Heavy truck new plant and Dongfeng's core strategy


Shiyan Weekly Contributing Author Murray

Shiyan Base and Dongfeng Core Strategy

In the mid-1980s, Huang Zhengxia’s second car manufacturer broke the single-bottleneck of bottleneck development, and laid out a light truck in Xiangfan, opening the first step to outward development. Afterwards, Dongfeng gradually created the “four-wheel drive” development situation in Shiyan, Xiangfan, Wuhan, and Guangzhou.

In 2003, the Dongfeng Company of the Miao-Dao era relocated its headquarters to Wuhan. Shiyan really changed its position from the heart of Dongfeng to the "base," and the proposal of "destroying the city of waste" took off. In the following years, the gait of the Dongfeng commercial vehicle under the background of the stagnation of the commercial vehicle environment was also apparently fatigued. This seems to add even more to the above argument.

But it is clear that this is not the case.

From July 2009, the official launch of the “863” revitalization plan for commercial vehicles, and the return of Huang Zhengxia’s old man to Wudang in September, are all conveying the Shiyan complex that is difficult for Dongfeng and Dongfeng people to release. The foundation stone laying ceremony of the Dongfeng Commercial Vehicle Heavy Truck Co., Ltd., which was just completed, was a key move to clear the fog of public opinion.

On May 23, 2010, Dongfeng Commercial Vehicle Company held a groundbreaking ceremony for the construction of the new heavy truck plant in Shiyan. The new plant is located next to Dongfeng Avenue, Shiyan Dongfeng Industrial Park, with a total planning area of ​​3,000 mu and a planned production capacity of 80,000 vehicles. It will mainly produce Dongfeng Tianlong and future heavy truck new products. One of the 40,000 capacity will be put into operation in June 2011. After the completion of the new plant, it will integrate vehicle assembly, testing, testing, storage and delivery, and become a benchmarking factory for advanced heavy-duty vehicles with advanced technology, first-rate equipment and scientific management.

Miao Wei, currently deputy director of the Ministry of Industry and Information Technology, returned to Shiyan and participated in the foundation laying ceremony. He personally cultivated a soil. Miao Wei said in his speech: “The established strategic vision of Dongfeng is becoming a reality.” Xu Ping, general manager of Dongfeng Corporation, elaborated on this strategic concept at the foundation laying ceremony: “Strengthen and expand the business of commercial vehicles and consolidate prosperity. The Shiyan base has always been one of Dongfeng's important core strategies, and it is also an inevitable choice for the continuous, healthy, and harmonious development of Dongfeng. Today, the construction of Dongfeng's 80,000 heavy-duty truck plant is the embodiment of this strategy."

National leading medium and heavy truck base

The foundation of the Dongfeng Commercial Vehicle Heavy Truck Co., Ltd. plant has a very pressing practical significance for Dongfeng Commercial Vehicle Company.

The Dongfeng Commercial Vehicle, which has always been the leading company in the field of China Card and Quasi-heavy Trucks, has been “turning the rudder” in the truck market following the shrinking trend of the heavy truck market. As a result, the Dongfeng Tianlong was born. Dongfeng Tianlong was listed for 4 years. In the first year, it sold less than 2,000 vehicles, the second year exceeded 20,000 units, and the third year reached 40,000 vehicles. Even in the 2009 economic crisis, the sales of Dongfeng Tianlong continued to increase.

It is with this foundation that today's Dongfeng Commercial Vehicle can present an exceptionally gratifying situation in the market. From January to April this year, 34,713 vehicles have been sold, an increase of 300% compared with the same period of last year, which is 4 times of the same period of last year. In March and April, sales exceeded 10,000 for two consecutive months. "This is still the result of our lack of capacity. In March, there are two customers waiting behind each dragon car." Huang Gang, general manager of Dongfeng Commercial Vehicle Company, said that 1-4, the business of Dongfeng Heavy Truck Co., Ltd. The growth rate was very large, with an overall increase of 160%, of which heavy trucks increased by 225%, and China Card also increased by 65%. The market share increased by 5 percentage points from last year. In April, the employees of commercial vehicle companies had been processing, but in spite of this it still could not meet the needs of customers.

"The first-phase capacity of 40,000 vehicles is to alleviate the problem of insufficient capacity at the moment." However, investing in new factories is not just to solve the immediate contradictions, but also an important move of Dongfeng Commercial Vehicles to the future Chinese market. It is intended to provide Dongfeng Commercial Vehicles with a solid manufacturing support capability to build and consolidate the domestic leading position of medium and heavy-duty commercial vehicles. Huang Gang said: “Because China is still in the development stage of heavy chemical industry, the macro economy will maintain a relatively long period of steady development. This will have a steady growth demand for the medium to heavy truck market. It is not only the Chinese market. In the future, China’s autos will also have great potential for development in overseas markets. We, Dongfeng Commercial Vehicles, are committed to becoming the “China’s No. 1 and the world’s top 3” medium- and heavy-duty commercial vehicle companies. We must turn China’s east wind into a global wind. We have a lofty vision and vision.Dongfeng Commercial Vehicles currently has strong brand recognition in China, but we hope to soon become a leading brand in Asia and eventually become a global brand to realize our many years of dreams. Therefore, based on the future, we also need to upgrade the capabilities of the future manufacturing system, which is the background for us to invest in new factories.

Major Practice of "863 Revitalization Plan"

At the foundation laying ceremony of the Dongfeng Commercial Vehicle Heavy Truck Co., Ltd., Gong Dongtai, President of Dongfeng Commercial Vehicle Co., Ltd., said: “The construction of Dongfeng Heavy Truck New Base is a major practice of the Dongfeng Commercial Vehicle '863 Revitalization Plan' and will be the development of the Shiyan base auto industry. Inject new vitality."

Dongfeng Commercial Vehicle's "863 Revitalization Plan" is the medium-term business plan, that is, from 2009 to 2012, total sales of Dongfeng commercial vehicles will reach 320,000.

The annual sales volume of the Dongfeng Commercial Vehicle Division (Shiyan Base) will increase from 90,000 vehicles to 140,000 vehicles, among which Dongfeng Tianlong (D310) will achieve sales of 80,000 units and Dongfeng Tianjin (D530) will achieve sales of 60,000 units, an increase of 55%; The company has put into production 3 engines of its own brand; its market share has increased from 12.5% ​​to 20%, an increase of 60%; income has increased from 166 billion yuan to 29.3 billion yuan, an increase of 76%. By 2012, Dongfeng Commercial Vehicle will be built as the No. 1 brand in China, which means that the brand value and market share are both the highest in China and the leading domestic revenues.

Based on this, by 2025, Dongfeng Commercial Vehicle will be made the No. 1 brand in Asia; by 2025, it will achieve the “3rd in the world” brand target, and Dongfeng Commercial Vehicles will enter the mature market in the world in bulk to create a global leading profit rate. And brand value. Dongfeng Commercial Vehicle will adopt the "three-step" strategy to achieve the development vision of "China No. 1 and No. 3 in the world": in the Chinese market, it will be the first brand value and a recognized partner in the transportation industry; it will become a value in the global market. The first medium and heavy commercial vehicle manufacturer.

Nakamura Gongtai believes that the Dongfeng Heavy Truck new plant's role in revitalizing Dongfeng Commercial Vehicles and driving the development of the Shiyan Automobile Industry is reflected in two aspects - it opens up Dongfeng Commercial Vehicles to the future and continues to surpass them, creating an international commercial vehicle standard. The new journey of the pole manufacturing company; it has a great impetus to the enhancement of value and continuous improvement of local parts and vehicle companies.

Looking back over the past few years, every heavy-duty capacity construction project of Dongfeng Commercial Vehicles has brought significant changes to the Shiyan base. Therefore, it can be foreseen that the new heavy-duty plant will create new economic growth and brand value for the Shiyan base.

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