On the website of Guangxi Yuchai Machinery Group Co., Ltd., there is such a paragraph: "The history of Yuchai's development is a magnificent picture. It is an epic grand and beautiful lyric. Every chapter has been written down. The trajectory of the development of China's power, every detail, reflects the Yuchai people's quest for responsibility and mission."
The Year of the Crisis
The financial crisis that began last year swept the world and made the Chinese engine industry feel the cold wind of development. As China’s largest production base for internal combustion engines, what kind of history did Yuchai write in this year of crisis?
At the end of the year, Yuchai Group delivered an exciting response: From January to October, the Group's sales revenue reached 22.063 billion yuan, a year-on-year increase of 20.21%, and sales revenue exceeded the total amount of 20.988 billion yuan last year. Among them, the engine segment achieved sales of 570,000 diesel engines, an increase of 15.28% year-on-year, also exceeding the total of 550,000 units last year.
For Yuchai Group, the implication behind the numbers is not just quantitative breakthroughs, but also breakthroughs in corporate beliefs and will. In the face of the crisis, Yuchai achieved self-transcendence and sublimation, creating new heights for himself and the industry.
The Belief of "Opportunity" in "Crisis"
Zhejiang Linhai Haihong Group, a state-owned enterprise with a history of 30 years.
At the end of November 2008, this company known for producing hydraulic parts ushered in the "new boss" - Chen Chunqiang, chairman of Haihong Group appointed by Yuchai.
Prior to this, Yuchai successfully completed the registration of the change in equity and officially entered Haihong.
Like many enterprises, at the end of 2008, Yuchai Group also encountered the dual challenges of the international financial crisis and the market crisis. Along with the sales of 14 main diesel engine companies in the fourth quarter of 2008, Yuchai suffered a severe winter.
In the face of a severe economic cold, many companies are afraid to “lightly shakeâ€. However, Yuchai chose this opportunity to “take the initiative†– entering the hydraulics industry.
“We must use strategic business vision to deal with the winter, but we must also think ahead about the future of the company.†Yu Ping, Chairman of the Board of Directors of Yuchai Group, interpreted and annexed this.
"Winter" and "Tomorrow" are eye-catching, highlighting Yuchai's extraordinary courage and confidence in the future.
On January 13 this year, in the beautiful green city of Nanning, Yuchai held Yuchai Machinery's 2009 press release and marketing service conference to deliver the theme of 2009 to suppliers, OEMs, service providers, and end customers: “Confidence in Confidence With the boat, turn the crisis into a machine, and decide the winning end."
In the 2009 New Year message, Junping and Yuchai's more than 17,000 employees said: "In the crisis, the weak will suffer from overwhelming shocks; the strong will certainly take advantage of the crisis and rise in time!"
“There are both dangers and opportunities in the crisis. Dangers and opportunities can be transformed. If confidence is established, measures are implemented properly, and methods are properly implemented, the crisis can be transformed into an opportunity for development.†To cope with the global financial crisis, Yuchai introduced a Series of countermeasures: Establish a strategic management system of the Group, continue to deepen the internal industrial structure adjustment of the Group, expand external financing channels, actively seize market opportunities, accelerate the technological transformation of enterprises, introduce and cultivate high-end talents, and enhance the competitiveness of enterprises.
With a multi-pronged approach, Yuchai soon ushered in "spring."
At the beginning of this year, the impact of the financial crisis has not yet reached the bottom. However, as a leading company in China's engine industry, Yuchai began to bottom out at the end of January. Since February, there has been a strong sales situation. Market orders have rapidly increased: In January, Yuchai received orders. More than 20,000 units reached 50,000 units in February, the highest number of orders in the same period in history, doubled from the previous quarter, and increased by more than 20% year-on-year.
Between "crisis" and "machinery", it is often only a line of separation.
In the face of the financial crisis, the transformation of "crisis" and "machinery" has given people a glimpse of Yuchai's fortitude and calm in facing crisis and challenges. Objectively and calmly and dialectically thinking about "crises" and "machines" and realizing turning "crises" into "machines", it is like a fire of hope in the icy cold current that ignited Yuchai's developmental momentum.
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From "inside" and "outside" wisdom
In November 2008, Yuchai transferred the 55% state-owned equity of Guangxi Yulin Yuchai Daye Machinery Parts Co., Ltd. held by it.
In one month from February to March this year, the Yuchai Corporation’s engine and engine unit of the No. 2 engine plant continued to innovate in management thinking without increasing equipment and personnel. The platform began to work, step by step, with 8 levels, and the production capacity increased by more than 50%.
These two seemingly irrelevant matters have a common theme: internal training, building, and development.
In the face of “black cloudsâ€, Yuchai proposed an eight-character business policy this year. Its connotation is to work hard to improve its strength, build markets to foster growth, and gather strength to get ready.
In order to "work hard", Yuchai started "addition and subtraction."
The so-called “subtraction†is to optimize the industrial structure, and to separate industries that have low correlation with the main industry, small scale, and low technological content. The state-owned shares have completely withdrawn from the nine subsidiaries including Tak Yip, paper products, and clothing.
At the same time, on the aspect of energy conservation, emission reduction and technological advancement, we continued to implement cost-reduction projects: overall budget planning to ensure the health and safety of production and operations; strengthening supervision and inspection of project construction, concentrating limited funds on production and management, and preventing the battle line from being too long. The capital chain breaks.
In addition to doing a good job of "subtraction", Yuchai also strives to do "addition."
The so-called addition is to carry out special actions to break through the product crisis in the technical quality, and to develop market-oriented products in a targeted manner. In the internal management of the company, technicians were introduced, workers were trained, and contests were conducted. In expanding the financing channels, through strengthening and deepening cooperation with CDB, we will actively expand cooperation with other financial institutions and expand financing channels.
Under the strong support of “internal strengthâ€, since the second half of the year, Yuchai’s development has begun to “windowâ€: the first marine engine was officially put into production at the Ziyang Sichuan Downline and Xiamen Yuchai Engine Co., Ltd. Yuchai The United Power 6K plant project was started in Wuhu, Anhui, Zhuhai Yuchai Shipbuilding and Wärtsilä in Switzerland... A Yuchai that has experienced hone and quenching has entered a more stable development track.
From the "inside" talent and "outside", only "hard work" can fight the external market.
In the city of Chongqing, the state of public transportation is very special. It is difficult for traditional engines to adapt to the special road conditions here.
After receiving feedback from the Yuchai Chongqing office, Yuchai's technical staff made a special trip to Chongqing to conduct experiments and collect traffic information and make parameter adjustments. Wu Gangsong, director of Yuchai’s Chongqing office, said with deep feeling: “It is the internal skills that are based on technology, quality, and service that make Yuchai machines enter the Chongqing market in large quantities.â€
Under the guarantee of "internal strength," Yuchai's marketing team responded quickly, strengthened cooperation with key customers, and was highly cooperative with the host plants, distributors, and service systems to grasp the end market.
Gu Tangsheng, president of Yuchai Machinery Group Co., Ltd., said: “Through hard work, Yuchai has effectively increased the competitiveness of enterprises and provided strong support for turning the crisis into a machine.â€
It is a spiritual realm of ways of thinking and methods to practice hard and improve competitiveness.
When the crisis struck, why did the "internal strength" take the lead? Yuchai people understood that the decisive factor in the success or failure of the incident lies with itself. In the face of the financial crisis, the best “amulet†for a company is to improve its internal strength. Only by strengthening management and improving internal strength can it be an everlasting theme for the company’s everlasting prosperity.
The Wonder of "Nothing" in "Nothing"
In southern China, in the spring of March, there are cows and cows in the countryside, and they are busy with spring farming.
On March 4th, 1,000 cultivators planted with joyous red flowers were shipped from the new plant of Yuchai Power Company, and they marched toward the countryside.
1000 units seem to have a small number but they are significant.
At the delivery site of cultivators, Li Hanyang, chief engineer of Yuchai Group and chairman of the power company, said that although there are only 1,000 units of these farm machines, it is a good start and will greatly promote the development of Yuchai's agricultural machinery business.
This is a clear dividing line - before September 2008, Yuchai's maximum monthly sales had reached more than 50,000 units; in September 2008, after the global financial crisis broke out, Yuchai's engine sales fell all the way: 28,000 units. 20,000 units...
To solve the product backlog, where is the market outlet?
For a long time, Yuchai has been committed to supporting the production of domestic automobiles and construction machinery. Due to the low added value of agricultural machinery, Yuchai has been almost a blank in this area.
Faced with the new economic situation, according to the changes in the market, Yuchai has conducted extensive research and found that the rural market has great potential. The Yuchai people carefully calculated: “In 2008, the subsidies for agricultural machinery in the country were 4 billion yuan, which was increased to 10 billion yuan in 2009. For every farmer who buys a farm machinery, the average subsidy is nearly 30%. According to the current Yuchai The farm machinery market share is estimated at 40%, and the national market will bring Yuchai an increase of 500 million yuan per month."
To this end, Yuchai timely seized the opportunity of the national government’s implementation of a 4 trillion-scale policy that stimulates domestic demand to stimulate economic development, subsidies for agricultural machinery, fuel tax policies, the implementation and development of road toll-by-weight policies, and automobile revitalization plans. Structure, step up product transformation, and vigorously develop agricultural machinery products. In addition, Yuchai’s product development has shifted toward low-price, light-weight, and fuel-efficient models in response to the implementation of the fuel tax policy and highway toll-by-weight policy.
From the city to the village, Yuchai is foreshadowed in a completely new direction.
"Clenching the two markets of 'countryside' and 'overseas' is one of Yuchai's measures to build a market growth point." During this year's national "two sessions", Fuping said in an interview with reporters.
Running to the world is another direction of Yuchai’s efforts
On February 17th, Yuchai signed a 10 million U.S. dollar agreement for the supply and marketing of engine products with Russian distribution companies, and for the first time achieved the bulk export of engine stand-alone products to Russia.
Under the influence of the financial crisis, the engine industry in developed countries such as Europe and the United States was also hit, and the cost-effectiveness of Yuchai products was fully highlighted. Seizing the price/performance advantages of products in the Middle East, Africa, Southeast Asia, Central and South America and other international markets, Yuchai took the initiative to attack overseas.
From January to October, Yuchai exported only 11,600 diesel engines to ASEAN countries, an increase of 25% over the same period of last year, with an export value of RMB 548 million; Yuchai Special Automobile Company's exports amounted to USD 1,351,600, an increase of 20% over the same period of the previous year. .
Not only the agricultural machinery market and overseas market, but also the second half of Yuchai in the heavy machine market also fully expanded: Yuchai 6L, 6M heavy truck engines gradually formed a "1+1> 2" product integration advantages, to meet the needs of more market segments . The YC6L engine locks lightweight road heavy trucks, while the YC6M engine slowly changes the habits of heavy-duty users, allowing more and more users to change from using medium-speed, low-fuel-consuming engines to low-speed, low-fuel-consuming engines.
Driven by multiple wheels such as “Countrysideâ€, “Overseas†and “Heavy Machineryâ€, Yuchai’s production workshop has a busy and gratifying scene.
In the global recession of the engine industry, why survive and develop? Yuchai people calmly analyze, accurately judge, focus on the market personality, scientifically segment the market, from scratch, from small to large, opened up a new world of the market .