《FAWSouthwest0301》由会员分享，可在线阅读，更多相关《FAWSouthwest0301（3页珍藏版）》请在金锄头文库上搜索。
1、FAW Southwest Sales Company INTERVIEW DATE:1 March 2000INTERVIEWER NAME:Paul GaoInterviewee NameMr. Han JinhePositionGeneral Manager Company and AddressFAW Southwest Sales CompanyTelephone/Fax0-13908012558Background There are about 11 people in the FAW Southwest Sales Company. Three in sales (includ
2、ing Mr. Han), 2 in A/R collection, 5 in spare parts, and 1 for service. They have an annual operating budget of RMB170K. Mr. Han complained that last year, they only got RMB40K in bonus (Mr. Han got 10K), while the manager for FAW-VW sales in Chengdu received RMB60K himself, even though he did not e
3、ven meet his sales target In 1999, FAW sold about 1,900 trucks and chassis in Sichaun province, excluding Chongqing. There are three distributors in Chengdu: Chengdu No.1 Repair Shop, which is a “3 in 1” Dealer. Last year, it sold 1,000 FAW trucks, including 700 retail sales to end users, and 300 sa
4、les to other service stations in Chengdu Shu Guang, which belongs to Chengdu “Wuzi”, sold about 300 trucks, mostly to large institutional customers Chengdu Ji Dian, which belongs to Cheng Du Mechanical and Electrical Company, sold about 300 truck. FAW Southwest Sales Company also sold directly to so
5、me large end customers The best selling product in Sichuan is medium duty trucks. Light trucks used to be popular, but sales have declined significantly due to: local government regulatory restrictions on light trucks usage in urban cities; higher price than agricultural trucks in suburban areas. He
6、avy duty trucks are only purchased by large institutional customers, in addition, because highway system is not well developed in Sichuan, it is not convenient to use heavy duty trucks in the narrow mountain roads. Sichuan is traditionally a Dong Feng market, even today, Dong Feng outsells FAW Jie F
7、ang trucks 2 to 1 (Dong Feng sold 3,000-4,000 trucks in 1999, including chassis), Mr. Han attributed Dong Fengs success to the following factors: Low price: Dong Feng trucks are cheaper than Jie Fang trucks. On average, Dong Feng truck is at least RMB2,000-3,000 cheaper than comparable Jie Fang truc
8、ks, some are at least RMB5,000 cheaper. In 1998, a Jie Fang dealer can make about RMB2,000 profit per truck. But since then, FAW has raised the Jie Fang truck price five times, it is difficult for dealers to make any profit on truck sales, they sometimes sell trucks at below the price they got from
9、FAW, hoping to get the 1% annual sales rebate. Dong Feng has a lot of body builders in Sichuan who buys Dong Feng truck chassis and make buses and other vehicles Dong Feng shipped a lot of trucks to its suppliers to off-set its debts to them. These trucks are sold by the suppliers at much lower pric
10、e than Dong Fengs dealer price China Heavy Duty truck is not a serious competitor for FAW in Sichuan. It has good product, and priced at reasonable price. But it has bad after market service and very expensive spare parts (this is the case for both Steyr and Hong Yan trucks) Mr. Han is behind the de
11、velopment of Chengdu No.1 Repair Shop as a model “3 in 1” dealership, because he firmly believes that customers today requires “3 in 1” service, and service stations are best positioned to meet their requirements: Over 80% of truck customers today are individual customers who require timely, conveni
12、ent and reliable service Authorised service stations typically are more loyal to OEMs than distributors. Many service stations only serve in brand or one OEM, unlike distributors/dealers who often serve multiple OEMs Service stations have frequent interface and have developed relationships with end
13、users. Customers are more likely to come back for service and purchase their next vehicles from the service stations if they are satisfied and happy with the service they received Distributors/dealers are typically located in urban areas that are not conveniently accessible by trucks, plus trucks sa
14、les require large show space and parking lot which many dealers do not have Service stations are conveniently located and accessible by truck drivers, plus many of them have large parking lot and open space Chengdu No.1 started as a service station and parts sales center. Mr. Han helped build it int
15、o a “3 in 1” dealership by: Moving FAW Southwest Sales Companys vehicle and parts warehouse to Chengdu No.1, thus saving warehousing cost for FAW, at the same time, gives Chengdu No.1 immediate access to FAWs inventory , saving them working capital costs. FAW still has ownership to the vehicles in t
16、he warehouse, and Chengdu No.1 needs to settle payment with FAW before the end of every month. Establishing 20 authorised service stations in Sichuan, and encouraging them to sell vehicles. In 1999, they sold over 300 trucks. They typically order from Chengdu No.1 Repair Shop, who ships to the service stations at the same price they receive from FAW (Cheng Du No.1 ma
