2008 SAIC Iveco Hongyan Makes Progress


From the Blizzard in South China in early 2008 to the “5•12” Wenchuan Earthquake disaster, it began to spread the global financial tsunami in the second half of the year. Xinhongyan has come along all the way. There are many hardships and challenges. In the face of difficulties, the Xinhongyan people are conscious of difficulties, are committed to governance, and are committed to reform. Under the adversity, the new Hongyan gleams with bright spots of development, gains the joy of breakthrough, and steadily enters a new stage of development.

Steady increase in production and operation management efficiency

In production management, efficiency management measures were cited and production performance was significant, creating a record of 150 vehicles per day and 3579 vehicles per month. Initially established export channels, the total vehicle export volume increased by more than 50% year-on-year. Strengthen network development, develop strong networks, and increase image building. There are 19 new 4S stores throughout the year. We improved the ordering procedures for accessories, optimized the logistics management system, and accelerated the processing and distribution of accessories. The sales revenue of accessories increased by 20% year-on-year. To reduce inventory and prevent the risk of impairment, the company is the only heavy-duty truck manufacturer in the industry that has been declining for the fourth consecutive month. With the strengthening of service network construction and continuous improvement in service quality, the company won the title of “Best Service Satisfaction Vendor” in the 2008 China Merchants Satisfaction Survey of Commercial Vehicles.

Significant cost effectiveness

Xin Hongyan strongly promotes technical cost reduction and design downsizing, reducing design costs by more than RMB 9 million throughout the year. Compression of internal expenses and various expenses of the company resulted in total savings of more than RMB 41 million in the year. The implementation of the budget management system was strengthened and the staff’s budget awareness gradually increased. Taking advantage of the decline in raw materials, strict implementation of procurement and cost reduction work, with an average increase of 17.7% in raw materials, the realization of a cost reduction of over 80 million yuan. Strengthen process control and reduce process waste; the manufacturing sector saved 20 million yuan more than the budget. We standardized the management of waste materials, and the disposal of used materials during the year increased revenue by nearly 8 million yuan. The solid "cost battle" has enabled the company to reduce its comprehensive costs in 2008 by 121 million yuan, and its historic profit of 15 million yuan.

Process reengineering advancement

The company has enacted six basic corporate systems, 83 specific management systems, and improved the system. Clean up the business process, identified 21 key risk points in the main links such as sales, and strengthened risk control and management. Four professional committees were added to solve the problems of coordination management and communication, and further improved the rules and procedures for company decision-making. A cross-district sales management approach has been formulated, over-ticketing is strictly prohibited, terminal sales interests are protected, and the sound development of the distribution network is promoted. The sales department was established to strengthen the synergistic role of marketing and after-sales services, providing organizational guarantees for the expansion of the market, implementing the rotation system, strengthening the management of the distribution center by the headquarters, and enhancing marketing service capabilities.

Talent training increased

The work plan and employee evaluation plan for the “HR project” that completed the personnel assessment, recruitment, and training required for the new base were formulated. The reform of the remuneration system was constructed and implemented; comprehensive welfare insurance was implemented for employees, which reflected the company's “people-oriented management” concept. Strengthen the training of cadres and employees, launched the “Journey to Sailing Trip” training program, organized 50 people to train in Europe and 130 in total to send SAIC training in three batches to change employee concepts and promote management.

Promote cultural integration and image building

Completed the application of the new Hongyan VI application plan and the VI roadworks for the roads and offices in the plant area. The corporate culture construction work of the company has been carried out in an all-round way, initially forming the company's values, vision, spirit and philosophy, and the cultural construction has achieved initial results. The “Red Rock” brand is reputed to be the “2008-2009 Chongqing export-oriented best-selling brand” title. In the face of the sudden "5.12" earthquake, Xinhongyan quickly responded to positive actions and established a good social image. The company won the "Chongqing in Sichuan Advanced Unit for Earthquake Relief" honor and "love enterprise "title.

New product development is coming to market

The new Hongyan new lions and special tyrants successfully debuted at the 10th Beijing International Auto Show and the 11th Chongqing Global Sourcing Fair. Hongyan “Specialty” heavy truck new products was launched in November, which has aroused the attention of the majority of users. Jieshi trial vehicles have been delivered to friendly users and currently reflect good results. Completed 162 models of Euro III announcements and development of 43 Euro III bulletin family cars. A number of red rock trucks passed the European standard inspection, and the company received a number of export Russian truck certifications.

Steady improvement in quality management

Strengthen the supplier's quality management and complete the review of 233 suppliers' quality process control system. Thirty-one product improvement and quality tracking work were completed. The improved claims for “Three Guarantees” for parts and components have been substantially reduced with significant results. The Three Guarantees Claims Improvement Process has been improved and a quality improvement basic platform has been established. The relevant three-level documents, quality records and operating instructions were revised, and the “Quality Manual” and “Program Files” were re-prepared and released. The internal quality management review was carried out and the China Quality Assurance Association passed the review and “3C” certification of the company's quality management system.

Completion of construction of new base

The civil construction of the cab frame shop, painting shop and final assembly shop was basically completed, and the equipment installation stage was fully entered. The main construction of office buildings and canteens is basically completed, and interior decoration is under construction. "Complete assembly line" completed 90% of the vehicle assembly line, 95% of the interior assembly line, and 95% of the self-driving line. Eight devices in the first phase of the “cab stamping production line” have been installed and commissioned and put into trial operation. The installation of the electrophoresis trough body and the chamber body of the “painting line equipment”, the installation of the topcoat paint line and the middle paint line were basically completed, and they were put into operation in January 2009. A brand-new modern heavy truck production base will be put into operation soon.

Party and group work innovation and promotion

Focusing on the joint development of the overall situation and the production and operation center, we will steadily advance cross-border party building, standardize the work of party committees, realize the organic integration of party organizations and business management, and gradually establish a party-building work system with the characteristics of joint venture companies. Adhere to the combination of party building and business management, adhere to the combination of party management talents and effective cultivation of talents, adhere to the strict management of the party and the rule of law, integration of enterprises, party construction service management and management; strengthen the party building with industrial construction, mission construction, pooling the workforce; party building work in the company The role of production and management is increasingly apparent. Solidly carry out the in-depth study and practice of the scientific concept of development, dissect the bottleneck problem that restricts the scientific development of Xinhongyan, and promote the sound and rapid development of Xinhongyan.

The comprehensive competitiveness of enterprises continues to increase

In 2008, the company's overall economic operation quality steadily increased and it continued to maintain its important position in the heavy truck industry. The company ranks among the top “2008 Chongqing Enterprises Top 100” rankings. The continuous development of the company has attracted wide attention from all walks of life. Party and state leaders, as well as leaders of Shanghai Municipality and Chongqing Municipality, have visited the company several times. The media of various circles pay close attention to the development of the company. The company successfully held the second China Commercial Vehicle Development Summit Forum under the theme of "Energy Conservation and Environmental Protection - Commercial Vehicle Responsibility and Mission" and made positive contributions to the healthy and sustainable development of China's commercial vehicle industry.
View related topics: New Generation Hongyan Heavy Truck - Jieshi GENLYON heavy truck listing


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