Futian Cummins Speeding Run

What makes a Sino-foreign joint venture engine brand that is not good at creating momentum to create a number of unique industries in just two or three years? An analysis of the "Speeding" company teaching instruction manual under the global economic slowdown.

The dealerships in the Nizhny Novgorod (Russian Machinery Industry Center) dealership are selling hot-selling light and medium-duty trucks from Beijing Futian Cummins Engine Co., Ltd. (hereinafter referred to as Fukang) ISF 3.8 Euro V engine. The light-to-medium card sales champion G. Foxconn Group CEO Anderson (Bo.com ndersson) brought no small gains.

In Brazil, Fukang is negotiating cooperation with a number of host manufacturers to start supplying ISF 3.8 Euro V engines to meet Brazilian emission upgrade requirements from January 1, 2012. It is expected that total sales in this region will reach 3 in 2012. Million.

In Australia, Fukang has delivered Omar light trucks fitted with ISF2.8L Euro IV engines.

In Korea, the sales of Fukang ISF Euro III, Euro IV and Euro V engines have reached 3,000 units.

......

It takes at least three years to stabilize an overseas customer, and Fukang has opened the door to markets in Europe, Central and South America, and Southeast Asia in just two years.

"The enterprises that can mass-produce Euro V engines are unique in China; there are no domestic enterprises that have over 10,000 units of Euro V products in three years; in the overall down trend of the commercial vehicle industry, enterprises that can still achieve production and sales doubling are no longer domestic; light diesel engines The growth rate of 100% common rail is unique in China; it has an absolute share on a single-class model in only one year, and it is unique in China. “After talking about Fu Kang’s entrepreneurial journey, an employee sent such a feeling to reporters.

As of the time of the press release, the Fukang 2012 Strategy Conference is still in full swing. According to its internal disclosure, the production and sales target in 2012 will have to double. How to ensure sustainable growth after speeding? Fukang has come to the moment of serious thinking.

Double support "heating"

Judging from the overall sales of Fukang in 2011, both domestic and overseas sales have increased. In particular, overseas sales have grown significantly. Overseas sales are expected to exceed domestic sales for the whole year. The export is greater than the domestic sales, so that was the first to propose Beiqi Foton "sea" strategy (that is, with foreign famous Auto Parts and components companies form a strategic partnership) promoter, the current president of Beijing Foton Motor Co., Ltd. Wang Jinyu quite satisfied.

During the period, the "variety" of the international trading environment was unexpected.

On the day of September, Gu Binhao, senior business development manager of Fukang, attended the company's regular meeting as usual. Only one more job report was reported. The recent European debt crisis, the continuous appreciation of the RMB exchange rate, and the spread of the Occupy Wall Street Movement in the US may affect the situation. Future business exports to Fukang. At the beginning of the year, Fukang’s international business was still quite optimistic: South America’s market share was the highest, and accumulative delivery of 15,000 Russian vehicles ranked the highest among China’s high-end light diesel engines. Until the beginning of the fourth quarter, the international situation continued to deteriorate, bringing many challenges to businesses including overseas businesses including Fukang, but Fukang has already started to implement a series of measures to avoid the ISF series. International business has an impact.

The European debt crisis has led to insufficient domestic demand in Europe, and merchants have become more cautious in the next day. The negative impact on European exports of Chinese products has already begun. Wei Jianguo, secretary general of the China International Economic Exchange Center and former vice minister of the Ministry of Commerce, pointed out that once the European sovereign debt crisis intensifies, it will inevitably affect China’s exports to the EU.

At this time, Fukang has already felt the most obvious change: Russia's export market has reached 30% volatility. "This raises higher requirements for Fukang to organize production and supply shipments and a series of links, which also proves Fukang. Pursue the forward-looking and correctness of the local procurement strategy," Gu Binhao told reporters.

In succession, the central parity of RMB against the US dollar announced by the China Foreign Exchange Trading Center exceeded the 6.35 mark for the first time, creating a new record of exchange reform; from the beginning of 2011 to the present, the appreciation of the central parity of RMB against the US dollar has approached 4%; during the five years since the exchange rate reform, the RMB against the US dollar The cumulative appreciation of the median price exceeds 30%. Economic experts analyze that the appreciation of the renminbi exchange rate will easily lead to a decline in the competitiveness of China's export products, and trade commerce must not be overlooked.

The gloomy expectations of the Fed’s release once again raised concerns about the slowdown in global economic growth. Ten-year US Treasury yields fell to the lowest level since the 1940s: the Dow Jones Industrial Average fell 3.51%, the S&P 500 Index Declined 3.19%, the Nasdaq Composite fell 3.25%, and the United States economy has entered a double recession has become a reality.

"Fortunately, the appreciation of the renminbi, the ruble is also appreciating, the export business in Russia offset the exchange rate problem; the US occupation of the Wall Street movement is still spreading, we have adjusted the exchange rate of the United States in 2012 from the current 6.3 to 6; the South American market due to different customer needs, European V products will be less sensitive to price.” The statement made by relevant staff of Fukang's Overseas Business Division seems to have made it easy for the outside world to misunderstand that its overseas trade is “lucky” to avoid some problems. In fact, in the opinion of reporters, this "lucky" is actually the accumulation of the entire company through the lean production model.

Some experts analyzed the reporters, and Fukang's overseas business development was mainly due to three reasons: First, Cummins played a key role in supporting Fukang's production; Secondly, Fukuda's 2020 strategy can be described as ambitious - global sales exceeded 400 With 10,000 vehicles, sales revenue exceeds 400 billion yuan, profits exceed 20 billion yuan, and overseas sales account for 30% of total sales, which contributes to the export of Fukang. Furthermore, overseas demand remains strong. It is predicted that the total demand for ISF engines in G. Fokang Z Group in 2011 will be approximately 20,000 units, which clearly indicates that the future Fukang ISF engine will have more room for growth in the Russian market; Completion of the certification of 100 to 150 dealers nationwide will also significantly boost sales of the Fukang ISF engine and related vehicles.

[next]

On the other hand, internal and external problems coexist.

As early as May 2011, Fukang had spoken outside, Fukuda was a good partner because their commercial vehicles were enough to make money; after November, Foton Motor completed 680,000 sales targets in 2010. The actual sales in 2011 are expected to hardly increase significantly. Some outsiders worry that the increasingly weak domestic commercial vehicle market is not conducive to Fu Kang's future development.

"There is no need to worry too much about Fukuda. Although the domestic market did not meet expectations, we must see how many new talents they recruited in 2011, how many business modules have been newly added, how much new production capacity has been expanded... If all costs are Here, Fukuda is still the most profitable enterprise in China's commercial vehicle industry. "This is the consensus of Fukang from the top down." Our success is based on the combined strength of our parent companies, not just a single company. Can finish."

Although Cummins' global brand resources and customer resources, as well as application matching capabilities and integrated system supply capabilities have greatly helped Fukang, the reporter has always believed that Futian Automobile’s abundant local resources are incomparable to other wholly-owned parts and components companies. .

Double the "Blue Ocean"

"The country has too many restrictions and terms for commercial vehicle laws and regulations, which is not conducive to the future development of commercial vehicles. In 2011, many companies failed to achieve the same level of production and sales in the same period, and it will be even more difficult in 2012." In an interview, the industry is generally not optimistic about 2012. The year of China's commercial vehicle market.

In desperation, parts and components companies have begun to work hard on product structure adjustments, but the key is to see who can make new products to make features and selling points.

According to information disclosed by Fukang to reporters, the most important work tasks in 2012 are: First, scale up, enter the mainstream market (this is the core principle); second, develop new products; third, reduce costs.

As you can see, in order for Fukang to maintain a strong competitive advantage under the deceleration of the global economy, it is imperative to reduce the operating costs and manufacturing costs of various factories and develop new products to enter the mainstream market. "Price is the key indicator of the volume," according to Wang Jinyu's instructions, Fukang has clarified this concept - whether it is products or prices must enter the mainstream market, the so-called mainstream market is the price that all domestic OEMs can accept .

According to the reporter’s understanding, Fukang will focus on two major directions in the research and development of new products in the future: (1) The development of cross-driving diesel engine products, from the development of light truck engines to the development of pickups and SUV engines; (2) Development New application platforms, ie non-road applications platforms such as generator sets, construction machinery, etc.

"New product development is not about high-end or low-end issues, but rather some new concepts such as fuel economy, vehicle reliability, product service, marketing reputation, etc." Gu Binhao's statement seems to confirm that: the sales pressure of the engine It's not about real sales but about product quality and product service.

As we all know, Fukang is the only company that makes light diesel engines in the Cummins system, and it is a global factory. The headquarters of Fukang in Shahe Town, Changping District, Beijing is the global production base of Cummins light diesel engines. However, cross-vehicle diesel engine products are shortcomings of Cummins. It is unrealistic for Fukang to "make a fuss" on larger engines (after all, Dongfeng Cummins exists), but not on passenger cars. Do something?

Futian Meng Parker is actually an attempt, although the market sales performance is not satisfactory, but there are reasons to follow. At present, domestic cars are still dominated by gasoline engines, and diesel vans are embargoed in many cities in China. Contradictions between new product development and policies are also issues that need to be considered in the future.

[next]

If there are still many uncertainties in the development of diesel engines for crossover passenger cars, then Fukang's alternative path seems to have already been "iron nailed."

Zhao Jingguang, deputy secretary of the Party Committee of Beiqi Foton Motor Co., Ltd., told reporters that the development of heavy-duty machinery is already the second largest industry for the future development of Foton Motor. It is understood that Foton Heavy Machinery has two major business segments: First, the Construction Machinery Business Division, respectively in Xuanhua (Northern Engineering Vehicle) and Changsha (Southern Engineering Vehicle); second is the Heavy Machinery Division, the current crane project is still in the election Site. The news has also been confirmed by the headquarters of Fukang, "Fukuda has put forward specific plans for Fukang's off-road product projects."

What is puzzling is that in the field of domestic construction machinery, there have been "professional households" such as XCMG and SANYHE. The strategic considerations of commercial vehicles such as CNHTC, FAW, Dongfeng, and Futian infiltrate here are worth pondering. Is it a fancy to the high profits of heavy machinery?

It is reported that although Fukang's production and sales have doubled in recent years, the application cost is high, and the profit rate is still rising at the break-even point, and it has not reached the expected profit model of the headquarters. Imagine that if such a large enterprise cannot keep up with its profits, it will be severely constrained in its later development. In the automotive industry, the profits of heavy machinery are the highest. Moreover, "entering the industry does not require a large amount of money to ensure profit."

According to Zhao Jingguang's analysis of the reporters, during the period of high-speed growth of construction machinery, a single company can develop well; once the market matures, comprehensive corporate advantages will be exerted. Compared to single construction machinery companies such as Xugong and Sany Heavy Industry, commercial vehicle companies will have more advantages.

After all, in the aspect of sales channels, the construction machinery sales network of commercial vehicle enterprises need not rebuild new sales channels. The sales channels in the original system can be competent; and there are also great advantages in resource sharing, such as chassis, technology, human resources, etc. The basic aspects are all the same; at the same time, they have a strong vehicle development capability, and they also have advantages in terms of exports in the future. And these are difficult for a single construction machinery company to have.

According to sources, such professional households as Xugong and Sany have realized the above problems and have plans to infiltrate into the commercial vehicle sector. However, their difficulty in reverse-phase penetration is more difficult than that of commercial vehicle companies, so Fukang's advantages in the development of off-highway application platforms are already obvious.

Behind the speeding is not without trouble

Reporter: Why is the optimization of vehicle matching the key work for Fukang in 2012?

Fukang: Local companies have relatively weak capabilities in vehicle calibration and vehicle technology development. China's commercial vehicle industry has an old saying called "Let customers do tests", while the main engine manufacturers do little testing; Abroad, the opposite situation occurs, and the technical changes of the main engine plant are more rigorous. After the technical characteristics of the engine are confirmed, problems will be solved by themselves, instead of all being thrown to the engine manufacturers to solve. This situation in the country will bring great pressure to Fukang, and it will also affect Fukang. The staff of the early engine plant only paid attention to the engine itself, but seldom pay attention to the entire vehicle. In the future, we must concentrate on optimizing the entire vehicle in a very important position. We must have a strong technical ability to solve the problem of the entire vehicle and we must be able to grasp it in time. Match the flexibility of the application.

Reporter: Will domestic emission standards affect the application of Forcom's high-end technologies?

Fukang: The headquarters has already seen some characteristics of China's commercial vehicle market, and is actively modifying the previous principles and product development strategies: First, we must ensure that our products are advanced emission technologies; Second, we must develop some products that meet China's standards on the basis of maintaining the original products. Products required by customers and regulations. Fukang not only does Cummins' own or European products, but also conducts specific development according to China's national conditions. This has become a common understanding of Fukang leaders including the Cummins system for emissions. In the future, the focus of Fukang's discussion is no longer just whether the emissions are high or low, but how the products will continue to meet the requirements of domestic customers and regulations and policies.

Reporter: Will the US Navistar high-end light engine pose a threat to Fukang after it enters the Chinese market?

Fukang: Fukang ISF3.8 Euro V engine has almost no competitors in China. Up to now, we have signed agreements with all light truck OEMs in China, such as FAW, Chang'an, Shuguang, CNHTC, Jirui, etc., including JAC (the bulk of their current export products still continue to use Forcome engines). In fact, JAC's supply chain is a bottleneck in the engine, but Navistar's roots are in North America. It is difficult for Chinese OEMs to enter the North American market. Except for electronic products, machinery products have not yet seen which one is after joint venture production in China. It can be sold back to North America because the quality and industrial environment of Chinese products cannot be compared with North America. And Fukang's follow-up in China, from the beginning of development is the use of local resources, we have factories in China, which is Cummins's strongest place, relatively speaking, Navistar will not be so fast domestic.

Bronze Casting Parts

We can supply big range of such bronze Casting Parts, including investment casting and sand casting

Sand Casting method (Sand Casting)

Using Sand as Mold material, according to the different components of Sand can be subdivided into wet Sand casting method of Green Sand Mold), surface Dry Sand casting method (Dry Sand Mold), and so on, but not all are available in the casting.

Advantage is lower cost, because the sand mold use reusable;

Lost wax Casting, Investment Casting

This method can be as the outer membrane casting method and the solid casting method.

To copy wax casting items required first, and then into the pool with ceramic and stay dry, make with wax replica is covered a layer of ceramic outer membrane, repeat steps until enough to support outer membrane casting process (about 1/4 inch to 1/8 inch), then the wax melting mould, and out of mold. Then mold need to high temperature for many times, enhance behind the hardness could be used in the casting.

This method has good accuracy, can be used as a high melting point metal, such as titanium casting.

B. Main particulars

C. Construction

Construction by casting and machining

D Workmanship

The workmanship have good production practice. Care are taken to ensure High accuracy and smooth surfaces

E. Certificates

- Material certificates

- Measuring reports

- Inspection protocol

- NDT reports

- Fixed certificate: ISO9001 certificate

Our service

Besides above the general specifications, we can also supply some specific machining parts as clients' requirements.

Package and shipping

Export cartons, pallets, wooden cases, Polybags

container package and container transportation

Bronze Casting Parts,Oem Bronze Casting Parts,Bronze Sand Casting,Bronze Sand Casting Parts

Shinvast Industry Ltd , https://www.shinvastindustry.com