FAWGuangzhouLianServiceStationINTERVIEWDATE:5May2025INTERVIEWERNAME:JaneXuIntervieweeNameMr.LiZhengshengPositionStationHeadCompanyandAddress639GuangHuaLiuRd.GuangzhouTelephone/Fax0-13609647562BackgroundFAWLianServiceStationisnowa“ShiYe”businessunitunderChineseMilitaryGangzhouDistrict,thereisnoprofitabilitytaskdelegatedfromitsparent.Stationwasestablishedin1997withinitialinvestmentRMB60million.ItisthebestequippedstationinGuangzhouBusinessscopeofLianStationis:Jiefangtruckservice(noopencomponentsalesbusiness)andPassengercarservice(Audi,Jetta,Hongqi,etc.).Lianalsoprovidenewtruckbefore-salesservicetosomelocaldealersLianServicestationhasn’tgetthe“MilitaryBusinessOperationApproval”fromChineseMilitary,sothecomponentsalesbusinesswasdealtthroughthetruckservicewithinwarrantyonlyThereare70peoplealtogetherand30areworkingfortruckservice.MostofthereparationworkerinthestationareretiredtransportationsoldierswhoarefamiliarwithFAWtruckKeyIssuesTruckservicerevenueof1999isRMB1million,1/3arefromservicechargeand2/3arefromcomponentcharge.AccordingtoMr.Li,netprofitofthetruckserviceisalmostzeroin1999ifdeductthecost(detailcostbreakdownisavailble)MostofthetruckownerscomeforserviceareindividualswhodotransportationbusinessAveragecomponentinventoryisaroundRMB750K,mostpartoftheinventoryarehealthy.LianisclosetoFAWGuangzhouComponentCenter,forthosecomponentwhichMr.Lidon’tfeelsafetytobuy(e.g.easytobeobsolete),hewillsourcethemfromComponentCenterdirectlyaccordingtocustomers’demandonatemporarybase60%ofthecomponent(value)aresourceddirectlyfromFAWGuangzhoucomponentcenter,other40%arefromFAW’sout-sourcemanufacture1SalarypolicyFisrtlineworker:Basicsalary800+servicehour*RMB3/hourManagementandadminstaff=firstlineworker*160%/120%/80%ComplaintsLianStationcouldn’tgetin-timenewproduct/serviceinformation(catalogues,componentintroduction,etc.)fromFAW.ThishasseverelyinfluencetheservicequalityCompensationapplicationandpaybackprocessarestilldonemanually,it’sbothtimeandenergyconsuming.Mr.LiwishesFAWcouldsetupaserviceITnetworkandspeedupthewholecompensationprocess.WarrantychargearecompensatedbycomponentratherthancashChassisofQindaotruckisnotintheoverallcomponentsystemofFAW.Mr.LineedstoordertheQindaoChassisfromFAWQindao;Mr.Liwisheshecouldgeteverythinghewantfromonesource“3in1”ConceptsMr.Liwilldefinitelystarttruck/componentsalesbusinessafterhegetsthe“MilitaryBusinessOperationApproval”,heleavesaspaceincurrentservicestationfortruckshowroomandcomponentsaleshallConclusionLianisnotatypicalstyleservicestation.It’sundercontrolofChineseMilitary—apoliticalorganizationdonotcaremuchoftheprofit.It’shardtoensurethesales/serviceenthusiasmevenwhenthegetthe“MilitaryBusinessOperationApproval”2