Weichai Power: A unique R&D and innovation system

"The economic recession is a comprehensive test of the company's ability to innovate. Every economic crisis has given birth to a new round of growth." Tan Xuguang's remarks are being staged by Wei Chai Power Co., Ltd., which he heads.

In the wake of the financial crisis, Weichai Power went against the trend and production orders flocked. From January to March 2009, all kinds of engine orders increased by an average of 50% per month. In March, the output exceeded 40,000 units, and the output was close to 38,000 units. Create the best level of history. All of this is inseparable from the unique R&D and innovation of Weichai Power's “internal and external cultivation”.

Improve the R&D system

Weichai Power’s scientific research funds have always been maintained at about 5% of annual sales revenue. In 10 years, a total of 2 billion yuan has been invested in technology research and development and transformation, and the ratio of hardware and software has basically reached 1:1.

In the innovation of technology research and development mechanism, Weichai Power has broken the traditional technology development model, introduced a market mechanism, and established an incentive mechanism to meet market requirements within the company. The company implemented a system of bidding for research and development projects, issued the "Ten Regulations on Incentive Personnel," and allocated more than 3 million yuan each year for scientific and technological innovation awards. It allocated 1.5 million yuan each year to set up a special fund for talent training, spending more than 10 million yuan each year. Transportation science and technology personnel went out to visit and study abroad for further study. These initiatives have stimulated the dynamism of the technical innovation of the majority of technical personnel. Through training and introduction, Weichai Power currently has a 200-person research and development echelon, of which more than 150 have master's degree or above.

In addition, Weichai Power has established a complete product R&D system and has established standards for conceptual design, detailed design, mechanical development, complete machine development, and vehicle matching.

Open innovation

Weichai Power actively introduced “outside the brain” and established R&D centers in Europe and the United States respectively, and pioneered the development of China’s first national engine with independent intellectual property rights. Among them, the European R&D center established by the Austrian company AVL has invested more than 100 million yuan and represents the largest in the world. Weichai Power has more than 20 people working at this R&D center all year round. Today, Weichai Power develops more than 300 new products each year and obtains more than 100 patents. The output value of new products has already accounted for half of the total industrial output value.

In the vertical direction, the cooperation of upstream and downstream links in the industry chain is achieved, and the advantageous resources of other companies are horizontally combined to break down the closed innovation of individual enterprises. This is an open innovation of Weichai Power. In 2006, the Weichai Power Products R&D Community was announced. Thirty-two powerful component suppliers from the industry joined in the process, forming a situation where Weichai Power was the main component and complementary advantages of various component suppliers to jointly promote technological innovation. Weichai Power also uses the advantages of its industrial chain to develop the world's first “powertrain” for engine matching, gearbox and axle system matching and R&D. The development cycle is shortened by 1/5.

On June 28, 2008, Weichai Power and Foton Motor signed a comprehensive strategic cooperation agreement. The two sides increased cooperation in product chain cooperation innovation, increase resource allocation efficiency, jointly develop markets, and jointly build market service networks. In July 2009, Weichai Power launched an upgraded version of the blue engine, this engine will be tested with Foton Motor, the two sides will further deepen the strategic alliance and will jointly register and have the core power brand "Wei Chai Ou power." .

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