FAWTradingCo.QingdaoBranchINTERVIEWDATE:March6th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMr.QinRuiPositionManagerCompanyandAddressFAWTradingCo.QingdaoBranchNo.943ChongQingMid.Rd.,Qingdao266043Telephone/Fax(0532)4911059BackgroundKeyIssuesConclusionBackgroundFAWTradinCo.QingdaoBranchisestablishedthisJanuary.AccordingtotheagreementbetweenQingdaoPlantandFAW,QingdaoBranchshouldbetheonlyagentforQingdaotrucksales.OrganisationandworkprocessbetweenQingdaoPlantandFAWTradingCo.1FAWTradingCo.QingdaoPlantFAWGroupFAWQingdaoBranchQingdaoSalesDepartmentFAWDealerNetworkQingdaoDealerNetworkFAWGroupdoesnotcontrolQingdao'struckproduct,production,financeandpricingAllthetrucksQingdaomadeshouldbesoldtoFAWQingdaoBranchforthemtosellinFAWdealernetworkCurrently,theoriginalQDSalesDeptactsasonemajordealeroftheBranch.Forprotectionofownbenefit,QDSalesDepartmentisnotwillingtosharetheiroriginaldealernetworkwithQDBrnach.CurrentsalesvolumethroughFAWdealernetworkissmall,butgrowingsteadily:Jan300(100trucksgetpaidinthatmonth)Feb500(200trucksgetpaid)March(Plann)600-700KeyIssuesMr.QinistryinghardtofindawaytocorporatewithQingdao'ssalesdepartmentbutencounteredresistance.UptillnowQingdaoSalesDepartmentisnotwillingtoshowhimtheiroriginaldealernetwork.Mr.Qindoesn'tthinkitawisedecisiontoforcethemtopresentthatnetwork,forthatmightfrustrateQingdao'speopleandslowdownthefutureproductdevelopment.Pricing.Qingdaohasitsowndecisioninpricing,andthepricingis4000RMBlowerthanFAWtrucks.ThatmakesQingdaoverycompetitiveinthemarket.Flexibility.Qingdaoisveryflexibleinadaptingtheretrucks,e.g.,two-tankdesign,changeabletyres,etc.Thustheproductsaremorewelcomedinthemarket.HethinksFAWheadquarterneedstolearnthatfromQingdao.ConclusionsTheQingdaoBranchisnamelytheonlyagentofQingdaoPlant.Asthisbranchofficesetupjustonemonthbefore,itisfacingresistancefromQingdaoSalesside.2