1 Confidence, the basis for overcoming the crisis Speaking of the financial crisis, people may have fixed the time on September 14, 2008 when Lehman Brothers filed for bankruptcy. However, Yuchai is not the same. As early as May 2008, sensitive Yuchai “smelled†the atmosphere of the financial crisis. The leadership team of Yuchai Group, headed by the chairman of the board of directors, Fuping, immediately carried out a crisis education among all employees and analyzed the economic situation at that time. Forewarned is forearmed, without prejudging the waste. Shu Ping said in the group's New Year message: "In times of crisis, the weak will be overwhelmed by the shock. The strong will surely take advantage of the danger." Since September 2008, the financial crisis has begun to spread to various banks. In various industries, Yuchai Group, China's largest internal combustion engine production base, has also been involved. For a time, Yuchai’s orders fell, and the engine orders of core company Yuchai’s division fell from more than 30,000 units to 15,000 units. In the fourth quarter of last year, the sales of diesel engines were only 50,000 units, and the production line became 4 days work system. Staff’s concerns caused the entire Yuchai to lose its former vitality, and mood swings occurred from time to time. In order to resolve employees’ worries, in November 2008, the second crisis education began, and the theme changed from the first time of “creating peace time†to “establishing confidenceâ€. At the meeting, Fuping thoroughly analyzed the international economic situation for all employees and showed Yuchai's strengths and strengths in the same industry before everyone's eyes. He also provided morale to employees and convinced them that they must be able to escape from the predicament. Subsequently, an active response to the financial crisis began within the group. The production was affected and the workers were not idle. Under the company's organization, employees join in skill training and sports activities. These activities not only improved the quality of employees, but also strengthened their determination to overcome the financial crisis. 2 strategies to deal with the secrets of the crisis From the realization that the financial crisis will spread to the beginning of the industry, Yuchai began to focus on grabbing orders. Zhang Jiasha, deputy secretary of the Party Committee of the company’s company, recalled: “In the first half of the year, the Group’s production was particularly tight. At that time, it was planned that the annual sales task would be 230. Billion, with the joint efforts of all, the number of orders has increased every month. Despite the heavy task of the 'Skymark', the employees' mental outlook is quite good. We have completed production and sales for the whole year in just six months. 60% of the time." The advent of the crisis has greatly affected the sales of Yuchai's machinery. In conjunction with the government's implementation of the 4 trillion scale policy to stimulate domestic demand to stimulate economic development, the implementation of agricultural machinery subsidies policy, fuel tax policy, and highway toll-by-weight policy, Yuchai is timely. Adjust product strategy. First of all, the implementation of the agricultural machinery subsidy policy stimulated the boom in the agricultural machinery market. According to the current 40% market share of Yuchai's agricultural machinery market, the national market will bring Yuchai an increase of 500 million yuan each month. Seeing the huge market space for agricultural machinery, Yuchai stepped up the transformation of its product—vigorously developing agricultural machinery products. Secondly, Yuchai’s product development has been reduced to a low price and light weight in light of the fuel tax policy and the implementation of the highway toll policy. The direction of fuel-efficient changes. In Yuchai, what people say most is the "product crisis." The so-called “product crisis†is currently affected by the financial crisis. Some engine-related manufacturing companies stop production, production, road transport industry has shrunk dramatically, and foreign orders have decreased substantially. Yuchai Group has turned to analyze future potential market demand and actively The product structure will be adjusted and the market will be used for technical research. In fact, in 2008, Yuchai ranked the promotion of product quality as one of the core tasks of product R&D and production. After the financial crisis broke out, it was more of a “required course†for actively responding to the financial crisis by improving quality and breaking the product crisis. In October 2008, Yuchai launched a "breakthrough product crisis" campaign in response to the crisis that "the problem of breakthrough in heavy machinery has not been solved, the advantages of the machine have been quarried and eaten, and the advantage of the first firewood will be lost." By the end of 2008, 16 key research projects that broke through the product crisis had been approved, 60% of projects had made significant progress, and Yuchai's development has won the advantages of products and markets. 3 internal strength, turning "crisis" into the capital of "machine" After the glorious 2008, Yuchai this year put forward the eight-character management policy of “building with internal skills, building with external forces, and developing with capacityâ€. In fact, at any time, Yuchai people have never relaxed their “strengthening internal strength†and have never forgotten the corporate mission of “using excellence and leadership to satisfy the public’s motivational needsâ€. Yuchai people understand that only one step ahead of others can create more and more advantageous products. Yuchai is a “talent with small talents and a big stage for businessâ€, and independent innovation runs through R&D and production. Dr. Lin Tiejian of the Yuchai Institute told the reporter that when the financial crisis hit, Yuchai did not relax the R&D work of the products, but instead strengthened their confidence in developing low-energy products. The establishment of a “reasonable opinion†review platform for front-line employees is also a highlight of Yuchai’s “hard workâ€. When front-line employees find ways to reduce costs during production, they can all report through this platform to higher authorities. The single-stage water pump has been changed to a single-stage pump, and the change of the conversion bolt has saved more than 20,000 yuan. It has been an outstanding result of the small reforms in Yuchai. Under such a work environment, Yuchai people are all involved in the “hard workâ€, constantly improving their quality, and striving to produce more advantageous products in the industry. It is such a belief in “hard work†that deepens the heart of every Yuchai person and only then has Yuchai’s glorious achievements once again – Yuchai’s launch of the National III emission product in 2004 was ahead of national implementation. 3 years; and when the country is still implementing the national III standard, Yuchai produced batches of IV emission products in the past year, and even developed V products; at the 2008 Beijing Olympics, more than 2,000 engines were installed on the Yuchai IV engine for the Olympic Games. Che Chi has become another milestone in Yuchai’s progress in the capital. However, Yuchai did not satisfy this short-lived halo. Starting in September of last year, Yuchai has adjusted its product structure, improved product quality, and launched a large-scale cost reduction project to win Yuchai’s development in response to the global financial crisis. The advantages of products and markets. Judging from the orders in the first quarter of 2009, the full preparation of the four months has enabled Yuchai to seize a rare opportunity for development and successfully turn “crisis†into an “opportunityâ€. 4 Market, Safeguarding Crisis Yuchai has grown from a small factory of the year to become China’s largest internal combustion engine production base. There are currently 13 series and more than 1,400 varieties of diesel engines. The products cover five major categories: trucks, buses, construction machinery, agricultural machinery, and shipbuilding. The longevity of the field and production chain laid the foundation for Yuchai to seize every opportunity and quickly occupy the market. At present, after the crisis, through systematic research, Yuchai has different approaches for different markets. Under the State's support for agricultural machinery products policy, Yuchai Power Company, which mainly produces low-end power products, effectively met the power demand of the rural market with the advanced marketing concept of “building a power supermarketâ€, and achieved sales growth in 2008. More than 40%, sales have grown by more than 70%. While opening up overseas markets, Yuchai also focuses on “seeing the situation and grasping key points.†Because Yuchai's products are relatively cost-effective overseas, they are very popular in the international markets of the Middle East, Africa, Southeast Asia, and Central and South America. Since June last year, Yuchai’s choice of overseas orders has been very cautious, especially Orders for export to Vietnam basically stopped because Vietnam was more difficult to settle at the time. For orders in the Southeast Asian market, Yuchai insisted on receiving the money and delivering it first, even if it lost part of the order. According to statistics, overseas markets have nearly lost more than 5,000 orders. Although the reduction in orders has affected sales, Yuchai has avoided the “fund-chain crisis†that may result. For the European and American markets, Yuchai has seized such a historical opportunity. The financial crisis caused the engine industry in developed countries in Europe and America to be hit as well. Yuchai gave full play to its cost-effective advantages. While making breakthroughs in diesel engine exports, Yuchai excavators are also exported to more than 30 countries and regions on five continents, including Europe, America and Oceania. Yuchai Heavy Industry achieved a record high in domestic sales in February, after a year-on-year increase of 150%, in March. Domestic sales achieved the goal of “Chongqinâ€, and sales of excavators (domestic) totaled 1008 units, up 25% year-on-year, and achieved “two firsts†in a single month: the domestic sales volume of excavators below 15 tons in the country ranked first; exports Number one. For several consecutive years, the export rate has increased by over 150%. The products have obtained international certification. The Yuchai engine has been widely accepted by the European Union and developed countries. Overseas dealers have formed close overseas strategic relationships with domestic mainstream automakers. On February 17th, 2009, Yuchai signed a total supply and sales agreement for engine products of 10 million U.S. dollars with Russian companies, for the first time China’s single engine products were exported to Russia in bulk.