Opportunities and Challenges Deutz FAW Diesel yesterday, today and tomorrow

According to statistics, in 2008, China’s construction machinery industry realized sales revenue of 279 billion yuan, up 25% from the same period of last year; exports amounted to 13.4 billion US dollars, an increase of 56% year-on-year; sales of 25 major machinery reached 850,000, The total number of 14 commonly used models reached 2.9 million units, and the scale of the industry reached the third place in the world.

However, another set of data shows that: in 2008, the total sales volume of excavators in the world was 450,000 units, and the sales volume of Chinese enterprises was more than 20,000 units, only 5.9%, and the sales accounted for less than 4%; the total volume of loaders was 25 Million units, China's corporate sales of 160,000 units, accounting for more than two-thirds of global sales, but the amount of profit is less than the other one-third of the product.

The fact behind these two sets of figures is that China has become a major country in the world of construction machinery manufacturing, but there is still a long way to go before a powerful manufacturing country. In the process of China's construction machinery moving from a manufacturing country to a manufacturing powerhouse, the control of key parts and components is the bottleneck of the development of the industry, especially the core components - the engine. It is understood that the current high-end products of construction machinery engine, 100% Depends on imports.

In order to withstand the sudden global financial turmoil, the country introduced a 4 trillion yuan investment plan to stimulate domestic demand. Some experts predict that this 4 trillion domestic demand will drive the construction machinery industry to achieve sales of 44 billion yuan, of which the biggest beneficiaries are excavators and loaders. This is a huge challenge for the engine industry of construction machinery vehicles.

In the face of challenges and opportunities, Deutz FAW (Dalian) Diesel Engine Co., Ltd., known as the “dark horse” of the current high-end power market for construction machinery in China, will have the most massive history, the most advanced technology, and the most advantageous The perfect integration of resources creates a dedicated power production base for construction machinery in China.

As the founder of the world’s engine, “Deutz FAW (Dalian) Diesel Engine Co., Ltd.”, a joint venture between Deutz AG of Germany and FAW Group, a leading company of China’s automobile industry, has been established since that day. It has the innate advantages that domestic and foreign companies can't match: One is the "original ancestor" of the world's engineering machinery diesel engine, and the other is one of the earliest manufacturers to develop and produce diesel engines in China. Turning over the history of Deutz FAW (Dalian) Diesel Engine Co., Ltd., the past 60 years of stormy history has left a solid footprint: from a small factory with hundreds of people to the development of 2,000 employees. In the domestic diesel engine industry, a joint venture company with significant international brands; from a single production of agricultural diesel engines, to the leading product has C, E, F, DEUTZ four product platforms, light, medium and heavy three series, power coverage 80 ~ 320 Horsepower, which has discharged more than 300 kinds of various variants and adaptable products that meet the national three standards and possesses the potential of the State IV, is suitable for all types of medium and heavy-duty trucks, light vehicles and passenger cars, and has become the first brand power for domestic construction machinery.

Yesterday————Consolidating the solid foundation of Chinese automotive diesel engines

In 1951, Luda (Dalian) Machinery Hardware Factory was announced. The factory not only became one of the first manufacturers to develop and produce diesel engines in China, but also marked the development of the internal combustion engine industry in Dalian. In 1953, the 2100-type 20-horsepower diesel engine of the first generation of the factory's leading product was successfully developed, becoming one of the major power sources for China's agricultural irrigation and drainage, fishery production, and generating units. At this point, the factory moved toward the specialization of diesel engines. In 1956, Luda Machinery Hardware Factory was renamed Dalian Diesel Engine Factory.

In 1978, the spring breeze of reform and opening up spread throughout China, and the country proposed to “liberate and develop productive forces.” Dachai, under the support of the reform and opening-up policy, continuously changed the concept of production and management, continued to expand production, and increased labor productivity. In 1980, the factory implemented the eight-character principle of “adjustment, reform, rectification, and improvement” of the country, seized the policy opportunity provided by the country’s reform and opening up, provided market-oriented guidance, accelerated the development of new products, and began to try to develop vehicles. diesel engine. This year, China's first 6100B2Q vehicle diesel engine was born in Dalian Diesel Engine Factory. The historic transformation of the factory from the production of agricultural diesel engines to vehicle diesel engines began and a road suited to the sustainable development of Dalian Diesel Engine Plant was also developed.

In order to rapidly expand production and meet the needs of the domestic and international markets, the factory reviewed the situation, carefully selected, adhered to the road of horizontal economic integration, and resolutely implemented a close alliance with China's first automobile manufacturing plant in September 1986. This step has won the opportunity for the company to invest, transform and develop, and the company has since entered the fast track of development. Relying on the strong economic strength of FAW Group, the factory has strengthened and consolidated the diesel engine complex with Dachai Plant as its main body, and explored a cross-regional, cross-industry, cross-departmental, multi-level, horizontal and horizontal joint model. Subsequently, the factory carried out the largest “7th Five-Year” and “Eighth Five-Year” technological transformations and product changes since the establishment of the factory. After three years of hard work, an assembly workshop with a relatively high standard was built at that time, and the longest automatic production line for cylinder heads at that time was designed. The product was successfully converted to make Dal Chai out of trouble, setting a record for the first time in history. Since the end of the 1980s, corporate profits have increased at an average rate of 32% each year. Dachai's products enjoy a reputation throughout the country and its corporate status ranks among the best in the country. Dachai has developed a new path for the reform of state-owned enterprises with low consumption of raw materials, fast output, and high profits.

In 1996, Dachai joined FAW Group and became a full member of the FAW family. This landmark turning point laid a more solid foundation for the development of Dashicha’s leapfrog development. The product structure of the company has gradually evolved into a three-tier structure of light, medium and heavy from the single production supporting medium-card diesel engine model. The three power platform products coexist to meet the various power demands of cargo vehicles, passenger cars and construction machinery.

In order to improve the company’s independent research and development capabilities, digest and absorb advanced foreign production technologies, and bring products closer to the international level, in the late 1990s, the company will move toward the integration of production, learning, and research. The factory cooperates with famous universities and research institutes such as Tsinghua University and cooperates with internationally renowned engine research institutes such as AVL of Austria, FEV of Germany, and MAE of Japan for a long time to take the lead in accepting products and technologies from the international front. The factory has repeatedly introduced doctoral and master's degree and other professional and technical talents. It established the first postdoctoral workstation in Dalian. Dicche was the first to embark on the “information superhighway” both in the local and in the same industry. Dachai robbed the "premature bus": In the early 1990s, it took the lead in the application of microcomputer operations in the product design department. All designers replaced the traditional drawing board and realized a paperless office. In order to meet international standards as soon as possible and to adapt to the impact of the management lag brought about by the era of the knowledge economy, we have planned and established a fiber-based computer network, introduced the OA automation office system, and completed the OA network of all offices. At the same time, the introduction of the SAP system has improved the level of information collection, utilization, and analysis. It has also established a corporate website and increased new channels for companies to connect with the outside world.

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Yesterday, it laid a solid foundation for today's DEUTZ FAW (Dalian) Diesel Engine Co., Ltd. to build a professional production base for the first brand of construction machinery in China.

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Today————Composing a new chapter in the first power of China's construction machinery

Entering the field of construction machinery is the goal and long-cherished wish of the boss. In order to achieve this goal, Dachai started producing small-volume forklift diesel engines in small quantities in the late 1990s, and made some preliminary preparations for large-scale advancement into this field. However, due to historical limitations, the pace has not been great.

However, hard work pays off. The cooperation between FAW and Germany's Deutz has provided a powerful boost to Dachai’s achievement of this goal and long-cherished wish.

At the end of 2002, as one of the three core technology investment and development strategies of the company, FAW Group Corporation signed a technology transfer agreement with Germany's Deutz AG and introduced 39 engines of the three major series of diesel engines from 1013, 2012 and 2013 of DEUTZ. Type, power coverage 122 ~ 300 horsepower, emissions meet national standards, with the country's potential product technology, and will introduce projects, settled in FAW Jiefang Dachai. After four years of meticulous construction, the 2006 Deutz project achieved batch trial production. In August 2007, Deutz FAW (Dalian) Diesel Engine Co., Ltd. was formally established.

The establishment of Deutz FAW Dachai can be described as "a combination of China and the West" and "a strong alliance." At the listing ceremony that year, the vice president of the China Automobile Federation Zhang Xiaokai said that the marriage between China FAW and Germany's Deutz is not a simple joint venture between ordinary companies. The "superpower" combination of the founder of a world engine and the leading enterprise of the Chinese automobile industry has a milestone significance both for the international engine market and the domestic automobile industry. From the perspective of the international market, Deutz has been a loyal strategic partner of many well-known international brands such as Volvo, Renault, Atlas, and Saimai, and has always led the development trend of the world's diesel engine power. Deutz FAW (Dalian) Diesel Engine Co., Ltd. will enter the international high-end market with this international green channel; for the domestic diesel engine market, the new company will rely on world-class research and development capabilities and technical standards, uphold scientific and stringent German quality genes, relying on dozens of diesel The mature marketing network established in China, especially FAW Group as China’s leading commercial vehicle manufacturing company, its own needs not only ensure the development of Deutz FAW (Dalian) Diesel Engine Co., Ltd., but also will enable domestic diesel Product quality to a higher level.

Vice President Zhang Xiaoxuan also said that Deutz FAW (Dalian) Diesel Engine Co., Ltd. will continue to expand the market of non-vehicle trucks and quickly replace domestic imported Deutz with domestic Deutz, which reduces China’s construction machinery, The manufacturing cost of high-end products for passenger cars and agricultural vehicles has improved product quality and enhanced the competitiveness of these products in the international market. On the other hand, as Volvo, Renault, Atlas, and Saimai build their plants in China, they will also significantly increase sales of domestic Deutz products in domestic non-load trucks, and ultimately achieve a true win-win situation. .

The two-year joint venture has proved that Deutz FAW (Dalian) Diesel Engine Co., Ltd. has fully integrated the superior resources of China and Germany, and relying on Deutz’s leading global R&D capability, it has established an international cooperative R&D system that can fully satisfy Assembling demand for commercial vehicles and construction machinery in China, and possessing the potential for continuous optimization and upgrading; adopting world-leading detection and anti-error technology, the production technology and detection capability have reached world-class level, and the perfect unity of production efficiency and product quality has been achieved. Based on the verification system accumulated by Deutz's more than 100 years of experience, it has fully adopted world-class component development tests, complete machine performance, reliability testing, performance evaluation, risk assessment and other verification standards to ensure that products have Synchronize the reliability of the famous European power. With world-class brand influence, world-class R&D system, world-class manufacturing system, world-class power platform, world-class profit model and world-class market strategy, we fully meet the diverse needs of domestic and international customers and promote The international development of China's independent commercial vehicle and construction machinery brand.

Recently, the DEUTZ off-road engine produced by Deutz FAW (Dalian) Diesel Engine Co., Ltd. passed the VCA certification and obtained the certificate issued by VCA. As the executive agency of the British Ministry of Transport, VCA is the EU's most authoritative certification body, responsible for the entire European vehicle certification, and is also a national examination and approval agency for new UK road vehicles, agricultural tractors and non-road machinery products, and its certification has won the EU market as a whole. And it is unanimously endorsed by many countries in the European economy. The DEUTZ engine, which was certified for emissions, is mainly used to match the export of construction machinery and generator sets to the European market. The successful passing of the certification marks that DEUTZ's non-road construction machinery products comply with European standards and have a “pass” for the entire EU market.

In April this year, the non-road DEUTZ engine produced by Deutz FAW Dachai was tested for emissions at the Jinan Automobile Inspection Center according to the requirements of the EU's emission regulations, and witnessed by the VCA engineer. The test consists of 10 family lines with a total of 349 models. After a week of testing, all types of engines have passed emissions certification. The success of the test indicates that the DEUTZ engine has fully complied with the European standards and that all performance indicators are better than the EU regulations. In May, the VCA audit team went deep into Deutz FAW Dachai production site to conduct factory production consistency check. The audit team carefully audited all aspects of the quality management system, procurement, process flow, warehouse, off-line inspection, etc. The auditing experts highly praised the specifications of the procedures and quality documents of the Yiwu IFA-China FAW-Chai Machinery Co., Ltd. The equipment used in production and production is first-rate, highly accurate, advanced in management, and high in personnel quality, and fully meets European standards.

At present, the sales volume and variety of Deutz FAW Dachai Industrial Engines continue to increase. From the beginning of entering the field of construction machinery, there are only a few hundred units sold a year to nearly 10,000 units, from the initial single CA498 product to the current CA4DC series, CA6DE series, DEUTZ1013 series, DEUTZ2012 series and many other product lines, from only matching Heli forklift A company has developed to support the domestic mainstream construction machinery manufacturers.

Now, Deutz FAW Dachai Industrial Engine has entered various fields such as road machinery, concrete machinery, generator sets, lifting machinery, port machinery, mining machinery, airport equipment, heavy-duty transportation, agricultural machinery, and industrial water pumps. DEUTZ products are not only supplied in bulk for major domestic construction machinery manufacturers such as XCMG, Sany Heavy Industry, Zoomlion, Shandong Linggong, etc., but also provide “global power” for China’s high-end independent construction machinery brands to enter the international market. Baosteel, Wuxi Atlas, Wirtgen, and Samai Deutz have purchased bulk-owned or joint-venture construction machinery and agricultural machinery companies in batches to replace imported products. DEUTZ products produced by Deutz FAW Dachai fully meet the diversified needs of domestic and international customers and promote the international development of China's independent construction machinery brands.

Compared with developed countries in the world, the emission standards for China's construction machinery still remain at a low level. At the current “world’s largest” construction site in China, this issue, which is inconsistent with China’s ever-increasing environmental protection standards, has long attracted the attention of relevant state agencies. Raising the emission standards for domestic construction machinery is also a life and death line for vehicle manufacturers and engine manufacturers. There have been reports that the birth of Deutz FAW Dachai was a major change in the domestic and foreign construction machinery power market landscape. Raising the emission standards of domestic construction machinery is a rapid development opportunity for Deutz FAW Dachai.

German Deutz is a world-famous engine manufacturer. It started with construction machinery engines. For more than 100 years, it has been leading the development of the world's construction machinery power. It is also the world's only professional manufacturer of construction machinery power. Germany Deutz's products, from Europe 0 to Europe III, so that the European IV, Europe V is a step-by-step continuous follow-up market, is currently a domestic diesel engine manufacturing companies can not compete with the mature technology. As the first manufacturer of foreign engine technology imported after China's reform and opening up, the original German Deutz product has entered the Chinese construction machinery market for nearly 20 years. Its market maturity is also unique in the current Chinese market.

Due to the current domestic and foreign manufacturers of diesel engine production Euro III products, most of the common rail systems used are independent of diesel engines. However, this key technology is currently monopolized by foreign companies and the initiative is not in the hands of diesel engine manufacturers. This has become a bottleneck restricting the development of the Chinese diesel engine industry. The monomer pump used in the Deutz FAW Chaiouou III product is a component of the diesel engine. Its technology is also held in its own hands as a patent. Not only is the price one-third lower than the common rail, but more important It is not limited by quantity. This is its greatest advantage. In addition, Deutz FAW Dachai has the rare hardware of the same industry in the world: modern design center, testing center, new product trial center, postdoctoral workstation; world-class AVL test bench, high dynamic bench and other 20 Multiple advanced performance test benches; Semi-anechoic chamber designed by Germany FEV; Full flow dilution and particle sampling and emission testing system complying with Euro III and Euro IV standards; and Vibration and noise testing system of German HEAD company and Denmark B&K Company, etc. All these have laid a solid foundation for the products to meet the future emission standards for construction machinery.

Deutz FAW (Dalian) Diesel Engine Co., Ltd. builds its products with “European standards and German quality”, making domestic diesel engines leap to a world-class power platform. This is a leap. This leap has greatly shortened the gap between the Chinese diesel engine and the world brand power. At the same time, because engineering machinery is the traditional market of Deutz, it is the strength of Deutz to produce small-volume, multi-variety variant products. At present, all high-end construction machinery products in the Chinese market adopt imported original machines, so Deutz FAW (Dalian) ) The advantages of Diesel Engine Co., Ltd. in the field of construction machinery have "strengthened the situation" and broke the monopoly of well-known international companies in the high-end construction machinery market in China. Although its products have entered the high-end market of domestic construction machinery for only two years, they have been highly recognized by users. Major companies such as Sany Heavy Industry, Zoomlion Heavy Industry, and XCMG have made trial orders from individual units to bulk orders and established long-term strategic partnerships; more and more small-volume users have also come to the company. "Customized"; some users said that according to ITZ FAW Dachai is a construction machinery diesel engine "large-scale supermarket", not only full variety, good quality and reasonable price, as long as access to this supermarket, you can choose to the user needs products . At present, Atlas, Shanghai Baomaig and a group of original Deutz products that are wholly foreign-owned companies in China are also fully replaced by domestic Deutz products.

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Tomorrow——The goal of realizing the power of the first brand of the world engineering machinery

“Building the first professional brand production base for construction machinery in China” is not the ultimate goal of Deutz FAW (Dalian) Diesel Engine Co., Ltd. It extends the “World Engineering Machinery First Brand Power” professional base to Dalian, China. The strategic direction of long-term development. To this end, as the only professional production base established by Deutz of Germany in the Asia-Pacific region, in September last year, the company set up a sales department for industrial engines for both domestic and foreign markets, in order to achieve "to build the world's first brand of construction machinery power." The ultimate goal has been to establish a full range of synchronization with German Deutz technology, quality synchronization, sales synchronization, and service synchronization, and to launch product, quality, and service troika to escort.

Development synchronization, for users "tailor-made." DEUTZ's product technology is not a simple technology transfer from the West to the East, but based on the characteristics of the actual application of the product, the two sides jointly developed. Domestic engineering machinery has certain differences with foreign countries in terms of operating site, application conditions, and use environment, and is even more complicated. This imposes higher requirements on the matching and adaptability of engine for construction machinery, and is sometimes uncertain. The request. The homogeneity of Deutz product technology at home and abroad, and the time difference between China and Germany, have determined that the company's R&D work is uninterrupted for 24 hours a day and night, and the work relay will accelerate the pace of technological R&D. For the whole machine, a strong match evaluation method is a major advantage of Deutz. This advantage is fully promoted by Deutz FAW Daejcha. Users do not need to go to the scene to check the matching situation. Deutz FAW-Dachai will make different solutions for different systems before the engine leaves the factory, do a variety of matching, and pass it to the user after the evaluation of the system evaluation. The user's time to market has been shortened.

Synchronization of quality, with the European standard to live home. Like the Deutz technology, Deutz FAW Diesel's quality control system for Deutz products is also new. Since 2003, the company has entered the planning stage for the localization of Deutz products. After the project quality planning with the Deutz Project Headquarters, the seven quality doors of the Deutz product localization process were determined, and the corresponding control requirements passed the “DUETZ Diesel Project Pre-production Quality Management Measures” and the “DEUTZ Diesel Project. The project management documents such as the “Synchronous Project Management Measures” were defined and regulated, and Deutz’s monitoring tool - Q-Plan was used for the horizontal and vertical 360 quality control nodes from the birth to the production of Deutz products. Each gate has a strict Deutz standard. All parts and components in the process of production preparation and trial production are only qualified to enter the host through these seven gates. Deutz FAW Diesel sets 7 gates on the road to localization of Deutz products, which is to put “European standards and German quality” into practice. After seven gates of strict control, the company’s suppliers have been reduced from the past 129 to 76, of which 30 suppliers of key components are the world’s top manufacturers recognized by German Deutz in China or wholly-owned or The joint-venture companies, these high-end suppliers not only accelerated the localization speed of Deutz FAW Dachao Deutz products, but also greatly improved the market competitiveness of the products.

The services are synchronized to provide “world-class” services for “World Power”. The integration of Daw Chai's traditional high-quality services into Deutz's service philosophy has resulted in the unique service system of DDE (Daeitz FAW Dachai) today. “Services and Bridging” has enabled the company’s products to enter the global warranty, which means that users can receive satisfactory services in any region of the world.

As a kind of world-class power, the structure of DEUTZ products is unique, especially the use of electronically controlled monomer pump system. This is a “outstanding” in the world, which is unfamiliar to the majority of users, so various forms The technical training is the main content of the service of Deutz FAW Dachai in recent years and it is institutionalized. In the past two years, more than 70 training sessions have been held at the service stations of 29 provinces and municipalities across the country, including major training for military, bus companies, and petrochemical users. At the same time, it increased the management of service outlets and proposed the “four specifications” for the construction of existing service stations, namely, standardizing maintenance operations, standardizing image construction, standardizing hardware facilities, and standardizing service attitudes, and using this as an enhancement service function to enhance Deutz FAW Dachai service brand image of the specific content.

In order to create a world-class service, the company took the lead in setting the quantitative standards for service work in the same industry, in other words, all speaking in numbers. If a repair rate is 98%, service timeliness is 100%, service radius is less than or equal to 60 kilometers, accuracy of three-package identification is ≥94%, and the number of users complaining about technical data is less than or equal to 2 times per month, these quantitative indicators are only based on the past. With some adjustments, service weekly reports, service monthly reports, customer satisfaction, customer documentation, visits, return visit records, warranty service inspection orders, service training program summary, service station rating, service radius, etc. have all been formed in recent years. The main contents of the closed-loop operation management system and the establishment of a corresponding supervision structure.

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