NPC Representative Weichai Tan Xuguang's Simplicity and Concentration

In 2012, Weichai Group will achieve a revenue target of 100 billion yuan. When Tan Xuguang proposed this goal, many people questioned it. Now, when he leads the Weichai people step by step and practically steps up the steps to a new platform, the industry is convinced.

There are many articles on writing Weichai and writing on Tan Xuguang, many of which are analyzing the reasons for Weichai's success. The views are not the same. Apple's Jobs has such a curse: "Concentration and simplicity. Simple is more difficult than complex because you must work hard to empty your brain and make it simple. But this effort has finally proved to be valuable because Once you enter that realm, you can shake the mountains." This statement is true. The reason why Weichai has today’s achievements is that it can stand as an independent engine supplier under such a complex international and domestic industry background. It’s all about the leader Tan Xuguang’s clear thinking, his incompetent mind, and his simplicity. Focused.

As the representative of the 11th National People's Congress, Tan Xuguang, chairman of Weichai Power, has a very simple idea to do a good job in China’s engine business and win a double harvest at home and abroad; and Weifang Diesel’s technological innovation, corporate culture creation, Institutional reforms are all ways and means of achieving the overall goals.

Focus on autonomy

An industry old expert once commented: “Now, no one of the high-power engines in China is imported. This is a must for Weichai, which has an absolute market share.” Indeed, Weichai is a banner of China’s high-power engine companies. Without the power of independent brands such as Weichai, it is difficult for China's commercial vehicles to prop up the sky of Chinese autonomy.

Independent innovation makes Weichai have its own core technology. In March 2005, China’s first high-power engine with complete independent intellectual property rights and the country’s three emissions—“Blue Engine” power was born in Weichai; afterwards, the National IV, National 5L and 12L, 5L and 7L Small and medium-power "blue-engine" power has come out in succession, which has laid the leading position for Weichai in the engine field. At the same time, with products entering the market for heavy-duty trucks, construction machinery and passenger cars as supporting signs, Weichai was established as a strategic position of General Dynamics Group.

The core technology of Weichai is “independent innovation, self-owned intellectual property, and independent brands”. Its contribution is that since then China's engine industry has had a "Chinese heart" and it has begun to change from "Made in China" to "Created in China." Since 1998, Weichai has developed a total of more than 5,800 new products and special auxiliary products, obtained 506 patents, chaired and participated in 18 national 863 projects, and chaired and participated in the development of 27 industries and national standards. Actively contribute.

Independent innovation also reaped the huge benefits of Weichai: from 1998 to 2010, Weichai sales revenue increased from 770 million yuan to 91.1 billion yuan, an increase of 117 times; state-owned assets increased from 390 million yuan to 3.25 billion yuan, an increase of 8 times; profits and taxes increased from 36 million yuan to 12.9 billion yuan, an increase of 357 times; the average annual income of employees rose from 5,800 yuan to 56,000 yuan, an increase of 9 times, and a cumulative total of 1.1 billion yuan was paid to employees for five insurance and one gold; Social assistance and public welfare donations amounted to more than 100 million yuan. In the capital market, accumulative dividends totaled 1.8 billion yuan. Weichai Power's profit per share ranks in the forefront of listed companies in Shanghai and Shenzhen for many consecutive years; cumulatively for heavy trucks, construction machinery, 2.62 million sets of engines for passenger cars and ships, including 820,000 sets of low-energy “blue engine” engines, 4 million tons of fuel-efficient fuel, and huge social benefits; after absorbing the merger of the Hunan Torch in 2007, the company sold a total of 360,000 heavy trucks and heavy trucks. Transmission 280 million units. The rapid growth of Weichai has driven the development of more than 1,000 supporting companies and more than 4,000 dealers, agents and service stations.

Focus on people

In tandem with Weichai's business, Tan Xuguang has once again created a Weichai culture. Corporate culture, simply speaking, focuses on people's hearts and focuses on human nature. After the strategic restructuring of the torch, Tan Xuguang proposed a new cultural concept of "inclusiveness, communication, and responsibility."

Tolerance is to educate people, use inclusive behaviors to work together and achieve cultural harmony; communication is a means to increase mutual understanding and form a unified will; responsibility means building world heavy trucks, power systems, and auto parts. Brands, building an international group, shoulder the heavy responsibility of revitalizing China's equipment manufacturing industry.

In the process of Weichai’s acquisition of the French Boduuan Engine Company, the “inclusive, communicative” corporate culture played a key role.

The French Baudouin company is a French engine enterprise for a century. It has a good brand effect in Europe and was acquired by Weichai in the 2008 financial crisis. Despite being in a difficult position, employees of Bauduen at the time expressed strong rejection of the acquisition. In their eyes, China is a backward country, and it is impossible to have a good company. What's worse is that before this, Baudouin was bought by several international capital players and was repeatedly deceived. This is the reason for its near collapse, and the employees are worried about this.

Weichai did not retreat. Before the acquisition was completed, Weichai took the initiative to invite Bodun's senior management team, especially the head of the trade union organization, to visit and discuss with Weichai as a friend and asked them to look at Weichai's strength and sincerity. Bai Wen was better than one, the attitude of the head of the trade union was completely transformed. After returning home, he actively initiated ideological work for his employees. He introduced Weichai as a world-class engine company and was a great company that focused on the operation of the industrial chain and was a good shareholder. . In this way, the acquisition of Baudouin's work will be bright and clear. After two years of integration, Baudouin France has now become a bridgehead for the Weichai brand to enter Europe.

After several years of publicity and refinement and sublimation of ideas, Weichai’s corporate culture has been evolving. The “responsibility” of “inclusiveness, communication, and responsibility” has been mentioned at the front and has become “responsibility, tolerance, and communication”.

Tan Xuguang pointed out that Weichai has already played a pivotal role in China's automobile and equipment manufacturing industry, and has occupied a place in the world equipment manufacturing industry. Its own mission, national, and social expectations have determined that Weichai must put responsibility first. Consciously shoulder more important tasks.

At the award ceremony of "2010 CCTV China Economic Year Persons" held in January 2011, Tan Xuguang, who was elected as the economic figure of the year, frankly said: "I was elected as an economic figure of the year in 2005. It felt more surprise at that time; and this Once elected, he felt more responsibility and pressure." Now, the sense of responsibility has become the unified language and values ​​of Weichai. It drives Weichai to never stop and continue to surpass.

Focus on capital

In today's era, companies must use their strength to expand their scale. “We want capital to innovate and truly achieve rapid development. We must expand rapidly through product management and capital operation.” This is Tan Xuguang’s correct judgment on the development of Weichai.

Tan Xuguang explained the model of “product plus capital” to improve the reorganization of the entire industry through the operation of the capital market; through the product chain innovation, joint upstream suppliers and downstream auto plants form an overall innovation.

In March 2004, Weichai Power's listing on the Hong Kong Stock Exchange led the Weichai Group to take the first step in capital innovation. Since then, every capital operation of Weichai Power has become the focus of the industry.

In August 2005, Weichai Power spent 1.023 billion yuan to acquire the Hunan Torch, which greatly shocked the industry. Weichai Power thus obtained high-quality assets such as Shaanxi Heavy Duty Truck, Shaanxi Fast Gear, Zhuzhou Gear, Zhuzhou Spark Plug, and Mudanjiang Fortis Automotive Air Conditioning. In August 2006, Weichai Power proposed the exchange of shares to absorb the torch in the form of the Hunan torch to achieve the return of A shares. In that year, Tan Xuguang made plans for the future development of Weichai Group: "In the next five years, Weichai Group aims to realize sales revenue of 100 billion yuan and to enter the world's top 500 enterprises." Today, this goal can be expected.

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