On December 20, 2009 Weichai Power's 2009 annual business conference was held in Weifang. Tan Xuguang announced at the conference that Weichai’s sales revenue exceeded 50 billion yuan in 2008 and earned US$800 million in export earnings. It was ranked among the top 500 Chinese companies for five consecutive years. Year after year, it has become one of the fastest growing and best-run companies in the industry. At the same time, Tan Xuguang also disclosed that Weichai strives to double its sales revenue by 100 billion yuan in 2012 and enter the target of the world’s top 500 companies. It will also deal with the current financial crisis and the market strategy of Weichai in 2009. Anatomy.
Upstream and downstream cooperation to tide over difficulties
In the second half of 2008, the global financial crisis that evolved from the US subprime mortgage crisis is affecting China's real economy. Insufficient domestic demand, reduced investment, and declining exports. The three major economic engines have collectively suffered setbacks. The auto industry has suffered and suffered a colder winter than in 2005. In this regard, Tan Xuguang said that although Weichai is experiencing the most severe challenges, it still has confidence in overcoming difficulties.
In fact, as early as December 4th, 2007, Weichai held a meeting of all leading cadres and issued a warning to the entire group about the imminent arrival of the global economic recession, and from the ideological point of view, it has carried out comprehensive unification. Beginning in September 2008, Weichai also organized a professional research team to conduct a comprehensive assessment of the domestic and foreign capital markets, product markets, and talent market, carefully study the industry's future trends, and effectively formulate response measures. It can be said that in dealing with this crisis, Weichai has been at the forefront of the industry.
Tan Xuguang believes that through 10 years of innovation and development, Weichai already has a relatively strong economic foundation and has become a well-known power brand. At the same time, it has also accumulated rich experience in capital operations and these companies have survived difficulties. Not only that, Weichai also has a gold industrial chain that gathers powertrain resources formed by companies such as Weichai Power Engine, Fast Transmission, and Shaanxi Hande Axle, which makes it the only company in the world that has complete power. The group of integrated systems is conducive to exerting synergistic competitive advantages among enterprises, expanding the space for enterprise development, and enhancing the ability of enterprises to resist wind and waves.
In the market, Weichai has formed an unbreakable interest community with a large number of suppliers, OEMs, distributors, and service providers. It has built a multi-level strategic cooperation platform and expanded various business cooperation areas. In times of crisis, the closer this cooperation will be, the more adequate it will be for the company to survive.
Product Services
Tan Xuguang emphasized that in 2009, Weichai will continue adhering to the business philosophy of “customer satisfaction is our tenetâ€, and regard user’s voice as the first requirement, user needs as the first choice, and user interests as the first priority; Customer satisfaction is taken as the first standard, and its goal is to achieve 100 billion yuan in sales revenue by 2012, which will lay the foundation for entering the world's top 500 companies.
According to reports, Weichai will launch more new products based on market demand in 2009. On the one hand, we continue to mass-promote the Blue-Qingguo III WP10 and WP12 engines that have been market-proven and have advanced levels of international advanced power. At the same time, it will also be based on 10 liters, 12 liters engine, the power segment extends downward.
At the business conference, Weichai launched the WP5 and WP7 diesel engine products. These two products took over the core technology of Lanqing Power and drew on the world’s most advanced R&D concept for small and medium-displacement engines. It is a new brand tailored for Weichai passenger cars, medium and heavy trucks and various construction machinery. The model not only has the advantages of compact structure, excellent dynamics and economy, simple operation and easy maintenance, but also fully meets Euro IV and Euro V emission standards. The launch of WP5 and WP7 products also signified that Weichai's products and market structure are more reasonable, and its continuous growth capability will be significantly enhanced. Take 5P service engineering as the core to create post-market competitive advantages. In the developed countries of the automobile, the automobile service industry is called the "golden industry." More than 70% of the profits of auto companies come from services, accessories, auto finance and used cars. The auto service industry has become an important pillar of the sustainable development of the auto industry. In 2009, Weichai Power will focus on building 5P service projects with professional services, exclusive accessories, special oil products, proprietary technology products, and professional remanufacturing as the core, and strive to create competitive advantages in the post-market.
In terms of services, Tan Xuguang pointed out that Weichai will insist on promoting the 5P service project, proceeding from the interests of customers, and provide customers with comprehensive protection services for Blue-Qingguo III. The 5P service project is the commitment of Weichai Power and a special maintenance service center to customers; at the same time, it is also a new profit model tailored by Weichai for the majority of dealers and special service centers, and is expected to be distributed to dealers in 2009. And the maintenance service center added more than 500 million yuan in profits, and truly realized the win-win situation of manufacturers, distributors and service providers.
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