After days of contact, we finally saw Wang Gang having just come back from the Changchun headquarters lately, who had been always in a low profile and accepted my interview cordially. He was humble but had steady eyes.
This year saw the 1th anniversary of the opening of Holiday 100 Days and the 20th anniversary of the commissioning of Xiali cars, and 2006 was a year that we shared our concern about and was worthy of celebration. I wanted him to summarize Xiali s 20 years of development in a word,and he gave no immediate reply to this unexpected question but discussed with manager Song of the sales company by him seriously, expressing he need time to think it over. This was a cautious leader, maybe too much feel was beyond description.
Restructuring makes 25% of employees own cars manufactured by themselves
Xiali s 20-year history witnessed the development of the auto industry after China s opening-up and reform, Xiali has its small cars spread all over the China in its heyday. Of course, it also went through a period of hardships beyond description, during the period it made loss in two consecutive years with its output & sales dropping sharply to 50,000 only in 2001 so as to become an ST company in a difficult position.
In June 2002, under the wise decision and full support of Tianjin Municipal Committee and Municipal Government, Tianjin FAW Group and Tianjin Auto Group successfully restructured Tianjin Xiali in response to the requirements of the state for strategic restructuring..
Regarding the changes over the four years since the restructuring of Tianjin Xiali, Wang said with feeling, Immediately after the restructuring, the cadres and employees stuck together, relying on technical and management innovation, we successfully released competitive products like Xiali A partially-modified cars and Xiali N3 updated cars, coupled with Vizi and Vela, two top small cars introduced from Toyota, a strong lineup of economic cars came into being.
For years, we have taken a series of effective measures for management enhancement such as intensifying cost reduction, stopping up loopholes, conducting high-quality projects and exercising mechanism of reform distribution so as to cause great changes in our operating and mental outlook. We successfully turned losses into profits and freed ourselves from the label of ST by accomplishing output & sales of over 100,000 in 2003, and increasing the output & sales to 200,000 in 2005 to reach a new level whether in economic returns or social effect.
Wang said, With their income increased, our employees appeared different, according to our statistics at the beginning of the year, 25% of our employees had owned the cars manufactured by themselves, looking back on the period, each of them would overcome with emotion, Xiali s success was attributable to the restructuring, was inseparable from the government s help, shareholders support and employees efforts, and was a result of good opportunity, favorable position and friendly people.
As for Tianjin FAW s future development, Wang laid stress on two points. One was sense of crisis, namely, turning crisis into pressure and power. A successful enterprise should increase its sense of crisis as it grew, market competition was cruel and fair, no one could always be successful, an enterprise should not be complacent as it developed smoothly or give up when it was in a difficult position, it is important to bear firmly in mind that We are still walking on the ice and may slip if we are not careful enough ; the other is be initative and be supplementary , this word seemed a bit contradictory, but was meaningful.
This word embodies teamwork spirit, as an enterprise grows rapidly, the strength of an individual or even a department has been far from meeting the needs for fast development, so it is necessary to rely on the team and comprehensive intensify the construction of the system capacity of an enterprise.
Wang explained.
Building up Chinese master in making small cars
Through the efforts of generations for 20 years, Xiali s appeal has been known to all. As for Xiali s sales, manager Wang felt a surge of excitement, Xiali s total sales have exceeded 1,300,000 from 1986 till now and held the title of sales of independent brands for 20 consecutive years, which is what we are most proud of.
Particularly in 2005, we accomplished sales of 200,000, making a clean sweep of three first places in sales of single brand, independent brand and economical cars, Xiali s new N3 also won us the great title of CCTV 2005 Chinese Independent Brand Car , taking a historical leap and wining honor for Tianjin.
Persistent adherence to the strategy of independent innovation and development is one of the key factors of Xiali s success. The fact has proven that the independence concept of introduction, assimilation and innovation was reflected in Xiali to the fullest and most successful in the case of Xiali.
Contrarily, were it not for the fact that we attached great importance to product development and research, accumulation and application of new technologies these years, and Xiali s performance and image catered to the consumers demands, we would not be so successful today, I m afraid we would had been knocked out of intense competition early.
Tianjin FAW aims at building itself into a Chinese master in making small cars. Wang said, Today s Tianjin FAW is far from being a master whether in scale or comprehensive strength, but we still put forward this industrial dream. I believe the farther an enterprise sees, the greater progress it will make.
To become a master in making small cars is not only an objective, but a sprit and a power driving us to persistently take the road of independent development, also, it shall be a responsibility, we must learn how to make cars and top cars, shall not only base ourselves at home in the long run, but also step out for greater development.
Construction of city of 1,000,000 cars
Wang said, Xiali s 20-year development is of great importance to us, there is a lot worthy of summarization and retrospection, so we have been thinking how to commemorate this special day? At last, we decided to hold no ceremony and cancel the banquet, but made a donation of RMB 1.3 million carrying the trust of 1.
3 million consumers in Xiali to the Chinese Red Cross Foundation for building 20 charity hospitals to get those in most need of help in the poverty-stricken areas out of diseases as soon as possible. Small amount as it was, it embodied the true love of Tianjin FAW s 10,000 employees.
Wang believed that a successful enterprise should be an enterprise recognized by consumers and responsible for the society. Tianjin FAW serves each family and focuses on the life of the general public, therefore the company will return consumers and the society more after having gained some development.
Short-term competition relies on products, medium-term development relies on systems and long-term development relies on culture. Wang summarized forcefully and meaningfully. Tianjin FAW will successively release several models during the 11th Five-Year Plan, accomplish output & sales of 400,000 by 2010 and shoulder its heave duty of building Tianjin FAW into an enterprise with output & sales of 1,000,000 and Tianjin into a city of 1,000,000 cars. This process particularly needs to be supported by corporate culture.
As for the future, Wang said, We are expecting to build Xiali into an affordable car most suitable for common families, will never change our car-making concept of saving money, worry and time having been recognized by consumers and will further improve the performance of safety, oil saving and environmental protection consumers are more concerned about.
The development of the new-generation Xiali has got under way, due to its relation to the corporate strategy, we cannot disclose the time of release for the moment, but we can assure you that it will bring you more surprise. Through painstaking tempering, Xiali is sure to become the national Xiali, brilliant Xiali and eternal Xiali.