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Yuchai:Brand from academy and value from service

On site service was provided by Yuchai technicians

Yuchai technician is examining the machine
The technician is checking and fixing the machine
    On January 29, the 2007 annual sales and service meeting of Yuchai Group was held in Beijing. Yuchai announced that the gross sales was 14.1 billion yuan and exceeded the annual target. It was 16.2% over the same period of 2005. The sales of diesel engine were 280,000, up 23.25%. The sales income was 7.05 billion yuan, up 16.1%.
    In 2006, Yuchai engine maintained the first place in China with the scale of sales and production and the number one in the world among individual factories. Yuchai brand ranked 119th among the top 500 most valuable brands in China and the number one in power industry. It was the only brand of power industry in Asia that list on the top 500 Asian brands, ranking 338th. Yuchai for the first time as an independent organization got 2 research projects of the national 863 Program. Yuchai established the leading place in the development of heavy vehicle engines in China. Yuchai successfully developed the first diesel engine that meet the Nation-4 emission standard  and pushed the overall upgrade of diesel engine emission level in China. Yuchai independently developed the 2 litre and 1.3 litre diesel engines for small cars.
Grow by technical advantages
    In 2006, the mass products of National-3 engines to the market pushed the production of the National-4 diesel engine. The technological advantages of Yuchai step by step came to effect because its machine was one step ahead adapted to the market. The sales were also increased in variable markets. Yuchai has broadened the market and achieved many bench points. A big amount of its YC6G and YC6L National-3 engine and LPG engine were put to major markets such as Beijing, Shenzhen, and Shanghai. 6000 were sold. The sales of medium-size self unloading cars such as 4D, 4E and 6G were increased stably. A small amount of YC4F light engine was successfully put to the passenger automobile market and got the attention from users.
    Yuchais 6M engines of the heavy machine engine in China, the black horse, become a rapid growth point. The 6M engines adopt the unique combustion system of German FEV and the European forced cooling piston technology. The engines were used extensively in construction machinery such as engineering self-unloading cars and concrete mixer trucks. A lot of the Yuchai 6M engines and heavy trucks with this engine were exported to overseas market. Yuchai is also extensive cooperating with Dongfeng Business Car Corporation and Dongfeng Liuzhou Automobile Factory. A big amount of the 24-valves 6M heavy engines were speedily put on market. The share of the market of Yuchai machine in the heavy machine diesel engine was continually increased because of their high quality, low oil consumption and low noise factors.
The brand value comes from academic skill
    In 2006, Yuchai will create more value for the industry with its technology based on all Yuchai products met the National-2 standard. Nine major series products met the National-3 standard. The 6A and 6L met the National-4 standard.
    Yuchai provided timing development service for the key machine factories by emphasizing on service for key machine factories and built a service network. Yuchai engines were well known by the key machine factories for its reliability, timing development, and seamless connection service.
    Yuchai has a strong expert team in the research and development. They contributed a lot to the leading edge technologies. In the demand of future development, The experts gained technologies relating to the National-3 and the National-4 emission certification standards such as electric control calibration, supercharger matching and catalytic converter matching. They guarantee the transformation of high technology into marketing and also provide technical support for the continuous increasing of Yuchais brand value.
    In December 2006, Director Yan Ping gave the prize of major technology improvement to the teams and individuals who made great contribution in major projects such as development and quality control of the YC6J iintercooled diesel engine and YC6G gas engine, development and application of emission control technology for light car diesel engine, casting heat annealing, and the application of matching YC4D series diesel engines with reapers. Seventy eight experts shared this honor.
Trust from professional service
    Yuchai tried very hard to improve the service quality to increase the brand value and sales volume after gaining the advantages on products and technology.
    Technology and price were the focus of competition among the internal-combust engine enterprises in 2006. In order to lower the cost, Yuchai Group streamlined the management structure and renewable the management system. It is necessary to strengthen the marketing and after sale service in order to transfer technology advantages into successful brand and market advantages. To closely cooperate with the key machine factories, Yuchai drafted variable plans such as promotion of National-3 engine and matching 6M engine with 50-loader. It also optimized and integrated the service stations by increasing the number of service stations shortening the service radius, quantifying the service quality, and reinforcing the supervision. Therefore Yuchai provides timely and professional service for the key machine factories.
    To meet the professional service demand, Yuchai allied with Dongfeng divided the area to 9 zones and provided training to 204 assessors of National-3 standard around 184 stations in 3 key areas and potential areas. The training improved the service efficiency in heavy machinery and National-3 market. Yuchai also standardized the cooperation pattern and signed contracts with key machine factory such as Dongfeng to guarantee the service quality. 

    The professional and excellent services were well paid off. In 2006, the sales were steady increased in every sector. The sales of trucks were increased from 9% of last year to 15%. The sales increasing on bus sector exceeded the increasing speed of the whole industry. It successfully got to the new areas of passenger car and pickup car.

Customer satisfaction is improving
    Yuchai always has good reputation in the internal-combustion engine industry for its good service. Good service gains customer satisfaction. In a recent client survey, Yuchai maintained the leading position in the industry on general service quality and every major indication. In comparison of service quality with other competitors Yuchai got the best response from clients. The degree of satisfaction is improving stably.   

    In 2006, Yuchai remarkably improved the service. Yuchai emphasized on core network construction, professional service, and timing development for key machine factories.

    Building core service network is number one. In 2006 366 core service stations which is about one third of the total stations finished 85% of the work. The core service network mainly provides free-of-obstacle service for 21 automobile factories including Dongfeng, Liuzhou Automobile, Yutong, and King Long. In 2006, as the demand of market increasing, Yuchai built 1206 service stations to shorten the radius of service to 40 kilometers. It established the selling network for parts and can deliver the parts within 24 hours. Yuchai also provides the parts information system to support the parts delivery work.

    In 2006, Yuchai implemented client faithfulness management; constructed client satisfaction service platform; provided complete resolutions for clients; kept good relationship with clients; and improved the service supervision system. By visiting and training, Yuchai provides suitable assistance according to different needs of clients. Yuchai provides actively follow-up service to users of strategic products (6M and National-3 engines). 
Reforms and innovation
    In 2006, facing the unstable market, Yuchai took big steps to streamline the administrative system; renovate management system; and reform the working, personnel and allocation system.
    In order to improve the management system, Yuchai integrated some departments and optimized the management procedure. The administrative departments were reduced from 8 to 5 and the staff were reduced from 60 to 48. Yuchai is implementing the cost control project to reduce cost for every system including technical, administrative, sales, purchasing and production departments.
    Yuchai is continually improving the corporate management structure and renovating the company management. In 2006, Yuchai set up the parent and subsidiary management system for better management of investment and assets to maintain and increase the value of national assets.
    In 2006, Yuchai optimized the production structure; implemented detailed management style; strictly use order and sale oriented management system. As a result the output of diesel engine increased 20% to over 280,000. The average salary was increased by 10%.
    Meanwhile, Yuchai emphasized on quality control by building a system to quantify and evaluate the loss of quality and strictly implemented the regulations to ensure the stable quality of the products.
    In 2006, Yuchai sales company made big adjustment to its management style: returned the sales of engine, logistic, complete vehicle and parts back to their parent companies. Those departments operated independently and take full responsibility for their own business, revenue, management, and develop. The adjustment increased the innovation and creativity of each sales company. They pay more attention to the economic benefit instead of only of the scale of development.
                                                                                           (writer:Lv Caixia)
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