The Revelation of China's Heavy Duty Trucks from Decline to Prosperity
After seven years of reform and innovation, China Heavy-duty Truck Group Co., Ltd. has become the first brand in the domestic heavy truck industry and has achieved a certain market share in the international market. The difficult and tortuous development path of China National Heavy Duty Trucks is a microcosm of the reform and development of large state-owned enterprises in China. It can be said that China National Heavy Duty Truck Group's reform and development road, out of a large state-owned enterprises through the reform of the success of the road of decline, but also effectively confirmed the only reason that reform and innovation can continue to develop.
Before the reorganization of the company, when the product ordering meeting was held, the company's product catalog was only enough to print 3 pages, with a total of only 78 models. Now, China National Heavy Duty Truck Group has 9 series of more than 2,700 models, which is the most complete model in China's heavy truck industry. The product catalog is as thick as a dictionary. At present, the production and sales scale of China National Heavy Duty Truck Group ranks among the top five heavy truck manufacturers in the world. In 2007, the Group’s total vehicle sales exceeded 100,000 units, which was a 26-fold increase from the time before the reorganization; sales revenue was 37.7 billion yuan, which was 13 times more than before the restructuring; the entire vehicle exported more than 16,000 vehicles and earned more than 500 million US dollars. The export volume accounts for 60% of the national heavy truck export volume, and has maintained the industry first for three consecutive years. During the period, China National Heavy Duty Truck (Hong Kong) Co., Ltd. successfully listed in Hong Kong in the form of red chips. The first round of financing was 9.9 billion Hong Kong dollars.
Due to the excellent cost-effectiveness of China National Heavy Duty Truck Products, some products have replaced imported products and the competitiveness of enterprises has been significantly enhanced. For example, in the past, cement mixer trucks in China alone had to import thousands of vehicles from Japan in the past year. However, the number of imported cement vehicles in the country is now less than 30, and China National Heavy Duty Truck produces domestic goods instead. The quality of the cement mixer produced by Sinotruk is similar to that of a Japanese imported car, but the price is half that of the imported car and the maintenance service is more convenient. Not only in China, but also in the surrounding markets such as Russia, Kazakhstan, and Vietnam where the original Japanese cars were monopolized, CNHTC's products gradually expelled Japanese products from the local market.
Ma Chunji said at the first conference after the company resumed production: "Difficulties are contradictions, and contradictions also engender potential. We cannot rely on state support alone, but rely on ourselves to do it."
The company's three-year hardship has made people remember that unscientific operation of the company may be overwhelmed by the market.
On January 8, 2001, China Heavy-duty Truck Group Co., Ltd. after the reform and reorganization was announced. The new group company’s leadership recognized that in the face of the global new round of technological revolution and fierce competition from the domestic heavy truck industry, the group must unswervingly take the road of reform and opening up, making full use of domestic and foreign markets and resources, and Only by taking advantage of opportunities and moving forward can we enter the frontier areas of world production of heavy vehicles in the shortest possible time.
The great progress made by China National Heavy Duty Truck in recent years lies in the enhancement of risk awareness. At the beginning, the company only talked about the results and did not ask about the process. Now control the process and focus on results. The process is strict and the result must be scientific. The company has undergone a lot of reforms in the system process. For example, in the management of waste slag, there were also systems and standards. However, due to no one checking the amount of char contained in the waste slag, it was often taken for granted by some people. Now, to strengthen the implementation of the enterprise management system, companies have hired internal control agencies from the international level. These professional organizations have a high level of professionalism and have supervised the enterprises on the principle of being highly responsible to the enterprises.
Bao Xinjian, Chairman of the Shandong Provincial Social Sciences Coordinator, believes that the CNHTC Group has been unable to solve the problems in the past. In the final analysis, the system issues have not been resolved. And now it is full of vitality, mainly because the system is alive. Reform is the only way for the Chinese nation to move toward a great rejuvenation. Only reform can promote development. The practice of heavy trucks shows that state-owned enterprises should be reformed and can be reformed, and only reform can move from a difficult situation to a new one.
Cai Dong, president of China National Heavy Duty Truck Group, said: "This is a highly competitive industry. I dare say that before I retired, foreigners could beat me."
Direct market-oriented independent innovation runs through the entire process of CNHTC's technology development. According to reports, in the development of heavy truck group, the number of failures is even higher than the number of successes. The first innovative model was a dragon car, which was not produced at the time. However, Ma Chun-chi believes that the success of this car is to dare to break through. Since the introduction of Steyr technology, the domestic heavy truck industry is accustomed to copying. This time, the company "painted a scoop rather than a gourd." In 2004, the HOWO series of heavy trucks independently designed and developed by the company achieved many world-class performance indicators. After the products were put on the market, they created a miracle in the history of heavy truck production in China that year. With first-class quality and cost-effective advantages, the production and sales of HOWO series products exceeded 60,000 units in 2007.
Since the reorganization, China National Heavy Duty Truck Group has invested more than 5 billion yuan in technological transformation. At present, many of the company's technology reserves must lead the industry two or three years. After implementing the National III emission standards nationwide, among the domestic heavy-duty trucks, only the CNHTC Group has its own exhaust gas circulatory system engine with its own independent intellectual property rights, which has left its peers far behind. At present, China National Heavy Duty Truck Group has obtained a total of 656 national patent authorizations and 52 patents for inventions, becoming the most patented enterprise in the national automotive industry.
According to the analysis, the independent innovation of CNHTC Group is an open innovation, an innovation that is inherited and continuously abandoned, which also includes management innovation. On the basis of order production, CNHTC has achieved two "zero stocks" of finished products and parts supply. The company's warehouse is leased to suppliers, and the suppliers regularly order and deliver daily, which saves a lot of inventory costs. With modern information management tools such as “One-Line Communicationâ€, the assembly line supply time is close to the advanced level in the world. The delivery time of the entire vehicle has been shortened from 25 days to 5 to 10 days, and the current working capital is reduced by nearly 200 million RMB each year. .
View related topics: China National Heavy Duty Truck Breaks Monthly Sales Record for National Heavy Truck Industry
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