Yuchai Group conquers the unique situation and builds aircraft carriers

In 2005, Yuchai Group, located in Yulin City, Guangxi Province, where thousands of ancient states and Lingnan cities were located, realized sales revenue of RMB 12.1 billion, a year-on-year increase of 12.3%; its core company, Yuchai Machinery Co., Ltd., is in the domestic automobile industry and road transportation industry. Under the grim situation in which the engine market continued to slump, 267,500 units of diesel engines were sold and sold, a year-on-year increase of 22.73%, and they took the lead in the diesel engine industry. Under the situation of negative sales growth in the entire internal combustion engine industry, production and sales volume achieved two The number of high growth rates, market share increased by 4 percentage points over 2004, ranking first in the industry, creating a "Yuchai phenomenon" that is regarded as the industry.

While the production and operation have achieved brilliant results, in 2005, Yuchai Group won the China Brand Annual Award (NO.1), the National Quality Management Award, China Famous Brand Products, China Famous Trademarks, National Civilized Units, and Building a Well-off Society , National advanced unit of professional ethics, national customer satisfaction service, standardized AAAA good behavior enterprise, national enterprise training advanced unit and a series of national honors. The Yuchai brand was selected as the China Brand Annual Award (NO.1) by the World Brand Laboratory. At the same time, Yuchai was rated as the most development-rate brand of the year with its unique growth rate; the Yuchai brand also has a good brand image. Super consumer recognition was ranked first in the diesel engine brand. The National Quality Management Award is the highest award for corporate management in China. Yuchai became the first company in Guangxi and the first company in the internal combustion engine industry to win this award. The achievement of these achievements and honours has established Yuchai Group's unshakable leading position in the engine industry and its status as a management benchmark company, laying a solid foundation for the sustainable development of the company.

In 2005, it was Yuchai Group’s change of the handsome year, which was also a development year in contrarian trend. As a result of the country's macroeconomic control policies and rising oil prices, the tightening of auto consumption credit and other factors, China’s auto industry is facing severe challenges in 2005. The growth rate of automobile production and sales has decreased month by month. The sales volume of the entire internal combustion engine industry has shown a negative growth trend. Some diesel engine manufacturers even There has been a serious situation in which the sales volume has dropped by a double digit percentage. In such a difficult market situation, Yuchai’s new leadership team with Yuping as its chairman reviewed the situation, in the development of strategic planning, organizational functions and responsibilities, sound management systems, asset optimization and restructuring, new product development, and marketing. A series of fruitful reforms have been implemented in areas such as construction, talent introduction and encouragement, party building, comprehensive well-to-do society construction, and brand building. This has led Yuchai Group to buck the trend and achieve unique operating results! The production and sales volume of diesel engines achieved a double-digit high growth rate and stood out among peers; other industries also created brilliant achievements with a growth rate of over 50%, fully demonstrating the charisma of leading companies.

After Zhang Ping became the chairman of Yuchai Group, he took the ambitions of building a Yuchai industrial aircraft carrier with the high expectations of government leaders, shareholders and board members, and faced Yuchai's 15,000 employees' expectations for Yuchai's bright future. The drastic reforms revealed the head of a senior management expert.

Corporate strategic planning. Yuchai Group, based on the vision of “using Yuchai brand for a decade or more to become a world-famous brand”, proposes a ten-year development strategy in the future to fully develop domestic and international joint ventures and cooperation. High-tech introduction and application are the main means, focusing on the operation of the main industry to expand the industrial chain, focusing on the development of diesel engine, construction machinery, special-purpose vehicles, auto parts, automotive chemicals, logistics and other related industrial products, and building a business with an annual sales of 100 billion yuan. The platform further enhances the competitiveness of the international market and becomes a large multinational enterprise group with world-renowned brands.

Institutional reform function assignment. It highlights the establishment of a modern enterprise system, standardizes the governance structure of parent and subsidiary companies, and strengthens the functions of strategic planning and promotion, project management, human resources management (cadre management), investment financing, property management, cultural management, information management, and financial management. Established the Strategic Development Planning Committee and Strategic Planning Office of the Group Corporation, improved the strategic planning research and promoted the institutional mechanisms, established a group company information management platform, financial management platform, cultural construction platform, investment financing platform and training platform, and established and improved resources among group members. The operating mechanism of sharing and sharing has completely changed the situation in which multiple Yuchai are isolated, strengthened the functions of management of cadres and the management of property rights, and formed the need to adapt Yuchai Jiji as an investment and asset management company.

In 2005, Yuchai Group further improved its management system, standardized management, combined with the establishment of a new parent-subsidiary company structure, and organized and implemented a series of construction and establishment work, such as: strategic planning research systems, assets, and projects. Management system, appointment system for financial officers, accountability system for executive responsibility for administrative personnel, talent deployment system, incentive system for major science and technology projects, and annuity system for scientific and technological personnel, etc. The process of transformation to ensure the effective operation of the management mechanism, business management has been further standardized and improved.

Rationalize property rights and improve the efficiency of resource use. In order to improve the effectiveness of resource use, Yuchai Group rationalizes the management system and property rights relationship, and reasonably and legally coordinates the assets of Yuchai Group and strengthens the status and role of the parent company. Yuchai Marketing Co., Ltd. and Yuchai Property Management Co., Ltd. Incorporate the management system of the group company; separate Yuchai Real Estate Development Co., Ltd. from Yuchai Property Management Co., Ltd. as the controlling subsidiary of the group company into the management system of the group company so that the operation of the state-owned assets is under control and ensure State-owned Assets' Safe Operation, Value Preservation and Value Added. At the same time, the subsidiary companies of the Group companies that have wholly-owned, controlled, or relatively-controlled holdings with more than 40% share of production and operating income promoted the appointment of subsidiaries of financial companies, further strengthening and deepening the financial management of the group companies. It is beneficial to ensure the preservation and appreciation of the assets of the group company and the authenticity and integrity of financial information.

At the same time, it will implement asset capital operations and optimize the industrial and product structure.

Focus on capacity building, invest heavily in the construction of Yuchai's heavy-duty diesel loading test plant, and the capacity to produce 80,000 heavy-duty diesel engines per year.

Great investment was made in the construction of Yuchai YC4F diesel engine workshop. After completion, it will be capable of producing 300,000 diesel engines per year.

The transformation of the existing production line to achieve a small batch of 4W diesel engines, and completed the small-scale launch of the market, so that China's diesel cars used the heart of China.

In June 2005, Yuchai Group reorganized the special automobile plant in Nanning and established Yuchai Special Automobile Co., Ltd., which became the prelude to Yuchai’s entry into the vehicle industry. Established Yuchai Anda Transmission Co., Ltd. jointly with Guangzhou Anda Bearing Co., Ltd., specializing in the production of heavy-duty vehicle transmissions and entering the automotive transmission production industry. At the same time, it also produces powertrains for the Yuchai Group, further improving the operating efficiency of the marketing system, and laying a solid foundation for customers to provide complete vehicle power system solutions. After completion of the Anda project investment, it will form an annual production capacity of 200,000 sets of heavy-duty automobile transmissions, becoming a new economic growth point for Yuchai Group.

Focus on promoting construction machinery, bigger and stronger construction machinery projects. After completing the restructuring of Sino-foreign equity joint ventures of Yuchai Engineering Machinery, in 2005 it adjusted the operating goals and development plans for construction machinery and vigorously promoted the expansion of construction machinery companies, laying a foundation for the construction machinery company to realize a production and sales scale of RMB 3 billion over the next three years. basis.

Yuchai Group actively develops the industrial chain around its main business, and expands the production and operation of automobile and diesel engine parts. It also constructs the Yuchai Yanggang Industrial Zone in the Fumian Management District, focusing on the Yuchai diesel engine parts and components project. Initially identified as Yuchai Packaging Materials Co., Ltd., Yuchai Dayi Machinery Parts Co., Ltd., Yuchai Huayuan Machinery (Yulin) Co., Ltd., Yuchai Electric Co., Ltd., Yuchai Isaiah Automotive Air Compressor Co., Ltd., and Yuchai Paper. Product Packaging Co., Ltd. and other enterprises.

In 2005, it also integrated the marketing logistics industry, making full use of the established and productive network to provide a broader market for Yuchai’s main products and complementary products within the group. At the same time, it has vigorously reformed the logistics system, highlighted its efficiency, and expanded its market. With the construction of a logistics regional center as a pilot, it has become a bigger and stronger logistics company.

Technological progress and new product development. Yuchai Group regards technology leadership as the standard of technological progress and product innovation. It focuses on the two major themes of energy conservation and environmental protection, and takes a technological innovation route of “improving product technology level and improving product structure”. Invested 130 million yuan in technology research and development, so that the full range of products in the technical lead, before the implementation of national emissions regulations, the 9 major series of products to meet the European III, 6A and 6L horizontal machine to reach the European IV, but also to the small car engine 4W Put on the market, filling the blank of domestic diesel engine.

Through increased investment, Yuchai’s technological progress and product innovation pace has accelerated markedly in 2005: the launch of 4W, 4E, 4F, 6J, 6A, 6M six product platforms Euro III projects and 4G platform horizontal engine product design work. Achieved the full range of unanimously up-to-standard EU II, the nine major series capable of meeting the European III, 6A and 6L standards of European IV technical achievements. The extensive application of scientific research and innovation results has continuously improved the quality of Yuchai products and also provided strong support for the market expansion of Yuchai products.

At present, Yuchai has built the only Euro III emission testing platform among domestic diesel engine production enterprises; it has built the best domestic engine noise test bench; throughout the year, Yuchai has completed the electronic control calibration of high pressure common rail engine for 10 major series of products; Yuchai Laboratories became the first "national accredited laboratories" in the engine industry; Yuchai Technology Center became the first "national enterprise research and development center" approved by the Ministry of Science and Technology. At the same time, under the guidance and assistance of the Institute of Technology Assessment of the Chinese Academy of Sciences, establish and implement a technology innovation evaluation system and a technology innovation monitoring system, evaluate the effectiveness of innovative work from qualitative and quantitative indicators, and promote the improvement of technological innovation capabilities. This series of actions continues to express Yuchai's technological leadership thinking: R&D of marketable high-quality products, strengthening of the grasp of technology trends and continuous enrichment of technical strength.

Through the implementation of this series of measures, Yuchai’s product research and development level has been continuously improved, always occupying the commanding heights of product technology in the industry, and a strong R&D capability has enabled Yuchai to maintain a leading position in its domestic counterparts, providing Yuchai’s sustainable development. Strong support.

Marketing, market development and services. Chairman Mao Ping led the company's senior management personnel to visit major customers, strengthen information communication, and promote mutual understanding. He successively joined Daikinlong, Xiaojinlong, Suzhou Jinlong, Zhongtong Bus, Yutong Bus, Dongfeng, Dongfeng Chassis, Dongfeng Liuqi, Beiqi Foton. Major domestic vehicle manufacturers and government agencies such as China National Heavy Duty Truck, Hongqi, Hongyan, Xugong, Guangzhou Bus, Shenzhen Bus, and Beijing Environmental Protection Bureau have formed a close strategic relationship.

After strengthening market research and establishing a close overseas strategic relationship with domestic mainstream vehicle manufacturers, Yuchai has formulated numerous marketing strategies based on the characteristics of the current market, closely focusing on heavy machinery, light aircraft, Euro III machines, and single fuels. The marketing of the machine, based on the service advantages of the product, launched a series of marketing tactics, which enabled Yuchai to achieve good results in the four major sectors of engine, vehicle sales, accessories sales, and logistics.

Established a new thinking of joint marketing, relying on the brand advantage of Yuchai Machinery and its good cooperation relationship with all supporting car manufacturers, formed a nationwide automotive brand agent sales network, and integrated all types of sales agents that match Yuchai's engine products. , Strongly expand the Yuchai engine market. At present, the only supplier of diesel engines that implements "integrated marketing" is the Yuchai family.

In 2005, the thinking of “integrated marketing” was refined and improved. From the promotion of one plant and one strategy of 6M Yuba Heavy Machinery to the joint export of the mainframe plant, it is possible to see such a marketing thinking: Yuchai and the customer directly face the market terminal, and the target is refined. For custom marketing; mode, promoted to joint marketing.

In the first half of 2005, Yuchai closely focused on the promotion of heavy machinery, light machinery, Euro III machines, and single fuel machines, and jointly launched a series of marketing tactics with auto companies: formulate the overall plan of Yuba heavy machine operation and put it As the core of heavy machinery promotion, it is decomposed into major manufacturers, promotes the promotion of heavy machinery at one plant, actively collaborates with the host plant to conduct product promotion meetings or dealerships, etc., and participates in the annual participation of Liuzhou Automobile Co., Ltd. The “Products Promotion Conference”, the Hongyan “Red Storm” national tour exhibition activities, and JAC’s launch of new product promotion seminars from Gehlfa Heavy Trucks have achieved remarkable results through the promotion of joint marketing to increase the sales of main engine plant products to stimulate the sales of diesel engines. .

While focusing on the domestic market, Yuchai provided supporting export business support for major domestic automakers. Through strong cooperation with OEMs, Yuchai Diesel Engine made breakthroughs in exports. In August 2005, the "China Bus Exports First", 450 sets of Grand Dragon buses equipped with Yuchai engines were exported to the Middle East; in the second half of the year, 120 vehicles supplied by Hangzhou Auto and Yuchai engines were exported to Malaysia for delivery. Chai also initially agreed with China Automotive Import and Export Corporation to export 10,000 units of Cuba's 6108Q/4108Q. In 2005, Yuchai completed diesel engine sales of 4,000 units, an increase of about 122% year-on-year; and sales revenue of nearly 128.05 million yuan, a year-on-year increase of more than 100%. Overseas markets have become a new economic growth point for Yuchai.

The industry generally believes that Yuchai’s development of regional and industrial markets with multiple marketing strategies represents a new way of thinking for the development of customer relationships. From the past, single-minded customers and marketing products have gradually shifted to integrating multiple resources and integrating with customers. New ideas for marketing harmony and win-win.

Yuchai's solemn commitment to quality and service commitments to users and the public was further promoted to a higher goal in 2005: The warranty lengths for six-cylinder and four-cylinder engines for trucks and buses have been increased from 100,000 km/18 months to 18 respectively. 10,000 km/18 months and 150,000 km/18 months; Bus engine increased from 100,000 km/18 months to 150,000 km/18 months; Engines for construction trucks, tractors, agricultural vehicles and modified vehicles The engine was increased from 50,000 km/12 months to 80,000 km/12 months. Yuchai has continuously put the concept of service into practice, and has been leading the development of the industry in terms of warranty mileage, service commitment, service content, service policy, etc., and has become a target for competitors to follow suit and pursue.

The Yuchai Group has strengthened its management mechanism, firstly taking advantage of advanced educational activities to build a framework for the company’s party building system and establishing a long-term mechanism for strengthening party building work. While soundly establishing the internal system of the group, we must focus on the supporting indicators of the system and implement the assessment methods, especially the performance assessment system of senior management personnel. The Group has established a scientific and reasonable incentive mechanism to allow the income of well-run subsidiaries to exceed the income of the senior management of the group companies.

Talent introduction and motivation. The development of the enterprise is inseparable from talents. Over the years, Yuchai Group has always implemented the “people-oriented” business philosophy. The degree of emphasis and incentive mechanism for scientific and technological personnel advances with the times, and gradually develops in the direction of systems, long-term and humanity. For example, Yuchai provided incentives for scientific and technical personnel such as professional and technical post allowances, annual incentives for scientific and technological personnel, new product awards, quality upgrade incentives, project point awards, and agreement purchases. The clear direction of innovation and technology talents. Yuchai will continue to improve the evaluation system and incentive system for science and technology in the future, improve the talent pooling mechanism that is conducive to technological innovation and entrepreneurship, and create a favorable environment conducive to top-notch talents to come to the fore, so that more scientific and technological personnel will use their wisdom and Yuchai’s The integration of the business provides Yuchai with more powerful technological momentum.

In 2005, the company implemented an incentive policy based on the concept of humanism, recruited talents, recruited 632 graduates from key national academies, recruited 5 Ph.Ds, 13 postgraduates, introduced 5 senior managers, and 7 middle managers. Four publicly-recruited talents were recruited, and Yuchai Group officially launched a policy of attracting talents extensively, demonstrating the talent concept of the new leadership team respecting talents, recruiting talents, and using talented people.

Implemented the “Yuchai Award for Management of Major Scientific and Technological Progress Awards” to reward collectives and individuals who have made significant contributions to the advancement of the company’s science and technology. In November 2005, Yuchai’s 4 million yuan bonus was awarded to make significant contributions to Yuchai’s technological progress. Collectively and personally, the highest bonus for the individual who has been rewarded has reached 300,000 yuan, the collective maximum bonus has reached 700,000 yuan, and more than 70 scientific and technological elites have been rewarded. This move has created a new wave of technological innovation in Yuchai; an incentive scheme for annuity options has been implemented to create better conditions for innovation for scientific and technological personnel. For re-qualified technological talents, Yu Ping, chairman of Yuchai, said: “This is Yuchai’s greatest recognition of scientific and technological talents, highlighting Yuchai’s “people-oriented” business philosophy, respect for knowledge, respect for the atmosphere of talented people, and determination to focus on product development. Embodied Yuchai’s great emphasis on science and technology and recognition and care for the majority of scientific and technological workers.”

Party building. Taking advantage of advanced educational activities as an opportunity to build a framework for the company’s party building system, establish a long-term mechanism for strengthening the party’s construction work, and strengthen the party members’ party spirit, the overall situation, and the sense of responsibility, form a pragmatic and realistic work style, and bring into play the party’s politics. The core role is to protect the company's development. The Party Committee formulated the "Yuzhai Machinery Group Company's Regulations for Strengthening and Improving the Party Building Work." From the guiding ideology, goals, and tasks, the party organizations participate in major issues decision-making, the party manages cadres, the team's ideological and political construction, clean and honest administration, ideological and political work and spirit. The ten aspects of civilized construction, democratic management, party organization self-building, party building leadership system, etc. have fully defined the requirements and requirements for the company's party building work. By establishing and perfecting the basic system in which the party organizations of enterprises play a political role, the requirements for party building work for the entire company are clearly defined, targeted, and easy to operate and implement. For example, in the past, party organizations have been involved in major issues and decision-making has always been ambiguous. It has become clearer in the important issues such as party management cadres playing a political role, and operations have become more standardized and smoother; The implementation of the problem-making approach, from the leadership system to improve the Party Committee to participate in major issues in the company's decision-making, adhere to and improve the "two-way access, cross-service" of the corporate leadership system, and promote the company's production and management.

Comprehensive well-to-do society construction. On December 16, 2005, when Zhang Yining raised the 2005 Women's Table Tennis World Cup singles championship trophy, people saw her honor and laughter and would not forget to print the four characters “Yuchai Machine” on the back of her clothes. From then on until 2008, the famous brand of the Chinese engine industry, Yuchai Machinery, will accompany the Chinese table tennis team and the Chinese gymnastics team to jump together and compete together at home and abroad. A company sponsors two national sports teams at the same time. This is rare in China. It shows that the Yuchai Group continuously contributes to the society and its good public image.

Comrade Comrade insisted on the right to use for the people, the situation for the people, and the interests of the people, overcoming formalism and bureaucratism, and always maintaining a blood-to-people relationship with the workers and the masses. Comrade Luan Ping personally presided over a series of symposiums involving young and middle-aged intellectuals, party branch secretaries, employee representatives, retired veteran comrades, business operators, and marketing personnel of the group company. At the same time, they led the members of the group to go deep into the grassroots for research and extensively listen to each In terms of opinions and suggestions, he went deep into the family of employees, listened to opinions, thought what the employees thought, and dealt with the urgency of the employees, and effectively solved problems for the workers and the masses. Comrade Luan Ping personally led a team to inspect and implement old employees' activity venues, and invested 250,000 yuan to refurbish the “home of employees” in the Donghua Community. At the same time, he personally understood the implementation of employee medical insurance and the treatment of some retired employees to solve the immediate interests of the employees. In order to do a better job of providing services to the marketing personnel stationed abroad, under his personal supervision and inspection, the company has developed and perfected the "Service Marketing Service for Resident Personnel Outside the House" to regulate and refine family service work and establish a two-tier service network. The warmth was sent to the hearts of the foreign staff and their families in a timely manner to effectively solve problems for the employees stationed abroad.

Since the launch of the Communist Party's advanced nature education campaign in July, Comrade Luan Ping personally investigated, personally and personally deployed, and personally carried out the implementation. He led the company’s party organizations at all levels to condolence more than 1600 employees and invested more than 500,000 yuan for employees. More than 370 problems were solved, and the workers and people felt the warmth of the party organization and the change of party members' cadres' styles. After a random selection of 496 employees to measure the satisfaction of the people, the satisfaction of “serving the people” reached 93.55%, and Yuchai was fully constructed. The vanguard and exemplary role has been played in the process of a well-off society.

In November 2005, the chairman of the board of directors of Fuping won the top ten model of building an overall well-to-do society, and Yuchai Group obtained 100 integrity units for building a well-to-do society.

Brand Building. In 2005, Yuchai’s brand strategy was further improved. In September, the final results of the 2005 China Top Brand Product Selection appraisal by experts from the China Top Brand Strategy Promotion Committee were formally announced in the Great Hall of the People. The Yuchai brand multi-cylinder diesel engine was ranked among them; according to the “Supreme People’s Court hearing about civil cases involving computer network domain names. Interpretation of Several Issues Concerning Applicable Laws Article 6: "The people's courts handle cases of domain name disputes. According to the request of the parties and the specific circumstances of the case, they may determine whether the registered trademark concerned is well-known according to law," and Article 14 of the Trademark Law. The conditions for the well-known trademarks were determined by the Yulin Intermediate People's Court on November 30, 2005, and the Yuchai company's trademark No. 1421059 was identified as a well-known Chinese trademark by the combination of Yuchai, YUCHAI, and the graphics; At the World Executive Conference held in Hong Kong during the month, due to the substantial increase in the market share of Yuchai’s brand in 2005 and the customer’s loyalty to the Yuchai brand, the Yuchai brand was selected by the World Brand Laboratory as China Brand Award of the Year (NO.1); at the same time, Yuchai is rated for its unique growth rate. Most annual growth rate brand; Yuchai brand has a good brand image, superior consumer awareness was named first diesel engine brand, Yuchai Group to further enhance its brand value.

It is precisely this series of innovation and reform measures that have led Yuchai to develop in a downturn throughout the entire automotive industry and negative growth in the engine manufacturing industry, creating a unique operating performance. We have demonstrated the new team’s ability to operate with the facts and achieved a smooth transition between the old and the new groups, which has given Yuchai people confidence in building Yuchai’s aircraft carrier and building a nation’s world famous brand.
View related topics: Yuchai won the "China Brand Annual Award NO.1" (internal combustion engine) title in 2007

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