As the top brand of China national automotive industry, Jiefang truck has been marching relentlessly for 50 years, it shoulders the responsibility of development of China automotive industry, and shows people the strength of “the eldest son of China automotive”.

 

While facing even more sharp competition in the market oriented economy, FAW Jiefang truck has never let people be disappointed, and continued to write down its legend. 

 

In the first half year of 2002, 112,100 Jiefang brand vehicles were sold out. The position of the brand rose from “the national top brand” to “the international best selling brand”.

 

In 2004, Jiefang brand took the first place in the domestic automotive industry with outstanding achievement of sold 198,000 vehicles; FAW Jiefang medium-heavy duty truck maintains first place in sales for seven years running in the world.

 

FAW Jiefang Automobile Co., Ltd, the biggest sub-company of FAW Group, was established on January 18, 2003. The company put forward its target of “creating global brand in 10 years” at the beginning of the establishment, dedicated itself to creating Chinese brand with international competitive position.

 

Create product platform  

 

To create international brand product requires core competitive position. Jiefang closely follows the development of the advanced manufacture technology of international truck industry to build up its own product platform.

    

Aowei heavy duty truck, the fifth-generation of Jiefang truck, rolled off the assembly line on July 15, 2004. It was that day FAW celebrated its fifty-first anniversary.    

 

The debut of Aowei truck not only means Jiefang brand has entered into heavy duty truck market on a high level, but also symbolizes that a large-scale independent development of FAW has commenced. Aowei truck equipped with 6DL engine, that was independent developed by R & D center of FAW. Development of 6DL engine makes the domestic development and manufacture level of internal combustion engine reach an advanced level in the world. In the process of development of Aowei engine, FAW Jiefang focused on the goal of “producing high quality product, accumulating experience and finding experts”        

 

In the six months after the launch of Aowei truck, the new products Hanwei and Dawei truck were put into the market one after another, thus Jiefang J5 serie is formed. Jiefang J6H 6×4 super heavy duty tractor was shown at Auto Shanghai 2005 in April, that is another important achievement of independent development and overall upgrade for the Jiefang series product.

 

 “We will follow our plan to accomplish the development and production preparation for J5 series and matched products( 38 new models) this year, at present the development and production preparation are in progress. The new truck will be produced at a new base of FAW Jiefang.”, said Li Changjiang, general manager of FAW Jiefang Automobile Co., Ltd..

 

J5 and J6 series products of FAW Jiefang, will cover the range of the power of Jiefang engine from 120 to 520 hp, and form three truck platforms in low, medium and high end.

 

Improve capability of independent development

 

At the beginning of the establishment, FAW Jiefang fixed its so called “ 1233” investment strategy to face future competition. Among which, “ 1” refers to the establishment of a technical center which has independent persistent capability for the development, “ 2” refers to the establishment of two purchase and sales networks, the first “ 3” stands for the concentration on the production of three assemblies as engine, transmission and axle, the second “ 3” means to focus on the improvement of the level of three process of of welding, painting and final assembly.      

 

In 2005, in order to raise Jiefang truck to a higher grade, FAW Group carried out three important technical reforms. First, Deutz engine which is introduced from Deutz Company Germany will form the production capacity of 50,000 units per year. Second, the axle technical transfer project signed with Nissan Japan already starts mixing line production for the 457 fabricated axle, hub reduction axle and Nissan axle, Third, the transmission JV project with Eton U.S already starts the production of the introduced series transmission products.

    

In the overall arrangement of the production, FAW Jiefang has got three bases of Changchun , Qingdao and Chengdu . In the aspect of development of complete vehicle, an integral system which consists of independent development and joint design is forming in three bases in Changchun , Qingdao and outside China . In the aspect of development of engine assembly, an integral system which consists of independent development and joint design is forming in four bases in Changchun , Wuxi , Dalian and outside China . FAW Jiefang now is adjusting its purchase and marketing system in order to deal with the sharp world competition.

 

Cultivate well-trained staff

 

Dealing with the world competition needs well-trained staff. In order to change traditional ideas of management, FAW Jiefang carries out a campaign to study Toyota Production System (TPS) through out the company. In July, 2004, 14 experts from Toyota headquarters came FAW Jiefang for guidance work. Six months afterwards, advantages of TPS have already presented.  The production time of trucks of J5P, 8×4 and 10×4 reduces from 12 minutes to 8 minutes. Production capability increases 45% and 80 million yuan (RMB) has been saved.      

 

Great changes on the ideas have been taken place in FAW Jiefang because of execution of TPS which is based on the points of the quality improvement, waste elimination and cost reduction. “Seeking the best one is the nature of FAW Jiefang. Under the new condition of market, how to make use of the advantage of top one scale, bring about top one cost advantage, and make the production volume advantage convert to a quality advantage, what mentioned above are the foundation for the propaganda of Jiefang brand and making it become a world brand” said Li Changjiang, general manager of FAW Jiefang .Automobile Co., Ltd..

 

FAW Jiefang is making headway toward this target.