinancialdifficultiesWuhanServiceStationstillowesFAWaround200,000RMB.FAWoncestopspayingthemthewarrantyservicefee.Aftersomereconciliation,FAWgivessomemoretimeforthemtoreturnthedebts.Thereoncehavebeenproposalsforrestructuring,butitsparentplantisnotwillingtoletgoforitcarriesaround400retired/unemployedworkers.1FAW'sfinancialpolicyfordebtcheckisprimitiveandwithlotsoferror.CommunicationwithFAWHQisnotverysmooothsometime.Mistakeordershappenedquiteafewtimesanddelayedbesttimeforservicingorpartsselling.Technicalinformationislagbehindsotheycannotrepairnewproducts.Workstandardfortruckservicingistoooldtobeapplicabletonewtrucks.Mostofthemaretooshort.EverydepartmentfromFAWcancomeandgiveinstructions.WuhanServiceStationhopesFAWtounifythechannelandappointoneortwopartyfortheservicestationtoreportto.UnreasonablecustomerrequestCustomerssometimemakeunreasonablecompensationrequest.Whenrejected,theycomplaineverywhere,launchfightsandeverykidnaptechnicians.Serviceproviders'basicsafetycannotbeguaranteed.WhenFAWreceivedsuchacomplaint,ittendstostandoncustomer'spointandblameServiceStation.Thatdoesconsiderabledamagetoservicestation'simage.ConclusionWuhanServiceStationdoesnotworkverywellduetothelimitationofmarketsize.TheServiceStationisinfinancialdifficultiesnow,andfutureperspectiveofWuhanServiceStationisnotoptimisticeither.2

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