JiangsuYiqiLiangheTradingCo.LtdINTERVIEWDATE:March13th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMs.TianXiaoJiePositionDirectorofMarketingandSalesCompanyandAddressJiangsuYiqiLianheTradingCo.Ltd.No.48DongFangCity,Nanjing210042Telephone/Fax(025)5472358BackgroundKeyProcessesKeyIssuesConclusionsBackground.JiangsuYiqioriginallybelongstoJiangsuJidianGroup.JiangsuJidianGroupundertookarestructurein1993andsetupJiangsuYiqi.TheJiangsuYiqiisoneofthe6auto-tradingcompaniesthathaveFAW'sdirectinvestment.50%oftheinvestmentcomesfromFAW,another50%comesfromtheemployeesandmanagers.ThustheownershipofJiangsuYiqiisnowcooperative,notState-run.JiangsuYiqiownsaloosedealernetworkofitsowninJiangsuprovince.Someofthe2ndlayerdealersareformerJidiandealers,someofthemareindividuals,andsomeofthemareservicestations.Therearetotally14dealersbeneathJiangsuYiqi,while6ofthemareveryimportanttoJiangsuYiqi:Ganyu,Lianyungang,Xuzhou,Suzhou,ChangzhouandHuaiyin.Lastyear,JiangsuYiqialonesells1200truckinJiangsuProvince.Salesofthisyearcontinuetogrowsteadily.Exclusiveof2nddealeremployees,thereisonly6-7salesmeninJiangsuYiqiwhofacesclientdirectly.KeyProcesses/OperationsMarketinvestigationmethodincludesthelocalpolicycollection,previousyeardemandintransportation/engineeringprojects,refittingNo.andLocaleconomicconditions.Lastyear,inordertogetmoremarketshare,pricemarginsaregivento2nddealerswhileJiangsuYiqigetrebate.Insomecase,even50%oftherebateissharedwith2ndlayerdealerstoattractthedealersinsmallsalesvolume.JiangsuYiqihadbuilt3in1functionsinawayofcooperationwiththelandowners:JiangsuYiqidiscussedwithlandownersandagreedthat,JiangsuYiqiwillprovidetrucksasinvestmentwhilelandownersprovideserviceplantand1land.Profitofservicestationisthensharedamongthetwoparties.Bythiscooperation,JiangsuYiqisavedmostofitsinvestmentinCapex.Allthosefunctionsarenotputintousenow.Ms.TianclaimsthatthosefunctionswouldbeputintouseinMarchorAprilthisyear.KeyIssuesCoordinationwithlocalservicestationstendstobedifficult.Whenthereissomequalityproblem,JiangsuYiqiaskscustomertogototheservicestation,butservicestationisunable/unwillingtoservice.Thuscustomersarediscontentanddamagesdealer'simage.CoordinationwithHeadquarterLogistics/ServiceDepartmentisdifficult.Ordersandenquiresareprocessedslowandinflexible.Deliveryoftrucksisunstableintimeandquality.Lastyear,thenearbyShandongLinyiCitysoldaconsiderablepartoftrucksinJiangsurealm.AsLinyiisclosertoFAW,thereisnotransportationfeeproblemconcerned.AsapricewarislaunchedinJiangsu,businessofJiangsuYiqiissomewhatimpacted.ConclusionsJiangsuYiqiisoneofthefewauto-tradingcompaniesthathaveFAW'sdirectinvestment.WithnewinvestmentsinServicing,Sparepartsanddemonstrationroomthisyear,JiangsuYiqiisconfidentinJiefangBrand.Itremainstobeseen,however,whetherthe3in1functionswillbesuccessfulornot.2
