FAW Liberation Adjusts Product Structure to Improve Adaptability of Medium and Heavy Card Segment Market Coverage


On December 29th, 2011, the “FAW Liberation 2012 Business Annual Meeting” with the theme of “Strengthening Capacity-adjusting Structure and Strengthening Service for Everest” was held in Guangzhou. At the meeting, China FAW Group Corporation stated that competition for medium-heavy trucks is still fierce in 2012. Liberated products should continue to undergo structural adjustments, accelerate the construction of two bases in South (Qingdao) North (Changchun), and do a good job of supporting parts and components. FAW also Will continue to support the emancipation of the brand from various aspects to further strengthen and expand.

In 2011, the overall sales volume of the domestic heavy-duty truck market fell by 129,000 units, a decrease of 10%; of these, only tractors fell by 105,600 units, a decrease of 29%. In the context of the overall downturn of the industry, sales of FAW Jiefang Products in 2011 have declined from 2010, but still achieved the second best performance since the establishment of the liberation company.

In the second half of 2011, FAW Liberation successfully stopped the decline in sales in the first half of the year and began to rebound. Among them, the liberation of the advantages of product tractors, to maintain a 40% market share advantage; at the same time, liberated brands in various market segments have also achieved breakthroughs: the dump truck market share increased by 1%, 8 × 2 trucks increased 2%, lightweight 8×4 trucks increased by 7%. In particular, it is worth mentioning that the market share of Jiefang Cement Mixer has increased by 2%, and it has achieved sales of 3,000 vehicles in the year, an increase of 50% year-on-year.

For the truck market in 2012, FAW Jiefang Automobile Co., Ltd. analyzed that market demand exists, but the truck market will not show any significant increase or decrease due to macroeconomic regulation. The truck market in 2012 contains several favorable factors. For example, the national economy is expected to maintain an increase of 8%. Under the premise of macroeconomic growth, the freight volume will continue to grow. The progress of urbanization will also increase the intensity of the construction of social security housing. At the same time, however, the trend of the internationalization of the truck industry is obvious. A considerable number of commercial vehicle manufacturers have stepped up production capacity on the one hand, and on the other hand have cooperated with foreign manufacturers to launch new models for the mainland market.

In response to this situation, FAW Liberation proposed to increase product structure adjustment in 2012 to increase the market share of construction vehicles and dump trucks. In the market area, the advantage of the liberation of FAW is in the east and the weakness is in the west. From 2010 to 2011, the demand for trucks in the west increased, and the increase in the east did not occur, which had a large impact on the market share of liberation.

As the foundation of FAW's development, Liberation Brand has been fully supported by FAW Group Corporation. The successful development of the liberation of the J6 is just a major achievement of FAW Group’s self-reliance and development autonomy. In order to maintain the technological advantages of emancipating the brand and continuously improve the competitiveness of J6, FAW has embarked on the pre-research of the next generation of products.

According to FAW's "12th Five-Year Plan", Liberation will reach an annual production and sales capacity of 480,000 units during the planning period; at the same time, by 2014, Liberation will also launch liberation of light truck products and improve the full range of research and development of liberation trucks. To this end, FAW Group has invested 12 billion yuan, one for the development of the vehicle and the core assembly, and the second is to expand the factory in Qingdao, Chengdu, build a new factory, increase the scale of production capacity.

In January 2011, Liberation of the J6 heavy truck won the first prize of the 2010 National Science and Technology Progress Award with its leading domestic independent technological achievements. This is the first time that the award has been awarded to civilian vehicles since its establishment.

On July 15, commemorating the 55th anniversary of the release of Jiefang trucks, FAW Liberation launched a commemorative edition of the J6 Liberation J6, which is a heavy-duty brand for imported heavy-duty trucks. The technology research and development, manufacturing process, fuel-efficient products, and power, Safety, light weight, and other aspects have absolute advantages over competing products.

In 2012, FAW Jiefang will also launch J613L/9L natural gas tractors and dump trucks; Xindawei natural gas tractors, dump trucks, and trucks; J6L4X2/6X2 small row of semi-van trucks, all-wheel drive vehicles, etc., to further enhance Liberate product coverage and market segment adaptability.

At the Liberation Business Conference, FAW Jiefang Automobile Sales Co., Ltd. announced the marketing goals for the liberation of trucks in 2012: In 2012, FAW Liberation’s guaranteed goal was to reach 210,000 vehicles. In 2012, the total demand for heavy-duty trucks was about 1.1 million, which was slightly lower than in 2011; demand for tractors and trucks remained stable, and demand for special vehicles and dump trucks declined slightly.

At present, the number of domestic manufacturers entering the medium and heavy truck market is constantly increasing, and the competing products are continuously upgraded. The competitive environment facing liberation is even more severe, and the liberation marketing system’s market development capability, management and management capabilities, and service support capabilities are higher. Claim.

In 2012, liberation of FAW will strengthen the management of share objectives, expand the market segmentation model, and improve the marketing system's ability to recognize the market. Through the application of 4P+2S tools in various market segments, it will accurately grasp the competition in the terminal market, implement effective marketing strategies, and improve the marketing system's terminal market development capabilities.

In order to improve the management and management capabilities of the distribution network, improve customer satisfaction, and form a liberation of the core competitiveness, in 2012 FAW liberation will focus on the standardization of sales processes, service capabilities, and agent team building.

While opening up marketing channels, Liberation will continue to increase its after-sales service in 2012. In 2012, it was the 10th anniversary of the “Touched Service” brand establishment. FAW Jiefang will focus on preventive maintenance. It will expand the repair service business outside the service station, promote the special service station dumping (special vehicle) franchise, and strengthen the construction of spare parts channels. Service management level and other means to improve the user's vehicle mobility, improve the convenience of user maintenance services, reduce user maintenance costs.

At the same time, Liberation will continue to implement preferential policies for western services and spare parts, support western service providers in accelerating their capacity, mobilize the enthusiasm of service stations, ensure timely and effective service, increase the reserves of spare parts centers, and provide service station replacements; service to remote areas and Rescued emergency services on holidays and raised the cost of settlement fees; increased technical training and improved the technical level of service stations. For maintenance services within the three-period period, FAW liberation will relax restrictions on the terms; on occasional major faults, speed up the resolution cycle and relax the Three Guarantees principle.

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