On June 21, 2010, Weichai Group’s 100 billion-level green power R&D and manufacturing base and the 1.5 million high-power diesel engine strategic planning conference were held in Weifang headquarters. Weichai Group Chairman Tan Xuguang officially released the strategic goal of “challenging the global first goal and building a 100 billion-level green power R&D and manufacturing base”.

Relevant leaders and major news media from car OEMs, suppliers and consulting companies across the country have witnessed important moments in Weichai's history of development with Weichai Group's cadres and employees. They have opened a new chapter in corporate development.

Weichai one hundred billion target conference site
Weichai one hundred billion target conference site

confidence

After 64 years of development, especially in the past 10 years, Weichai Group has achieved extraordinary development by leaps and bounds, and has grown into one of the strongest auto and equipment manufacturing groups in China.

In 2009, Weichai Group achieved a brilliant record of sales revenue of 52.3 billion yuan for the full year; engine sales from January to June this year are expected to reach 330,000 units, equivalent to the level of the previous year. On this basis, the engine segment of the Weichai Group has established a higher goal of achieving sales revenue of 50 billion yuan in 2012, 80 billion yuan in 2015, and 100 billion yuan in 2020, ranking first in the world.

The convening of this strategic release meeting marked the full implementation of the Weichai engine segment to build a multi-billion-dollar power base, marking a solid first step for Weichai to enter the Fortune 500.

In the past 10 years, Weichai Group has always insisted on independent innovation, followed the road of connotative development, achieved leapfrog development in terms of product management, capital operation, technological innovation, market development, etc., and formed a leading global scale manufacturing advantage. It established Weichai's leading position in the industry.

In addition, through a large-scale manufacturing, Weichai Group has effectively reduced operating costs, increased market competitiveness, created greater value for customers, and formed a unique resource synergy. Taking the torch of Hunan as a symbol in 2005, Weichai has built a powertrain gold industrial chain composed of an engine, a vehicle axle and so on within the group, and it has transformed from a single engine manufacturer to a "powertrain" provider.

By building the core advantages of the powertrain assembly products, Weichai will enhance its competitiveness. Chairman Tan Xuguang stated that Weichai's unique resource advantage will promote upstream and downstream companies to form a broader strategic community, enhance the ability of companies to resist wind storms, and achieve coordinated development and symbiosis.

Weichai chairman Tan Xuguang solemnly announced Weichai to challenge the world's first goal
Weichai chairman Tan Xuguang solemnly announced Weichai to challenge the world's first goal

courage

Since 2001, Weichai Group has invested a total of 7 billion yuan in the engine segment. Through uninterrupted technological transformation, it has formed three manufacturing bases in Weifang, Chongqing and Yangzhou; Weifang Hi-tech Industrial Park and Weifang Foundry Industrial Park have been established in Weifang. And Weifang Binhai Industrial Park 3 parks.

At the same time, the completion and commissioning of No. 1 factory, foundry center, and Lanqing project are not an important revolution in the history of Weichai's manufacturing equipment development. These measures have significantly improved the level of technological equipment of enterprises, and the country’s labor productivity, energy saving and environmental protection levels have reached the leading domestic level, forming a brand advantage covering multiple markets, and laying a solid foundation for enterprises to improve product quality and build international brands.

"The process of Weichai's innovation and development is the process of constantly adjusting the structure," said Tan Xuguang, head of Weichai. Since 2000, Weichai has begun strategic adjustment of industrial structure and market structure. Its engine products have fully entered the matching markets for heavy trucks, construction machinery, passenger cars, ships, yachts, and power generation equipment. Each series of engines has maintained its number one position in the segmented market for a long time, and has fully established the status of the enterprise general power group.

In 2009, Weichai acquired the 100-year-old French Bauduin Power Company to fill the gap of more than 15 litres of products, marking an important step in the internationalization process of Weichai companies and realizing its operation from product management to operation. The brand's leap.

Weichai Group has always relied on its achievements while reflecting on the problems existing in its development. “In 2010, the engine market continued to be hot and was limited by production capacity. We did not meet the market demand in sufficient time and more or less caused certain losses to customers. The customer’s loss was the loss of weichai. The purpose of Weichai is to satisfy users and pursue the goal of achieving win-win cooperation with upstream and downstream partners.The next 5-10 years will be a rare opportunity for strategic development. Market demand will continue to increase, and Weichai will firmly Moved to build a 100 billion-level green power R&D and manufacturing base as its vision for struggle, adhere to sustainable development, meet the diverse needs of customers, and create greater value for customers, suppliers and society.” Tan Xuguang solemnly announced at the press conference.

action

When talking about how to achieve the one hundred billion target, Tan Xuguang said with confidence: "The Weichai engine segment has determined the product planning, market planning, technical transformation plan and supply development plan for the next 5-10 years. The field power engine supply is the development mission, continue to take the path of innovation-driven, endogenous growth, and constantly innovate product lines, making the Weichai engine segment form a product structure with a displacement of 4-15 liters and a power coverage of 45-10,000 hp."

By 2015, Weichai will ensure that the annual output of 4-15 liters of high-speed engines will reach 1.5 million units, which will be fully utilized in commercial vehicles, construction machinery, passenger cars, ships, power generation, agricultural machinery and other fields, among which 10-15 liters will be guaranteed. The company has 1.2 million engines to consolidate its advantages in traditional markets such as heavy-duty trucks, loaders and large passenger vehicles; it manufactures and sells 300,000 4-7-liter engines and comprehensively covers the heavy truck, passenger car and non-loader markets.

In addition, Weichai will rely on Weifang and Chongqing two major production bases to comprehensively increase the production capacity of each series of engines, invest 5 billion yuan in the 10-15 liters high-power segment, and build three new plants, the Lanqing Phase II and Phase III projects. 4-6 liters, 5-7 liters of high-power segment investment of 2 billion; investment in the foundry industry 5 billion yuan, the new construction of phase II, phase III projects; at the same time will effectively use the remaining resources. It is understood that the vast majority of the above projects will be put into production within 2-3 years. From this we can see that the plans for Weichai are based on scientific evidence, and the establishment of Weichai's goal is also a matter of careful consideration.

At the press conference, Chairman Tan Xuguang laid out a grand goal for Weichai, and other relevant persons in charge detailed the roadmap for achieving this goal from the aspects of market, R&D, technological transformation, and supply chain.

Commercial Vehicle and Construction Machinery Industry Development Forum
Commercial Vehicle and Construction Machinery Industry Development Forum

At the later development forum for the commercial vehicle and construction machinery industry, the participating guests were full of expectations for whether Weichai could achieve the goal of 100 billion yuan. Weichai's popular hope that the answer will take time to verify, let's wait and see!

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