After the 4 trillion yuan investment plan and related auto consumption stimulus policies were gradually announced and implemented, the heavy truck and diesel engine market had already taken the lead to feel the warmth of the economic recovery.

Recently, it was learned from Weichai Power that the company's sales were picking up in the first quarter of this year, of which construction vehicles such as construction machinery and heavy trucks had grown significantly and their performance would have improved significantly compared to the fourth quarter of 2008. Some agencies even predicted that Weichai Power's engine sales in March is expected to exceed 36,000 units, achieving a year-on-year growth.

Weichai has come to the present day, and the chairman of the company, Tan Xuguang, who is known as the "Cattleman", is doing its best. The company’s recent announcement estimated that sales revenue in 2008 will be approximately 33.1 billion yuan, operating profit between 2.4 billion and 3.8 billion yuan, and total profit between 2.6 billion and 2.9 billion yuan.

At the end of last year, "Niuren Laoteng" issued a high-profile development goal for Weichai Power in the future. "We will strive to exceed 100 billion yuan in sales revenue in 2012 and enter the world's top 500 ranks."

Whether Tan Xuguang can once again become a blockbuster or not, the key lies in how he can use the investment-driven Dongfeng to complete the strategic layout and how to increase the consumption stimulus weight in the implementation.

Incorporating the Hunan Torch to Create a Big Weichai

In 2004, Delong's capital chain broke up and had to sell many assets including the Hunan Torch. With the Hunan Torch Group and Fantuo, the first in the gear industry, the sale of the Hunan Torch has undoubtedly brought about another restructuring opportunity in China's heavy truck industry.

In August 2005, Weichai won a 28.12% stake in the Hunan Torch with 10.0278 billion yuan, becoming the largest shareholder; on April 30, 2007, it returned to the A-share market. Weichai Power has created a precedent for H-share listed companies to return to the A-share market by absorbing mergers and acquisitions. It has absorbed the new company after the merger of the Hunan Torch and has the advantage of the best powertrain (engine, transmission, axle) in China. With the most complete automotive and parts industrial chain in China, the company's performance has soared.

At present, Shaanxi Heavy Duty Truck has established 60,000, 80,000, and 100,000 step-by-step development targets, which has created a potential development space for the supporting prospects of Weichai Engine; among the sales target of RMB 100 billion, Shaanxi Zhongqi is Contribute 35 billion to 40 billion yuan; Fast's profitability and market share even exceed the Weichai engine, in the 100 billion yuan plan, Fast will at least contribute 10 billion yuan.

Join Futian to open up new markets

The advantage of Weichai in terms of engine is its early-advantage and low cost of entering the market in advance.

For many years, Weichai Power has been the main supplier of Foton Auto's core components. The two companies have maintained a good relationship in product manufacturing, technology research and development and sales services.

In June 2006, Weichai and Foton Motor formally signed the "Strategic Cooperation Framework Agreement." The two parties intend to launch comprehensive strategic cooperation, including product market cooperation and equity cooperation.

According to the agreement, in the next five years, Foton Motor’s supporting rate for its Weichai power engines and gearboxes for heavy-duty vehicles (14 tons and above) will not be lower than the matching rate of Weichai Power's heavy-duty auto products in Foton in 2007. , and increase year by year; Foton promises that in addition to the introduction of joint ventures and production of branded engine products in the next five years, it will not develop and produce heavy-duty automotive diesel engines and gearbox products that compete with Weichai Power. As a strategic investor, Weichai Power will participate in the subscription of shares in Foton Motor’s private placement.

Layout overseas to find new opportunities

According to Tan Xuguang's idea, the future goal of Weichai Power should be to become a general-purpose engine supplier, providing high-powered power support for heavy-duty vehicles, passenger cars, construction machinery, ships, power generation and other industries.

At present, Weichai’s dominance in the high-power engine market is very stable. In the domestic 15 tons and above heavy vehicles and 5 tons of loaders in the field of market share far ahead. Prior to this, Weichai and AVL Austria had jointly established the “Weichai-AVL European R&D Center” with the intention of continuing to maintain the leading edge in technology.

Weichai Power recently obtained through its subsidiary Weichai Power International Development Co., Ltd. a bid of 2.99 million euros to obtain related assets of the French Baudouin Company. The book value of the assets was approximately 13.82 million euros. The relevant transaction is now undergoing administrative approval procedures. It is reported that the purpose of Weichai is to get its 16L engine technology. At the same time, the company has also been in contact with GM's automotive parts manufacturing plant in Strasbourg, France.

"The company is actively looking for opportunities in the capital operation market." Weichai Power's investor relations department said. According to Tan Xuguang, "There are dozens of new products developed every year in Weichai. The output value of new products already accounts for half of the total industrial output value of the company."

In 2009, Weichai will introduce more new products based on market demand. On the one hand, we continue to deliver large-scale blue-pumping engine WP10 and WP12 with advanced international power to the masses. At the same time, it will also be based on 10 liters, 12 liters engine, the power segment extends downward. Recently, Weichai introduced the WP5 and WP7 diesel engine products. The two products took over the core technology of Lanqing Power and learned the most advanced concepts for the development of small and medium-displacement engines. Weichai is an 8 to 12-meter passenger and medium- and heavy-duty truck. And a variety of new types of construction machinery tailored models.

Chen Rongzhang, director of the Automotive Aftermarket Research Institute of Tongji University Automobile Institute, believes that the difficulties facing the company will not be small in the future. After the expansion, the bottleneck of talents, the limitation of research and development capabilities, and the difficulties in the development of sales channels will be the focus of the company’s attention in the future. solved problem.