Yuchai Group, the worlds largest independent diesel engine production base, continued growing and achieved a new level in spite of the recession. - As of June 30, the production and sales of engines reached 356,000 with an annual growth of 2.36%, maintaining the top position in the industry. Its sales income (including taxes) was 7.79 billion Yuan, up 4.8%.  

To Yuchai Group, behind the numbers was the breakthrough of the belief and spirit of the company rather then the mere breakthrough of the amount.

Turn crisis to opportunity  

When the global automotive industry was clouded by the financial turmoil and the domestic auto market was slowdown, chairman of the board of Yuchai Group Yan Ping believed that there are opportunities during the crisis. As long as we have innovative ideas effective approaches and proper productions, we would convert crisis into opportunities. He required that all staff of the Group to to clear understand the crisis and to take the responsibility to develop Yuchai.  

Based on the clear understanding of the crisis, since the last quarter of 2008, Yuchai had the training on responsibility facing crisis improved the internal strength, and adjusted the market structure and product structure. Yuchai Group ended 2008 with a sales income of 20.988 billion Yuan by hard work. It achieved the goal of to build another Yuchai in 3 years with a sales of 55, 000 engines. It maintained the top place in the domestic industry for the past straight 8 years and scored another Yuchai miracle after 2005.

Yuchai did not sleep on the achievements despite the praises from the peers in the industry and media. It drafted the business guidelines for 2009 -- to increase the internal strengthen and external influence for future development. For the internal, it has committed to the restructuring of industry and products, product quality, human resources training, risk control, lowering costs, strengthening responsibility, and culture promotion to build the foundation for the development and enhance the competitiveness. For the external, it has worked to build a new growth point in the market and promote the future development of the company.  

Yuchai continue implementing the theme of to increase the internal strengthen and external influence, fight against the difficulty, push the scientific development and build an internationally recognizable Yuchai. It held an active role on practicing the Concept of Scientific Development. Yuchai has doing: the optimization of business project, self-innovation projects, team-building project, and live environmental improvement project.    

From Feb., the orders of products of Yuchai Group were increased greatly. In Feb., the orders for engines reached 50,000. In Mar., the orders for engines were over 70,000. Its workshops became busy again. The performance of Yuchai made a hit in the industry enormously.  

Hold the opportunity and rebound  

The sales departments of Yuchai Machinery Co., Ltd. seized the opportunities brought by the infrastructure projects of the States stimulus investments, the policy of auto go to countryside, the removal of road toll charges, migrant workers returning home, the subsidy to the agricultural machines, etc. The departments had the following marketing modes: building new rural development, autos go to the countryside, yellow marked cars, projects building, hybrid power and so on. In addition, it optimized service network, strengthen the network coverage and build the State III service capacity that enhanced the service and security ability in a full way and maintained the advantages of service in the industry. All the application development of the Group met the standards and the testing result of the whole vehicles was up 39 that lay a strong groundwork for the market. Along with the national policies, the market responsiveness and the team building of the sales departments were further strengthened. Though the market was downsized greatly, Yuchai Machinery Co., Ltd. still gained sales accomplishments in the trucks, buses, and universal engine markets. The truck sector: despite the slump of the end users demand, a total of 168,000 engines were sold in the first half of 2009, up 10. Even in June, the low season, the sales volume of Yuchai was up16.5. The buses sector: Yuchai still enjoyed the leading position in the market and increased the proportion of its engines used by buses OEMs. The universal engine sector: sales records had been renewed monthly. In April, the sales surpassed 10,000, up 18, exceeding the whole output of 2008. In the first half of 2009, a total of 250,000 engines were sold, up 3. The total sale income was increased by 3. In the meantime, the marketing quality was upgraded to a new stage. For example, the on time delivery rate was increase hugely, the response time was shortened, the inventory structure was optimized, the payment collection was normalized, and the definition of roles and work division were further clarified. Yuchai achieved dual breakthroughs in the quality and amounts of sales.              

Unity, fighting spirit, and make new records  

Responding to the market improvement after the financial crisis, the production departments of Yuchai Group initiated a series of measures, such as to build sales information green passage from the offices of the Group to the OEMs, schedule production in consistent with the suppliers and flexible working hours, increase the working efficiency and serve the demand of orders.

Every plants of the company ran at the full capacity to devote themselves to the large scale production of the new year. The foundry renewed their output and quality record by the hard work of the whole staff. Its waste rate in March was dropped to 2.9%, creating the best quality in Yuchais history of casting and leading the domestic industry. By innovation, accuracy and the performance assessment, the cooling processing plant achieved a growth of 27.5% of the products. Even with a reduction of 400 staff, the 1^st engine plant overcame a number of difficulties and made 3 major improvements: daily standard improvement, monthly production improvement and the improvement after the changes of product structure. In the first half of this year, an amount of 150,000 engines were transferred to the stock, up 8.4%. The 2^nd engine plant achieved an increase of 11.76% on the production of which the general assembly workshop section achieved a growth over 50 on the output capacity. To ensure the full accomplishment of production, Yuchai Technicians Association promoted the initiative of to achieve the best A large number of technicians learned the skills of one accurate pouring, one accurate assembling and one accurate estimation, and set the exemplary roles in the large scale production.    

Under the global financial crisis, with the guidance of the Concept of Scientific Development, Yuchai Group increased internal strengthen and external influence, calmly dealt with the crisis, strengthened the development base and the coherence of the team. Yuchai gained good results in engineering machinery, logistics, mechanical and electrical sectors beside the engine sector. The sales income (including taxes) of the engineering machinery was 1.018 billion Yuan, up 43.94%. The total sales income (including taxes) of the Group in the first half of 2009 was 12.856 billion Yuan, up 3.86%, accounting for 61.22% of the objective of the year. In the same time, the brand value of Yuchai Group grew by 7610 million Yuan and ranked 111^th in the Top 500 Most Valuable Brands in China with a value of 7.119 billion Yuan.  

Author: Tang Ning