Interpretation of the causes of the rise in Fast's "cold stream"

Market changes are unavoidable. How companies can adapt to change and grow in a changing market –
Interpretation of the causes of the rise in Fast's "cold stream"

â– News reporter Jiang Zhaojun Liu Miao

In 2005, due to the influence of international and domestic markets, the sales volume of heavy-duty vehicles generally declined, reaching a maximum rate of 40%. The transmission sales of heavy-duty trucks of Shaanxi Fast Automotive Transmission Group Company also fell. However, in 2005, Fast still completed all its production and business tasks. The total industrial output value and sales revenue both exceeded 2 billion yuan, and more than 130,000 heavy-duty transmissions were produced and sold. Foreign exchange earned through exports reached 45.11 million US dollars, a year-on-year increase of 36.6%. A record high. What caused Fast to expand its market share in such a cold market? This seemingly impossible matter has become reality in Fast.

Make Great Efforts to Reform Great Losers

The predecessor of Shaanxi Automobile Group, the predecessor of Shaanxi Fast Automobile Group, was established in 1968. It is a third-tier enterprise that has been a key national investment and construction company. At that time, it was affiliated with a Chinese heavy-duty group. The vast majority of its products were used only for the internal use of Chinese heavy-duty groups, and the products Singleness, which has made Fast's development and competitiveness severely constrained. With the passage of time, the Chinese heavy-duty group began to disintegrate in 1997, and in fact, Fast became a “child” who was no longer in charge, but this became a turning point for Fast from decline to glory.

In this year, Li Dakai was appointed as the director of Shaanxi Automobile Gear Factory. At that time, the company was at a low point, the production and operation were unsustainable, and the employees were distracted. They had been unable to pay wages for four and a half months and became a major loss maker in Shaanxi's machinery industry.

After Li Dakai took office, he led enterprise management personnel and after full investigation, he vigorously carried out reforms and determined the “three-three” system. That is, in the internal operations of the company, heavy-duty vehicle transmissions, other exports, and foreign exchange earned through exports accounted for one third respectively; 1998 was determined to be The "Year of Product Quality Development", also known as the Year of Technology Development, is based on the original introduction of the technology of Eaton Corporation in the United States. It vigorously develops products and technologies, requires the launch of new products each year, and makes great efforts to change the life of employees and improve the enthusiasm of employees. The development must rely on talented people. In order to stabilize scientific and technological talents and technical personnel, it is necessary to grant allowances and awards to highly-skilled scientific and technical personnel each month, and to build college student dormitories and three family-owned buildings to solve the problem of housing for young intellectuals. These have enabled the company to retain its talents when it is extremely difficult, and have laid a good foundation for Fast to win new opportunities.

It is well-known that anything that does not advance is retreat, especially for businesses. Fast in the face of adversity, Fast responded to the principle of “poor, changed, and changed”. If there was no vigorous reform at that time, this large loser may have disappeared in the tide of the market economy.

Technology accumulation to win the product in short supply

Technology is the foundation for the survival of a business. Without technology, everything is empty talk. Fast has long been deeply aware of this, and realized that a single product cannot always support the sustainable development of the company. After introducing technology from the Eaton Company in the United States, they have come to the conclusion that the real technology cannot be bought with money. As a result, Fast has invested heavily in technology and product development, and has developed China's first-generation "double countershaft" heavy-duty automotive transmissions, all of which left domestic competitors behind.

The market economy is the survival of the fittest, and Fast's investment in technology has regained market recognition. In 1999, when China's heavy-duty vehicles developed, Fast's products suddenly became in short supply, and Shaanxi Automobile, FAW and FAW and other well-known automobile manufacturers followed suit. However, Fast did not become complacent. They also devoted themselves to the development of new technologies in response to the fact that the company's product line is relatively single. Hard work pays off. Today, Fast's products have reached 30 series, hundreds of varieties, from the previous five stalls to 16 stalls, from the previous supporting only 15 tons of heavy vehicles have become 8 More than a ton of all heavy-duty vehicles, the limited market is torn by Fast's quality products. In the annual awards of the China Gear Association, Fast was almost exclusively awarded.

In 2000, Fast and the Hunan Torch merged to obtain more adequate development funds. Facing the ever-increasing market demand, Fast realized that relying on its original scale and equipment, it could not meet the needs of the company's development and determined to base its development. Renovate, update equipment, and expand production, so that Fast has owned international advanced forging clusters such as USA, Germany, UK, and Japan, high-efficiency and precision CNC machining group, tool and die manufacturing equipment, and Germany IPSEN push rod double row Continuous gas carburizing furnace, Austrian Axilin automatic carburizing and quenching furnace and other equipment more than 2,600 sets; has OP-TON German gear measuring center, Malvern involute detector, Italy DEA coordinate measuring instrument and other high-precision measurement The equipment and construction of the largest single-unit air-conditioning production plant in Asia in Xi'an High-tech Zone not only satisfies the processing needs of various gears, but also provides a reliable guarantee for the high quality of the products and a substantial increase in production capacity. An annual production capacity of 360,000 sets of various types of heavy-duty automobile transmissions, 15 million gears, and 80,000 tons of automotive forgings has been established.

Today, Fast has become an important backbone enterprise in China's auto parts industry. It not only pays off all historical debt and bank loans, but also realizes the value-added and value preservation of state-owned assets. It has become a large profit tax enterprise in Shaanxi.

Technology is the lifeline of enterprises, and product quality is the fundamental guarantee for enterprise development. If the accumulative technology accumulation makes enterprises face the market fluctuations leisurely, then the introduction of the international advanced equipment has become a tool for companies to attack the market. With these two "swords," competitors can only look back.

Continuous innovation to become an internationally competitive company

The market is always moving in a turbulent manner. With each fluctuation, there will be a number of companies falling down. If they do not fall, it depends on whether the company has the ability to resist market risks. In 2005, faced with the unfavorable situation of the heavy-duty card market, Fast relied on scientific and technological progress and innovation to make efforts in adjusting product structure and expanding sales of new products, calmly responding to market changes, actively resolving market risks, and continuously intensifying new ones. Product development efforts have helped foster a wide range of new economic growth points.

Last year, 9 series transmission new products such as 9JS119, 16JS200T, and 12JS160T independently developed and manufactured by Fast have successively passed the provincial-level new product styling appraisal, and were put into mass production, achieving good economic benefits. Among them, the 8-speed transmission series new product design concept is advanced, with features such as high performance-price ratio, light weight, energy-saving and high efficiency, and provides the latest optimization configuration for the update of the bus market. With the continuous improvement of independent innovation and independent research and development capabilities, Fast's ability to resist market risks has been further enhanced. The market share of products at home and abroad has further increased, and the company has achieved sustained, steady and rapid development. Qi Yufeng, deputy head of the work group of the Faust Party Group, said that in the market fluctuations, Fast's product share is still rising steadily. Those auto manufacturers that were unable to supply the original market when they are in tight supply can use Stylist’s products. This of course can not be separated from the company's continuous improvement in technology and quality.

In order to further enhance the competitiveness of the company's science and technology, Fast Group will establish 2006 as the “year of independent innovation” of the company. The central task of the "Year of Independent Innovation" is to change the concept of development, comprehensively innovate the development model, strive to improve the quality of development, achieve product, market diversification, all-round development, and further enhance the company's scale strength and ability to resist risks. At the same time, we must pay close attention to building a national-level enterprise technology research center, and each year we should use not less than 100 million yuan in funds for independent innovation in science and technology, independent research and development of products, independent development of enterprises, and the goal of becoming bigger and stronger and improving the competitiveness of enterprises’ science and technology, through science and technology. Progress and innovation development, within three years, the technical R&D team has reached 300 people, and advanced research institutions outside the United Nations have gradually achieved the transition from low-level competition to high-level competition centered on brand, technology, efficiency, quality, and service, and truly integrated into the international community. Great economic cycle.

The market is a touchstone for testing the strengths and weaknesses of companies. In the face of the general trend of decline in the market, Fast is still sitting in Diaoyutai, relying on technology accumulation, relying on constant investment in technology, that is, continuous innovation. This cannot but arouse the attention of other companies. If we want to be a hundred-year enterprise, we must lay a solid foundation, do basic work, and continue to move forward in higher fields.


View related topics: Fast: Heavy-duty transmission production and sales in the world

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