Yuchai Junping: Internal combustion engine companies face structural adjustments and product upgrades

The impact of the financial crisis on the internal combustion engine industry is very significant, and some companies have almost stopped production. However, there is a company that has always demonstrated remarkable results. When the industry fell across the board, the company's decline was only 1/3 of the industry average. At the beginning of the new year, the number of orders for this company is constantly on the rise. In March just over 5 days, orders for the current month exceeded 60,000 units, significantly exceeding the company's production capacity. This company is Guangxi Yuchai Machinery Group.

Yu Ping, chairman of Guangxi Yuchai Machinery Group, said that the financial crisis will not be based on a person's will. Facing the status quo, adhering to a high level of development is the way out of the company.

At the same time, Zhang Pingping, an entrepreneur with a strong sense of social responsibility, took part in the People's Representative Conference. Among the three suggestions he mentioned, not only the industry but also environmental issues were involved.

Policy must be implemented

Junping said that as an entrepreneur, his primary concern is how to implement the policy.

The internal combustion engine is inseparable from the various fuel-powered host industries. Among the top ten industry revitalization plans, two major revitalization plans are closely related to Yuchai Group, one is the automotive industry and the other is the equipment manufacturing industry. In the government work report prepared by Premier Wen Jiabao, in the section “Actively expanding domestic demand, especially consumer demand, and enhancing domestic demand to stimulate economic growth”, it was first mentioned that “improving auto consumption demand and accelerating the development of used car markets and automobiles The rental market will guide and promote the rational consumption of automobiles."

Luan Ping said, it can be seen that the country has fully realized the importance of the automotive industry in the national economy. A significant portion of Yuchai's internal combustion engines is used in the passenger car industry. Yuchai is the largest domestic company with mass production of Euro IV standard engine capacity. With the continuous improvement of emission standards, Yuchai will directly benefit from it.

The internal combustion engine industry is also subordinate to the equipment manufacturing industry. Adjustment and revitalization of the industry will directly affect Yuchai and other internal combustion engine companies. For example, the core components and other issues are common bottlenecks for internal combustion engine companies. At the same time, the internal combustion engine is used for the construction machinery, agricultural machinery and other products, and it can also support enterprises from the market.

However, these adjustments and revitalization plans are still only a "big head", and specific measures are not yet clear. Junping said that he will focus on the implementation of specific policies as soon as possible in this group discussion of the NPC.

Breakthrough in core technology

Junping said that with the further development of the industry, low-level technologies and enterprises will certainly be eliminated.

At present, the common tasks faced by Chinese internal combustion engine companies are industrial restructuring and product upgrading.

The goal of Yuchai Engine's R&D and design capabilities is to achieve “the first in the country and the fourth in the world”. Junping said that the goal of "China's No. 1" has been basically achieved, but Yuchai currently ranks about 10th in international R & D capabilities.

The Southwest Research Institute of the United States, Ricardo in the United Kingdom, FEV in Germany, and AVL in Austria are all established research institutes in the industry, and have accumulated profound technology. Comparing with these companies is exactly what Yuchai has been pursuing.

When talking about the merger and acquisition plan of the company, Junping said that this is an aspect that the company must pay attention to. However, Yuchai is very resistant to low-cost expansion and will not blindly pursue the scale. If it is a company that does not have core competitiveness, it will not be "white."

With the advent of the financial crisis, Yuchai’s internal efforts have received tangible results, especially in terms of industrial restructuring and management of the company. One of the most salient features is that the number of employees in the first-line production of the company is reduced by more than 1,300. With this alone, the company can save 200 million yuan a year.

The development of China's internal combustion engine industry has been more than a hundred years, and the history of the world's internal combustion engine industry is even older. The technical content of this product has reached a very high level. At present, the high-end market for this product is still mainly held by foreign companies, and these companies have strong and scientific research and development capabilities.

Junping believes that to solve the bottleneck problems that restrict the development of the industry, it is impossible to realize the strength of an enterprise alone. It is imperative that technological R&D be elevated to the industrial level. By the relevant departments to formulate a practical development plan, the establishment of key enterprises as the main body, joint efforts to jointly tackle the problem.

Environmental issues need to be seriously addressed

As a citizen, Fuping is most concerned with environmental protection. Last year, the occurrence of green algae events in the Taihu Lake area affected the use of water by residents in the area around Taihu Lake; in the Sanlu milk powder incident, the food industry suffered a crisis of confidence. These incidents do not happen by chance, and companies that are more polluting than this are common and must strengthen their environmental awareness.

Junping said that in order to strengthen environmental protection supervision, the state must adopt an “iron fist policy” and must not exchange for the momentary economic growth at the expense of the living conditions of the common people and the interests of several generations. In particular, for some heavily polluting enterprises, they must strictly regulate the discharge of their waste. If necessary, they must be held accountable for the criminal responsibility of those responsible for bad discharge.

Enterprises must regard environmental protection as a necessary social responsibility. The pollution produced by enterprises is mostly concentrated in air and water. These are the basic elements of human survival.

Businesses must be responsible for their actions. Yuchai has to pay attention to issues such as energy consumption and emissions of enterprises from the perspective of a circular economy. This is not only concerned with the environmental issues of the company, but also because of the special nature of the internal combustion engine products, and at the same time, it has also obtained an opportunity for its own products. Their energy saving, emission reduction and energy consumption reductions, such as casting and heat treatment, meet environmental protection requirements, but this work is still advancing.

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