JAC Brewing Transformations in 2009
2009-03-19 Source：english.chinabuses.com
Summarize：The year of 2009 starts with the global economic crisis sweeping across every sector of Chinese economy. With the crisis is still unfolding, Anhui Jianghuai Automobile Co., Ltd. (JAC hereafter) is pro ...
The year of 2009 starts with the global economic crisis sweeping across every sector of Chinese economy. With the crisis is still unfolding, Anhui Jianghuai Automobile Co., Ltd. (JAC hereafter) is projecting a new posture by adjusting its principal business to passenger cars and commercial vehicles. ZUO Yan’an, President of JAC and a delegate of NPC for two terms, seems to have his own judgment about the future market trend and is now leading JAC through some transformations in this particular time.
New energy vehicles, optimization of internal structure and light-duty pick-ups going to rural areas are now high on JAC’s development agenda in 2009.
Six years ago, JAC Ankai embarked on the research & development (R&D) of new energy coaches. In 2008, the company started cooperative ties with some other domestic enterprises in electric vehicle area. Till now, a fleet of 34 electric buses have been put into service in Shanghai, four of which are specially allotted for Shanghai Expo in 2010.
According to JAC Ankai’s current development plan, its new energy coaches will soon realize mass production in 2009 and are expected to reach 3,000 units per year by 2012.
When it comes to industrial restructuring, ZUO Yan’an has his own opinion. “I think the restructuring should be done with the market taking the leading role while the government providing proper incentives. The restructuring itself is not the purpose, but a means in the process of industrial development.” Given the weakness of Chinese indigenous brands at present, how to compete with those global giants in a level field is of strategic importance.
Some insiders believe that ZUO’s idea on restructuring has paved a bright path for JAC’s future expansion. In early 2009, JAC further optimized its internal structure by setting up its own commercial vehicle company and passenger car company, both of which integrate production, supply and sales. Aiming at a production and sales volume topping 240,000 units, JAC strives for a sales income reaching over 20 billion RMB (about 2.93 billion USD).
To take advantage of the government’s favorable policy and further exploit the rural market, JAC launched the build-up of “JAC Auto Market” in 50 counties across China at the start of the new year. In order to realize a quick and effective penetration into the third and fourth markets as well as China’s vast rural areas, JAC believes the new move will further enhance the company’s market recognition and boost the sales volume of its passenger cars and commercial vehicles.
Some observers in the auto industry hold that JAC’s speedy development has given it some advantages in battling with other auto giants. Right now, it is a pressing task for the company to elevate its operation scale and better its industrial distribution. Through joint venture and shareholding with some big names like Visteon, AAM and Johnson Controls in the past few years, JAC has remarkably improved its overall market status.
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