In the spring of 2009, the launch of the heavy truck market in China was earlier than any other year. Weichai Group, headquartered in Weifang, Shandong Province, the “Kite Capitalâ€, produced 35,000 engines in March, the highest level in the same period in history. Every economic crisis has given birth to a new round of growth The predecessor of Weichai Holding Group Co., Ltd. was the Weifang Diesel Engine Factory established in 1946. It has more than 30,000 employees and total assets of 32.9 billion yuan. The Weichai Power Co., Ltd., which is controlled by it, has been listed on the Hong Kong Stock Exchange and the Shenzhen Stock Exchange. In recent years, the Weichai Group's ability to control the capital market has expanded the Group's main business from a single high-speed diesel engine segment to include three major business segments including complete vehicles, powertrains and auto parts. Weifang, Shaanxi , Zhuzhou, Chongqing, the four major business areas of coordinated development, and built one of the most competitive automotive industry clusters. In 2007, the United States broke out in the subprime mortgage crisis. At the end of the year, although the supply of the market was still booming, Weichai sent a warning to the entire group that the global economic recession is approaching. In 2008, Weichai sent technical, marketing, and financial professionals to form a special research team and successively visited the United States, Europe, Southeast Asia, and other countries and regions to conduct research and evaluation of international capital markets, product markets, and talent markets. At the same time, the Group held strategic seminars in Hong Kong, Shanghai and Beijing successively and conducted detailed studies on the trends of the industry in both domestic and overseas markets, and formulated countermeasures for corporate operations. As the crisis comes, the capital chain is the lifeline of the company. Weichai has maintained sufficient cash flow to cope with the crisis through internal controls. Especially during the rapid growth of the industry in the first half of 2008, Weichai has simultaneously taken steps to reduce costs, control inventory, and strengthen the management of accounts receivable. Weichai Group Sales General Manager Zhang Quan said: “The market began to decline rapidly from late September last year, but Weichai’s adjustment rate was faster and the capital chain was controlled very well. In October 2008, China’s heavy truck market was sold monthly from 10 Million units suddenly dropped to 20,000 units, but Weichai still holds enough advances.†Due to adequate preparation, when the financial crisis formed a real impact on the heavy truck market, Weichai insisted on non-stop production, no layoffs, no pay cuts. . Tan Xuguang, chairman of Weichai Group, said: “Every economic crisis has given birth to a new round of growth.†In the days when market sales were the most sluggish, Weichai’s human resources department was more busy than usual. Weichai took the opportunity to train 1/3 of its staff for job rotation, which not only stabilized the workforce but also made preparations for the market recovery. At the same time, Weichai went to Peking University and other schools to recruit students. Sure enough, this year, driven by engineering projects, China's heavy truck market is the first to recover. Independent Innovation Creates Greater Value for Customers Under the impact of the financial crisis, Weichai has been able to respond calmly, in addition to benefiting from a series of favorable policies for national growth and expansion of domestic demand, thanks to Weichai’s efforts to build a well-known power brand and its established industry. Technology leadership. Uninterrupted independent innovation has created a strong market competitive advantage for Weichai. “Some equipment can be purchased for money, but the new product development process and specifications cannot be purchased. Even in the most difficult period of the company, the investment for research and development has not been reduced.†According to Sun Shaojun, executive president of Weichai Power Co., Ltd. Weichai actively explored new models of independent research and development and joint research and development to cultivate independent intellectual property rights of enterprises. Weichai had almost no technology research and development before 2000, and some were only technological improvements to old products. In the research and development of product R&D, Weichai cooperated with foreign professional research institutes to develop joint product R&D, cooperated with domestic universities and colleges to carry out basic research, and developed a new way to speed up research and development with the help of brains, and initially formed production. The development pattern of a generation and pre-research generation. In March this year, Weichai invested an additional 600 million yuan to build a brand-new product R&D center in the new district of the industrial park, which is expected to be completed by the end of next year. After nearly 10 years of hard work, Weichai has initially established a new engine and power flow development specification. Up to now, Weichai has invested a total of hundreds of billions of yuan, established six R&D centers at home and abroad, established postdoctoral workstations and domestic advanced product testing rooms. Weichai engaged in technical R&D personnel from less than 20 people at the time and has now grown to more than 500 people. In order to maintain its leading position in technology, Weichai has established R&D centers in Europe and the United States respectively, and has pioneered the development of China’s first national III engine with independent intellectual property rights. Today, Weichai has developed more than 300 new products every year and has obtained more than 100 patents. The output value of new products has accounted for more than 50% of the total industrial output value. Since the outbreak of the financial crisis, Weichai has taken product research and development, brand building, and value chain control as the core, promoted independent innovation, and created greater value for customers. Following the successful development of the “Blue Engine†III engine, Weichai has successfully developed the National IV and National V engines with a high level of research and development capabilities. At the same time, Weichai also exploited its own industrial chain advantages to develop the world's first "powertrain" product for system matching and R&D of engines, gearboxes, and axles. The development cycle has been shortened by 1/5. Contrary to the trend and win the future in the industry reshuffle Adversity highlights innovative advantages. Weichai's brand value has improved in the immediate financial crisis. Jiang Kui, Deputy General Manager of Weichai Holding Group Co., Ltd., said: “Customers are becoming more selective nowadays than ever. They will pay special attention to fuel consumption and other details. At this time, whoever has superior products will be able to When the market economy is in a bad situation, we can hold on." The drastic changes in the market have accelerated the adjustment of the Weichai market structure. Weichai gradually grew from a single supplier with a relatively single market and product to a diversified supplier. In the context of the overall decline in the engine market last year, Weichai sold more than 10,000 units in the supporting markets such as bulldozers, car cranes, and agricultural machinery. Although in the downturn of the industry, Weichai's market services are improving. As a full-range supplier of power for construction machinery, Weichai strives to provide customers with personalized services to meet customer needs. At present, Weichai has established more than 3,000 service stations to provide users with 24-hour service. While consolidating the domestic market, Weichai also implemented a differentiated marketing strategy and successively developed international markets such as Russia, Indonesia, Vietnam, South America, the Middle East, and Turkey, and achieved "the West is not bright." This year, sales in the Russian market alone have increased by 200%. The heroic character of the side of the sea is flowing across the sea. Jiang Kui told reporters: "Weichai cherishes more than half a year's adjustment opportunities and has done a lot of long-term work to win breathing opportunities for the rapid development of the company. The engine capacity utilization rate starts from about 40% at the lowest level, and it will be in late February. Increase to 100%." Financial winters at the same time freeze the international market, but also brought the opportunity for the industry to reshuffle. Asset prices in the international market have become tempting, and Weichai has rich experience in capital operations. It is an opportunity for resource integration. Weichai’s management said that it will take advantage of the company’s sufficient cash flow and advantages in capital operations to seize opportunities in the “winter swimming†and establish a new business structure for the group. "Ice-to-sea" Weichai has been well-received in the past winter. A large number of outstanding North American, European and other overseas scientific and technological talents have joined Weichai, and some overseas excellent assets have also been incorporated into Weichai. “The more the economy is in recession, the more it is the best test of a company’s ability to innovate. At present, the state has put forward more stringent emission and energy consumption standards for the engine industry, which is a rare opportunity for such a brand enterprise as Weichai. Market Opportunity. This is a disappointing winter. It is the spring of hope! Weichai has the confidence to overcome difficulties and usher in another spring of career development.†Tan Xuguang said. EUROCRANE GLOBAL , https://www.overhead-crane.com