FAWFujianBranchINTERVIEWDATE:5May2025INTERVIEWERNAME:JaneXuIntervieweeNameMs.LiuYueyan;Ms.WangQiCompanyandAddressFAWFujianTelephone/FaxBackgroundFujianManagerisonthebusinesstripduringmystayinXiameng,Ms.LiuandMs.WangarenotveryclearaboutthewholepictureJiefang’snetworkinFujianisrelativelywell-developedattheeastcoast(seenotesof2dealersinXiamen).West,northandsouthFujianareweakareas:FuzhouandMindong–North-eastFujianTwoformerstrongdealers(oneinMindong,oneinFuzhou)wasattheedgeofbankruptcybytheendoflastyear,theyowedlargedebttoFAWandFAWoncedecidedtostopthebusinessrelationshipwiththem.AccordingtoMs.LiuandMs.Wang,FujianmanagerMr.Liistendingtore-establishtherelationshipwiththemastograspthelocalmarketsharethereNanpin—North-westFujianFAWjustselectthefirstdealertheretodevelopthisvacancyareaSanminThereisnoqualifieddealerswithintheareaLongyan--south-westLongyaniscurrentlythemarketofLiuteandLiuqi,FAWtriedmanytimestogetintothemarketbutwasfailedduetotheproducttypelimitation(FAWisnotgoodatproducing“ZiXieChe”withlargecapacity,smallnamedcapacity,largehorsepower(>200hp)Notes:“ZiXieChe”ispopularintheareafortransportingstones(thereisastoneminethere)ThereisnoextremelystrongdealersinFujian--neverhastheorderbatchdeliveredbydealersexceeds5trucksKeyIssuesIfFAWtransportsatrucktoFAWFujianwarehouseonthebasisoftheorderdeliveredbefore,butthistrucklaterremaininbranch’swarehouseformorethan3months,FAWwillpunishthebranchbycuttingitspromotionfee.Inordertoavoidthisrisk,Fujianbranchtendstosellthetruckfirst(throughdeposit)andthendelivertheordertoFAWChangchun1FAWProblemsFAWChangchuntruckdoesn’tfitforthelocalmarket—Fujiancustomer(especiallythetransportationbusinessowner)preferthelargecapacitytruckwithlongcasessuchas8.7m,9.6with210+horsepower.Changchun’s7Tontruck(whichisa9tontruckindisguise)’slengthisonly7.6mwhichcouldhardlymeetthedemandoflocalusersFAWChangchunistooslowinmarketreactionincomparisonwithFAWQindao,thisdirectlyresultintheinternalcompetitionbetweenFAW’productslastyearFAWFujianisalwaysinthestatusofrunningshortoftrucks,lastyear,oursupplyintervalcreateagreatopportunityforChenglong’ssuccessinmarketProductsupplywasnotinthesamepaceofAds,e.g.a8.2mtypetruckhasn’tbeenunveiledyet,however,theadsforitwaspublishedhalfyearsagoAnnualsalestaskdelegatedbyFAWChangchuntowardsbranchcompanyisnotscientificatall,ourtasksisjustincreasedatafixedrateyearbyyear,FAWneveradjustitsplanaccordingtotherealmarketsituation,e.g.patentlimitation,tax&tollpolicyreform,etc.2