In January, sold 10,000 units;

February, sales of 30,000 units;

In March, it sold nearly 40,000 units, setting a record high in the same period of history;

In April, the order went straight for March.

In May and June, the orders are full!

The economic crisis has not yet bottomed out and many companies are worried. The Weichai Group's performance counter that has risen against the trend is surprising and exciting!

What is it that makes firewood in such adversity that it is so full of vitality that it is so dynamic?

"First of all, thanks to the central government's wise decision-making in stimulating domestic demand, we have been able to deal with it calmly." Tan Xuguang, chairman of Weichai Group, said, "The second is the long-term accumulation of independent innovation by Weichai."

Machinery manufacturing industry is known as the backbone of industry. It is the persistent independent innovation that enables Weichai, an old state-owned enterprise, to spend 100 years in annual sales growth, increase profits and taxes by 124 times, increase profit by 530 times, increase total assets by 21 times, and increase state-owned assets by 4.4 times. Being ranked No. 106 among China's top 500 companies, it has become China's largest and most powerful auto parts manufacturing company and has stood up to the backbone of “Made in China”!

Technological Innovation -

From "Chaser" to "Pioneer", enter the field of no competition

Weichai was founded in 1946 and 1998 was a watershed in its history of development. This year, the company was on the verge of collapse, and when the 37-year-old Tan Xuguang was ordered to be in distress, the only card available in the hand was the WD615 engine just introduced from Austria. "If you let WD615 simply for heavy trucks to be supported by the industry, will always be subject to the choice of the industry. Only through technological innovation, it will be transferred to the construction machinery support, you can hit the road of birth!" Tan Xu pain determined.

Previously, the WD615 engine was specially designed for heavy-duty trucks, and it was far from the requirements of construction machinery engines. A group of key technicians formed a research team and worked hard for more than a year. They developed nearly 100 kinds of engines used in the construction machinery industry, and gradually extended their scope of application to ships, buses, power generation and other fields. The company takes a key step in technological innovation.

For a long time, due to the lack of independent innovation capability, the internal combustion engine industry in China has only been able to play the role of “chaser” behind the world’s advanced enterprises, repeating the “introduction, backwardness, reintroduction, and backwardness” approach. Weichai vows: Take the lead half step and be the pioneer of the industry, enter the field of no competition!

In 2001, Weichai successfully developed the WD615 and WD618 series diesel engines that met the Euro I standards, which was two years ahead of the national standard for implementation of the National I standards; in 2002, Weichai improved the WD615 series of diesel engines to reach Euro II standards, compared to the State II. Another two years in advance; when the Euro II engine still has an absolute advantage in the market, the Euro III engine developed by Weichai is two or three years ahead of the national standard.

On March 13, 2005, the day of the Chinese internal combustion engine industry, Weichai announced that China’s first 10 litre, 12-liter high-power Euro III engine with completely independent intellectual property rights has been prototyped by Weichai. Officially put into operation. This move marks China's internal combustion engine manufacturing into the "China Power Era" of independent innovation!

On April 8, 2005, General Secretary Hu Jintao visited Weichai for a long time in front of a handicraft-like engine. This engine is the Weichai Euro III engine named "Blue Engine."

In the spring of 2006, Lanqing was mass-produced and the first batch of equipment was equipped with high-end heavy trucks, ending the history of domestic high-end commercial vehicles relying on “foreigners”. A heavy-duty truck with “Lan Qing” as the “heart” under the same load conditions, the nitrogen oxide emission is reduced by half compared with the National II engine, the overall pollutants are reduced by 40%, and the fuel consumption can be reduced by 5% to 10%; It is 20% lower than the country III standard pollutant emission, and the fuel consumption is 3g/kWh lower than the world's best record. European authoritative department identified that "blue engine" is close to the Euro IV level.

"Although China's equipment manufacturing industry has developed rapidly, it still has a big gap compared with the international advanced level. Independent R&D is not closed-door construction, but it must be open-minded," said Tan Xuguang. To this end, he established the "three noes" principle: "Do not close the door" - use the world's resources in an open manner; "do not exclude" - actively use the world's most advanced technology to carry out the construction of independent brands; "does not violate "- Compliance with international intellectual property protection.

Weichai's technology development model has its own style. It sets up technical innovation topics for key scientific research projects, introduces market mechanisms, and determines project leaders through open tendering. The person in charge of the project has the right to dispatch every worker from the factory manager to the branch office. The purpose is to increase the speed and efficiency of the transformation of scientific and technological achievements. In the past, it took two to three years from design to production of a new model, and the newly developed 8170 medium-speed diesel engine took only three months.

The significance of innovation lies in leadership. Weichai knows well that we must lead in core technology and lead in understanding market demand. To this end, Weichai promotes technological advancements in the Chinese diesel engine industry by developing more than 300 new product varieties each year and obtaining hundreds of patents.

In recent years, they have launched different types of engines targeting the plateau, alpine, deserts, ports, etc., and have achieved low fuel consumption and high performance with good applicability. Whether it's a severe cold at -40°C or a high temperature of 50°C, whether it's rugged mountain roads or the Qinghai-Tibet Plateau, trucks equipped with Weichai engines can run unimpeded, and there is no need to worry about the need for fire when the engine is boiling, white smoke or cold. .

As a rule, the power supporting enterprise only needs to provide the engine, and the safety performance of the entire vehicle is an issue for the vehicle manufacturer. Weichai has taken the initiative to extend the design chain and integrated vehicle safety into its own design. The implementation of this design concept made Weichai the first professional manufacturer to apply engine exhaust brake technology (WEVB) to heavy-duty vehicles.

Truck drivers are most afraid of the load under the long slope, because the brake pads can easily overheat and cause the brakes to malfunction. After using WEVB technology, do not step on the brake when driving downhill, the engine exhaust system will automatically provide braking force to the car, convert the energy into resistance release, and increase the braking force of the vehicle by 70%, which can effectively eliminate the brake failure. .

The No. 2 plant in Weichai is empty and mysterious, making it difficult for outsiders to enter. Xu Hong, CEO, said that the state stipulates that in 2009 the implementation of the State III product and the implementation of the State IV product in 2012, while Weichai will produce the Euro IV product in 2006, and last year it will also produce the Euro V product, and the No. 2 plant will have volume production in Europe. IV and European V product capabilities, "We have fully entered the virtuous cycle of production generation, R&D generation, and reserve generation!"

Mechanism Innovation -

Control the core technology and allocate social resources.

The 40,000-square-meter casting center is covered with a modern casting line with a height of 56 meters. It is clean and tidy, with no visible black sand. It is a far cry from the traditional foundry, with only 400 workers. "This production scale used to require at least 3,000 workers in the past." Xu Hong said.

This set of equipment was imported from Germany in 2007 and cost 1.5 billion yuan. It was the world's most advanced casting equipment. Some people recommended buying foreign second-hand goods at a price of only 200 million yuan. Tan Xuguang was unmoved. After the foundry center was put into operation, the labor productivity per capita increased by three times, and the scrap rate was controlled at less than 1.5%, which was 8 percentage points lower than that of similar enterprises. Only this one will create more than 40 million yuan worth of economic benefits in a year.

The production of a high-power engine usually requires hundreds of parts. Weichai "does something wrong": Control the core technology, self-produced key components, and make the most advantageous plate stronger and better; give other accessories to supporting manufacturers, and fully optimize the allocation of social resources. "Only by mastering the core technology can we firmly grasp the initiative and not be subject to the people," said Tan Xuguang.

The auxiliary parts of engines such as oil pumps, pistons, bolts, belts, etc., Weichai adopted a social procurement method, and the supporting enterprises produced according to orders. This has led to more than 500 suppliers, and there are only 200 companies in Shandong alone. Form a huge industrial cluster. Relying on Weichai’s “big tree”, some supporting companies have grown rapidly, and there are many “little giants” with output value of hundreds of millions or even billions. Longkou Long Pump Fuel Injection Co., Ltd. was originally a farm machinery repairing plant with an annual output value of only a few million yuan. After establishing a long-term supply relationship with Weichai, Weichai's output technology and management have allowed it to continue to expand, with annual sales revenue. Break through 1 billion yuan. After Wendeng crankshaft of Wendeng City climbed on Weichai, it grew to be the largest and most powerful leading enterprise in China.

In early 2008, Weichai introduced another revolutionary and innovative product: the first "powertrain" system for buses and commercial vehicles in China. "Powertrain" as a stand-alone product, the system consists of an organic engine, transmission and axle, which is called the best power system solution in the domestic automotive industry.

Why did Weichai launch this product? Originally, although the Weichai WD series engines have been known for their low fuel consumption, engines, transmissions, and axle manufacturers have long been fighting each other. After being assembled into a complete vehicle, the engine is subjected to gearboxes. With the control of the axles, the advantages are not optimally exerted. In August 2005, Weichai invested RMB 1 billion in the successful acquisition of Hunan Xiang Torch Group Co., Ltd., which has a heavy-duty truck industry chain consisting of components such as engines, axles, and transmissions.

With the “Powertrain” system, Weichai quickly coordinated the various subsidiaries of the industry chain, and through multiple tests on engines, axles, and gearboxes, we finally found the best configuration point for the entire vehicle. According to Yu Dehui, director of the Weichai Technology Center, the launch of the system is the first in the country. The technical content and product quality are at the international advanced level. It is the lowest fuel consumption rate in China. 9620 liters.

"Today's competition is more manifested in the competition between the industrial chain and industrial clusters, and we should pay attention to system innovation," said Tan Xuguang. The so-called systemic innovation means that the industry's leading enterprises increase the technological level and competitiveness of the entire industry chain through technical guidance, resource integration, R&D cooperation, joint research and standard formulation of upstream and downstream companies in the industrial chain. In the face of the current economic crisis, the value of the gold industry chain created by Weichai and the synergetic competitive advantage between enterprises have strengthened the company's ability to resist risks and allow Weichai enough confidence to overcome difficulties.

In order to improve the technical level of the entire industry, Weichai has implemented a two-pronged approach by strengthening the “supply chain management” and bringing advanced management concepts and manufacturing technologies to the enterprises; and aiming at the “R&D community” to unite more than 300 suppliers and the downstream A number of OEMs have initiated the creation of a "R&D community," sharing scientific research resources and technological achievements to jointly tackle scientific research.

Using the concept of system innovation, Weichai introduced the latest WD12 engine, breaking the monopoly of foreign brands in this field, making China's heavy commercial vehicles have a “Chinese heart”. The supporting test data shows that the engine consumes 20.91 liters of fuel per 100 kilometers, which is 9 liters lower than that of similar foreign models. According to Weichai's annual production and sales of 200,000 engines and the annual operation of 100,000 kilometers for each vehicle, it can save 18 billion liters of diesel a year. In the one-year time it has been put on the market, production and sales have reached 15,000 units, and the number of orders this year is expected to increase. More than 30,000 units.

The flexible mechanism of “doing something wrong” makes Weichai get out of the puzzle of low-price dumping and homogenous competition and ensure the leading competitive advantage in the market. In last year's 40 billion sales of Weichai, the output value of new products accounted for 45%, and its contribution to profits exceeded 60%. By the end of last year, the market share of Weichai engines in the field of heavy-duty vehicles with a total mass of over 14 tons had reached 36%, an increase of 9 percentage points year-on-year; the market share of loaders with more than 5 tons had reached 82%, and the transmission business sector was With a market share of over 92%, heavy-duty vehicles have become a well-deserved industry leader. Thanks to the optimization of supply chain management and enterprise development model, sales revenue of enterprises has doubled continuously in the past five years. Last year, operating income was nearly 50 billion yuan, an increase of 21% over the same period of last year. Exports were 785 million US dollars, an increase of 67% over the same period of last year. Parts group chairs.

Management Innovation -

Don't ask for everything, but ask what you are doing

In 2007, the United States broke out in the subprime mortgage crisis. In December of that year, Weichai issued an early warning to the entire group that “the global economic downturn is coming.” Since the beginning of last year, the company has hired many well-known domestic and foreign consulting companies and experts to conduct "medical examinations" on the company's strategy, operations, and the quality of its personnel. Subsequently, the company's technology, marketing, financial "think tank", went to the United States, Europe, Southeast Asia and other countries and regions, a comprehensive survey and evaluation of international capital, products and talent market. After grasping the future trends of the two domestic and foreign markets, the company quickly formulated countermeasures to take precautions. It began to reduce costs, control inventory, strengthen receivables management in advance, accumulated a large amount of cash reserves, and enhanced the company's resistance to wind and waves.

"Independent innovation is a systematic project, and only a scientific management system can guarantee the maximum benefit from innovation." Tan Xuguang, winner of "Yuan Baohua Enterprise Management Gold Award" said. In his opinion, the management of people is always the first in the management system.

“Human resources are an important guarantee for our success.” In the interview, Tan Xuguang repeatedly emphasized this point. Taking human resources as the first strategy, emphasizing the optimization, introduction, and cultivation of human resources, and managing human resources with humane thinking, this is where Weichai has the secret of continuous innovation.

Weichai’s principle of employing people is “do not ask for everything, but do what you want”. The European R&D center in Graz, Austria, is Weichai invested more than 100 million yuan, and was established jointly with Austrian AVL company. Weichai dispatched R&D teams to hundreds of people. The company's carefully nurtured design backbones, including experts in processing technology and casting, have worked there. In close communication with top international scientific researchers, they not only mastered the core technologies of new engines, but also learned the design specifications of the international engine industry. At the same time, foreign experts working at European R&D centers are often recalled at Weichai headquarters to impart technology and ideas. This move makes Weichai always at the forefront of the world's internal combustion engine technology.

Shanghai, Hangzhou, superior environment, talented people, information flow, people long for "paradise." More than 100 R&D personnel from the Weichai Shanghai R&D Center and the Hangzhou R&D Center are in “Heaven” and “root” in Weichai. The launch of every new product of Weichai is based on the wisdom of domestic and foreign technology elites. Weichai does not emphasize the absolute number of technical personnel, but rather pays more attention to the balance of talents in all fields. At the same time, with the help of “outside the brain”, we will promote the establishment and improvement of an enterprise’s internal innovation system.

For the forefront of technology in the world, Weichai has joined hands with well-known domestic and foreign institutions and R&D institutions to establish long-term school-enterprise partnerships with Tsinghua University, Zhejiang University, Tianjin University, Tongji University, and Shandong University, and there is also a group of 12 students. The "expert advisory group" composed of overseas doctors regularly visits Caichao, and the areas involved include product R&D, quality management, strategic development, and personnel deployment. At the same time, it also employs a number of professional consulting companies to enhance the company's capabilities in capital operations, compensation development, corporate culture, informationization, and overall budget management.

In the process of digesting and absorbing imported technology, Weichai has trained a large number of high-skilled personnel with reasonable structure, high quality, and considerable quantity. Four years ago, when Weichai had just emerged in the field of engines, he spent a lot of money on the introduction of technical experts who worked for many years in the foreign engine industry giants. Since 2006, only more than 300 masters and above have been recruited from the engine business segment, and nearly 400 undergraduates. Among the existing 8,500 employees, there are 1,025 senior engineers, technicians, and senior technicians. At the same time, Weichai Vocational College sends large numbers of skilled and educated technicians to enterprises every year.

Nowadays, in Weichai, technicians have the highest status, treatment, and income. In recent years, companies have successively introduced a series of measures to encourage the innovation of scientific and technological personnel: a scientific and technological innovation conference is held every year, and 3 million yuan is used every year to reward the achievements of technological innovation; an annual allocation of 1.5 million yuan is set up to establish a special fund for talent training. Talents can independently choose related domestic and foreign colleges and universities and paid salaries; implement comprehensive health plans for outstanding talents and enjoy special medical treatment; allocate 1 million yuan each year to set up the “Funding Children's Fund for Excellent Talents” as the children of outstanding talents. Enrollment in schools, study abroad, etc. provide opportunities and funding.

The flexible employment mechanism and open R&D system have enabled more and more outstanding talents to be used by Weichai. A large number of talents from domestic and foreign research institutions, universities and related companies have gathered around Weichai Power. The establishment of Weichai's post-doctoral mobile station and Taishan Scholars' position has become an important channel for companies to recruit senior professionals and tap social human resources and information resources, and provides sufficient intelligence and energy guarantees for Weichai's continued strength and enthusiasm.

"Around the world, I am your constant promise; across the peak, I am the joy of your peers; in the era of innovation, I am the spine of your upright; Made in China, I am your forever harvest!" Interviewed at Weichai This song of "China, marching in progress" written by Tan Xuguang is always lingering in the ears. Through the beautiful melody, we heard the self-confidence of the Weichai people and saw a better future for the Chinese machinery manufacturing industry!