In 2008, Chunlan Heavy Truck was officially acquired by Xugong Technology and completely withdrew from the auto industry. Taking history as a mirror, you can learn about prosperity. Chunlan is not the first one, nor will it be the victim of the last amateur manufacturer.
When heavy-duty new players are happily depicting their future prospects, and when most people are admiring the performance of new players, we have to come up with such a tragic lesson.
Chunlan trucks, the former home appliance giant entered the automotive industry. Between 2002 and 2004, the domestic truck market was extremely popular and was once hailed as one of the most successful companies in the automotive industry transitioning from a layman.
It has achieved a year-long profit of 200 million yuan. It has had the pride of more than 500 dealers. It has been closely linked with the famous Japanese truck company Hino. But it is such a heavy-card player who has a perfect start but disappeared after 2004. In 2008, Chunlan Heavy Truck was officially acquired by Xugong Technology and completely withdrew from the auto industry.
In 1997, Chunlan Group spent 730 million yuan to acquire the professional automobile manufacturing plant of the Nanjing Dongfeng Motor Group Co., Ltd., which was at the time of loss, and renamed it as "Nanjing Chunlan Automobile Manufacturing Co., Ltd.". At that time, the plant produced medium-sized, light trucks and some special vehicles. Lord, outside this plant, Chunlan also hosted the Dongfeng Group's mini car factory. However, Chunlan did not expend energy on the small factory that was provided with this product. Its focus was on the heavy truck market.
By the time the first product of Chunlan was introduced in 2001, Chunlan Group invested more than RMB 600 million in product improvement and R&D, which not only enhanced the original product quality and technical strength, but also introduced a new cab from Japan. In October 2010, the production and sales volume of medium-duty trucks of Nanjing Chunlan Automobile Manufacturing Co., Ltd. ranked in the third place after FAW and Dongfeng. Chunlan truck hit a red banner. A report at the time faithfully described the joy of Chunlan: The third quarter of 2002 has not yet ended. Li Jiacheng, vice president of the Chunlan Group’s automotive division, has been busy with the Chunlan Book Fair in 2003 with the goal of selling 30,000 vehicles annually.
At the same time, Chunlan Automatic Vehicle Co., Ltd. requisitioned 300 mu of land on the side of the Nanjing Chunlan Automobile Manufacturing Plant, preparing to establish a world-class heavy-duty truck production base with Fiat 50% each and establish a joint venture with Hino to produce heavy trucks.
From 2002 to 2004, Chunlan truck ushered in its best period of development. At that time, Zhong Dong, a researcher at the Yuejin Group Economic Research Institute, said that Chunlan’s flexibility in its sales strategy started with the large tonnage in the card and the low tonnage of the heavy truck. This is a blank point in the current market.
However, the end of 2004, Chunlan truck not only ushered in a joint venture with Hino, but in the product sales have plummeted.
"Automotive Business Review" attempts to sum up the reasons for the ups and downs of Chunlan trucks, hoping to help new players in heavy trucks learn from history, not to repeat the mistakes made by their predecessors.
The rise of Chunlan trucks lies in innovation and R&D investment. Looking back at the development of Chunlan trucks, it entered the automotive industry in 1997 and built the first product in 2001. In 4 years, 600 million yuan was invested in the Chunlan Group at the time. Although not out of pocket, the effort is not small. Under the precondition of quality as product guarantee, the differentiated and comfortable cab became the biggest selling point of Chunlan trucks. From this we can see that innovation and R&D are of the highest importance
The decline of Chunlan trucks was largely due to innovation and research and development. After 2004, the domestic middle card market began to shrink. When companies such as FAW Jiefang and Dongfeng Commercial Vehicle began to develop new generation products and achieved product strategic transformation, Chunlan trucks did not keep pace with the times.
Coupled with the increasingly poor appliance industry dragged down Chunlan Group, Chunlan Group is also difficult to cast a bigger stake in the automotive industry. The auto industry seems to be flat, but it is actually a very expensive industry. Although the times are different, the reason is the same. For any new player, if you are reluctant to invest in R&D, looking down on the auto industry without leaving plenty of money will not necessarily result in a good end.
There is another reason for the decline of Chunlan trucks: people. Chunlan Group, which entered the automotive industry, relied on the acquisition of technical talents and employees left by Nanjing Dongfeng Motor Manufacturing Plant in the early stages of development. And to a certain stage of development, Chunlan Group has continuously had management dropping air vehicle companies, making management lack of understanding of the automotive industry, slow market response, and missed market opportunities. The real car talent is unlucky, empty and has no place to play. The lack of specialization of professionals is an important internal cause of the decline of companies.
Today's heavy-duty new players can get more specialized talents from automobile colleges than Chunlan trucks. They can also hire high-paying technicians. However, whether they can give full confidence to auto talents and find out the laws of the auto industry are the long-term development. Based on this book.
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