"On the first working day after the Spring Festival holiday, all the staff of Weichai Power immediately put into the intense work." Recently, Tan Xuguang, chairman of the 10th and 11th National People's Congress and Weichai Power Co., Ltd., revealed in an exclusive interview with reporters that the company’s engine market orders exceeded more than 30,000 units in February, up from 40,000 in March. Taiwan has created the best level of history.
Industry insiders commented that as the largest auto parts company in China, “others are hibernating and Weichai is in winter swimming; others are busy with the crisis and Weichai takes the opportunity to develop against the trend.â€
When the global economy was in deep crisis, why did Weichai get through the winter with a welcome spring? Tan Xuguang said that first of all, we must thank the government for the promotion of confidence in the industry's revitalization plan and policy promotion; Through scientific development and hard work, Chai has developed a strong ability to compete and resist risks, and has the ability to break ice and expand its advantages in the economic winter.
Innovate and improve internal strength
"Every economic crisis has bred a new round of growth. But the premise is that companies must have strong strength." Tan Xuguang believes that after experiencing the difficulties of 10 years ago, Weichai has produced "antibodies to the difficulties and crisis of enterprise development." "--Strengthening your strengths in a good situation and winning the advantage in the face of adversity. He stressed that this requires companies to fully innovate, fully innovate, and fully innovate.
Turning over the development history of Weichai, innovation is the theme that has not deviated from the development of enterprises in the past decade.
Weichai's achievements in the past 10 years are well known to the industry: Weichai Group's annual sales revenue has grown from more than 500 million yuan over the past 10 years to 50 billion yuan; total assets have increased from 1.5 billion yuan a decade ago to today's 31.8 billion yuan. The annual foreign exchange earnings from the 20 million U.S. dollars a decade ago has grown to a billion U.S. dollars today. In Tan Xuguang's eyes, all this is due to the insistence of the people in Weichai on innovation.
Technically, Weichai insists on building its core competitiveness with independent innovation. As a large-scale enterprise group integrating engine assembly and automobile parts production, Weichai's independent innovation capability has always been at the forefront of the industry. In order to maintain its leading position in technology, Weichai has introduced “outside the brain†and established R&D centers in Europe and the United States. It is at the forefront of the world’s internal combustion engine technology. Weichai has pioneered the development of China’s first compliance nation with independent intellectual property rights. Emissions standard engine. At present, there are dozens of new products developed every year in Weichai, and the output value of new products has already accounted for half of the total industrial output value. Since last year, the company has been focusing on product development, brand building and value chain control to promote independent innovation and create greater value for customers. Following the successful development of the engine of the Blue Engine Group, Weichai has successfully developed the National IV and the State V engines with a high level of research and development capabilities. At the same time, Weichai also used its advantages in the industrial chain to develop the world’s first “powertrain†product for system matching and R&D of engines, gearboxes, and axles. In other words, OEMs only need to match their own designs. With a distinctive cab and compartment, a new truck or bus can be brought to market, and the development cycle is reduced by 1/5.
In terms of market development, Weichai was originally a single market and a single area. Although the market share is extremely high, there is a great risk. Based on this, in recent years, Weichai has continued to accelerate the adjustment and optimization of product structure, promote innovation and development of emerging markets with technological innovation, and promote the realization of a diversified market supporting strategy. Taking the construction machinery market as an example, Weichai Power, as a major supplier of construction machinery, has been making efforts in product quality and constructing a diversified market over the past few years, and has expanded from a special matching loader to a non-loaded market. When the entire market fell last year, Weichai sold more than 10,000 units in such supporting markets as bulldozers, car cranes, and agricultural machinery. It has been revealed that from the orders of the first two months of this year, the upward trend remains unabated. In the truck market, the engine sales exceeded 20,000 units in February this year and it still shows a full-load production situation. At the same time, Weichai has always adhered to the “all-round†market development strategy. While consolidating the domestic market, it also uses the brand advantages, technological advantages, and service advantages of its enterprises to identify the growth points of foreign trade exports through a large number of inspections of various markets. Differentiated marketing measures have been developed in Russia, Indonesia, Vietnam, Turkey and South America, the Middle East and other overseas markets, and truly do not shine in the East.
Tan Xuguang pointed out that the achievements made by Weichai in recent years are the result of continuous innovation. This also allows Weifang to accumulate strong internal strength and make full preparations to cope with the crisis and overcome challenges.
Adversity highlights advantages
With the advent of the crisis, the value and role of the strength and cost advantages of powerful companies have become more prominent. Tan Xuguang told reporters that the economic recession is the best comprehensive inspection opportunity for the company's ability to innovate. At this time, it can best test whether the company's products are closest to the market and whether the products can best meet the requirements of consumers. Especially at present, the country has put forward more stringent emission and consumption reduction standards for engine products, which is definitely a rare market opportunity for engine brand enterprises such as Weichai with strong advantages.
Tan Xuguang explained that for many years of market surfing, Wei Chai’s keen mind was trained. As early as the beginning of December 2007, Weichai once held a meeting of all leading cadres and issued a warning to the entire group about the upcoming global economic downturn, allowing employees to have a clear understanding of the market situation.
Since then, Weichai has begun to re-examine its own development strategy, assess the challenges and opportunities posed by changes in the company's external environment, and analyze the prospects and countermeasures of the company's response to the crisis. In 2008, Weichai sent technical, marketing, and financial professionals to form a special research team and successively went to the United States, Europe, Southeast Asia, and other countries and regions to conduct comprehensive research and evaluation of international capital markets, product markets, and talent markets. The Group has held various forms of strategic seminars in Hong Kong, Shanghai and Beijing successively. It has conducted careful and detailed research on the future trends of the industry in both domestic and overseas markets and has formulated a set of countermeasures for corporate operations.
At the same time, Weichai has always persisted in tapping internal potentials, taking an intensive, in-depth development path, and making efforts to shift to a lean management model. The Group's enterprises simultaneously reduced costs, controlled inventory, strengthened accounts receivable management, etc., accumulated a large amount of cash reserves, and enhanced the company's resistance to wind and waves.
Weichai "breaking ice out of the sea"
To achieve internationalization is the dream of every aspirational company. Over the years, Weichai has been persistently pursuing its own internationalization. From the simple export products to the gradual establishment of the marketing network and the creation of an international brand, Weichai's internationalization process has been steady and solid.
The financial crisis has hindered many companies from entering the international market. However, Tan Xuguang believes that the crisis has also created favorable conditions. This is because the financial winter has frozen the international market, but also brought the industry to reshuffle the opportunity. In the current international market, asset prices are increasingly attractive, and Weichai has rich experience in capital operations, and it is a golden opportunity for resource integration. Tan Xuguang said that every crisis is a good opportunity for the development of advantageous companies. Weichai can not be satisfied with the status of low-end competition relying solely on cost advantages. It must seize the favorable opportunity for the industry and industry to reshuffle the card, objectively analyze the situation, take the initiative to attack, and take advantage of the company’s sufficient cash flow and capital operation advantages. In the "winter swimming" to seize the opportunity to establish a new type of business structure.
As early as a few years ago, Tan Xuguang proposed that we should further emancipate our minds and boldly go to the forefront of the international market to introduce talents, products and technologies. The global financial turmoil has led to the massive layoffs or bankruptcies of many large multinational companies in the world. This has brought rare opportunities for China's outstanding companies to accumulate technology, talent, and brand value and enhance their ability to innovate. Weichai has made sufficient preparations to seize this favorable opportunity, vigorously introduce advanced technologies and products, vigorously introduce international talents, continue to expand the scale of enterprises, and enhance their own strength.
At the end of last year, Weichai proposed to build the company's three major competitive advantages, namely, to take "Lan Qing Power" as the core, build product portfolio competitive advantage, and take "5P Service Engineering" as the core to create post-market competitive advantages; with powertrain The system is the core and builds the industrial chain's collaborative and competitive advantage. Today, more than two months have passed in 2009. Weichai’s advantages have gradually emerged: In February, the engine’s orders reached more than 30,000 units, and exports earned more than 80,000 U.S. dollars.
In response to the storm brought about by the financial crisis, Weichai has already “broken up to seaâ€.
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