The financial crisis takes a big blow to the internal combustion engine industry and brings a large number of businesses to the brink of closure. However, one enterprise still achieved outstanding results under the difficulties. Its shrink was only 1/3 of the average level of the industry. At the beginning of this year, it experienced an increase in orders. Only 5 days since the beginning of March, it received over 60 thousand orders for the month that is far exceeding the production capacity of the enterprises. The companys name is Guangxi Yuchai Machinery Group.  

Representative of the 11^th National Peoples Congress and chairman of Guangxi Yuchai Machinery Group Yan Ping pointed out that the financial crisis could not be eliminated by our wishes and enterprises shall face the reality and work hard toward high level products.  

Additionally, as an entrepreneur with strong social responsibility he made 3 suggestions concerning both the industry and the environmental protection.    

Policies should be implemented faithfully  

Yan Ping added that as an entrepreneur, his first and foremost concern is how the policies are implemented.   

Internal combustion engine enterprises are inseparable from all kinds OEM industries. Of the Top Ten Industrial Restructuring Plan of the government, two are closely related to Yuchai Group. They are: automotive industry and equipment manufacturing industry. The 2009 report of the Chinese government by premier Wen Jiabao stated: we will improve the policy on automobile consumption, accelerate development of markets for second-hand cars and car rental and guide and promote rational spending on automobiles. and actively boost  domestic demand, especially consumer demand, and strengthen the role of domestic demand in driving economic growth.  

Yan Ping said that the country has fully recognized the importance of automotive industry in the national economy. Because a majority part of Yuchai engines are used for passenger vehicles, as the emission standard is improving, Yuchai as the largest domestic maker of Euro-IV engine will  be benefited from the policy directly.   

The restructuring and revitalization in the equipment manufacturing industry will also have direct effects on the internal combustion engine enterprises as internal combustion engine industry is subordinate to equipment manufacturing industry. For instance, the bottleneck of core supporting parts is commonly encountered by internal combustion engine enterprises. In the meantime, since the internal combustion engines support parts of engineering machinery, agricultural machinery, etc., the market revitalization will offer a push to the engine manufacturers.   

However, the present adjustment and revitalization plan only gives a general direction and the detailed measures are not yet released. Yan Ping added that he would stress the urgency to implement specific policies at the group discussion of the National Peoples Congress.  

Make breakthroughs in core technology  

With the advance of the industry, low level technologies and businesses would be eliminated, said Yan Ping.  

The present mission of all Chinese internal combustion engine enterprises is to make restructure and upgrade products.  

Yuchais objective for the R & D and design capability of products is to be No. 1 in China and the 4^th in the world. He said: Yuchai has taken the 1^st spot in China principally but the R & D capability ranked around the 10^th internationally.   

Yuchai is constantly pursuing to be one of the top makers in the world like Southwest Research Institute of the US, Ricardo of UK, AVL of Austria and FEV of Germany who are veterans of the industry with profound technologic strength.  

When comes to the merger and acquisition plans, Yan Ping noted that every business concerns such plans but Yuchai rejected low cost expansion and would not pursue the size of the company blindly. For those businesses without core competitiveness, Yuchai wont accept them even though they cost nothing.

Amid the financial crisis, by the campaign to increase internal strength, Yuchai has scored accomplishments in various fields, particularly in industrial restructuring and management. One example was that it reduced over 1, 300 employees in production, which saved up to 200 million Yuan a year.   

Internal combustion engine industry has been highly developed as it has a history of more than a century in China and an even longer history in the world. Its high-end market is still dominated by foreign businesses that have very strong R&D capability.  

A good many of bottlenecks of the industry could not be resolved by a single enterprise. We must improve the R&D from the high ground of the industry. Related governmental agencies should come up with long term plans to utilize efforts from various companies to overcome the issues, Yan Ping pointed out.  

Attach importance to environmental issues  

As a citizen, Yan Ping cares about environmental protection. Last year, the green algae pollution in Taihu Lake severely affected residents in the area and Sanlu milk powder scandal undermined the confidence of the food industry gravely. The incidents showed that the serious pollutions shall be controlled because they were not accidental issues and polluters worser than them could be found everywhere. We must increase our environmental responsibility.  

Yan Ping held that Iron Polices should be taken to reinforce environmental regulation for the survival of people and the benefits of future generations. For those enterprises heavily polluting environments, the authority should take vigorous measure to restrict their emission. Persons responsible for pollution should be charged.

Companies shall put the social responsibility as its own as the pollution occurred in the air and water that are fundamental basic for human survival.   

Enterprises should hold accountable for their actions. Regarding the recycling economy, Yuchai attaches great attention to the consumption of energy and emission. It is not only for environmental protection but also help Yuchai take a lead in its own products owing to the specialty of the internal combustion engines. The energy-saving and emission reduction in casting and heat treatment in Yuchai are all meet environmental standards and the company is pressing the work forwards.  

Author: Si Ningbo           Source: Commercial Vehicle Weekly