JiangsuServiceStationStatusINTERVIEWDATE:March13th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMr.LinYi-ningPositionBranchOn-siteRepresentativeCompanyandAddressFAWJiangsuBranchOfficeTelephone/Fax(025)5474382BackgroundKeyIssuesConclusionsBackgroundThereisonlyoneservicestation-NanjingServiceStation,inNanjingCity.Asthisservicestationisnotoperatingwellandisplanningforrelocation,Mr.LinandMr.Liugavemeabriefintroductionbutdidn'tbroughtmetothesite.Thereisaround17servicestationsinJiangsuprovice,butonlyoneservicestationinNanjing.NanjingServiceStationoriginatesfromastate-runtransportationcompany.All17servicestationsinJiangsuoriginatefromSOEs.AsoneoftheearliestFAWservicestation,NanjingServiceStationisestablishedin1989,andthelocationofNanjingServiceStationnowbelongstourbanareaofNanjingCity.Annualpartssalesrangesfrom1.5MillionRMBto5RMB,withanaverageof2MillionRMBperservicestation.ConsideringthehugemarketsizeoftrucksinJiangsu,thesesalesfiguresarenotsatisfactory.Asthoseservicestationsareresponsibleforthelaborcostoftheirparentcompanies,employeenumbersareverylarge.Oneservicestationownsmorethan200FTESwhilemorethanhalfofthemareretired.MostofthepartsaresourcedfromShanghaiSparePartsCentre,whilesmallportionofpartsaredirectlypurchasedfromFAWsuppliers,e.g.WuxiEngine.KeyIssuesMr.Linfoundthatsomeemployeesinservicestationsstealthepartsouttosellseparately.Profitsaresharedamongthoseemployees.ServicequalityofallservicestationsinJiangsuisfarfromsatisfactory.Techniciansarenotwelltrainedduetothelackofworkingcapital.Serviceattitudeofthoseservicestationslacksenthusiasm.ThereisinternalHRdisputesamongthosemanagers.IncomeofservicedropsdowninNanjingServiceStationduetothelocationissue.Asitlocatesinthemiddleofcity,noheavytrucksareallowedtogetinatdaytime.Thuspassengertruckshavenochancetostopandbuypartsfrom1NanjingServiceStation.Relocationissueshavebeendiscussedbutnoresultreachedcurrently.AtpresentNanjingServiceStationonlygetsomeincomefromitsoldcustomers.Mostofthetechniciansarenotwelltrained;atthesametime,FAWisslowincommunicatingwithservicestationsaboutitsnewtrucktypes,newtechnologiesadopted,etc.Ittakesevenlongertimefortheservicestationstogetmaintenancemanualforthosenewtrucks.Difficultyincapitalismainlybecauseoftheinventoryobsolescence.LimitedbytheirSOEparentcompanies,managersofservicestationsisreluctanttosellout-of-datepartsandexposetheinventoryloss.ConclusionMostoftheservicestationsinJiangsuareoriginatedfromold,state-ownedtransportation/autorepaircompanies.WithaheavyfinancialburdenofloborcostandSOEmechanisms,businessperformanceofthoseservicestationsarenotsatisfactory.Newerandmoreflexibleserviceprovidersshouldbeintroducedtoencouragecompetitionamongserviceproviders2
