Weichai Yangtze River Delta Big Array: Want to Build Another "Gold Industry Chain"?
On October 10, 2013, Yangzhou City ushered in the largest number and largest scale of business meetings ever. In the newly completed Weichai (Yangzhou) Yaxing Automobile Industry Park in Beishan, Yangzhou, Shandong Heavy Industry? Weichai Power released its strategy for the Yangtze River Delta. As many as 3,500 guests attended the conference, and they have concentrated on the strength of major customers, suppliers and distributors in the domestic and international bus, commercial vehicle, and construction machinery markets. This array, needless to say, came to the moment of Tan Xuguang’s “salvage on the beachâ€.
"The Yangtze River Delta will use Yangzhou as the center to build light engine bases, commercial vehicle bases and special vehicle bases. By the end of 2018, sales revenue of various companies in Yangzhou will exceed 10 billion yuan," Tan Xuguang said in his speech. Weichai's strategic vision has also made a "subtle adjustment": "With the vehicle and the machine as the leader and the power system as the core, it has become a global leader in international transportation and industrial equipment with core technologies and sustainable development. group……"
"With the vehicle and the machine as the leader", Weichai's new formulation on the strategic vision is obviously the key to understanding its strategy for the Yangtze River Delta.
New vision
Looking back on the past, Weichai has made every change in its strategic vision.
In Weichai's 2009 annual report, the strategic vision of "a complete machine-oriented vehicle" emerged for the first time. The corresponding background is that in the second half of 2009, domestic real estate, road and bridge construction, and large-scale civil engineering construction directly promoted the rapid expansion of the heavy-duty truck market. In the fourth quarter of the year, the country sold a total of 185,000 heavy trucks, an increase of 191.4% year-on-year. In the same year, the establishment of Shandong Heavy Industry Co., Ltd., Weichai's expectation for the development of the whole vehicle will be stronger than at any time.
However, in the 2011 annual report of Weichai, since the 2009 adoption of the "whole vehicle-oriented" approach, it has become "a whole machine-oriented." Since 2011, due to changes in macroeconomic policies, monetary policy tightening, and weak infrastructure construction, the heavy-duty truck market has ended in the era of rapid advancement. In the same year, the country sold 88.06 million heavy trucks, a year-on-year decline of 13.44%. What's more, this time Weichai also had more concerns about the variable of “Shanxi Group’s listingâ€.
Today, "taking the whole vehicle as a leader," it is clear that we must talk about a new story of Weichai's strategic adjustment. “Weichai Group will implement a strategic restructuring, in which the leading role of the vehicle will be enhanced. By 2018, the total vehicle sales will increase from the current sales revenue to 48% to 60%,†said Qian Cheng, Vice President of Weichai Power. Indicated. However, Weichai has the confidence to upgrade the whole vehicle business, which is probably due to its new layout in Yangzhou.
Yangzhou to Weichai
Since ancient times, the military has been camped out, one to defend the territory, and the other to attack the city. This time Weichai shot probably more biased towards the latter. From the time when the strategic cooperation agreement was signed with the Yangzhou City Government on November 24, 2009, Tan Xuguang had already begun planning the Yangzhou layout of Weichai. The first "armed force" he obtained was Yangchai, who was in trouble.
In the 1990s, Yangchai was a well-deserved "star" of light-duty diesel engines. Its multi-cylinder and four-cylinder machines, as well as supporting light trucks and light passenger engines, produced the highest sales in the country with a market share of 51%. However, by 2007, its market share slipped to 6%. From the "altar" to the "lower", Yangchai looks forward to rejuvenation through rejuvenation. After comparing Yuchai, Indian AL, and Weichai, the Yangzhou City government finally extended an olive branch to Weichai. For Weichai, it is time for Yang Chai to come.
One of Tan Xuguang’s strategic goals has always been to produce and sell millions of engines each year. It is obviously difficult to achieve this goal by relying on the construction machinery, passenger cars and medium and heavy truck engine products of the time. In order to achieve its goals, Weichai must win the largest commercial vehicle market segment, the light truck market. Judging from Weichai's product line at the time, the lowest displacement product is the 4-litre WP4 Lanqing. Although the power is suitable for large light trucks such as Jianghuai Weiling and Dongfeng Duolika, it is very difficult to enter into the relatively stable matching of light truck manufacturers. market. At the same time, it takes longer to develop a smaller engine. In the reorganization of Yangchai, Weichai won two to four liters of low-power engine platforms in one fell swoop.
After the collection of Yangchai, Weichai invested 20 million euros in the introduction of the Italian VM company D series, I series of nine kinds of products, dozens of models to do all the supporting production. As a result, Tan Xuguang successfully completed a full range of product platform layouts covering 2 to 289 liters of displacement and 25 to 10,000 horsepower. Yangchai entered the market of high-end, small-displacement engines and set off a wave of light-duty trucks at that time and then for a long time.
The first victory in cooperation with the Yangzhou City government has also laid the ground for Weichai to obtain the second "armed force" in Yangzhou.
Like Yangchai, in the 90s of last century, Yaxing was "in heaven." In 1998, Yaxing produced an annual output of 14,000 passenger cars. The company had an annual output of more than 2,000 vehicles and only Yutong had more than 1,000 vehicles. It can inherit Yaxing of Germany's Daimler-Benz advanced manufacturing technology, but its market share has continued to decline. In recent years, its operating performance has been weak. In spite of this, Yaxing's four product lines, passenger buses, power diesel engines, commercial vehicles, and special vehicles, have a clear positioning, good stock assets, and comprehensive production qualifications. This is undoubtedly an appetite for Weichai.
In March 2011, Yaxing Group and Weichai Yangzhou Company signed an agreement to transfer 51% of the shares held by Yaxing Bus to Weichai for free; between November and December of the same year, Yaxing Commercial Vehicles was completed. The procedures for the transfer of the equity of the special vehicles to Weichai. Weichai just took the opportunity to formally declare its entry into the vehicle market for passenger cars, light commercial vehicles, etc., and Tan Xuguang’s strategic layout in Yangzhou also began to take shape:
There are Yaxing Automobile Industry Park and Yangchai Industrial Park in the Yangzhou plate of Weichai. They are separated on both sides of the ancient city of Yangzhou, one north and one south. According to Qian Cheng, Vice President of Weichai Power, Yaxing Automobile Industrial Park has a total investment of 1 billion yuan, with an annual output of 20,000 buses and 5,000 special vehicles. It is an international first-class vehicle production base; Yangchai Industrial Park has a total investment of 1.57 billion yuan. Yuan, with a production capacity of 400,000 units, is the world's leading engine production base.
According to the plan, the Yangzhou section of Weichai will exceed 10 billion within five years. “Asian bus, Yangchai, and Shengda special vehicles have industrial synergies. Their development and growth can enrich and strengthen the group's gold industry chain.†Qian Cheng In addition, “Weichai will invest 3.5 billion yuan in the development of new products in the next five years, and we will prepare and develop 48 buses and 10 new special vehicles.â€
This kind of handwriting can not be described as insignificant, and Yangzhou's approach to Weichai is not just the focus of the entire vehicle and the overall strategy upgrade.
Powering overseas markets
In Tan Xuguang’s strategic vision for Weichai in the future, there will never be a lack of such words as “global†and “internationalâ€.
In fact, Weichai has been active in overseas markets in the past two years: First was the successful acquisition of Italy's Ferrari, the world’s largest luxury yacht manufacturer, followed by a strategic reorganization of the German KION Group. In September this year, Linde Hydraulics, a subsidiary of Weichai Holdings, started construction of a new plant in Aschaffenburg, Germany, marking the beginning of a new phase of its direct investment in Germany. The international development strategy has further landed...
Despite many advancements, the proportion of Weichai's international sales revenue has not changed much. According to the annual report of Weichai Power for the past three years, the proportion of Weichai’s overseas sales has increased year by year, but it still lingers in the single digits. Overseas sales accounted for 7% in 2012, and 5% in 2011. 2010 Only 4%.
However, at the strategic conference, Weichai made it clear that Weichai will vigorously explore the international market in the next five years, and its overseas sales ratio will exceed 1/3. Undoubtedly, in the overseas market planning for many years, Weichai will finally usher in a harvest period, and the Yangzhou plate will also play an important role in its overseas battle.
The new models launched by Yaxing New Products are new energy buses for overseas mid- to high-end markets. The key step in the overseas deployment of Yaxing New Energy Bus is the reorganization of Xiamen Winterthur. At the end of October last year, Tan Xuguang went to Fujian Province for market research. Xiamen Fengtai appeared in his schedule. Xiamen Fengtai, just two years after its founding, is a Sino-foreign joint venture new energy bus manufacturer. It has introduced foreign advanced new energy vehicle manufacturing technologies, including lithium-ion battery and control system production technology, and has independent knowledge in core technologies of new energy vehicles. Property rights, products 100% exported to Europe and the United States, Australia and other developed countries and regions. Two months later, Yaxing invested 83.2759 million yuan, reorganizing Xiamen Fengtai with equity changes and capital increase, and obtained a 51.53% stake in Xiamen Fengtai after restructuring. As a result, Weichai has acquired a production and sales base for new energy bus bases and passenger cars.
Today, the synergies between Yaxing, Winterthur, and Weichai are gradually emerging. The YBL6183H road bus, the flagship model of the Yaxing Wittstar series, is the best example. This road engine coach, which combines Weichai's engine, Fast's gearbox, and Hande's rear axle, is also extremely innovative in terms of interior and seating design for the luxury yacht Faraday. Just ten days after the strategic launch, the car has been well received by the market, and the orders are gratifying. According to Pan Xing, the director of the Yaxing branding department, “The current YBL6183H road passenger bus orders mainly come from the United States, Canada and Australia. According to rough statistics, more than 200 intentional orders have been reachedâ€.
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