The industry downturn in 2009 will allow companies, especially multinational corporations, to pay more attention to China's low-cost capabilities. This may mean more room for Weifu to locate its core suppliers.
On September 21, 2008, Wuxi Weifu High-tech Co., Ltd. held a celebration at the Wuxi Great Hall of the People to celebrate the 50th anniversary of its establishment. At this time, Wang Weiliang, chairman of Weifu, officially led the company for just three months. Before joining Weifu in 1987, he served as Deputy General Manager of the joint venture Bosch Automotive Diesel Systems Co., Ltd. for three years.
For Weifu people, the historical stages represented by the names of Weifu and Bosch Diesel are exactly the period when the outside world has a very different evaluation of Weifu. Weifu was established in 1958. In the first 40 years, this company has gradually developed from a technical farmer's office of the Labor Bureau to become a leading company in China's diesel engine nozzle and oil pump industry. From technology to production, Weifu is an industry leader. At that time, Weifu had been able to develop and manufacture Euro II standard injector assemblies and was planning to develop Euro III products.
The joint venture with Bosch made a huge change to this plan. In 2004, Weifu and German Bosch jointly produced a fuel common rail system that met Euro III emission standards. After the joint venture Zhong Bosch Holdings, Weifu withdrew from the research and development of Euro III products, from production of core injector assembly to Production of supporting parts. This change has always been a pity.
As the leader of Weifu's new team, Wang Weiliang sees more benefits and opportunities brought by the joint venture. He did not rigidly adhere to the changes in the technological route brought about by the joint venture, but instead sought a new strategy for Weifu through a joint venture. In 1995, in a paper published in the Harvard Business Review, Yale professors proposed a competitive strategy for the first time: companies are not always competitive, and there is more cooperation. The key is whether you can From the cooperation to the future ability to participate in competition.
It is Bosch that competes with Weifu, and Bosch also cooperates with it. If there is no joint venture, Weifu will be difficult to enter the supply chain of Bosch. After the joint venture, Weifu's product surface will expand significantly, and the output and output value will increase rapidly. The annual output of multi-cylinder pumps will reach 1.33 million units, accounting for 44% of the total output of the industry. . In the Top 100 machinery industry rankings in 2008, Weifu Company ranked 43rd. This steady increase in production will at least ensure that Weifu will not worry about survival, especially during the period when the entire automotive industry is declining.
The biggest opportunity brought by the joint venture is that Weifu has been deeply developing and producing the core components of the common rail system, from pumps and couplings to rails, with the localization of Bosch Common Rail System. In the second half of 2008, Weifu began to supply light pumps and heavy pumps for common rails. Starting in 2009, the domestic production of rails will also begin.
At the Weifu plant, the supply of Euro III pumps, injector bodies and high-pressure connecting rods accounted for the majority of the product line. The processing of this kind of product can not be grasped within a short time due to the particularity of its materials. The close relationship between Weifu and Bosch and the better quality and cost-effective accessories that they can provide make Bosch rely on Wei at certain times. Fu.
The Weifang Shareholders' Meeting revealed that Weifu and Bosch are currently negotiating new strategic cooperation. The basis of the negotiations is the win-win cooperation of the State III industrial chain, including the production of common rail system components and the cooperation of automotive exhaust after-treatment systems. Production and so on.
Currently, in order to reduce costs, most of the foreign experts at Bosch Automotive R&D center are no longer based in China. The intervention of local engineers and the increase in Weifu's technological capabilities have led to the independent research and development of many new Weifu products and the development of new Bosch products. Synchronization, it is expected that this will bring a chain reaction and follow-up effect on economic benefits.
In 2010, China may gradually implement the national IV stage emission standards. The post-processing system business that Weifu began research and development 10 years ago, such as tail gas purification, will become the most important profit growth point for the company in the future, helping the company to completely realize the industry. upgrade. A Weifu employee told the reporter that Weifu entered the field of exhaust emission purification 10 years ago, and for eight years, he developed his own product. Attempts to fail many times and invited Chinese American experts to work hard and quickly break through technical difficulties.
Weifu's new strategy is that the core suppliers of core components in China are no longer monopolized by the pump nozzle. For the future development, Weifu has formulated five development strategies: strengthening cooperation, striving to build the joint venture company into a domestic leader in diesel injection, supporting the joint automotive electronics to become the leader in domestic gasoline injection, creating a domestic leader in tail gas purification, and building the key to the automobile The domestic core supplier status of parts and components has become a domestic leader in non-road machinery fuel injection products.
The industry downturn in 2009 will allow companies, especially multinational corporations, to pay more attention to China's low-cost capabilities. This may mean more room for Weifu to locate its core suppliers.
The members of Weifu's new leadership team are basically around the age of 45. They all worked for Weifu for more than 20 years. They all experienced the institutional and technological advancements brought about by the joint venture. Their accumulated experience in different companies has now returned to Weifu. This strategic change is an important opportunity in Weifu's history. Whether this opportunity can lead the company to a new height is not only a rare opportunity for this team led by Wang Weiliang, but also a huge challenge.
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