Yuchai's operation mode is unique in the domestic engine industry. When a growing number of engine manufacturers are teaming up with vehicle plants and a growing number of vehicle plants are seeking to independently develop complete sets of parts, Yuchai Machinery Co., Ltd. has been concentrating on engine manufacturing for dozens of years. Without the support of any vehicle plant, under the dual pressure of its peers and vehicle plants, Yuchai is standing upright independently and toughly. The secret and hardships are beyond words. In communication with the distributors and terminal customers in Shaanxi, we knew the secret and hardships according to Yuchai's operation at the service level.

Cooperative R & D

As a tier-1 distributor of Dongfeng Commercial Vehicle Company transformed from a state-run automobile trade enterprise, Shaanxi Fengshang Automobile Trade Co., Ltd. (Fengshang) began its cooperation with Yuchai in the 1990s. Over the two decades, General Manager Zhang Changli witnessed Yuchai's development in Shaanxi.

"Yuchai was still at the bottom in Shaanxi from 1995 to 2000. But in 2004, Yuchai seized the opportunity of fast growth of the auto market to rise. 2011 saw Yuchai's another peak in Shaanxi. Zhang's review clearly outlines the breadth and depth. Here the relationship between Yuchai and distributors is more than cooperation and win-win.

Application of Yuchai-powered Dongfeng heavy-duty trucks in a coal mine in Shaanxi

Zhang said, when Dongfeng T-lift heavy-duty trucks replaced Cummins engines with Yuchai engines in 2011, Shaanxi's customers' level of accepting Yuchai engines remained low. Recommended by Fengshang, some customers purchased Yuchai-powered Dongfeng T-lift heavy-duty trucks. But some universal problems arose soon and water tanks are prone to breaking down. During that time, Fengshang replaced 11 water tanks for customers. "Things will get worse if the situation continues," at the thought of that, Zhang guided the company's maintenance service station in finding the cause. The cause was finally spotted: water tanks of Dongfeng T-lift heavy-duty trucks were originally designed by Cummins with small volume. After Cummins engines were replaced with Yuchai engines, ground clearance was reduced and water tanks were easily scratched by rough roads. Fengshang reported the problem but got no timely response; when it turned to Yuchai, both the service manager and director of Yuchai Shaanxi Office came. Upon discussion with Yuchai, Fengshang decided to retrofitted water tanks. As the retrofitting expense should be approved level by level, to retrofit water tanks as early as possible, the then director of Yuchai Shaanxi Office gave the final say: Never mind, just do it first, we will cover the expense if you cannot afford it! After some efforts, fans were repositioned, water tanks were elevated 11 centimeters and water tank were retrofitted successfully. The retrofitting scheme was reported to Dongfeng and fully adopted. After the incident, the quantity of Yuchai engines carried by Dongfeng T-lift heavy-duty trucks was boosted from zero at that time to 70 percent-80 percent now.

Besides cooperative R & D with automobile distributors, Yuchai Shaanxi Office also provides sufficient spare parts to automobile distributors. Since after 2009, the office has left Fengshang with over 200,000 yuan worth of engine parts and conducted settlement after sales. "Now other manufacturers are learning Yuchai's mode of spare parts deployment, but I guess it will probably take them some time to master the mode," Zhang said, adding, "One important reason is that I think Yuchai people are particularly devoted." Other manufacturers had problems with same operation mode: unsafe spare parts keeping and slow spare parts update produced a lot of bad inventory. Yuchai sent staff to make an inventory of spare parts left with Fengshang every year. Returning unsalable ones has eased distributors' pressure and ensured timely use.

Follow-up support

Dongfeng and Yuchai have been strong brands in Shaanxi commercial vehicle market currently. It is Yuchai's years of sincere cooperation with automobile distributors that has led to win-win today.

Shaanxi Changkai Automobile Sales & Service Co., Ltd. (Changkai) is Dongfeng's strategic distributor and Yuchai's key service station. General Manager Li Guanghua who is quite familiar with Yuchai's development said, Yuchai's results today is attributable to the successful cooperation between Yuchai's headquarters and Dongfeng's at the strategic level, and local teams' quality services for automobile distributors at the tactical level.

Li said, after Yuchai 6M engine was launched, Yuchai Office did not directly assign tasks to service stations, but provided services first. They analyzed products and markets with service stations. Yuchai's services are always unconditional and inexcusable: resolve problems first. "We maintain several parts of Dongfeng. Yuchai conducts standard management and settlement, enjoys high integrity among these parts manufacturers, and everyone works energetically."

When analyzing Yuchai's service advantage, Zhang mentioned "humanized management". He told the reporter: Yuchai always conducts humanized management if it cannot decide whether to make compensation by giving some compensatory damages and resolving some practical problems for customers, thereby establishing its reputation. "Now products tend to homogenization in terms of technical performance, effective communication with and quality services for customers will decide products' market share."

Li felt the same, "Every time I attended a meeting at Yuchai's headquarters, the current and previous directors of Yuchai Shaanxi Office would chat with me, making me warm. These predecessors have no business relations with me, but I feel as if they were still at Yuchai. As a business manager, I am also thinking why Yuchai could manage that and how they fostered the style?"

Extension to terminal customers

Unlike its peers or common parts suppliers, Yuchai has extended the concept of customers to vehicle plants, automobile distributors and direct customers. Despite heavy investment in maintenance and services, it has outperformed its peers in terms of customer praise and reputation, especially matching rate.

Shaanxi Shenmu Longde Mining Co., Ltd. purchased 20 Dongfeng T-lift heavy-duty trucks at a time this year. The fleet captain Feng Yang said, "We investigated six brands and eventually chose Dongfeng, because it suits mining areas in terms of dead load and we fully understand the advantages of Dongfeng and Yuchai based on our years' experience in vehicle use. He Liaobo, a vehicle repairer of the fleet, also said, the drivers were impressed by Yuchai engines, fuel economy, high power and low noise are all advantages of Yuchai engines. Feng also told the reporter that he purchased a Yuchai-powered Dongfeng vehicle which covered 360,000 kilometers without any overhaul.

Zhao Rongjun, general manager of Shaanxi Xianyang Xiqin Transportation Co., Ltd, said, the company has purchased 15 or 16 Yuchai-powered Dongfeng LNG tractors since this April. He was satisfied with these vehicles except for high repair cost and parts prices. "These vehicles have earned me money for more than six months without any overhaul," he added.

Lyu Xueyin, general manager of Shaanxi Yulin Shenghua Industry and Trade Co., Ltd., said, over 80 percent of customers would select engines when purchasing commercial vehicles. Shaanxi's customers highly recognize Yuchai, many customers not only chose Yuchai engines, but directly indicate horsepower. 70 percent of 400 commercial vehicles sold this carry Yuchai engines. Customers universally praised that Yuchai engines are solid, powerful and cost-effective.

Yuchai's registered record sales from Shaanxi in 2013. According to He Xiangren, director of Yuchai Shaanxi Office, Yuchai's sales from Shaanxi doubled this year. Only Yuchai knows how much of the result was attributable to the support from automobile distributors and customer reputation.

(source: cvworld.cn)