JiangxiSouthSalesCo.LtdINTERVIEWDATE:5May2025INTERVIEWERNAME:JaneXuIntervieweeNameMr.NieHui,GeneralManagerPositionGeneralManagerCompanyandAddressFAWJiangxiSouthSalesCo.LtdTelephone/Fax0-13907008696BackgroundJiangxiSouthSalesCo.Ltdis100%private-ownedenterprise.ItwasapprovedtobethedealerofJieFangtruckinMarch1998JiangxiSouthiscurrentlythedealerofJieFangtruck,JiaBaopassengercar,itshrinkthebusinessofFAWpick-upsincethelowprofitJiangxiSouthmainlysellsFAWQingDaotruck.Itsold840trucksin1998amongwhichonly60wereChangchunJieFang,1999,thesalesvolumewas960while180wereChangchunJieFang.98%oftheJieFangtruckssoldinJiangxiarechassisJiangxiSouthhasasmalltruckrepairfactorywith1500m2space,butitwasnotaFAWServiceStation;Italsohasa1500m2openwarehousefortruckinventory.Totalspacefortruckbusinessisaround7000m2Thereare32peopleworkforthetruckdepartmentinJiangxiSouth,amongwhich8worksforrepairfactoryKeyIssuesCustomerbase60%ofthetrucksalesarefulfilledthrough2ndtierdealers;JiangxiSouthSaleshas12independent2nddealersinJiangxi(dealerscoveralmostallthedistrictexceptJiuJiangandShangRao).2ndtierdealercouldatmostgetRMB500commissionfeepertruckthroughthedealwithJiangxiSouth40%ofthetrucksaresoldtotheindividualend-userwhodotransportationbusiness.Themostpopularproductforindividualusersare“7.7m5TonWang”fromQingdaoand“2TonWang”(PinTou)fromChangchunProfitability:ProfitofQingDaotruckismainlycomposedofannualrebateandothercommissionprovidedbyQingDao.Ifadealerachievetheannualsalesvolumeover120units,hecouldgetRMB1,200asrebate,also,hecouldgetRMB450assalescommission,totalprofitperunitisaroundRMB1,6501Mr.NiecomplainedFAWChangchundonotprovideaclearrebatepolicytowardsdealers,hecouldhardlypredicthowmuchmoneyhecouldgetthroughtherebatingsystemofChangchunJieFangtruck.Hesaidhehadn’tgetlastyears’rebateofChangchunJieFangAnnualcostbreakdown:Platleasing:RMB150KSalary:RMB300KAdvertisement:RMB40K(Mr.NieonlydoAdsinvestmenttowardsQindaotruck,heheldtruckpromotionactivitiestwiceayearinJiangxi)Others:managementfee,PRfees,etc.Sum:RMB1million(Note:Thenumbercouldbeexaggerated)Competition:TrucksfromSAWLiuzhouleadastrongmarkettrendthisyear,majorthreateningproductsareChengLong“JianTouZiXieChe”;SAWoccupiesnearly90%ofthe“JianTouZiXieChe”marketinJiangxi,sameJieFangproductsisRMB30KhigherthanthoseofSAW’sNote:Igetacopyof1999LiuzhouDongFengsalespolicyfromMr.Nie,togetherwithsalespricebytypeMr.NieisbasicallysatisfiedwiththeorderanddeliversystemofFAW.He’sonlyconcernisthattheorderfulfillmentrateislowinthehighseasonlikeMarchandAprilAttitudetowards“3in1”Mr.Nieis100%agreewith“3in1”concept,hethinkthesynergyamongreparation,componentandtrucksellingcouldmaximumhislong-termsalesprofitabilityandwillfinallybethetrendforthetrucksalesbusinessHehasalreadysetupatruckrepairfactoryandiscurrentlyapplyingforthe“FAWServiceStation”titleforit;Buthehadalreadygotrejections,hewastoldthatFAWcouldn’thave2servicestationsinacloseneighborhood.(theotheroneisanoutstanding“3in1”servicestationnearby).Mr.NiewishesFAWChangchuncouldrethinkhisstrongcommitmentandapprovehisfactory’sbeentransferredto“FAWServiceStation”2