2011 Internal Combustion Engines Inventory Count: Weichai Urges 100 Billion

As the largest manufacturer of several diesel, Weichai, Yuchai, Chaoyang Diesel Xichai and in recent years has maintained a rapid development. Although the commercial vehicle market experienced a sharp decline in 2011, the four leading companies still resisted pressure and maintained a good momentum of development.

Weichai: Forcing the 100 billion mark

Faced with the severe and complicated economic situation, Weichai Group (hereinafter referred to as Weichai) insisted on endogenous growth, implemented innovation-driven, continued to maintain stable and rapid development, and achieved a good start in the development of the “Twelfth Five-Year Plan”. In 2011, the company sold 680,000 sets of various types of engines, 98,000 heavy-duty vehicles, and 700,000 sets of transmissions, and achieved total sales revenue of 98.2 billion yuan, continuing to maintain its absolute leading position in the industry. Tan Xuguang, chairman of Weichai, said that in 2011 Weichai seized the opportunity to create a new situation in all aspects of work. First, by marking the 65th birthday of Weichai as a symbol, we summarized the scientific development path of adhering to development, persisting in reforms, persisting in innovation, persisting in people-centeredness, and uniquely distinguishing Weichai from others, and pointed out the direction for building a century-old enterprise. Secondly, with the strategic reorganization of the Ferretti Group as its symbol, it has innovated the global restructuring model, promoted the strategic landing of high-end luxury yacht products, accelerated the optimization of enterprise structure and product upgrades, and achieved a major breakthrough in international development. The third is to win the China Industrial Award as a symbol, to enhance the corporate brand reputation and social influence, and establish the important position of Weichai in China's equipment manufacturing industry. Fourth, the “three-high” spirit was fostered and formed as a symbol, which further enriched the corporate “responsibility-based” cultural connotation, inspired the passion of the full-time passionate officers, and enhanced the corporate cultural soft power.

Tan Xuguang believes that 2012 is the year of transformation and upgrading of Weichai. In the face of the global economic downturn and the steady improvement of the domestic economy, Weichai must continue to implement the scientific concept of development in an in-depth manner, adhere to the scientific development path unique to Weichai, increase investment in R&D, and achieve endogenous growth. Effectively improve the ability of independent innovation; give full play to the synergistic advantages of the Group's business sector resources; use the global operation centers of the United States, France, and Italy as platforms to continuously accelerate the pace of internationalization; implement the first project of talents, innovate talent management mechanism, and continuously optimize Talent structure: Taking "Product Year" as an opportunity to fully implement the concept of WOS lean management, to create a unique management model of Weichai; focus on strengthening corporate culture construction, with "responsibility" as the core, to learn the spirit of "three highs" As the main line, we strive to create a cultural atmosphere of passionate entrepreneurship, and further enhance the company's centripetal force, cohesion, and combat effectiveness, and promote the company's goal of becoming a world-leading equipment manufacturing group with core technologies and sustainable development.

Yuchai: Sales return to first

Yu Ping, Chairman of the Board of Yuchai Group (hereinafter referred to as Yuchai), said that in 2011, Yuchai, under the guidance of the business policy of “preserving the start, grasping projects, and fostering superiority,” has worked hard to face the harsh market conditions and created A lot of success. The “guaranteed opening” was successfully achieved, the 40 billion yuan operation target was completed on time; the “scratch project” achieved substantial results; the Zhuhai shipbuilding project and the Qinzhou petrochemical project were successfully put into production; the Jining Yuchai project had the production capacity; Yuchai United Power, CSR Yuchai The initial benefits are emerging; the effect of “cultivation of superiority” appears, the two advantageous industrial chains of engines and construction machinery are becoming more and more solid, and the new mission of “making the trust of partners and the public more valuable” highlights the charm of corporate cultural competitiveness.

In the downturn of the automotive industry, Yuchai Engine produced and sold more than 690,000 units, sales returned to the industry first; sales of construction machinery exceeded 8200 units, the status of the industry further consolidated; quality improvement work in an orderly manner, the market feedback is good, users Satisfaction was significantly improved; the first Euro VI prototype was born and the emission technology was synchronized to the world; the lean manufacturing project was deeply implemented and strengthened the body of the company. At the same time, the group's comprehensive competitiveness began to show. In the case of a year-on-year decrease in the sales revenue of the engine and logistics and automobile and auto trading sectors, the sales revenues of the four major segments of construction machinery, energy and chemicals, special-purpose vehicles, and auto parts all achieved significant growth, and the group as a whole showed a good growth momentum. This adds an important weight to the development of the "Twelfth Five-Year Plan".

After a scale of over 40 billion yuan, Yuchai embarked on a new journey. Junping judged that 2012 will be a year in which China's economy continues to stabilize, and Yuchai will face a more severe test. How to "make the trust of partners and the public more valuable"? How to make progress in stability and fully capture new brilliance? How to lay a solid foundation for the scale of the 100 billion yuan in the "Twelve Five Year Plan" in the last year? In the new year, the Yuchai Group’s business policy is to “promote growth through quality assurance, wide open source for development,” and the business goal is established as “a sales income of 46 billion yuan”. "Quality-guaranteed growth" refers to enhancing the group's soft power, upgrading product quality, improving service quality, expanding stock business, consolidating product chains, enhancing human capital, optimizing the industry sector, and improving anti-risk capabilities. "Guangdong Open Source for Development" refers to the development of major projects, the cultivation of new growth points, the preparation of product diversification, serialization and market diversification, expansion of financing platforms, promotion of brand value, creation of development opportunities, and promotion of the Group. Steady development.

Chao Chai: Reforming Machine

2011 is destined to leave a deep impression on the history of Dazhai. Although the sales performance of the company was not impressive in 2011, the successful completion of the restructuring was no different from that of the Phoenix Nirvana. On December 5, 011, Dongfeng Chaochai Power Co., Ltd. (hereinafter referred to as Chaochai Power) was formally established. After diversification of equity, the company was jointly funded by Dongfeng Chaochai, Shanghai Ruru Enterprise Development Co., Ltd., Shanghai Fangyuan Investment Co., Ltd., and Shanghai Zhifu Business Service Co., Ltd. business. Among them, Dongfeng Chaochai Company invested 60 million yuan, accounting for 20% of the shares of Chaochai Power; two private investment companies Shanghai Ruru and Shanghai Fangyuan invested 90 million yuan and 63 million yuan respectively, accounting for 30% and 21% of shares; Shanghai Zhirong, representing management, contributed 87 million yuan, accounting for 29% of the shares.

Fan Chong, chairman of Chaochai Power, said that the company will continue to engage in the research and development and manufacture of diesel engines, and will continue to consolidate and expand the existing diesel engine market for light vehicles while planning a new development strategy. The establishment of Chaochai Power has a lot to do with the general direction of Dongfeng's reform. According to the unified requirements of the SASAC, the non-primary sector of the central SOEs needs to speed up the withdrawal, and Dongfeng Zhaochai is not the main business of Dongfeng, and is naturally within the scope of withdrawal. From the perspective of Dongfeng Chaochao’s own development needs, it is imperative to reform the system. In the 18 years after Dongchao joined Dongfeng, Dongchao received strong support from the company. However, due to the fact that it is far from the headquarters, Dongfeng Motor Company itself has a number of engine plants similar to those of Chaochai, and the system is not flexible enough. Break through bottlenecks in development. In recent years, the competitive pattern of the diesel engine market has undergone tremendous changes, and all auto factories supported by Dongfeng Chaochai Company have invested in forming their own diesel engine production capacity, which will directly affect the future development of the diesel engines in these auto plants. The development of competitors and the integration and reorganization of the diesel engine industry have made the traditional diesel four-cylinder machine market more competitive. The traditional superior products of Chaochai are only suitable for light vehicles. The narrow range of product series has limited the space for survival and development of the company. However, due to institutional reasons and the unified product planning of the Group, it has been difficult for Dongchai’s product service areas to synchronize with the market, and therefore missed many development opportunities. According to statistics, in 2010 Dongfeng Chaochai’s sales revenue was 2.4 billion yuan, and its operating profit was only 9 million yuan. The increasingly poor profitability eventually led management to make up their minds on corporate restructuring. Fan Zhong said that after the restructuring, the property rights of enterprises will be more clear and their responsibilities more clear. The company will have complete independent planning ability and flexible adaptability, and adjust product planning and development strategy according to market demand changes.

Not long ago, Dongfeng Chaochao Technology Center was approved as a “National Accredited Enterprise Technology Center.” This is a recognition by the state of the enterprise technology center that has strong innovation ability, remarkable innovation performance, and important demonstration role in major national economy industries. Chao Zhuang, general manager of Chaochai Power, pointed out that currently, Chaochao Power has strong independent research and development capabilities. In the future, the company will continue to build a research and development platform with international advanced level, and give play to the advantages of the main industry to gradually expand the product area. It is understood that in the future product planning, the possibility of the development of high-tech products such as generator sets and high-pressure water pumps cannot be excluded. After restructuring, the flexible mechanism of private enterprises determined that Chaochai could devote more efforts to new product development and market development. In product research and development, Chaochao will not only enhance the performance and stability of the existing 102 series, 3-liter series, D series, 4A series, and gas series, but also strengthen the development of 6D series and heavy machinery products. By 2015, we will complete the development of a full-fledged product line five.

It is worth noting that the Chaochai 6D series will break through the situation of light diesel engines as the main market, and will enter into heavy-duty diesel engines that use engineering machinery as a breakthrough. It is understood that 6D products adopt the technical route of high-pressure common rail + cooling EGR (exhaust gas recirculation) + DOC (oxidized catalyst) + POC (particulate oxidation catalyst) to meet the national IV emission standards and can be upgraded to the State V. , The launch of the 6D series has created a new blue ocean for the development of Chaochai. Zhao Hai, deputy general manager of Chaochai and general manager of the sales company, said that the company will adopt new ideas for self-breakthrough, innovation management, and fine marketing to ensure the successful completion of marketing goals. Among them, the employee incentive system and the terminal channel management will break through the existing model, and the market share of key product areas will increase significantly. It will also fill the gap in the market share of small construction machinery and focus on the market of 4D85 and 6D construction machinery.

Xichai: Heavy machine ready to go

In 2011, FAW Wuxi Diesel Engine Factory (hereinafter referred to as Xichai) sold 370,000 diesel engines, achieving a sales income of 10.4 billion yuan, of which profit was 250 million yuan. Obviously, dragged by the heavy truck market, from the data point of view, the performance of Xichai is not eye-catching, but it is not without gains. On May 10th of that year, Xichai held a grand award ceremony of “One Million Kilometers of Experience Aowei Power, Perceived Liberation Strength” and announced that its Aowei engine reached a maximum mileage of 1.8 million kilometers. At the same time, Xichai's natural gas engines have also begun to exert force. Its bus products are supplied in batches by bus companies in cities such as Wuxi, Changzhou, Binzhou, and Yingkou, and the two series of trucks, 6SL and 6SN, are in line with FAW. From January to October 2011, sales of Xichai natural gas engines reached 746, an increase of 11 times year-on-year.

The completion of the two major technical reform projects has also laid a solid foundation for Xichai’s efforts to win the race. First, the construction of the new Huishan base. In accordance with the requirements of the “three leads,” the base will grab time, schedule, and ensure high quality. All work will be carried out in an orderly manner. Currently, the construction of the factory area and equipment are being debugged to ensure the construction of the project and the image construction. The “four synchronizations” of process construction and system construction have become the gifts for the group and the liberation company at the end of the year. The second is that the remanufacturing base has been completed and put into production, which has created a precedent for the remanufacturing of FAW engines and has set an example for the development of circular economy. At the opening ceremony on May 10th, Chairman Xu Jianyi of FAW Group and leaders of Wuxi attended the ceremony.

In terms of improving internal management, Xichai also gained a lot in 2011. In June, the Xichai Party Committee held a seminar on “Human Resources Development and Management”, which clarified the problems existing in the development and management of human resources and clarified the importance of human resources as the company's first resources and the requirements for future development. After the meeting, the Xichai Management Department quickly formulated the “Five Forces” incubator mechanism to implement the implementation plan of market-based human resource allocation and “dual-system” human capital development, and accelerated the implementation of the “talent enterprise” strategy. The first is full training and the work has a solid effect. Whether it is the “831” training for departmental leaders, the “four new trainings” for technical elites, the training of excellent team leaders, or the “training exercises” special training, they all closely follow the actual conditions of the factories and meet the development needs. Followed by lean people, through the implementation of "manpower output responsibility belt, rigid incentives for personnel development, professional transfer from the bottom remuneration" policy, to optimize the human resources layout of Tangnan, Huishan two bases. The full load rate of the entire plant has increased by 5%. This is followed by salary distribution. The newly issued "Provisions on the Management of Paying Confidentiality" embodies the spirit of reform and encourages all employees to abide by their responsibilities and form an atmosphere of "pay for high pay with contributions."

In August 2011, the administrative department of Xichai and the trade unions signed an agreement on “sharing business risks together, discussing business development plans, sharing responsibility and obligations, and sharing development achievements”, which not only further improved the sense of ownership of the employees, but also enhanced the participation of employees Consciously strengthen the democratic management and take the courage to take responsibility. From January to October 2011, employees of the plant proposed 27,507 proposals for improvement, an increase of 15.4% year-on-year. The factory trade unions through the 68th anniversary of the factory celebration "Xichai goes forward" series of activities, stimulated the courage of the staff to forge ahead with strength, and enhance the same breath and common fate, and overcome the difficulties to advance confidence. In 2011, Xichai was again awarded the “National May 1st Labor Award” and won the honorable title of “National Model Labor Relations Harmonious Enterprise” and Jiangsu Province “Eleventh Five-Year” Labor Competition advanced collective.