Founded in 1951, Yuchai Group is currently the world's largest independent diesel engine production base and China's largest production and export base for small and medium-sized construction machinery, and is hailed as the “Green Capital of China”.

As the chairman and secretary of the party committee of Yuchai Machinery Group Co., Ltd., Junping is a busy person and interviewing him is not easy. Fortunately, he was a deputy to the National People's Congress and the reporter was also sent to the two sessions of the country by the newspapers. This allows journalists to use the opportunities of the two associations to have more in-depth exchanges with him, without having to specifically delay his time. Both parties are happy.

As the financial crisis raged around the world, how is Yuchao now? Can it survive? It is the focus of many people's attention.

This year ushered in a good start

In 2008, Junping completed two major events.

The first one was that after Yu Pingchao took control of Yuchai in 2005, Yuchai was declared to be remanufactured for three years. This promise, in the words of Yoo Ping, was "perfectly closed" in 2008 and was completed. In this year, Yuchai achieved sales revenue of 20.988 billion yuan, a year-on-year increase of 14.32%, surpassing the 20 billion yuan mark for the first time, and achieving diesel engine production and sales of 550,000 units, a year-on-year increase of 35%, and a record high.

The second, at the Beijing Olympic Games that attracted worldwide attention in 2008, of the vehicles that served the Olympic Games, some vehicles were fitted with Yuchai's engine. In order to ensure that these engines did not fail, Muping sent a logistics support team of more than 70 people to Beijing and approved millions of funds. This security team spent a full two months in Beijing. As a result, Yuchai's engine was very competitive and there were no failures during the entire Olympic Games.

Of course, Shunping's 2008 was not successful at all. The financial crisis was fierce and Yuchai was eventually affected. Taking the stock company as an example, the sales of diesel engines from October to December decreased by 39%, 58% and 46%, respectively, and the production workers had to adopt a four-day work system to cope with the drastically reduced orders.

However, on the eve of the Spring Festival, Yuchai's orders suddenly blowout. In January, Yuchai received more than 20,000 orders. In February, it reached 50,000 units. In March, just on the 6th, orders soared to 60,000 units, which exceeded Yuchai's production capacity. Some customers, in order to get the engine as soon as possible, bypass the sales department, and call the phone directly to Fuping.

Yuchai ushered in a good start. Now Yuchai, the workers are busy driving on the assembly line and the production rhythm is unprecedentedly tight.

Why Yuchai is so fire

Yuchai’s production and sales experienced a sudden blowout after only a few months of weakness. This phenomenon made reporters feel unbelievable. Therefore, when interviewing Fuping, the two parties first discussed the issue in the context of the financial crisis. Why Yuchai is so hot.

Junping gave a convincing answer.

In fact, in the face of the situation in the fourth quarter of 2008, Junping has realized that this financial tsunami will be a shuffle for the industry, and it is a new development opportunity for companies that have prepared themselves.

Therefore, Fuping adjusted the coping strategy and put forward the slogan of “communicating up and down, cooperating with each other internally, strengthening confidence, and turning crisis into opportunity”.

Junping believes that whether it is from the state to increase the investment in fixed assets or the agricultural policies and agricultural transport vehicles driven by rural policies in the future, or post-disaster reconstruction, South-to-North Water Transfer, West-East Gas Transmission, and investment in transportation infrastructure construction, etc. There is a huge market space, and the temporary slowdown in development speed has also led Yuchai to spend more time and energy on internal management, upgrade product quality, develop new products, establish and improve sales and service networks, and build the company’s infrastructure. It is more solid and solid, laying the foundation for further development.

To this end, what Yuchai first did was to practice hard and improve its competitiveness. In terms of structure, Yuchai’s divestment is related to the main industry, which has a low degree of correlation, a small scale, and a low technological content. It controls the excellent enterprises with large correlation and core components and extends the industrial chain. In terms of technical quality, we launched a special campaign to “break through the product crisis” and targeted development of market demand products. Inside the company, technicians were introduced, workers were trained, and contests were conducted. Adhere to energy-saving emission reduction and technological progress, and continue to implement cost-reduction projects.

In market development, Yuchai also offered a generous hand. The marketing team responded quickly, strengthened cooperation with key customers, and achieved effective communication with customers. The directors and market managers of each office provide feedback on the latest market dynamics once a week, dig out market launch opportunities, and have a high degree of synergy with OEMs, distributors, and service systems. Seize the two markets “countryside” and “overseas” closely: seize the country’s support for agriculture and sell products from the “city” to the “countryside.” Under the influence of the financial crisis, the engine industry in developed countries such as Europe and the United States was also hit, and the cost-effectiveness of Yuchai products was fully highlighted. Yuchai focused on markets in the Middle East, Africa, Southeast Asia, and Central and South America and took the initiative.

In response to the crisis, while fighting hard for strength and taking action, Yuchai turned the situation in a very short period of time and gave a beautiful turnaround.

The Way of Civil and Military Affairs

In the financial crisis, the manufacturing industry suffered the most damage. However, Yuchai, as an ultra-large enterprise in the manufacturing industry, has been led by Fuping. So, what direction will Yuchai take in the next step?

In accordance with Fuping's plan, Yuchai will play a major role in the international market on the basis of China’s top position in China. From the developing countries, Yuchai will gradually enter the high-end market in developed countries.

Against the backdrop of the financial crisis, Yuchai’s attitude toward M&A and its attitude towards the capital market have attracted attention from all parties.

Luan Ping said that first of all, Yuchai will not blindly pursue the scale. Enterprises that do not have core innovations should not give it away. Second, if it is necessary to conduct mergers and acquisitions, it is necessary not only to understand in detail how the assets of related companies are in the end, but also whether this enterprise is in line with Yuchai's strategic sector. In addition, whether the corporate culture of this company can be integrated with Yuchai is also very important.

Talking about the capital market, Fuping is another attitude. He stated that Yuchai must have major measures in the capital market. This point, Yuchai, must unswervingly advance. He disclosed that there are professional organizations that are already talking with Yuchai.

Overall, Fuping is careful about mergers and acquisitions, but Yuchai’s operation in the capital market is full of intentions. This is precisely the old saying, civil and military, a relaxation.

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