Yuchai: Breaking the crisis both internally and externally

According to the editors, the international financial crisis has not yet bottomed out, and China’s economy is still facing severe challenges. As a post-development underdeveloped region, our region faces even greater difficulties. In the face of this grim situation, our enterprises have taken effective measures in accordance with the major decision-making arrangements of the central and autonomous regional party committees and governments, turned pressure into motivation, changed challenges into opportunities, turned crisis into a turning point, marched in adversity, and rose in difficulties. , do everything possible to overcome difficulties and promote development. Starting from today, the newspaper has opened up a special column entitled "Guangxi Enterprises Top Adversity and Development Series Reports" to provide in-depth coverage of the measures, achievements, and experiences of enterprises in our region to cope with the crisis, overcome difficulties, and promote development.

In the spring, many companies are still struggling to deal with the difficulties brought about by the international financial crisis. Yuchai has gone all out to produce engines that are in short supply: In February orders exceeded 50,000 units, and 47.70 million units were produced and sold; more than 70,000 orders were placed in March. Taiwan; In the first quarter of 2009, more than 130,000 engines were produced and sold... In the vehicle and engine assembly section of the engine plant of Yuchai Joint-stock Co., the workers were busy at the assembly line.

Since February, Yuchai’s increasing orders have forced the production line to “running at high speed”: without increasing equipment and personnel, the vehicle assembly section started to pass through 450 stations, constantly innovating management thinking, and working hard to make it happen. , 480 sets, 500 sets, 520 sets, 550 sets, 600 sets, 630 sets, 680 sets. In more than a month's time, there were 8 passes and the production capacity increased by more than 50%.

"Now the daily output is up to 2,200 units. A lot of the owners of the main plant called to 'grab' the engine." Yu Ping, chairman of Yuchai Group's board of directors, said.

Not only this year's opening of product orders blowout in the spring, but also in the financial crisis in 2008, Yuchai also contrarian growth, annual sales income of 20.988 billion yuan, engine production and sales of 550,000 units, 952 exports of excavators, a record of the best results, The development goal of “rebuilding a Yuchai within three years” was smoothly achieved, and the number one domestic production and sales volume was maintained for eight consecutive years.

In today's severe international economic situation, where many companies in the same industry are "not fully fed", why is Yuchai's engine in short supply and "out of the blue" in the economic winter?

"The first is to work hard to break through the 'product crisis' and improve the core innovation; the second is to take the initiative to attack the 'overseas' and 'countryside' markets." Fuping gave such an answer.

As a machinery industry with a high degree of market dependence, Yuchai cannot be left alone in this wave of global financial crisis. In September of last year, the global financial crisis began to appear on the world's power product market. Yuchai's sales in the fourth quarter of 2008 fell sharply with the market. Taking the joint stock company as an example, Yuchai's sales of diesel engines from October to December 2008 were 19,020, 15048, and 17,686, respectively, a year-on-year decrease of 39%, 58%, and 46%, and production workers worked 4 days a week to respond. Significantly reduced orders.

Faced with the situation in the fourth quarter of 2008, Junping has realized that this financial tsunami is an opportunity for the industry to reshuffle, and it is a new development opportunity for companies that have prepared themselves.

Yuchai adjusted its strategy. After the market entered a downturn in September 2008, Yuchai aimed at the rapid start-up of the medium and light construction vehicle market and the opportunity for substantial growth in the agricultural machinery market, and timely launched a special action to break through the “product crisis” and targeted development of market demand products. In more than 20 months, it has achieved more than 20 outstanding results, driving the overall growth of Yuchai's full range of four-cylinder engines and traditional medium-sized engines YC6J. At the same time, the gradual start of the heavy-duty truck market has also led to the rapid development of YC6M and YC6A heavy-duty engines. This spring, Yuchai realized a "good start" and orders were refreshed.

Yuchai busy with production did not slow down the pace of corporate reform. In Fuping’s view, the financial crisis is precisely a good opportunity for companies to practice their internal skills. “When a good hunger is covered by ugly ugliness, when the situation is good, it often fails to see the problems that exist. The crisis can play a role in sandstorming. Whoever has good internal strength and who has great potential for development can survive.”

A strong sense of crisis inspired Yuchai's vitality. This year, Yuchai put forward the eight-character management principle of “internally constructing and constructing outside, and developing with forcefulness and development”: to improve their strength through hard work, to build a market to foster growth, gather power, and to meet new challenges.

In order to open up the overseas market space, Yuchai actively develops external financing channels, researches and develops leading products, improves market competitiveness, and actively seizes market opportunities. Especially in terms of product development, Yuchai adheres to the principles of “advance conception and leading application”, adheres to the production generation, R&D generation, and planning generation. It builds a large-series and multi-variety product structure with wide power coverage and wide application range, and quickly captures the market. . The internal and external cultivation has enabled Yuchai to seize a rare opportunity for development and achieve an upward trend. Products are sold from the “domestic” to “overseas”.

Today, Yuchai's products are popular with local customers in the Middle East, Africa, Southeast Asia, Central and South America and other international markets because of their cost-effectiveness. On February 17 this year, Yuchai signed a 10 million US dollar agreement on the supply and sale of engine products with Russian companies, for the first time, China’s single engine products were exported to Russia in bulk.

While making breakthroughs in diesel engine exports, Yuchai excavators have also been exported to more than 30 countries and regions in five continents such as Europe, America and Oceania, and the ratio of internal and external sales has reached 1:1. In 2008, Yuchai exported 952 excavators and exported them. The amount of USD 23 million was the highest in history, among which the export of excavators below 15 tons ranks first in the country, accelerating the pace of internationalization of Yuchai.

While continuing to expand overseas markets, Yuchai did not ignore the huge domestic business opportunities. Last year, the national agricultural machinery subsidies were 4 billion yuan, which has increased to 10 billion yuan this year. For every farmer buying a farmer, the average subsidy is nearly 30%, and the maximum subsidy for large-scale machinery is 200,000 yuan. "According to the current market share of Yuchai farm machinery up to 40%, the national market will bring Yuchai an increase of 500 million yuan each month." After a special investigation, Yuchai determined decisively the idea of ​​excavating the huge potential of rural areas and sold products from the “town” to the “township”. In February of this year, Yuchai began to share the big cake of “Car to the countryside”.

Since 2001, engine production and sales have ranked first in the country for eight consecutive years, and the market has risen against the market during the financial crisis. Yuchai has staged one after another "Yuchai phenomenon." Yu Ping, the head of Yuchai, said: "The crisis is an opportunity. When the crisis comes, opportunities also come at the same time. Being good at becoming a threat can be an invincible position."

Reporter Comments:

Under the turmoil of the international financial crisis, Yuchai has developed in an unconventional manner and has performed exceptionally well. It is like a plum blossom in the midst of a wintry winter. It is worthy of respect and praiseworthy: First, Yuchai people have the confidence and courage. Difficulties, they are not discouraged, more and more frustrated, looking for opportunities in the crisis. The second is Yuchai's flexible business strategy. The East did not shine bright in the West. They sold their products from the “domestic” to “overseas” and sold them from the “city” to the “countryside,” creating a new road in the crisis. The third is Yuchai’s strategic vision of winning with technology. I have no people, people have me fine, targeted development of new products, and constantly upgrade product performance and quality. These internal and external cultivations made Yuchai welcome the spring of the park in the cold winter of the financial crisis.

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