Broaden Product Lines and Improve Product Quality to See How FAW Liberates Losses


A few days ago, the August production and sales data announced by the China Automobile Association revealed that the heavy-duty industry, which has been struggling since April, has finally achieved a slight reversal in the traditional sales season in August. Although it still fell year-on-year, it finally sold monthly sales of 57,000 vehicles, which caused the chain's growth rate to stop falling and rise again, with an increase of 12.8%.

This year, the domestic heavy truck market is not optimistic about the living environment. With the decline in sales volume of the entire heavy truck industry, the liberation of FAW, which had been in a leading position last year, was particularly affected by the entire market. There are two objective reasons for this situation today: one is due to the high base last year; another is that due to the rectification of the logistics industry, the sales volume of J6 tractors for FAW's main products has fallen.


For this year's dull heavy-duty truck market, Zhang Bing, the general manager of FAW Jiefang Sales Co., has long had some bottom, but the "reorganization" of the domestic logistics industry sooner or later is so fierce and so fast. Zhang Bing they did not expect, in 2010, with the tractor J6, FAW Jiefang won a victory in the domestic heavy truck market one year long run, and even the second place opened more than 20,000 sales gap. However, in January-July this year, FAW's liberation was affected by the drastic drop in the tractor market, with sales falling by more than 30% year-on-year.

As for the reasons for the frustration of FAW's liberation sales, an experienced personage who declined to be named analyzed that structural adjustment has the greatest impact on FAW's liberation. The current logistics costs are relatively high, leading to a slowdown in the demand for car purchases by customers. The entire logistics industry is using cars. In decline, and the strength of FAW liberation is exactly the road car. As for engineering vehicles, the demand for construction vehicles for national infrastructure vehicles is rigid, but this is a shortcoming of liberation. "This also shows that the product structure of FAW's liberation is not very good."

In addition to the above analysis of the reasons for the insiders, according to a survey by the reporter, the unreasonable layout of FAW's liberation region is also one of the “culprits” driving down its sales. Because the headquarters of FAW Liberation was in Changchun, the eastern region has always been the main market for its sales. However, in the western region, the distributor’s capital and ability to liberate are weak. Although in recent years, with the promotion of the liberation of the J6 market, agents are also growing, but after all, the foundation is too thin. With the advancement of the country’s western development, the demand in the western region has become more and more prosperous. However, due to its weakness in the west, FAW's liberation has lost a rare opportunity for growth.

“To enter the west is an absolute strategic move, but the input and risks are also extremely high. This year's liberation of distribution network channels will continue to sink, how much force to use, I would also like to carefully consider.” Zhang Bing said.

There is no doubt that the determination of FAW's liberation into the west is beyond doubt. Although more than 20 years of technical work experience has made Zhang Bing more calm and cautious than anyone else in looking at the problem, the challenge for the Western chess game is still daunting.

In order to reverse this situation, Zhang Bing said that in the second half of this year, Liberation will further expand its product line, improve product quality, and continue to enhance the market competitiveness of liberation products.

Improve product quality
In order to seize market opportunities, liberation is actively making full preparations. Because of the reason for starting from China Card, Liberation has the advantages of lightweighting trucks, technological advantages, and experience. For example, its own research and development of the main sales vehicle to liberate J6, can achieve today's results, it has a great relationship with this. Therefore, for Zhang Bing, the hard-witted tractor market must continue to be consolidated, and on this basis, seek greater market share.

Broaden the product line
In the dump truck market, Steyr Technology has always dominated the domestic dump truck market, and the axle technology for the liberation dump trucks came from Nissan Diesel. Therefore, in the development of the dump truck market, the pace of liberation has been slower than that of its peers. In Zhang Bing’s view, such an imbalanced product line layout is ultimately not conducive to the long-term development of liberation. Therefore, for the dump truck and special-purpose vehicle market that accounted for nearly 50% of the heavy-duty truck market, he made no secret that he would take the initiative to accelerate the adjustment of its product structure.

Therefore, the consolidation of the lead position of tractors and the loss of the share of dump trucks and special vehicles has become the main force for the liberation of this year. Zhang Bing, who has been planning for a long time, actually started this action as early as in early 2011 when the domestic heavy truck market had a “cold wind” blowing.

In the first half of this year, the relevant person in charge of the liberation of FAW and the personnel of the marketing and product R&D departments made in-depth investigations into the truck market across the country, focused on changes in regulations, adjusted their product mix, and developed the product in only six months. A series of new products that respond to market changes. So far, FAW has completed the development of 41 new models such as lightweight J5P 6X2 tractors, J5K DEUTZ small dumpers and tractor-mounted ABSs, 65 test vehicles, and test vehicles.

It is expected that in the second half of this year, lightweight J6P-R 6X2 traction, liberation J6L small row of half, J5K rubber vice spring, J5K big change face, liberate J6 right car, all-wheel drive special vehicles, FEUP heavy-duty engine, 440 bridge and other vehicles And the assembly can be developed and put on the market.



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