From the Weifang train station, the taxi driver was somewhat annoyed to send reporters to the North Gate of Weichai Holding Group (hereinafter referred to as Weichai) at No. 26, Minsheng East Street, Kuiwen District, Weifang City. “Wait a long time, it was only 5 yuan. Starting price activity." This is where the old Weichai factory is located, with Minsheng East Street as the boundary, the north side is the living area of ​​Weichai, and the south side is a plant area of ​​nearly 100,000 square meters. Since the move in the 1950s, the pattern of Weichai has remained unchanged, but its area has continued to expand.
In Weifang Hi-tech Zone, a 25-minute drive from the site, Weichai also has a larger industrial park. From the introduction of the Hi-tech Zone, we can see that the Weichai Industrial Park covers an area of ​​nearly 1,500 mu and the building area is 880,000 square meters. For the taxi driver, his ideal business is to send us to the Hi-tech Zone.
In fact, this may be what the Weichai people expect. The new plant has more advanced equipment and a more comfortable production environment. According to the plan, of the 2 billion yuan invested by the industrial park, 1.4 billion yuan will be used to build the Lanqing production line and 400 million yuan will be used for the construction of the park's R&D center. In the unfinished plant area, Weichai plans to invest a further RMB 1 billion in the construction of a national-level test center and several production lines.
Weichai should have relocated most of its production capacity to the new plant by the end of 2009. It now appears that this plan will have to wait another two years. The reasons for postponing the relocation are divergent. A very simple reason is that the relocation of the factory must wait until the capacity of the new plant reaches a certain scale. Weichai spends most of its time working overtime this year, with a monthly maximum capacity of more than 30,000 units. In this case, too much energy may not be taken into account in the construction of a new factory.
This is not surprising. After the announcement of the acquisition of the Hunan Torch in 2005, Weichai will be trapped in a variety of opportunities for rapid development. The project will stand fast and the progress will not be satisfactory. On the one hand, a good market brings good profits, but on the other hand, unintentionally delayed projects actually miss the best market opportunity.
In an interview with the media in August 2007, Tan said: “From the merger and acquisition of the Hunan Torch to the completion of the merger of the Hunan Torch on April 30 this year, the most important part of my life ended. The road is at its highest risk, and it combines various factors, but the path I take is successful. There will be no second person in China. This is a good time and place, and it is created by a special environment."
Tan Xuguang hopes to bring Weichai into another new success with this weighty success. In 2012, it achieved sales of RMB100 billion and entered the list of Fortune 500 companies selected by the US “Fortune†magazine. But for now, this success has not brought Weichai into another new success.
Weichai Holdings did expand its scale, including companies that rely on the integration of capital chains such as Weichai Power, Shaanxi Heavy Gas, and Fast. After June of this year, Weichai became a member of Shandong Heavy Industry Group. This new group, which was formed by the Shandong State-owned Assets Supervision and Administration Commission, was incorporated into all state-owned property rights of Shandong Construction Machinery Group Co., Ltd. and Shandong Automotive Industry Group Co., Ltd. Tan Xuguang, chairman of the holding group, took the post of chairman of Shandong Heavy Industry Group. To calculate roughly, Tan Xuguang's goal of 100 billion yuan is not too far away, and at least 60% has been completed.
How to put these companies' scales and products into practice is not easy. Excessive layout has left Tan Xuguang alone. He needs to strike a balance between different investments rather than just developing firewood. As a major shareholder of Shaanxi Auto and Fast, he needs to fulfill his responsibilities; as chairman of Shandong Heavy Industry, he also needs to take care of the equipment manufacturing industry in Shandong Province.
On the morning of October 20th, the 63rd anniversary of Weichai Plant was celebrated. Unlike the 60th anniversary of the company's 3 years ago, the slogans throughout the company changed from "national power, international Weichai" to "green power, international chopping wood", and as an important figure in the development of Weichai, Tan Xuguang At the moment, it was also unable to participate in the factory celebration in Weifang.
In fact, in the Weichai office building built in the 1980s, Tan Xuguang was rarely seen. After the Shandong Heavy Industry Group was established in June this year, Shandong Heavy Industry Group was registered in Jinan and the headquarters of Heavy Industry Group was located in Jinan. Tan Xuguang, who is chairman of the board, spends most of his time in Jinan processing affairs and travels to various places.
This is a somewhat unexpected result. In the early years, Weichai's parent company, China National Heavy Duty Truck, hoped that Tan Xuguang, the deputy general manager of the group, would visit the headquarters of CNHTC in Jinan. Most of the leaders of the subsidiary company were promoted and followed this principle. Tan is willing to continue to keep his office in Weichai, and rarely goes to Jinan. Weichai has been the pride of Weifang for many years. But now, Weichai is faced with a huge choice whether to set up headquarters in the field. Among the 100 billion targets, Weifang may be just a production base.
The acquisition of the Hunan Torch in addition to Tan Xuguang and Weichai's insistence on the end, how much is still some luck composition. The fall of the capital tycoon Deron has caused many SOEs to have concerns about the strategic restructuring of the capital market before allowing them to win opportunities for the notorious Weichai.
After Weichai acquired the torch, it suddenly became a star. This transaction was an important weight for Tan Xuguang’s acquisition of CCTV’s person of the year in 2005. At the same time, Tan also had to act as a spokesperson for Weichai’s image. He is also the chairman of Weichai, but the development of Weichai from structure to content and corporate relations is no longer the same as weeding in Hong Kong in 2004.
When Weichai was still chopping firewood, Tan Xuguang, who was the head of Weichai, could swat Fang Fang, and when he became chairman of Shandong Heavy Industry, he and Weichai had already become a chess piece for a bigger chessboard.
In July 2007, some observers believed that if Tan Xuguang could not quickly change the autocratic Weifang patriarchal style in the context of the complex tangling of personnel relations, he really increased the acquisition of the acquired companies (Shaanxi Zhongqi and Fast). Supportive efforts, indicating a sincere attitude, but still stubbornly acting in the capacity of a major shareholder, within two years, all potential problems will erupt.
Today, two years have passed and the problem has not broken out, but the problem has not been resolved. An early securities analyst who focuses on Weichai told reporters: “Weichai is actually underestimated by the market. It is the speculation about the human relations between Weichai and the holding company that makes the market estimate of Weixiang’s PE ratio. It is slightly lower than the level that this company deserves."
Now, Tan Xuguang led Weichai into a new personnel relationship.
Dilemma
In early September, it was rumored that the Shaanxi Provincial Government hoped to package Shaanxi Automotive Group as a whole on the A-share market, and pointedly pointed out that this proposal had already entered the provincial internal report and was included in the plan.
On October 15, the reporter asked Tan Xuguang to verify the matter in Beijing. He said: "This is all chaos. I am the major shareholder. I do not know."
At present, there are 15 equity holders of Shaanxi Auto Group, including Shaanxi Heavy Duty Truck, Baoji Huashan Engineering Vehicle Co., Ltd., Shaanxi Auschut Automobile Co., Ltd., Xi'an Cummins Engine Co., Shaanxi Hande Axle Co., Ltd., and Shaanxi Heavy Duty Truck Auto Parts Co., Ltd. The company, Shaanxi Province hopes to include all these companies in the framework of the listing.
After the acquisition of the Hunan Torch, Weichai held 51% of Shaanxi Zhongqi and Hande Axle respectively, and Shaanxi Automobile Group holds the remaining 49%. On the issue of listing, Weichai Holdings, as a major shareholder, can indeed control the progress of Shaanxi Auto.
However, Tan Xuguang should be clear that if the Shaanxi Provincial Government pushes for the listing of Shaanxi Automobile, then Weichai can only compromise on it, rather than hit it hard. In China's political and economic environment, the best outcome between business and government is cooperation rather than conflict.
At first, after Weichai was successfully listed in Hong Kong in 2004, Tan Xuguang also publicly expressed his thanks to Secretary Ma (CNC Chairman and Party Secretary Ma Chunji) for signing permission. As the major shareholder of Weichai that year, Sinotruk chose to release Weichai in the final decision on this matter.
If it is purely from the perspective of the enterprise and does not entanglement with the rumors of the personnel dispute, the main purpose of the listing of Shaanxi Auto is to bring new financing platforms and expand production capacity for the Group.
On June 15 this year, the groundbreaking ceremony for Shaanxi Automobile's mini vehicle base was held in Baoji City. Fang Hongwei, chairman of Shaanxi Auto, said that he plans to invest RMB 3 billion in this year to build a car industry park in Baoji, Shaanxi Province, with key products such as China Card, special vehicles, mini-vehicles and auto parts. The ultimate goal is to form 30 billion yuan. output value.
Although this money can be guaranteed from the RMB 3 billion credit line provided by Shaanxi Automobile in the Xi’an Branch of CITIC Bank three days later, neither the enterprise nor the government will use this purely debt-based approach to the development of the company. Since the general direction is set, then listing financing is inevitable.
For Weichai, this should be a tricky issue. Weichai used engine, vehicle, transmission, and axles to form a self-sufficient industrial chain. If Shaanxi Automobile was independently listed and diluted the shareholding ratio of Weichai, this loose integration would become unpersuasive. Affected Weichai's own stock market value. If Shaanxi Automobile is not to be listed, as a major shareholder of Shaanxi Zhongqi, Weichai must provide sufficient support for it, such as funding.
In terms of Shaanxi Auto, Weichai has always had a short board that cannot be avoided. As a major shareholder, he did not have the time to bring investment for Shaanxi Auto. During the acquisition of the Hunan Torch, Weichai had promised to invest RMB 1 billion in Shaanxi Heavy Industries to increase production capacity. The Shaanxi Provincial Government also invested the same proportion.
On December 7, 2006, under the leadership of the Shaanxi Provincial State-owned Assets Supervision and Administration Commission, Shaanxi Yanchang Petroleum (Group) Co., Ltd. officially took a share in Shaanxi Auto and invested RMB 1 billion in Shaanxi Auto. Shaanxi Auto, in its capacity as the second largest shareholder of Shaanxi Heavy Gas, will transfer this capital to Shaanxi Heavy Gas, which will be used for the “Eleventh Five-Year†development project of Shaanxi Heavy Gas.
It was not until half a year later that Weichai Power announced that it had increased capital of 416 million yuan for Shaanxi Zhongqi and Shaanxi Automobile had invested 400 million yuan in the same proportion. Previously, Weichai had hoped to gradually offset the promised investment amount with the engine payment provided to Shaanxi Heavy Gas.
At the beginning of this year, Li Dakai, chairman of the Fast Group, also stated that in accordance with the requirements of Shaanxi Provincial SASAC and the actual development needs of the company, it plans to adopt the overall listing approach within 3 years to resolve the sources of follow-up project funds.
He said: “In addition to the Shaanxi Fast Gear Co., Ltd., the Group’s other dozen subsidiaries also have a lot of high-quality, profitable assets. The Fast Group has planned to quickly expand and expand this part of the assets. Based on the leading position of the transmission industry, we will expand the scope of the extension."
As some of Fast's assets have already entered the listed companies with Weichai, Weichai also encountered similar problems with Shaanxi Automobile on the issue of Fast's listing.
[next]
For the scale of 100 billion yuan
The subtle market information appeared before the Shanchuan Auto listing rumors.
On June 6th, Weichai Power announced that an upgraded version of the Weichai Blue-Qingguo IV engine will be launched on the market and will be tested with Beiqi Futian's Auman products. On June 19th, the Shaanxi Steam Cummins IV heavy truck will be listed and the first vehicles delivered. The ceremony was held in Xi'an.
On July 1, Weichai Power announced that it had signed a strategic cooperation framework agreement with Beiqi Foton. Weichai Power will provide key components such as engine and gearbox for Futian’s heavy-duty vehicles in the next five years. At the same time, it will serve as a strategic investor. , Participate in the subscription of shares in Foton Motor’s private placement.
Through this cooperation, Weichai Power has acquired the priority of supporting Futian Automotive Power System products. According to the announcement on July 1, Foton Motor's newly developed heavy-duty vehicle models will give priority to the use of Weichai Powertrain products under the premise of Weichai fully meeting technical requirements.
At the same time, in addition to the introduction and joint venture cooperation in the production of foreign branded engine products, Foton Motors has promised not to develop or manufacture diesel engines and gearbox products for heavy-duty vehicles competing with Weichai in the next five years.
In fact, three years ago, Weichai had a strategic alliance with Fukuda. On April 28th, 2006, Foton Motors and Weichai Power held the "International Strategic Alliance Signing Ceremony" at the Great Hall of the People. After the meeting, they also jointly held a new product promotion meeting at Beijing Wuzhou Grand Hotel to jointly launch the Auman ETX luxury. Edition products and Weichai Europe V power. Auman ETX is a new generation of heavy trucks from Foton. Weichai provides Weichai Europe V engines jointly developed with AVL and Bosch.
On the surface, the reason why Auman and Weichai can strategically unite is because both parties have a lot in common: the first is for a common target market, and the customer group is the same; second, the strategic alignment between the two companies is stronger. Chai does not make vehicles, Foton does not have heavy engines, and the cooperation between independent OEMs and independent engine plants is complementary. Third, strategic alliances can significantly reduce Auman and Weichai’s R&D costs, benefiting both parties.
The issue that Tan Xuguang and Weichai cannot avoid is that the companies he is relying on to create 100 billion yuan in sales revenue are Shaanxi Heavy Duty Auto and Fast, which rely on the capital chain, or rely on external markets. The more they cooperate with Futian, The more likely it is that the cooperation with Shaanxi Zhongqi will be affected.
Weichai is the main engine supplier for the heavy truck industry in China, and it is also a major player. Its relationship with different customers is bound to affect the relationship between Shaanxi Auto and Fast and its customers.
In 2008, Weichai achieved sales revenue of 49 billion yuan. In 2000, this figure was only 850 million yuan. This is a good progress. According to the plan, weichai (including holding subsidiaries) will strive for 60 billion yuan in 2009, 80 billion yuan in 2010, and exceed 100 billion yuan in 2012. The contribution of 100 billion yuan will come from three major blocks - entity management, reorganization and post-market services.
Most of them have to be allocated to their subsidiaries.
The expansion of Shaanxi Zhongqi is a desirable option because it can also increase the capacity of Weichai engines. Former chairman Zhang Yupu of Shaanxi Automobile said before retiring that Shaanxi Auto must insist on independent innovation and independent brand, and by 2010, it will achieve 100,000 heavy trucks with sales and sales revenue of 30 billion yuan; by 2012, it will achieve 120,000 heavy trucks for production and sales, and sales. Revenue is 50 billion yuan.
This is undoubtedly a strategic plan that is in line with Weichai's thinking. But the problem is that Shaanxi Zhongqi needs to develop a new generation of products to deal with competition, rather than spinning on the Steyr platform.
The speed of development of the automotive industry is directly related to investment. In fact, with Tan’s desire for 100 billion yuan, he may not want to invest in Shaanxi Zhongqi, but he suffers from limited funds and has to do first with the Weichai Industrial Park and has to shelve the idea.
In addition, from the perspective of market share, there is little chance to invest in the expansion of Falkenstein, which has more than half of the heavy truck transmission market share. Fast is in need of technological investment to develop new and updated technology products. This requires continuous investment and time, and it is full of risks. Tan Xuguang dared to take risks, but on the 100 billion timetable, he did not want to take risks. Moreover, Fast, as a parts company, has a small sales contribution of 100 billion yuan. In the first half of 2009, Fast sold 3.2 billion yuan.
At the same time, the scale of 100 billion yuan may not be supported by the domestic market alone. However, the export of Weichai engines can only follow the export of domestic vehicle manufacturers to gain market share. It is impossible to match engines for foreign auto companies.
Wang Jinyu, general manager of Foton Motors, revealed three years ago that the next 70% of Auman ETX will step out of China and compete in the international market. In 3 to 5 years, Auman ETX will become one of the strong brands in the international market. Obviously, the use of Futian by Weichai products is not just a matter of seeing the domestic market.
Who is responsible for the integration?
Following the listing of the Blue Engine upgraded version IV engine independently developed by Weichai Power a month ago, on July 6th, Weichai Holding Group announced this news again in Weifang, Shandong. At present, Lanqing has become the core product of Weichai in terms of both production capacity and technology. In this regard, Tan Xuguang is confident enough.
Lanqing Engine is a product jointly developed by Weichai and commissioned by Austrian AVL company and was listed in 2005. The reporter learned that Weichai has invested more than 400 million yuan for the development of Lan Qing. In foreign representations, this money appears in the name of the R&D investment of Weichai's European R&D center (located in AVL, Graz, Austria).
The launch of Blue Engine began with a displacement of 10 liters and then increased to 12 liters. At the Weichai Business Conference at the end of 2008, the 5L and 7L models were introduced to develop medium-sized aircraft. From the product point of view, at present, the focus of Weichai's power planning is to improve the vehicle diesel engine product chain, power down and upward, and expand the scope. At the same time, increase investment in high-horse machinery and marine machinery.
With the increase in sales, Weichai’s research investment has been increasing year by year. In 2006, technological innovation investment reached 680 million yuan. In 2007, it exceeded 800 million yuan, and corporate science and technology investment accounted for 5% of total sales. According to public information, Weichai has invested 2 billion yuan in R&D and reconstruction since 1999, which shows that Weichai has only begun to accelerate and increase R&D investment in the last two years.
Changes in shareholders sometimes do not necessarily represent changes in corporate strategy. In fact, after the acquisition of the Hunan Torch, Tan Xuguang will need to find a strategic starting point for this industry chain. The strategy of the Hunan Torch was not originally Weichai's corporate strategy, but rather the creation of a corporate concept and the exchange of concepts for a new platform for capital. In this way, despite the fact that the various industries of the Hunan Torch Co. seem to be healthy, this health is actually from Shaanqi, Fast and other companies themselves. The torch is only used by capitalists to pull it into its own company.
Wei Chai’s strategy is only a strategy for Weichai Power and serves as a universal power supplier. This is not a strategy provided to Shaanxi Automobile by Weichai as a major shareholder. If it cannot be controlled at the strategic level, Shaanxi Automobile and Weichai are separate partners.
One of the key things is that Tan Xuguang has his own ambitions for this dish. His control over other companies is not for simple dividends, but for achieving the goal of 100 billion. He must have good control and control over other companies. This affects the development of new corporate strategies.
Tan had to find a focus in this mess, and the vehicle company was a good focus, but Shaanxi Automobile could not control it. He can only choose Weichai as the starting point for this engine plant. He intends to integrate the vehicle, transmission and axle company with Weichai Power's engine.
However, the realization of this integration task, through time and product testing, has proven impossible to be the engine of Weichai's products.
At the end of 2007, Weichai introduced the world's first "powertrain" product for system matching and development of engines, gearboxes, and axles. The OEM can only match the design of its own cab and cabin, a new type of truck or Passenger cars can be brought to market, and the R&D cycle is shortened to 1/5. However, the reporter learned that in some matches, the axle and the engine did not achieve perfect operation.
Weichai has continued to establish alliances with vehicle companies on the development road. Tan believes that a solid relationship can be established through series of cooperation, but it is difficult to achieve. No one wants to put eggs in a basket.
This kind of support will encounter competition from competitors. Cummins has had a very mature product in the capacity of Weichai power engines, and has joint ventures with Shaanxi Auto and Foton. Xi'an Cummins said in the contract that 80% of his products are to be supplied to joint venture partners.
Shaanxi Automobile Automotive Engineering Institute engineers said: “The 08 heavy truck is a unique domestic gold industrial chain integrated by Shaanxi Automobile, Germany Bosch, Austria AVL, after two years of successful introduction of mature and reliable, green environmental protection III series of heavy trucks, matching Weichai blue engine. The WP10N and WP12N two series engines and the Cummins ISM series 11-liter all-electric high-horsepower engines."
In some cases, Weichai is just a coincidence and has established a certain structure or layout, and this layout will sooner or later be adjusted. From a large perspective, it also has to say something in the future with companies such as Shaanxi Auto and Fast.
Bull fighting is not always fighting
In May and June 2007, Tan Xuguang visited the country three times, visited Germany's Volkswagen, Mann, Siemens, the United States, Cummins, and other nations.
On July 24, 2007, Tan Xuguang made a speech entitled "Building a New Type of Global Enterprise Group" at the Group's First Half-year Economic Operation Analysis Conference held at the Xiyuan Hotel in Beijing to describe the direction of future development.
He said: "Currently, the competition between enterprises has been raised from a single enterprise competition to a chained competition between industry chains. Each of our companies has formed its own unique advantages and independent brands in the development process, and now it is continuing to develop. , or integrate advantages to form a fist?"
Tan Xuguang believed that the world-famous large international groups such as Volvo, GM, and Ford took the road to actively seek restructuring, lengthen the industrial chain, and broaden the industrial field, thus making a decision to absorb the merger of the Hunan torch. In this way, the synergies and the advantages of the overall industry chain can be better exerted, so that the resources can complement each other and create conditions for the establishment of a new internationalized group.
In the strategy formulation strategy, there are actually two debates in the academic community. One is that Porter’s core competitiveness is headed. Advocating more consideration of the surrounding environment of the company will affect the formulation of the company's strategy; the other is the evolutionary economics, emphasizing the enterprise. Endogenous capacity and internal resources influence corporate strategy.
Although the definition of the strategy is very simple and matches the internal forces with the external environment, on the specific case of Weichai, the acquisition of the Hunan Torch cannot fully consider the match between inside and outside, and the assets carried by this transaction (obviously the dominant assets). Weichai can only get it at the cost, then digest it and seek a new strategy.
In fact, from a strategic point of view, the acquisition of Shaanxi Steam by Weichai is not conducive to long-term development. Of course, Shaanxi Auto can match up with Weichai and become a heavy truck engine, but at the same time it will limit the development space for both.
First, in the absence of a small engine, Shaanxi Automobile is unlikely to have access to heavy trucks because Weichai must ensure the sales of its own engines. Second, Weichai will face pressure from other heavy truck customers. Because Shaanxi Heavy Duty Truck has an advantage in the heavy truck market with a capacity of more than 15 tons, Weichai Power also has a monopoly position in the high-power engine market. Combining strengths will make other companies more worried.
Weichai Electric hopes to use internal communication and external integration to provide more reasonable product solutions. Simply put, if Weichai can provide matching engines, transmissions, and axles, then it can be a vehicle company. But in turn, if Weichai comes to this stage, will the entire vehicle company worry that Weichai will one day become a vehicle company and become its strongest competitor?
Tan Xuguang has always stressed that neither the market nor the product can be too concentrated. While managing Weichai's own products and markets, he did manage to do this. Weichai Power no longer has to worry about competition in the range and type of engine power.
In January 2009, Weichai acquired Moteurs Baudouin Power Company of France and won the auction of the Baudouin company’s assets for €2.99 million. The book value of this asset is approximately €13,817,700. The French Boduuan engine has been widely used in various fields such as vehicle, ship, engineering and industry. After Lanqing R&D, the important task of the Weichai Europe R&D center is the development of large marine machines with Baudouin.
However, when the field of vision shifted to a broader group management level, Tan Xuguang did not be able to influence the strategy of his company to serve his own group. Although he has always insisted that the integration of the industrial chain and the general power supplier's statement is enough to cover everything, "once it is set, it will not change."
With the adjustment of the group's subsidiaries and products, various unexpected opportunities have constantly impacted the development of Weichai. The music that Tan Xuguang likes is the Spanish bullfighting song. He should also reflect on it. The bull fighting is not always fighting, and more often it is thinking and judging each other statically, and then making moves.
Quaternary Ammonium Salts,Silane Quaternary Ammonium Salt,Ester Quaternary Ammonium Salt,Quaternary Salts Of Ammonium
Jiangyin Lanyu Chemical Co.,Ltd. , https://www.lanyu-chem.com