HarbinServiceStation

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1、Harbin Service StationJixi Service Station INTERVIEW DATE:March 9, 2000INTERVIEWER NAME:Bill HeInterviewee NameMr. Jin Zhengqi, Manager, Harbin Service StationMr. Liu Fengqing, Manager, Jixi Service StationCompany and AddressHarbin & Jixi, HeilongjiangBackgroundn Harbin Service Station has 54 employ

2、ees. 16 service technicians, 4 in parts sales, 3 in material warehouse, 3 in accounting, 4 in management. The rest are admin. Harbin Service Station is a subsidiary of Harbin Trolley Corporation.n The service revenue in 1999 was RMB 1.9 million, about RMB 1.1 million in FAW paid service and RMB 800,

3、000 in customer paid service. Sales of parts was RMB 600,000 in 1999.n The service technicians hourly wage is RMB 2/labor hour. On average, a technicians monthly income is RMB 800/hour.n There are 28,000 trucks in Harbin, 4,000 of which are Dong Feng. 3000 are imported and the rest 21,000 are Jie Fa

4、ng. Our service station served 1,700 trucks under FAW paid service agreement in 1999. A few big customers had strong demand in service in 1999.n The price of the original parts from FAW is too high. The price of substitutions is very low. Moreover, FAWs contractors charge FAW higher prices for the s

5、ame products they also sell to the market. If the parts are from FAW itself, not contractors, FAWs price is still competitive.n The Harbin Service Station also has incentive program for the parts salesmen. Their compensation is base salary (RMB 400 + bonus). Usually, the bonus is about 50% of the ba

6、se salary.n The Harbin Service Station exams the trucks for the Harbin area dealer. However, the exam fee is too low: RMB 5 per truck.n The Harbin Service Station does not want to be a dealer because:- Harbin is too close to Changchun. Most of the customers prefer to buy from Changchun directly.- To

7、o many Jie Fang truck dealers in Harbin area already.n Currently, FAW convert all expenses of FAW paid service to parts and it does not give any cash to service stations. However, FAW does not have all the parts the service stations need. This is especially true for the new model. Sometimes, FAW even does not have part numbers of some new parts on the new models.n The Ji Xi Service station has similar issues as the Harbin Service Station.2