Tan Xuguang, chairman of Weichai Group, which owns two listed companies, Weichai Power and Shandong Juli, is now facing difficulties. Tan Xuguang, a self-proclaimed "Matador", frankly stated that Weichai Power (hereinafter referred to as "Weichai") is experiencing the most severe challenges.
At the end of December 2008, Weifang in Weifang, where snow was snowing, held a 2009 business conference. However, the hot weather at the scene could not conceal the difficulties facing the industry.
The current automobile industry is experiencing a winter that may be colder than in 2004. Weichai has not been spared. The relevant analysis shows that the demand for heavy trucks will further decline in 2009, the growth rate of construction machinery industry will drop significantly, and the engine sales volume will decline by a certain extent.
The industry is sluggish, but competitors are quietly pushing.
In China, FAW Xichai invested heavily in the development of the Aowei engine with the support of FAW Group; Shangchai and Hino have jointly produced an 11-liter engine; Dongfeng has a Nissan Renault 11-liter engine and Cummins C300 series; Yuchai is also Heavy-duty engine fields are frequently used.
In foreign countries, the three major heavy truck brands in Europe, Volvo, Mercedes-Benz and Renault, have signed cooperation agreements with domestic companies at different points in time.
At present, Weichai still occupies half of the country's 15 tons or more heavy vehicles and 5 tons of loaders, but the situation is changing.
Seeking a breakthrough
Despite facing a crisis, Tan Xuguang expressed confidence that he will overcome this difficulty. The confidence first comes from Weichai's 10 years of innovation and development and accumulated competitive advantages. Second, it is a gold industrial chain formed with upstream and downstream companies.
Tan Xuguang pointed out that in economic integration today, market competition has already risen from independent competition among individual enterprises to joint competition between industrial chains. In the long-term cooperation process, Weichai has formed an unbreakable interest community with a large number of suppliers, OEMs, distributors, and service providers, and has built a multi-level strategic cooperation platform. This is also an effective measure to cope with the economic crisis.
At the business conference, Weichai introduced two WP5 and WP7 series diesel engines that are mainly for 8-meter to 12-meter passenger cars, medium and heavy-duty trucks, and various construction machinery. In addition, Weichai also actively improves the high-pressure common rail series heavy truck engines. At present, it has developed a National III diesel engine. Compared with a diesel engine with a mechanical pump and an EGR system, it is estimated that the combined fuel consumption of the same power can be reduced by 15%, and the current market share is steadily increasing. .
Tan Xuguangâ€™s goal is to make Weichai Power the worldâ€™s largest general-purpose engine manufacturer and provide high-powered power support for heavy-duty vehicles, passenger cars, construction machinery, ships, power generation and other industries, breaking the domestic independent engine manufacturers into the atmosphere Fatality.
From a debt of 300 million yuan 10 years ago, to sales revenue exceeding 50 billion yuan in 2008, an export value of 800 million U.S. dollars, and a target of sales revenue exceeding 100 billion yuan in 2012, Weichai's ambition will never be due to cold spells. And cool.
Turn crisis into opportunity
In fact, for this seemingly sudden economic crisis, Weichai already had a hunch. In December 2007, Weichai held a general cadre meeting to send a warning to the entire group about the upcoming global economic downturn.
Last September, the financial crisis broke out. Weichai dispatched a research team to visit the Americas and Southeast Asia, and held various seminars in Hong Kong, Beijing, and Shanghai to formulate a set of countermeasures for corporate operations based on the industry's future trends.
â€œThe economic recession is precisely a great opportunity for companies to make technical reserves.â€ Tan Xuguang said several times in public that each industry adjustment is an opportunity for powerful companies. After reshuffle in the industry, the position of dominant enterprises will be able to It is more firmly established.
He said: "When the market grows at a high rate, many basic tasks cannot be taken care of. Now we can concentrate on doing these things and observe new market demands."
Qian Cheng, vice president of Weichai, said that well-run companies are those companies that not only have a good strategic layout, but also are good at anticipating the arrival of the trough. When the economy is good, invest prudently; when the economy is bad, use sufficient cash reserves for new product development; when the market picks up, bring new products to market in a timely manner, which is a virtuous circle.
At the same time, this is also a good time to configure the strategic resources of the company's overall business. Through domestic or foreign M&A projects, it will further optimize the entire group's industrial resources. Although the current economic situation has caused the entire M&A market to be inactive, some enterprises in difficult times are very willing to be strategically reorganized. Therefore, it is a good opportunity for acquiring companies to achieve strategic development.
He said that the financial crisis or the low tide of the market just gave enterprises sufficient time to plan the next step. Weichai has followed this rule.
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