China National Heavy Duty Truck Group, a predecessor of Jinan Automobile Manufacturing Plant, once gained a lot of glory by ending the history of China's inability to produce heavy-duty vehicles. It was once known as “the steam veterans†and was praised by Chairman Mao and Chairman Zhu De. However, at the end of the last century, “Steam CEOs†had reached the edge of bankruptcy and had to reform and restructure.
In 2001, the restructured China National Heavy Duty Truck was rejuvenated, production and sales rose steadily, and Hong Kong’s red chip listing was achieved in 2007. In 2010, the production and sales volume of China National Heavy Duty Truck reached as high as 199,000, ranking among the forefront of the world's heavy trucks. From the bankruptcy to the listing in Hong Kong, how does China National Heavy Duty Truck realize the gorgeous butterfly change after reorganization?
Reform and Reorganization: Jinan Diverted 18,000 People On September 21, 1995, the 18,000 Steyr trucks were assembled at the Jinan Automobile Manufacturing Plant. Austrian President Thomas Klestil personally cut the ribbon. However, that is, in this year, the company's production and sales decreased by about 40% from the previous year, and the loss amounted to 147 million yuan.
“The market is not very demanding and the product price is too high to accommodate the market.†Mr. Guo from Lao Zhongqi said: “The basic model of the 10 tons of Steyr was sold at the time of 300,000 yuan, and now it is selling 200,000 yuan.†According to reports, members of the company are located in 12 provinces, municipalities, and autonomous regions including Shandong, Shaanxi, and Chongqing. “Many components are produced in other provinces and then shipped to Jinan. The logistics costs for transporting components are very high. Gao, which also escalates the price of the product, said Mr. Guo.
From the middle of the 90s of the last century, the old heavy truck began to decline, and was on the verge of bankruptcy. In 1999, China National Heavy Duty Truck had a cumulative loss of 8.3 billion yuan, resulting in a salary of 442 million yuan.
“Heavy steam needs to be reorganized.†On July 26, 2000, at the 74th meeting of the State Council, the then national leaders made such a decision.
In August 2000, Ma Chunji served as chairman and party secretary of CNHTC in the capacity of Deputy Secretary of the Jinan Municipal Committee. Ma Chunji said, “The greatest difficulty in reform and reorganization is the diversion of staff, which is also the key to the success of the new China Sinotruk reform and reorganization.†According to the reorganization requirements of the State Council, China National Heavy Duty Truck has reduced its workforce of more than 70,000 people. Up to 20,000 people, of which 18,000 were diverted in Jinan.
On January 18, 2001, the new China Heavy-duty Truck Group Co., Ltd. was established in Jinan and proposed the staged goal of “a year of profitability, two years of profitability, and three years into the normal development track.†China National Heavy Duty Truck Group revived .
Change of concept: From the sale of cars to the creation of a car, is it a "first car after the car sells" or a "first sell car after the car"?
"Before the reorganization of CNHTC, everyone would not ask such a question. If you don't build a car first, what do you sell? At that time, everyone's idea was the same," said Mr. Guo. However, the restructured Sinotruk first raised this issue to itself.
On January 18, 2002, at the China National Heavy Duty Trucks Business Conference, the "Three Transformations" drastically changed the marketing system of Sinotruk, that is, changing from a market-adapted market to a market-oriented one, and a shift from direct sales to dealerships. And the conversion of the conversion plant based, marketing personnel to change from sales to after-sales service, information feedback, marketing management and supervision.
Mr. Guo also clearly remembers that “Before 2000, China National Heavy Truck Corporation had marketing companies in 16 provinces in China, with sales staff of nearly 1,500 people. At that time, the sales volume of the company was only three or four thousand. That is to say, The average person sells only up to three cars per year. Today, there are less than 1,000 heavy truck marketing companies that can sell more than 100,000 vehicles each year.†After the marketing mode was changed, the marketers had compressed 30% more than in the past, but the sales volume has increased dramatically. . “The saved manpower to do after-sales service has also deepened the trust and affection of customers for CNHTC. We now have a 'kinship service' and the customer evaluation is very high,†said Mr. Guo.
Changes in marketing methods have also led to changes in production methods. Today, on the first assembly line of China National Heavy Duty Truck Jinan Truck Co., the appearance of more than a dozen trucks at the same time is not exactly the same. The staff member said: “The order type production is now implemented. The user first puts forward the configuration requirements. After paying the deposit, CNHTC organizes the production again. The vehicle is produced and the user pays the money to raise the car.†In the factory's marketing department, warehousing Zhang Zhiyong, head of the district's general office, told reporters, “This storage area can store more than 800 cars, and order customers will take away more than 300 vehicles from this place on average every day.â€
It is understood that from 2002 to 2006, China's heavy truck production and sales at an annual growth rate of 60%. In 2007, China National Heavy Duty Trucks broke through the annual sales of 100,000 units. In 2010, the production and sales volume reached 199,000 units. The production and sales volume ranks among the world's leading heavy truck companies.
Independent innovation: Extruding Japanese cars out of the market At the end of 2004, China National Heavy Duty Truck Co., Ltd. developed the HOWO series of heavy trucks with independent intellectual property rights. In 2007, this series of products exceeded 60,000 units in sales and became the most popular heavy truck on the market. Called "HOWO miracle."
"With the HOWO heavy truck, CNHTC once forced the Japanese car that dominated the Chinese mixer market to squeeze out of the Chinese market." Ma Chunji said, "An enterprise must independently innovate, otherwise it will not have its core competitiveness and it will not be able to win the market. â€
However, innovation sometimes goes through failures. In 1983, SINOSTEEL introduced the Steyr heavy-duty vehicle manufacturing technology from the Austrian company Steyr. After nearly 20 years of development, Steyr became the main model of the Chinese heavy-duty vehicle market and even became synonymous with heavy-duty trucks. “Shaanxi and Hongyan also have Steyr technology, which are all homogenized products. How does China National Heavy Duty Truck seize the market? At that time, China National Heavy Duty Truck took a road to product differentiation.†Mr Guo said that in 2001, China Heavy Trucks has collected 10 million yuan of development funds, and independently developed the first vehicle "Flying Dragon" on the basis of Steyr technology. "To be honest, the market's response to this lightweight heavy truck was not good." Ma Chun-chi encouraged the CNHTC team, "Innovation must tolerate failure."
In 2002, the birth of the Steyr King Series heavy trucks allowed CNHTC to taste the sweetness of innovation. “The current year’s production and sales volume increased from 7800 units in the previous year to nearly 12,000 units, and reached 21,000 units in 2003.†Mr. Guo said, “At that time, all the Steyr technologies were venerated, and the technical staff did not dare to move, but It is this move that has caused miraculous changes in Sinotruk."
On December 19, 2008, the HOWO-A7 was officially introduced to the market. China has now had its own "automobile" heavy-duty truck, and later it has pioneered the development of disc brakes and the development of natural gas engines. Nowadays, China National Heavy Duty Truck has become the most patented enterprise in the national auto industry. The models have also grown from the single series of Steyr to nine series of nearly 3,000 models such as Jude Card, HOWO-A7 and HOWO. Ma Chunji said: "Through independent innovation, China National Heavy Truck is creating a national brand and realizing the transformation from manufacturing to manufacturing in China."
Capital Operation: Hong Kong Listing and “Man†In Hand On November 28, 2007, China National Heavy Duty Truck (Hong Kong) Co., Ltd. was listed on the main board of the Hong Kong Stock Exchange and realized financing of more than HK$9 billion. In fact, in 2004, SINOBIRC had already realized the listing of domestic A shares through the opportunity to reorganize the ducklings. Referring to the listing of Hong Kong red chips, Ma Chunji said that "the listing in Hong Kong and the listing of domestic A shares are two different platforms. By listing in Hong Kong on red chips, China National Heavy Duty Trucks has improved the corporate governance structure of enterprises and established a modern enterprise system. This will make the corporate property rights more clear, make internal management more standardized, increase international business opportunities, and learn advanced foreign technology and management experience.
Hong Kong's listing has also built an international platform for China National Heavy Duty Truck. In 2008, the German Man Group, the world’s third-largest heavy truck manufacturer, proposed cooperation intentions to Sinotruk. On July 15, 2009, the two parties formally signed a strategic cooperation agreement. The German MAN Group spent approximately HK$6 billion to obtain a share of CNHTC, and China National Heavy Duty Truck obtained the right to use the technology of MAN Group in an exclusive license. Mr. Guo said: "Mantech can provide strong technical support for the development of Sinotruk for the next 10 to 20 years."
“The cooperation with Mann has enhanced the visibility and image of Sinotruk, and investors have confidence in Sinotruck,†Ma Chunji said. On October 29, 2010, China National Heavy Duty Truck (Hong Kong) Co., Ltd. sold 2.7 billion yuan of two-year RMB corporate bonds to institutional investors in Hong Kong. “At that time, Sinopec’s corporate bonds were well received and the subscription amount reached RMB 6.8 billion, which was 2.5 times the original amount.†said Guo. “This is the first time that mainland companies have issued RMB bonds in Hong Kong. Large-scale Chinese-funded background enterprises have expanded their overseas debt financing channels."
China National Heavy Duty Truck has an internationalized platform, and sales in the international market are also increasing. In 2004, China National Heavy Duty Truck Group exported less than 60 vehicles and reached 15,000 in 2007. "In the first quarter of this year, China National Heavy Duty Truck has achieved export of 10,000 units. The annual overseas sales plan for the company will reach 28,000 units, and strives for 30,000. Mr. Guo said that the capital operation has boosted the rapid development of China National Heavy Duty Truck.
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