Luan Ping: Yuchai’s Green Power Leader

When a company grows into an aircraft carrier, we are not faced with the problem of survival. What we are facing is the original cornerstone of the company's existence, benefiting mankind and undertaking social responsibility. As the largest diesel engine power manufacturing enterprise in China, Yuchai Group has brought forward the business strategy of “green development, harmonious and win-win” since Yuping in 2005, making Yuchai a leap-forward development. In this year's 2008 China Economic Summit and China's economic upstarts awards ceremony, Junping won the highest award - "China's top ten outstanding figures in the economy."

Succeeding suspense, green power, miracles

Fuping's father is an old Yuchai man. His father and son witnessed Yuchai's many years of vicissitudes. 27 years ago, Fuping went out from Yuchai. 27 years later, he chose to return to Yuchai.

In May 2005, Yu Ping, who was then the director of the Yulin City Development and Reform Commission, began to serve as Chairman and Secretary of the Party Committee of Guangxi Yuchai Machinery Group Co., Ltd. At the beginning of the presidency, people's eyes were more puzzling - were they parallel? Everyone was watching and the facts soon gave an answer. The appearances demonstrated by the newly-formed leadership and the outstanding response to the market were both unexpected and unexpected.

"27 years away from home, a bloody cavity should report this part of the fertility I raised my place." Yu Ping knows that Yuchai has had what kind of glory, for 14 consecutive years, Yuchai became "China's largest internal combustion engine production base."

2005 was the first year of Yuping’s helm. The industry situation has become more and more severe. The auto industry has been declining all the way. The truck market has been declining. The heavy truck and quasi heavy truck markets have fallen by 32%, resulting in engine manufacturers’ With the sluggish production and sales performance, Yuki felt the heavy responsibility shouldered. "This kind of pressure prompted me to stand in today's situation. To see tomorrow, I have to think about the day after tomorrow." Weiping knew that the only way out is to innovate. He found that in the European automotive dieselization has reached 40% today, China's car diesel engine market is almost a blank.

In 2005, Yuchai Group fully implemented quality management and technological innovation, and promoted the “upgrading” strategy for product quality, which matched the rapid increase in product quality with the rapid increase in the number and types of products, and was in line with market demand. Yuchai Group increased its investment in new technology research and product innovation. 23 new models of products were successfully launched on the market. Among them, new Euro IV engine products were introduced. They were first put on the market before the implementation of the national emission regulations, and the Euro III engine achieved mass production. Target market.

With the joint efforts of all Yuchai people, Yuchai Group once again set a miracle: In 2005, operating income was 12 billion yuan, an increase of 12.3%; export revenue reached 17 million US dollars, an increase of 96%. Firewood phenomenon."

In February 2006, Yuchai’s Yuchai’s 2006 business conference was held. Yuchai bosses made a splash and they created a lot of sensational effects. "Pragmatic, young and promising, approachable people", this is the evaluation given by the participants.

“Whoever seizes it first, it will take the initiative.” In 2006, China’s first passenger car diesel engine with completely independent intellectual property rights was successfully developed by Yuchai Group and was assembled on Chery, Xiali, Geely and many other cars. In 2006, Yuchai developed the first Chinese standard diesel engine for Euro III, which led to the overall upgrade of domestic diesel engine emissions. In 2006, Yuchai Group was ranked first in the world in terms of “single accounting factory” production and sales volume and China’s market share.

Perfecting the System and Creating a Modern Enterprise Group

Foreign companies are still prosperous for centuries, and many domestic companies are thriving, like meteors. Why is the system not sound is an important underlying cause?

In China, the phenomenon of unclear property rights and management confusion among group companies and stock companies has been criticized by the industry. Yuchai has always been a company with two systems and two treatments. In order to change this situation, in 2005 the new team made institutional adjustments to the group company, strengthened group management and overall planning, started with further clarification of the company’s property rights relations, and established a modern enterprise system to carry out the construction of the parent company structure and institutional functions. Through reforms, the company's industrial layout has undergone a change from quantitative to qualitative changes, forming six major segments including diesel engines, construction machinery, auto parts, lubricants chemicals, logistics and electrical machinery, and special-purpose vehicles. The company's development has entered a virtuous circle.

In 2007, Yuchai Group achieved sales revenue of 18.35 billion yuan, an increase of 29.46% year-on-year; total profits and taxes increased by 82.83% year-on-year. Both the production and sales of diesel engines exceeded 500,000 units, ranking the first in the industry for seven consecutive years. In 2008, Yuchai's brand value rose to 6.385 billion yuan, ranked No. 112 among China's 500 most valuable brands, ranking first in China's power brand and first in Guangxi.

People-oriented, stimulating employees' entrepreneurial passion

The competition of comprehensive national power in the world is, in the final analysis, the competition of talents, especially innovative talents. The Yuchai Group is convinced that the degree of emphasis and incentives for scientific and technical personnel are advancing with the times and gradually develop in a systematic, long-term, and humane manner. The incentive measures were improved from the subsidies for professional and technical positions, the annual salary of technology personnel, the incentives for new product awards, quality upgrade incentives, project point incentives, and agreement purchases, creating a favorable environment for top-notch talent to come to the fore, enabling more scientific and technical personnel to The combination of their own wisdom and Yuchai’s career has provided Yuchai’s development with more powerful technological momentum.

"The key to realizing the long-term goals is of course people. First of all, the purpose of doing things is to improve people's lives. Second, no matter what high-tech things are done, they must rely on human wisdom and labor to complete and implement them." The "human consciousness" is very strong.

The first thing that was done after Zhang Ping took office as chairman was to reward the scientific and technical personnel who made outstanding contributions to the development of Yuchai. In November 2005, Yuchai Group spent 4 million yuan to reward collectives and individuals who made significant contributions to technological research projects and awarded medals. Among them, the personal maximum bonus is 300,000 yuan, and the collective maximum bonus is 700,000 yuan. Over 70 scientific and technological elites are rewarded. Although the bosses of each company love talents and cherish talents, it is rare to see such a big shot. This is the best interpretation of the "people-oriented" business philosophy of the new leadership.

Not only that, the company’s concern for ordinary employees has also been mentioned to an unprecedented height. Yu Ping repeatedly asked Yuchai cadres to "care about the interests of employees." In 2005, the company invested 250,000 yuan to renovate Donghua Community's “Home of Staff” to implement employee medical insurance and the treatment of some retired employees. Each subsidiary has more than 250 good things for employees, and the help funds reached 75,000 yuan.

At present, Yuchai not only owns state-level enterprise technology centers and post-doctoral research stations, but also has in-depth cooperation with internationally renowned internal combustion engine research institutes such as Germany, the United States, Italy, and Japan, and has built Yuchai's technological platform with international advanced standards.

Responsibility is the driving force for rejuvenating the national industry

On June 26, 2008, Yuchai Group officially released the "Green Development, Harmony and Win-win-2007 Sustainability Report" at Beijing News Building. This is the first social responsibility report issued by Yuchai Group and it is also the national internal combustion engine. The first sustainability report issued by the industry is an important symbol of Yuchai’s initiative in fulfilling its social responsibilities and consciously accepting social supervision.

In 2005, the Chinese engine industry entered a downturn. Automobile companies and engine companies that have a certain reputation and strength have scrambled to establish a variety of cooperation relationships with foreign industry giants. Yuchai, a national brand, has taken a single ride in thousands of miles. In the middle of the road, what is going on? One of Ping Ping’s comments is quite exciting: “The Yuchai executives will take the revitalization of national industry as their responsibility and build a world with powerful power.”

“Today, there are more and more cars and the blue sky is getting less and less. To improve the environment requires the car to be equipped with a 'green heart.'” In the office of the Yuchai Group Power Building, the reporter saw Chang Yuping. His expression was solemn. In the speech, the reporter felt the strong "concerned consciousness" of the successful entrepreneur.

"Don't insist on green development, there is no way out for the engine industry!" Taking the green road of resource saving and environmental protection is the core development strategy that Yuchai has established in recent years. "Green development" is not a slogan, but it is Yuchai's development path that has been actively chosen after summarizing lessons learned.

In 2005, Yuchai Group put forward the core concept of “green development, harmony and mutual benefit”, and upgraded “green development” to the core development strategy of the company. At the fourth Shanghai International Engine and Manufacturing Technology Exhibition in 2007, Yuchai Group exhibited nine high-standard, low-emission, environmentally friendly engines. At the end of 2007, Yuchai launched the YC6L-50 V diesel engine with independent intellectual property rights, filling the gap in the diesel engine of China's high-level emission standards.

On the morning of August 16, 2008, the Guangxi Science and Technology Agency organized relevant experts to appraise the scientific and technological achievements of the project “Using Engine Blocks, Cylinder Heads, and other Casting Residual Heat Aging Heat Treatment Processes” completed by Yuchai, and agreed that the project has Independent intellectual property rights have reached the leading domestic and international advanced technology levels. According to statistics, in recent years, Yuchai has reduced its energy consumption by about 25% annually.

Recently, the 2008 “China Machinery 500 Research Report” conference was held in Beijing's Great Hall of the People. Yuchai Group ranked 22nd in the “China Machinery 500”, which was 2 places higher than last year. In the 2006 CCTV annual economic person selection campaign, when he asked the host's question about "What type of car he liked," he replied "Benz" on the grounds that he likes the state and feeling of Mercedes-Benz. However, the "Benz" in Shu Pinghua has a deep meaning: that Yuchai has reached a scale of 10 billion and took 54 years; from 10 billion to 20 billion, it takes about 4 years; from 20 billion to 30 billion. How will Yuchai Group's tomorrow? Let us wait and see.

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