Rely on the strategic transformation of Dongfeng Cummins up against the trend

Leader said

“Catch historic opportunities, adjust and optimize the structure, enhance independent innovation capabilities, and promote energy conservation and emission reduction measures. By 2013, Dongfeng Cummins will achieve annual production and sales of 300,000 engines, and the annual output value will exceed 10 billion yuan. ”

—— Huang Naixu, General Manager and Party Secretary of Dongfeng Cummins Engine Co., Ltd.

Just entering September, Dongfeng Cummins Engine Co., Ltd. exceeded its 13,000 engine plan for the month. This means that last month the engine production and sales exceeded 12,000 units, setting a record for single-month production and sales this year, and it will soon be refreshed.

Under the financial crisis, how did Dongfeng Cummins get the upper hand? Huang Naixu said that relying on self-reliance, increasing technological innovation and strategic transformation.

Earlier this year, with the decline of the international export market for commercial vehicles and the shrinking domestic market demand, the start of Dongfeng Cummins was not very good. In the first half of the year, the company’s engine sales were only close to 50,000 units, and only 70% of the projected sales were completed.

In response to the crisis, the company proposed to stop production and layoffs, implement the “dual-brand” strategy in terms of “external expansion of market, internal control costs, and improvement of quality”, and enter the high-end engine market while expanding the low-end engine market; improve product quality. Establish 11 business centers nationwide and strengthen regional marketing networks...

After the pains of a strategic transformation, Dongfeng Cummins survived in the second half of the year. According to the plan, from October to December this year, Dongfeng Cummins' engine production will achieve monthly production of over 10,000 units.

Dongfeng Cummins, established in 1996, is a joint venture between Dongfeng Motor Co., Ltd. and Cummins of the United States. The "marriage" between the domestic automobile industry giants and internationally renowned companies has attracted the attention of the industry from the moment of formation.

After more than ten years of development, the company's products have evolved from the first basic engine to the current ten basic models such as mechanical, natural gas, and electronically controlled engines.

In 2005, Dongfeng Cummins spent nearly 300 million yuan to enter the ISZ 13-liter project. This type of engine is mainly aimed at the domestic high-end heavy truck market, while meeting the needs of the international market. It is currently the largest domestic heavy-duty vehicle engine power sector, filling the domestic gap.

In order to further expand the market, the company set up project teams for engineering vehicles and engineering machinery respectively, developed products suitable for construction vehicles and construction machinery, formed serialization of products, and established with domestic Liugong, Xiagong and other engineering machinery OEM manufacturers. Strategic partnerships, improved sales methods, and stimulating the end-user market.

The good development momentum has brought about the rapid growth of Dongfeng Cummins, which has effectively promoted the development of Xiangfan and provided a large number of employment opportunities. From the initial annual tax payment of 2.8 million yuan to last year's tax payment of 340 million yuan, Dongfeng Cummins has been rated as "the top ten taxpayers in Hubei Province for many years".

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