Shangchai has joined SAIC Group for nearly two years. Shanghai Diesel Engine Co., Ltd. (hereafter referred to as “Shangchaoâ€), a 62-year-old company, enjoys a high reputation in the engineering power industry in China. After joining SAIC, Shanghai Diesel began to develop into a commercial vehicle field. What changed in the last two years? The reporter interviewed Mr. Xiao Guopu, vice president of Shanghai Automotive Group and chairman of Shanghai Diesel Engine Co., Ltd.
Merger was successful
Xiao Guopu has been working for SAIC and Shanghai Volkswagen for nearly 20 years and is well aware of the development of the Shanghai auto industry. When the reporter asked if SAIC acquired the success of Shangchai, Xiao Guopu said with confidence that "the merger was successful." He told reporters that the successful merger mainly depends on the core competitiveness of the SAIC Group and the system's ability to replicate. SAIC's management philosophy, SAIC's cultural penetration is very strong, so Shangchai quickly integrated into the SAIC family in a short period of time.
After Shangchai entered SAIC, it launched a "hundred-day integration" campaign. Combining with the actual situation of Shanghai Diesel Engine Co., Ltd., the company proposed seven topics: reengineering the process model, improving product quality, and strengthening financial supervision, and promoted it from multiple angles and in all directions. In the process of 100-day integration, Shang Chai visited advanced companies such as Shanghai Volkswagen and Shanghai General Motors to investigate and study their excellent process management experience; and planned and held special seminars to discuss the future development steps and core competencies of Shangchai. , unified thinking; vigorously promote the development of internal control, focus on the company's development strategy, improve the internal control system; import the power assembly development process, product development is no longer limited to the internal research and development, but all relevant departments to participate in, jointly responsible for product development , Whoever influences the progress of product development, who bears the responsibility; import SAIC culture, initially determine the company's vision, core values.
It should be said that after SAIC Motor entered SAIC, it took the initiative to adjust and actively connect with it. It basically achieved a new orientation of the target, a new strategic plan, a new process reengineering, and a new cultural integration. The financial crisis that broke out in the previous year had a greater impact on Shangchai and even the internal combustion engine industry. The impact on Shangchai was obvious in the fourth quarter of last year and the first quarter of last year.
In the face of a severe external environment and a rapidly changing market, employees of Shangchai Company have been making a concerted effort to focus on efficiency, hard work, cost-cutting efficiency, and lean management. From January to September 2009, Shangchai’s operating income was 2.54 billion yuan, a year-on-year decrease of 18.4%, and a net profit of 41.94 million yuan. Over the same period of the previous year, operating cash flow was 100 million yuan, which greatly improved compared to the previous year. Nowadays, Shangchai’s on-site management has improved, the cost has been lower year-on-year, and the quality is better every year. The cost of quality every year has become a conscious action of every employee. The plant appearance of Shang Chai and the way of thinking of Shang Chai have changed greatly, and confidence in the development of the future has increased.
Xiao Guopu said: "This is my greatest relief."
Rapidly entering the commercial vehicle sector
Commercial vehicles will become an important strategic support for SAIC Motor’s own brands. As an engine manufacturer of “core†commercial vehicles, how does SAICHAI make a difference in the SAIC commercial vehicle segment?
Xiao Guopu believes that SAIC's acquisition of Shangchai is a need for SAIC's development strategy. From the “Eleventh Five-Year Plan†period, SAIC took the development of commercial vehicles as a strategic goal. While developing passenger vehicles, it also vigorously developed its commercial vehicle business. Commercial vehicles are an important part of Shanghai Automotive’s own brands. At present, Shanghai Automotive Commercial Vehicles ranks sixth in the domestic market and is striving to enter the top three in the country within three years. However, in the past, SAIC Motor was mainly based on passenger vehicles, and commercial vehicles were short-cuts for SAIC Motor. In order to solve this problem, SAIC Motor has been engaged in merger development for three years.
After SAIC Motor’s acquisition of Shanghai Diesel Engine Co., Ltd., it has an engine of its own brand, which complements the existing products of Shanghai Automotive Commercial Vehicles business, meets the needs for the comprehensive development of commercial vehicle business, and is conducive to the construction of a core component system for commercial vehicles. At the same time, Shangchai’s mature engine R&D capability, complete sales service system, parts manufacturing system and supplier network will be synergistic with SAIC Motor’s own brand commercial vehicle service system, which will increase the competitiveness of SAIC Motor in the commercial vehicle sector, and it is bound to promote Shangchai. Enter the commercial vehicle field quickly.
According to Xiao Guopu, at present, Shang Chai lacks a "big one and one small" engine, and the large 10 litre or more engine is now being developed in cooperation with foreign countries and is expected to be developed by 2012. The small 3 to 6 litre engine is being analyzed and demonstrated. It will soon enter the development stage and gradually complete the SAIC brand self-supporting package. He said that in the future, Shangchai’s development goal is to become a full range of engine suppliers. The full range of products can attract more customers.
Jump three steps
After entering SAIC Motor, SAIC Motor implemented the strategy of “rapidly developing the automotive market, consolidating the development of the machine market, and appropriately developing the shipbuilding market†strategy. How to be an independent supplier of multi-field diesel engines in 2010 and maintaining the main power supply for construction machinery? What does business status have to do? When it comes to this issue, Xiao Guopu used the "three-step leaps" to describe Shang Chai's development strategy: "To keep the old, to keep the new, to be both old and new, to bring new things together."
Shangchai has accumulated 62 years of history and has profound backgrounds. Before the 21st century, Shangchai was the industry leader and won the honours that other internal combustion engine companies could not match. It is a company worthy of respect. However, in the last decade, with the further development of the industry, Shangchai’s competitors have better shared the achievements of the rapid development of the market, and Shangchai’s leading position has been weakened. Integration into SAIC Group is a very important strategic choice, but only by combining the existing advantages of SAIC Motor with the actual features of SAIC Motor, such as SAIC's planning, doing a good job in the new development of enterprise development, complementing each other, and constantly optimizing its own work, etc. Smoothly realize the company's strategic intentions and goals.
Under SAIC's unified plan, Shangchai has to become a self-branded power base for SAIC's commercial vehicles. On the one hand, it becomes the development center for independent suppliers of multi-field diesel engines. These two are not contradictory, they can co-exist in symbiosis and jointly promote the current and Future development. Last year, Shang Chai set the strategy of “quickly developing the automotive market, consolidating the development of the industrial machine market, and appropriately developing the shipbuilding market†and has been implementing and advancing.
In 2010, Shangchai will further increase its efforts in the development of new products. In 2009, R&D personnel's salary, R&D equipment depreciation, and newly-added R&D equipment were not included. Shangchai’s pure R&D investment was more than 50 million yuan, and it will increase by more than 50% in 2010. In the past two years, Shangchai implemented and perfected the design and development process suitable for the automotive market; established and improved technical standards suitable for different segments of target markets; gradually established basic R&D capabilities; and technical departments conducted benchmarking, analysis of markets, and development in line with market demand. Products to enhance independent research and development capabilities.
In terms of incentives, Shangchai carried out a series of innovations, such as exploring relatively independent compensation assessment mechanisms for innovative technology systems; rationalizing the implementation of the “dual track†development channel; rationally implementing the relative mobility model of personnel, and inspiring technical innovation through mechanism innovations. With passion for success. Strengthen quality management, improve service quality, and meet customer needs; the automotive market and the industrial machine market go hand in hand, which requires Shangchai to pay attention to both internal and external supporting work. It is necessary to rely on SAIC's commercial vehicle segment to rapidly develop commercial vehicles. Consolidate and develop construction machinery, consolidate and expand existing markets.
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