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Shengzheng Guanghuatong Industry Co. Ltd INTERVIEW DATE:12 March 2000INTERVIEWER NAME:Jane XuInterviewee NameMr. Li MingzhuPositionGeneral Manger Company and AddressShengzheng GuanghuatongTelephone/Fax0-13902975758Background Mr. Li is graduated from Dalian Finance Institute, he is among the minority of dealers who has a high level education background Guanghuatong only sell FAW product, it is a 100% SOE Sales volume in 1999: 570 (300 from Qindao, 270 from Changchun), Sales volume in 2000 first two months: 150 units Best sold products: Jiefangs 20 ton (actual capacity)container truckNote: 30 to 40 ton container truck market was mainly occupied by imported truck Guanghuatong sells trucks in Shekou and Yantiantwo biggest port in ShengzhengKey Issues Profitability per truckAround RMB 3,000 in 1999 Market trendContainer truck will have a bright future in Shengzheng. According to Shengzhengs new 5 year plan, logistic service will become one of the three pillar industries, total investment in Logistics will reach RMB 150 billion. Now the container truck market share is relatively low than the real needs, Shengzheng is now the 17th largest port in the world (Hongkong ranks first and its annual container transported volume is 22 million ) FAW should raise the overall comfortability of the driver-cab as to cater for the long-distance driver, truck/cargo owner who will also stay in the cab all along the road FAW should treat fairly to every dealer to raise their enthusiasm .In Shengzheng, there are two “Youxin Market” dealers and two pure dealers, there is actually no big difference between the market performance of this two kinds of dealers, but “youxing market” dealer could get much more advantage in truck sales, e.g. “Turn over” trucks; varieties of truck resources, etc. FAW should re-choose its dealers and distribute a rational network. Many dealers (including “youxing market” dealers) in Guangdong are developed through relationship years ago, some of them couldnt fit to nowadays market and has caused great trouble to FAW in price competition and credibility. In a city like Shengzheng, best dealership network should have two competitive dealers, no more no less FAW could check the capability of dealers through the following criteria: Sales volume before Capital Dealers capabilityFAW should take the overall quality/image of dealer into consideration (e.g. study experience, working experience, etc.). This is directly connected with the dealers market development capabilities FAW should raise trainings to dealers on products technique introduction and sales skills2
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