Dongfeng Commercial Vehicle Coming to the World: “Three Major Leaps” Laid the Foundation of Internationalization


China's Leading Commercial Vehicle Brand
Dongfeng Commercial Vehicle was born in Shiyan, Hubei Province in 1969. With the concept of "trust, professionalism, and technology," Dongfeng Commercial Vehicles has been deeply cultivating its manufacturing process, constantly expanding its market and winning customers' approval. Dongfeng Commercial Vehicle is China's leading commercial vehicle brand and is gradually establishing a global sales and service network.

Dongfeng Commercial Vehicle has an independent R&D and production base in China with an annual production capacity of 200,000 vehicles. The product covers key assemblies for heavy-duty trucks, buses and chassis as well as engines, cabs, frames, axles, and transmissions. Its products are long-distance transportation, regional distribution, intercity transportation, construction engineering and mining services. Dongfeng commercial vehicle products are necessary tools for professional operators to meet the needs of modern society and future operations.

Dongfeng Commercial Vehicle Co., Ltd. is headquartered in Shiyan City, and has nearly 30,000 employees, 15 professional factories, branches (subsidiaries) and advanced technology centers. Its parent company, Dongfeng Motor Group Co., Ltd., ranked 113th in the 2014 Fortune Global 500 with a revenue of US$74 billion.

After 45 years of development, the Dongfeng commercial vehicle brand has become a household name in China, leading the Chinese truck industry. Today's Dongfeng Commercial Vehicles sails and sets sail on the way to internationalization, chasing the dream of “the east wind of the world”.

"Three major leapfrogs" laid the foundation for internationalization

In 2003, Dongfeng and Nissan entered into a joint venture to establish Dongfeng Motor Co., Ltd. Dongfeng Limited "takes the business together" to develop two brands, Dongfeng and Nissan. Dongfeng Commercial Vehicle is responsible for the development of the Dongfeng brand, stable and prosperous Shiyan base in Dongfeng.

From 2003 to 2013, he flicked his finger and waved it for 10 years. Dongfeng Commercial Vehicle has gone through a 10-year joint venture process under the framework of Dongfeng Limited. Looking back at the road that has passed in the past 10 years, Huang Gang, general manager of Dongfeng Commercial Vehicle Co., Ltd., summed it up as a "three big steps."

The first big step is the management of the internationalization stage. At this stage, Dongfeng Commercial Vehicles has achieved a level of management that is in line with international standards by learning from Nissan’s advanced concepts and methods. After the joint venture, Dongfeng Commercial Vehicles first introduced Nissan's manufacturing management experience, which is also the way of daily production. Through the self-improvement in every aspect of the manufacturing field, the daily production method is integrated into the manufacturing system of Dongfeng Commercial Vehicle. In order to meet the needs of the Chinese market, Dongfeng built its own production method, DCPW. Through the improvement of management in the manufacturing field, the quality of Dongfeng Windmill has been significantly improved and customers have also gained recognition. In the field of management, the initial SAP system was launched, data management was implemented, and then sub-service management was implemented. The management was gradually refined; in the field of commodity technology, Dongfeng Commercial Vehicles introduced the new development process of Nissan passenger vehicles, and then based on the actual situation, a new generation was created. Heavy truck Dongfeng Tianlong.

The second big step is to transition to a market-centered stage. The significant sign of the beginning of this phase is the listing of Dongfeng Tianlong. In 2006, the demand for heavy trucks in the market increased. Dongfeng commercial vehicle products did not receive green and yellow products. Tianlong, a strategic product that was highly hopeful, was listed at this time. However, after the product was put on the market, the customer did not approve it. In 2006, it sold less than 2,000 vehicles and encountered tremendous pressure on its operations. As a result, Dongfeng Commercial Vehicle quickly launched a market-centric mechanism, the most representative of which is the iron triangle mechanism. The “Iron Triangle” is established and cross-departmental coordination, with the market and customers as the center, formulating common goals and jointly implementing actions. This transformation brought about rapid results. In 2007, Dongfeng Tianlong sold more than 10,000 vehicles and continued to climb and grow rapidly. In 2010 and 2011, the sales scale was close to 100,000 units respectively. In 2012, due to the overall decline in the industry, Dongfeng Commercial Vehicles also experienced a certain decline, but they still maintained close to 70,000 sales. It is precisely because a single platform has reached such a large market size that "Tianlong" has been awarded the well-known trademark honor of the first sub-brand of China's commercial vehicle industry.

Since Dongfeng Tianlong, thanks to the experience and process support accumulated by Tianlong, the new generation of Zhongcai Tianjin is a new platform developed after the “Dongfeng People” optimizes a new round of processes. This platform is currently also gaining good results in the market. . Since entering the market in 2008, the sales volume of Dongfeng Tianjin has reached 50,000 vehicles. In 2012, the sales volume of the medium-card industry declined slightly, but the platform still maintained a steady growth. Dongfeng Tianjin was also awarded the China Automotive Industry Progress in 2010. Awards.

In addition to vehicle technology, Dongfeng Commercial Vehicle also strengthened the powertrain business developed independently. The dCi11 high-power engine and 4H engine were widely recognized by customers.

In addition to creatively establishing the "Iron Triangle Mechanism" at the initial stage of the listing of Tianlong, during the global financial crisis in 2008, we actively explored low-cost operating models, promoted the "N+3" management model, and dynamically forecasted and grasped the market, as well as production and marketing plans, The dynamic adjustment of the business plan makes it possible for Dongfeng Commercial Vehicle Co., Ltd. to evade operational risks in the event of a drastic ups and downs of the financial crisis. In the marketing aspect, it practices the marketing of Dongfeng Commercial Vehicles; in the current case of “micro-growth” of the truck market, the management The implementation of comprehensive income management at the floor made Dongfeng Commercial Vehicle Company not only pursue sales, but also pursued the sustainable operation of the entire company.

If the first phase of the transformation is mainly based on learning Nissan and completed with the help and support of Nissan, then the second phase of the transformation will be completed by the team of Dongfeng Commercial Vehicles independently.

The third big step towards globalization. Dongfeng Commercial Vehicles is committed to the stage of globalization. It does not mean that it has reached globalization, but only has the conditions for thinking about the globalization strategy. Since 2007, Dongfeng Tianlong has been widely accepted by the market. Since the financial crisis began in 2008, Dongfeng Commercial Vehicle successfully resolved the risks brought about by the financial crisis. From 2009, Dongfeng commercial vehicle business began to stabilize. On this basis, Dongfeng Commercial Vehicle proposed a three-step strategy in 2010. Its core idea is to build China's Dongfeng into the world's east wind. It is the first brand in the Chinese market to become the best partner in the transportation industry. It has become the world's first medium- and heavy-duty commercial vehicle manufacturer in China.

Pursue the international dream of "Dongfeng" brand

In the next 10 years, Dongfeng Commercial Vehicle is also a brand-new business form. In early 2013, Dongfeng and Volvo established a strategic alliance and established a new company with capital as the link. For Dongfeng Commercial Vehicles, Volvo's partner is very different from Nissan. Nissan focuses on passenger vehicles and is skilled in manufacturing. Volvo's commercial vehicle business is globally leading, not only in terms of technology, but also has rich experience in management and globalization.

For the future, the vision of Dongfeng Commercial Vehicle's decision to build China's Dongfeng into the world's east wind has not changed, and it has become increasingly firm.

In the next 10 years, Dongfeng Commercial Vehicles will first strengthen the core competitiveness of the entire value chain, make the technology center a leading commercial vehicle technology center in Asia, build a leading independent powertrain in terms of product competitiveness, and form a global presence in the manufacturing field. Competitive manufacturing and supply chain system; in the marketing field, professional marketing service flow and network system are formed to adapt to the Chinese market and global development marketing methods. In the end, it will be the leading brand in Asia and even the world by maintaining a leading position in China and establishing a base for exporting in overseas markets.


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