At the end of 2008, Liuzhou Wuling Liuji Power Co., Ltd. celebrated its 80th anniversary. What is different from the past is that the company's 2009 business meeting held at the same time is no longer focused on one venue, but is also held at several branch venues.
With the Wuling Liuji diversification strategy in place, the former car engine "one dominant only" situation has changed to a "two main and two auxiliary" development pattern, the year-end business meeting in addition to a vehicle engine venue, but also around Engine castings, generator sets and agricultural machinery products hold their own business meetings.
Although running around several venues, Wu Ding Liu Ji, general manager of the Liu Daizhi looks relaxed. He told reporters that at present, Wuling Liuji’s diversification strategy adjustment has basically been put in place, and an “80-year-old enterprise†is standing at a new starting point.
â– From "One Lord Only" to "Two Masters and Two Assistants"
In 2006, Wuling Liuji had an annual output of 480,000 engines, of which SAIC-GM-Wuling’s mini commercial vehicles accounted for nearly 90% of the total output. In 2005, the new engine plant of SAIC-GM-Wuling started construction in Liuzhou. In the second half of 2007, the new product was released and the first phase of the design capacity was 300,000 units. The construction of the new engine plant of SAIC-GM-Wuling and the pressure it puts on the production of the Wuling Liuji can be imagined.
Since 2005, Wuling Liuji has actively explored customers other than SAIC-GM-Wuling and expects breakthroughs in domestic and foreign markets. After more than a year of hard work, the market for new mini-vehicle engines has not been satisfactory. In 2006, Wuling Liuji was only one-eighth of the total output of the main engine plant outside of SAIC-GM-Wuling.
In 2007, Wuling Liuji continued to emancipate its mind and broaden its horizons. After market research and planning, at the end of 2007, it put forward the strategic adjustment of “two main and two auxiliaryâ€: mainly the castings of automotive engines and engines, supplemented by agricultural machinery products and generator sets. Products from a single car industry into the mechanical and electrical and agricultural machinery industry.
â– Diversification strategy based on the advantages of the main engine
The history of Wuling Liuji's development will reveal that Wuling Liuji's entry into the electromechanical and agricultural machinery industries through this strategic adjustment is not exact. As early as 1953, Liuji successfully piloted the 1101 gasoline engine. In 1959, Liuji again prototyped and produced 5 tractor (red river) prototypes. Although Wuling Liuji has been focusing on the development and production of mini-vehicle engines since 1996, the experience and advantages accumulated in the production of automotive engines over the years have provided the company with many convenient conditions for re-entering the generator and agricultural machinery industries. According to He Shiji, chairman of Wuling Liuji, the company's strategic adjustment is "returning to the old business" and it can be described as "mindless." Utilizing the existing advantages, the generator of Wuling Liuji spent less than half a year from R&D to market, and the development of the rice transplanter took only 8 months.
It is worth mentioning that the other main industry of Wuling Liuji --- engine castings can not be overlooked. Over the years, the Wuling Liu engine engine castings scrap rate has remained low. Five years ago, the company specialized in hiring German experts to upgrade the technology and quality of castings, and introduced advanced equipment one after another. In addition, Wuling Liuji has been involved in the micro-vehicle market competition for many years, and its high-quality, low-cost advantages are evident. The company's goal is to build the largest high-end engine casting parts production base in South China. The new construction and renovation projects will be completed and put into production in 2010. The products will first satisfy the SAIC-GM-Wuling, BYD, and Haima manufacturers, as well as Liuji-made engine block blanks. Demand.
â– Dealing calmly with the financial crisis
The impact of the US financial crisis on China’s real economy has exceeded expectations, and China’s implementation of the fuel tax this year has caused the automotive industry to face new challenges. In this regard, the Wuling Liu machine that has been adjusted in place is very calm. Wen Daizhi told reporters: "The crisis of Wuling Liuji has come two years earlier. We have adjusted and prepared ahead of schedule."
In the past, sales of 1.05L displacement engines were relatively large. This year, Wuling Liuji focused its product on the upgrade of 0.998L displacement products, so as to further reduce fuel consumption while increasing power.
When many companies began layoffs, Wuling Liuji's workers were still working at full capacity. Wen Daizhi told reporters with a smile: “When the company was restructured two years ago, we had already completed streamlined work. When we produced 150,000 engines per year, we had 3,600 employees. Now we produce 500,000 engines per year, plus The new casting project has only 1600 employees."
Wen Daizhi revealed that the production and sales volume of Wuling Liuji’s vehicle engine will maintain the level of 2008 this year, and will stabilize at an annual output of more than 300,000 units in the next 3 to 5 years.
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