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Shacman|Tan Xuguang: My expectations! My confidence!

2018.10.01

Recently, Weichai Power ? Shacman Management Conference was held in Xi'an, Shaanxi. Tan Xuguang made an important speech and won high recognition and strong response from management of Shacman, Fast, and Hande. The audience warmly applauded 26 times.

Seize the opportunity to set sail and challenge the world number one - Tan Xuguang

At the meeting, Tan Xuguang made a detailed explanation and planning around the core competitiveness of Shacman, the goal of 2020-2025, and how to do it.

What is the core competitiveness of Shacman winning the future?

 

Tan Xuguang pointed out: It must rely on technology-leading products, efficient coordination, and efficient management.

What are the goals of Shacman for 2020 and 2025? Tan Xuguang issued the order:

By 2020, Shacman shall achieve the sales of 200,000 trucks.

By 2025, Shacman light truck shall enter into the first echelon of the industry and achieve the sales of 200,000 trucks, and achieve win-win with Shaanxi Automobile Holdings' light truck project. Its products and R&D strength shall reach the first-class in the world, and new energy and intelligent network technology shall lead domestically.

The goals have been determined. How does Shacman achieve them? Tan Xuguang also has three opinions:

First, always strive for the first and compete with each other.

Second, let the performance talk: clear objectives, clear responsibilities, clear rewards and punishments.

Third, use one day to the fullest as if it were two and a half days: look up at the targets yet still be down to earth! It’s more important to be down to earth!

"Three unbreakable relationships" and "Six must"

In response to the relationship between Weichai Power and Shacman, which is highly concerned in the market, Tan Xuguang proposed "Three unbreakable relationships":

Weichai Power and Shacman have unbreakable property rights relations!

Weichai Power and Shacman have unbreakable market relations!

Weichai Power and Shacman have unbreakable brotherhood relations!

-        This is the best answer we have made in 13 years of close cooperation and successful development.

Facing the future, in the new era, Tan Xuguang proposed “Six must” to Shacman:

We must build a world-class commercial vehicle brand;

We must improve the development capability of the most competitive full range of commercial vehicles;

We must promote the substantial increase in sales in the global market;

We must promote the reform of state-owned enterprises and optimize the ecology;

We must create a cooperative team with strategic unification, consistent values, and great passions;

We must do good things for employees, do practical things, and share development results.

During the meeting, Tan Xuguang responded to the eight major issues, such as “SHIG restructuring CNHTC” and “where would Shacman go”, which are highly concerned by the media. The following is the original quote:

A few words I want to share with the media

Since I announced that I have served as Secretary of the Party Committee and Chairman of CNHTC Group on September 1, the domestic and global media has given high attention, especially to the positive evaluation. I would like to express my gratitude to our media friends from all walks of life. At the same time, we noticed that many media put forward the "Goldbach conjecture", which is too complex to allow everyone think without wondering. I will answer a few questions about this:

1.        SHIG’s strategic restructuring of CNHTC is done at a new height in historical development. In the special period of opening up the national automobile industry, it is an important decision to achieve high-quality old and new growth driver conversion. This decision is both beneficial to CNHTC and Shacman, as well as to Weichai Power and all shareholders. It has been actively supported by all employees of CNHTC. After I took office on September 1, the capital market has doubled the valuation of CNHTC red chips and the value added of 30 billion in 20 days, which is beyond our imagination. Thanks for the pursuit of investors!

2.        Weichai and CNHTC were separated for needed reasons at a very specific period of time, and current cooperation is to achieve the needs of global competition, especially to achieve the needs of China's equipment manufacturing industry. I hope that some media stop rendering things that are already in the past, as it makes no sense anymore. We should evaluate this from a positive energy perspective.

3.        How should the reorganization go? This is my duty. So far we have not made the wrong decision. Please rest assured that we will give the society and the capital market a satisfactory answer.

4.        Some people are asking about Shacman. I have already said this with our staff. Weichai Power and Shacman have unbreakable property rights and unbreakable brotherhood relations. This is the best answer from our close cooperation and successful development in the past 13 years.

5.        Some people are asking about MAN. MAN is a 25% +1 shareholder of CNHTC red chip. On the evening of September 23, I was invited to participate in a working dinner at the invitation of the global CEO of Volkswagen Commercial Vehicle Group and the CEO of MAN Group. My reply is that the new group supports the further cooperation between CNHTC and MAN with an open mind. We will also transform from introducing technology to independent innovation and positive development. Cooperation must lead to a win-win situation.

6.        Everyone said that I want to build a new car empire, and this is too far-fetched. I am an "expert" who works on engines. Many outstanding entrepreneurs in the automotive industry are worth learning and admiring.

7.        Some people care about the independence of Weichai's engine, gearbox and axle. I can responsibly say here that as long as the customer needs us, we will go all out to provide the best products to meet the needs of the market. Please believe in our competitiveness!

8.        Regarding market competition, there are 2 million heavy-duty vehicles sold in the world and 1 million sold in the Chinese market, accounting for 50% of the world. FAW, Dongfeng, CNHTC, Shacman and Foton are all leaders in China's heavy trucks. Competition is the inevitable law of the market. Mutual learning and orderly competition are the rules of the market. I said in the speech at CNHTC about competition, we must learn to orderly compete without using any dirty tricks, so that everyone is comfortable and happy.

 

 

 
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