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1、FAW Beijing First Service Station INTERVIEW DATE:March 2, 2000INTERVIEWER NAME:Bill HeInterviewee NameMr. Qian HeqinPositionService Executive Company and AddressBeijing, BeijingTelephone/Fax010-62929883Backgroundn This is the best service station we have seen so far. The parent company, Beijing Auto
2、motive Repairment Company No. 1 Factory, owns 10 service stations for different brands of sedan and truck including Jie Fang truck.n The First Service Station was founded in 1982. They began to serve FAWs Jie Fang truck since then. They offer 24 hour, 7days a week service.n For FAW paid service, the
3、 First Service Station had served 2304 Jie Fang trucks in 1997, 2763 in 1998, and 4755 in 1999. For customer paid services, they had served 3250 trucks in 1997, 3928 truck in 1998, and 4078 trucks in 1999. For customer paid services, 90% are Jie Fang truck.n The following are their revenue, cost and
4、 gross profit in the past three years:YearRevenue (RMB)Cost (RMB)Gross Profit (RMB)199912,199,0006,027,0006,172,000199810,480,0004,976,0005,504,000199710,022,0005,219,0004,803,000n Because of its equipment and expertise in truck repairment, First Service stations business is good. Most trucks owned
5、by enterprises in Beijing come here for service. Trucks owned by individuals also came here for service frequently. The First Service Station is one of a few service stations in Beijing which can handle the most complicated services of Jie Fang trucks. They offer warrantee of their services to custo
6、mer. For example, for the powertrain they served, they offer 10,000 KM/3 months warrantee.n They do sell trucks. However, they only sold 2 trucks in 1999. Their sales target in 2000 is 100 trucks. n The First Service Station has 73 employees., 23 service technicians, 6 engineers and evaluation speci
7、alists, 18 other technicians, 12 salesmen, and 14 admin. n According to customers feedback, Jie Fang trucks quality is good. However, minor problems cause inconvenience to the customers.n Overall customers are satisfied with First Service Stations service. The compliance rate is lower than 8%. Custo
8、mers always introduce other customers to First Service Stations for most complicated problems.n They only buy, sell, and use original parts from FAW. Their hourly labour charge is also higher than other service stations. Key Issuesn First Service Station is so strong in service that they might have
9、difficulty to focus on truck sales. They only sold two trucks in 1999. Moreover, the organisation structure also prevents it from selling trucks independently. They dont have independent bank account. The profit they make in truck sales has to be submitted to the parent company, Beijing Automotive R
10、epairment Company.n First Service Station does not have enough sales expertise. All of their sales people used to work in the service department.Conclusionn The First Service Station is a premier service station. They can handle any type of service.n We have to decide if they have to be a “Four-in-One” dealer. If yes, they have to re-organise the service station to make it more financially independent before they can sell trucks. Also they have to acquire sales expertise. They dont have financial and technical problems to be a “Four-in-One” dealer.1
