Dongfeng Commercial Vehicle: “Three Leaps†Laid International Foundation
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In 2003, Dongfeng and Nissan entered into a joint venture to establish Dongfeng Motor Co., Ltd. Dongfeng Limited "takes the business together" to develop two brands, Dongfeng and Nissan. Dongfeng Commercial Vehicles is responsible for the development of the Dongfeng brand at Dongfeng Limited.
From 2003 to 2013, Dongfeng Commercial Vehicles passed a 10-year joint venture under the framework of Dongfeng Limited. Looking back at the road that has passed in the past 10 years, Huang Gang, general manager of Dongfeng Commercial Vehicle Co., Ltd., summed it up as a "three steps."
The first big step is the management of the internationalization stage. At this stage, Dongfeng Commercial Vehicles has achieved a level of management that is in line with international standards by learning from Nissan’s advanced concepts and methods. After the joint venture, Dongfeng Commercial Vehicles first introduced Nissan's manufacturing management experience, which is the daily production method. Through the self-improvement in each link in the manufacturing field, the daily production method is integrated into the Dongfeng commercial vehicle manufacturing system. In order to meet the needs of the Chinese market, Dongfeng has built its own production method, DCPW. Through the improvement of management in the manufacturing field, the quality of Dongfeng Commercial Vehicles has been significantly improved and customers have also gained recognition.
In the field of management, the initial SAP system was launched, data management was implemented, and then sub-service management was implemented. The management was gradually refined; in the field of commodity technology, Dongfeng Commercial Vehicles introduced the new development process of Nissan Passenger Vehicles, and then created according to actual conditions. A new generation of heavy truck Dongfeng Tianlong.
The second big step is to transition to a market-centered stage. The significant sign of the beginning of this phase is the listing of Dongfeng Tianlong. In 2006, the demand for heavy trucks in the market increased. Dongfeng commercial vehicle products did not receive green and yellow products. Tianlong, a strategic product that was highly hopeful, was listed at this time. However, after the product was put on the market, the customer did not approve it. Less than 2,000 units were sold in 2006, and there was tremendous pressure on the business. As a result, Dongfeng Commercial Vehicle quickly launched a market-centric mechanism, the most representative of which is the iron triangle mechanism. The “Iron Triangle†is established and cross-departmental coordination, with the market and customers as the center, formulating common goals and jointly implementing actions.
This transformation brought about rapid results. In 2007, the sales of Dongfeng Tianlong exceeded 10,000 vehicles and continued to rise and grow rapidly. In 2010 and 2011, the sales scale was close to 100,000 vehicles respectively; in 2012, due to the overall decline in the industry, Dongfeng Commercial Vehicles also had a certain decline, but they still maintained close to 70,000 sales, precisely because a single platform has reached such a large market size. "Tianlong" won the honor of being the first sub-brand of China commercial vehicle industry.
Since Dongfeng Tianlong, thanks to Tianlong's accumulated experience and process support, the new generation of Zhongcai Tianjin is a new platform developed by Dongfeng people after optimizing a new round of processes. This platform is currently gaining a good result in the market. Since entering the market in 2008, the sales volume of Dongfeng Tianjin has reached 50,000 vehicles. In 2012, the sales volume of the mid-cap industry also declined slightly. However, the platform still maintained steady growth. Dongfeng Tianjin was also awarded the China Automotive Industry Progress in 2010. First prize.
In addition to vehicle technology, Dongfeng Commercial Vehicle also strengthened the powertrain business developed independently. The dCi11 high-power engine and 4H engine were widely recognized by customers in the market during this period.
In addition to the establishment of the “Iron Triangle Mechanism†in the early stage of the listing of Tianlong, during the global financial crisis in 2008, we actively explored low-cost operating models, promoted the “N+3†management model, and dynamically forecasted and grasped the market, as well as production and marketing plans, The dynamic adjustment of the business plan makes it possible for Dongfeng Commercial Vehicles to evade operational risks in the event of a drastic ups and downs of the financial crisis. In the marketing aspect, it will implement the Dongfeng commercial vehicle marketing method. In the current “micro-growth†of the truck market, the operating management The implementation of comprehensive revenue management has enabled Dongfeng Commercial Vehicles not only to pursue sales, but also to pursue the sustainable operation of the entire company.
If the first phase of the transformation is mainly based on learning Nissan and completed with the help and support of Nissan, then the second phase of the transformation will be completed by the team of Dongfeng Commercial Vehicles independently. There will be no shadow of Nissan during this period.
The third big step towards globalization. Dongfeng Commercial Vehicles is committed to the stage of globalization. It does not mean that it has reached globalization but only has the conditions to think about the strategy of globalization. Since 2007, Dongfeng Tianlong has been widely accepted by the market. Since the financial crisis began in 2008, Dongfeng Commercial Vehicle has successfully resolved the risks brought about by the financial crisis. From 2009, Dongfeng commercial vehicle business began to stabilize. On this basis, Dongfeng Commercial Vehicle proposed a three-step strategy in 2010. Its core idea is to build China's Dongfeng into the world's east wind. It is the first brand in the Chinese market to become the best partner in the transportation industry. It has become the world's first medium- and heavy-duty commercial vehicle manufacturer in China.