Reform and products are two powerful engines driving productivity In 2001, Hunan Torch and Shaanxi Dental held a 51% joint venture and 49% joint venture to establish Shaanxi Fast Gear Co., Ltd. After that, Fast's largest shareholder became Weichai Power and was converted into Shaanxi Falchem ​​in 2005. Special Automobile Transmission Group Co., Ltd. In addition to these historical records we have seen, what are the key strategies that Fast have experienced in the development process? Recently, Li Dakai explained to reporters that the first was to get rid of the economic system of the original CNHTC Group. We were included in the original China Heavy Vehicle Group in 1985. If the original group did not disintegrate, then we would not be able to reach the present. At that time, we did not have the development planning and pricing rights for the product. As the direct factory under the group, we only controlled production. After the official dismantlement of CNHTC in 2000, we gained a new life and planned economy entered a period of market economy. By 2001, we had a joint venture with the Hunan Torch and the economic system was transformed into a pluralistic enterprise. At this time, the company was truly a market. From the employees to the leaders, there has been a tremendous shift from the original "State-owned enterprises took money to justice". It is not necessary to get money to work and create labor value to get money." Together with the Hunan Torch, the two sides "intentionally agree." At the time, the Hunan Torch raised hundreds of millions of dollars from the stock market in 2001. At the time, Fast sold only one billion yuan, but owed it five billion yuan. At that time, this decision provided us with the opportunity for funding and restructuring. Some state-owned enterprises hope to be controlled by private enterprises during the transition and they can be saved by themselves. However, they have been confused by the management of private companies, funds have been removed, and equipment has been sold. As a result, many enterprises have finally declined during the transition period. Our team has just used this opportunity to make bold reforms. Starting from the company's future and fate, instead of starting from the leader's personal interests, unite employees and have the current development. This is the second key point. Talking about whether or not there were some profound and unforgettable experiences in this process of transformation and reform, Li Dakai expressed deep feelings. Fast today can be the world's largest manufacturer and seller of heavy-duty transmissions today. The transmission has a market share of more than 8 tons of heavy-duty vehicles in China, which exceeds 86%, and more than 15 tons exceeds 92%. It is used by over 50 domestic OEMs. Thousands of models are selected as fixed-point supporting products. Why? We have a pragmatic corporate culture and strong operational capabilities. Our core technology has not been lost and none of the technical staff has run away. It is not necessarily a good operation of the company. The salaries paid to the technicians are high. He will not run away. I was the director of the company in 1995. The most difficult time was Fast, which was directly under the CNHTC Group. At that time, four and a half months later. No salary, but none of the technicians ran away. They know that they have a future with me, and the difficulties are only temporary. We are willing to work together. In another example, I saw many technicians of group companies lost in the past. To be honest, I was also very nervous. Therefore, we gave subsidies to our technicians. Of course, this allowance is only for technical personnel who have special contributions, and their coverage accounted for The monthly allowances for technicians who are 60% of the technicians and the technicians who are second-class and third-class are 200, 100, and 50 dollars respectively. Some people’s wage levels were much higher than I was at the time, but the other 40% of engineers gave me a penny allowance. I want them to understand that the people they want to retain are truly talented people. Those elite elites feel that the business valued him. Therefore, none of the technical staff of our company was taken away. However, the bottom-line workers were not satisfied. The workers wrote an anonymous letter to their superiors. The joint name strongly demanded that the intellectual allowance system should be abolished. They said that the state’s one-month allowance to the State Council’s government officials is 100 yuan. Money, why give 200 technicians? But until now, workers have said that it was fortunate that they had retained technicians, otherwise we would not have developed today. There was no penny at the time, and I didn’t pay for myself. My commitment to them is that we carry out reforms and product development. In the future, our company will compensate everyone for their contributions. I have always led by example. The most unacceptable to the leadership of some companies is that they are very moist and workers are suffering. It is precisely because we work together that the ISO9000 quality system certification standards are all completed at this most difficult time. The cooperation with the Hunan Torch was very successful. In 2001, it was a joint venture. In 2003, the income reached 12 billion yuan. In 2005, it was 2.5 billion yuan. Last year, both production and sales revenue exceeded 6 billion yuan. These achievements are not like some companies that achieve profits through equity investment and asset stratification. They are all made by companies themselves. These leaps have benefited from the rapid development of China's heavy-duty vehicles, and our products are suitable for China's national conditions, with good quality, low failure rate, and lower prices than others. In addition, we are not only supporting the Chinese market, but also expanding the foreign market. Every year, we have millions of supporting facilities in the United States and Europe. Every year, we export tens of thousands of transmissions to the Eastern European automobile factory. The direction of future product development has been clear The success of many Chinese manufacturing companies is mainly implemented in two aspects: first, management, including logistics management, quality management, and the second is research and development. President Li also attaches great importance to R&D. Li Dakai continued to say that I was technically born. I understand the situation of the Chinese vehicle. Therefore, we attach importance to R&D. This is not a mouthful. Fast's research and development funds currently account for nearly 5% of sales revenue. This level is not high, and I am ready to intensify efforts in the next few years. During the tenth five-year period, we took the road of technological transformation. We have world-class quality from production quality to technology. During the period of the Eleventh Five-Year Plan, we can no longer stay here. The idea of ​​the Eleventh Five-Year Plan is independent innovation and strengthening research and development. The landmark (act) is to build a state-level enterprise R&D center- Shaanxi Fast Automotive Transmission Engineering Research Institute. We plan to invest 600 million yuan to build it in three years. Our company must complete the transformation from "technical reform to research and development, manufacturing to sales service, single traditional to plural, and regional to international." On the main trend of product development, Li Dakai said that our heavy-duty transmissions will mainly develop towards multi-files, multi-axis, light-weight, and automation to meet the market demand for buses and heavy vehicles. The transmission of heavy vehicles will be from six gears to nine gears to twelve gears; in order to be lightweight, besides using aluminum alloy and other materials on the roof, it is necessary to strengthen the design and adopt advanced technologies and materials. . In addition, we will also accelerate the research and development of electronically controlled automatic transmissions (AMTs). It is possible that heavy-duty vehicles AMT will not be very profitable in China in the next five years, and high-end ones will have to rely on imports from abroad. People who can afford trucks in China do not drive and people who drive can't afford trucks. However, as our national economy improves, the need to reduce the labor intensity of truck drivers in five years is growing stronger. Automation is a general trend. Li Dakai continued to emphasize: I do not have to engage in real estate and other industries. We will continue to focus on vehicles in the future, and secondly we may also use conveyors. Does not rule out the car's transmission. I personally think that China's automobile transmission industry is now a sunrise industry, with the characteristics of technology-intensive, labor-intensive and capital-intensive. There is also a unique condition for China in China. That is, there is a huge market in itself. Southeast Asia, Latin America, etc. are inferior to us. At present, Fast's position in the domestic market can be said to be impregnable. During the 11th Five-Year Plan period, the international market will further break through? Li Dakai responded to this: During the 11th five-year period, of course, we will continue to promote overseas markets, but the most important is not the international market. We focus on products, including exhibitions, technological innovations and product development. Reforms and products are the two most powerful engines driving productivity. In the Twelfth Five-Year Plan period, we will vigorously attack. I expect my company to achieve the desired goals and hope that China's auto industry will develop its capabilities simultaneously. In my case, there is only one standard for measurement, that is, our products can be sold in large quantities to Europe and the United States. We can say that we have reached the advanced level in the world and have become an international leader. We have no reason to be complacent about selling tens of thousands of cars to Eastern Europe. The road ahead will be longer and further. Fast is now the first in the world, and it is time to start a new business and start from scratch. Never increase prices and resolve double pressures on their own With the rapid increase in the cost of raw materials, the production costs in the parts and components industry have soared, the appreciation of the renminbi, and the pressure on the OEMs to reduce the price of the parts and components plant are also very high. Will it bring great resistance to Fast? Li Dakai thinks: I am good at reverse thinking. Many people see that the appreciation of the renminbi and raw material prices do not know how to deal with it. I think this is a good thing. We must have a positive attitude to face pressure, and we will not complain or waver when we go up and down. I will not easily announce the price increase, and use the price increase to increase the profitability of the company. Instead, it will relieve pressure by improving work efficiency, improving technology, strengthening management, and reducing energy consumption. I think that many companies now have room to resolve the pressure. Like being a company, no one wants to make friends with selfish people. As another example, Toyota Motor Corporation of Japan is known for its cost savings. Toyota has been producing lean products for many years. The factor cost basically (in our opinion) has been reduced, but it still implements a "value innovation" cost saving plan. It is said that in 3 Years ago it started and saved Toyota 2.8 billion US dollars annually. Companies such as Toyota are still trying to reduce costs and improve product performance and competitiveness, and we have no reason not to. Countdown with Eton’s Joint Venture Talking about the cooperation with Eaton Corporation in the United States helped Fast to expand its business. Li Dakai thought: We signed a technology transfer agreement with Eaton in 1985 and introduced the more advanced Fuller transmission technology. But in 1997, Eaton set up a wholly-owned company to produce heavy-duty truck transmissions in China, which put us under competitive pressure. We have sought joint ventures with it, but we haven't talked about it. Later it changed the strategy. In early 2004, our three parties (Eaton, Fast, and Hunan Torch 35%:23%:22%) established Eaton Fast Gear. During the three years of cooperation, it only allowed us to produce one type of product and limited our own development. We hope that we will only serve as a foundry that provides parts and components. The strong attitude of the (foreign party) makes us realize that relying on joint ventures with foreign companies to grow themselves is only a dream. Foreign companies want to eliminate me (this competitor). I can't listen to them. I have to respond to national independent innovation. Call. Li Dakai said that Fast, as a leading domestic supplier of parts and components, must lead the world and may consider mergers and acquisitions next. However, Chinese companies must be cautious. There are not many cases of successful mergers and acquisitions in the auto industry at home and abroad. In addition, there are active private equity funds participating in foreign countries. For example, the separation of Daimler and Chrysler, Zhengzhou Yutong and Chongqing bus ended the three years of cooperation, Liaoning Shuguang transferred 51% of the shares of Henan Automotive Brake Company to Zhejiang Wanxiang. Therefore, we must pay attention to the company's corporate culture when it comes to mergers and acquisitions. But no matter what, there is no doubt that this line will be taken in the future, but wait for the opportunity. We must be good at drawing on the experience of some foreign companies in the development. We may start from the toddler's steps, start from the foundation and go one step at a time, and lay a good foundation for a higher step. Shaanxi Fast Automotive Transmission Group Co., Ltd. Shaanxi Fast Automotive Transmission Group Co., Ltd. is a wholly transformed company from Shaanxi Automobile Gear General Factory with a registered capital of 500 million yuan and total assets of 3 billion yuan. It owns Shaanxi Fast Gear Co., Ltd. and Xi'an Fast Motor Co., Ltd. Co., Ltd., Baoji Fast Gear Co., Ltd., Baoji Fast Casting Co., Ltd., Xi'an Fast Pto Co., Ltd., and American Fast Distribution Co. It is a large-scale specialized production base for the production of heavy-duty automotive transmissions, splitters, power take-offs and various automotive gears and forgings. The main products of the group include: the introduction of the United States technology production of double countershaft transmission series and independent research and development of a variety of series transmission; with the above products supporting series of power take-off, transfer; OEM supporting gear and other export parts and each Kinds of domestic and imported automotive gear forgings and auto parts. The group company has now formed an annual production capacity of 500,000 sets of heavy-duty automobile transmissions, 15 million sets of gears and 80,000 tons of automotive forgings. Products for the domestic more than 50 manufacturers of thousands of models supporting, and exports to the United States, Germany, Japan, Australia, Belarus, South America, Southeast Asia, more than 10 countries and regions. The company's equipment is excellent, with the United States, Germany, Britain, Japan and other international advanced forging machine group, efficient and precise CNC machining group, tool and mold manufacturing equipment, and Germany IPSEN push rod type double exhaust continuous carburizing furnace, Austrian Association for the Association Lin automated control carburizing and quenching furnaces and other equipment more than 3400 sets, to meet the processing needs of various gears; has a German OPTON, the United States MM gear measuring center, Germany ZEISS, the United States Brown & sharp CMM, the British Tarlor Hobson roughness Contour meter and roundness meter, Switzerland TRTMOS length measuring machine and altimeter, the United States of the micro-hardness tester and residual stress tester and other high-precision measurement and testing equipment, provide a reliable guarantee for the high quality of the product. The group company has successively passed ISO9001: 2000 quality system certification, QS9000 quality system certification, ISO/TS16949 quality management system certification, ISO10012-1 national measurement and inspection system certification and ISO14001 environmental quality system certification. The group company's experimental center passed ISO17025:1999 Laboratory certification. In 2007, the production and sales income of the Fast Group exceeded RMB 6 billion, and the production and sales of heavy-duty transmissions exceeded 430,000 units. Various operating indicators continued to maintain industry leading advantages. The group company always adheres to the principle of science and technology, technology innovation and product excellence. In the country has built a comprehensive sales and service network. And to fully exploit the advantages of self-supporting import and export, adapt to the global procurement trends of auto parts, actively explore domestic and international markets, and continue to work hard for products with first-class competitiveness in the market. Fast Group's operating indicators have always ranked first in the national gear industry; it has ranked among the top 1000 large-scale industrial enterprises in China, the top 100 in China's machinery industry, and the top 50 in China's auto industry, and is highly concerned by the heavy-duty auto industry both at home and abroad. Li Dakai’s resume: Undergraduate, senior engineer at the researcher level, a national model worker, and an expert enjoying special allowance from the State Council. He once served as Director of Product Design Office of Shaanxi Automobile Gear Plant, Chief of Business Planning Division, Chief Economist, Factory Manager, Vice President of Hunan Torch Automotive Group Co., Ltd., and currently serves as Chairman of Shaanxi Fast Automotive Transmission Group Co., Ltd. General Manager of Shaanxi Fast Gear Co., Ltd.