In Asia, especially in the Chinese market, WABCO's annual sales increase at a double-digit rate. Always adhere to the localization strategy, so that it seizes enough sites in the field of commercial vehicles in China. On March 24, 2011, Jacobs Escucier, Chairman and CEO of WABCO Worldwide, led a global board member in Jinan, Shandong. The purpose of their visit was to attend the launch ceremony of the WABCO Jinan plant. This is the first time that after the listing of WABCO, all of its board members have visited countries other than Germany. In fact, the Jinan Plant is WABCO's second wholly-owned factory in China. As early as the end of 2007, this international component giant known for its commercial vehicle electronic brake, stability, suspension and variable speed control technologies was established in Qingdao. The first wholly-owned factory. “The Chinese auto market is one of the fastest growing markets in the world. Although WABCO China now accounts for only 8% of global revenue, we are very optimistic about the market demand for commercial vehicles in China.†In an exclusive interview with reporters, Gu Jie said without hesitation that WABCO’s strategy in China will be significantly accelerated. He is convinced that WABCO's value will grow rapidly on every truck in the future. This is also the significance of all board members' visit to China. We not only visit WABCO's factories in China, but also understand the needs of customers and suppliers in order to welcome the opportunities and challenges that WABCO faces in China. Jinan identity As early as 1996, WABCO set up a joint venture in Jinan called Shandong Weiming Automotive Products Co., Ltd. Among which, WABCO holds 70% of the shares, mainly producing traditional mechanical components. “The formal settlement of the Jinan plant is a milestone in the development of WABCO in China,†said Liu Liang, president of WABCO Asia. In fact, when WABCO set up its first sole proprietorship in Qingdao in 2007, Gujie could look to the Qingdao plant to become "a global center of excellence for quality and cost-effective Six Sigma lean advanced management processes," which will lead WABCO. Build a truly global supply chain. Under the background of the rapid development of China's commercial vehicle market in recent years, the output of WABCO's Qingdao plant has been increasing. As the factory is located in the Qingdao port, this special geographical location will undoubtedly make the Qingdao plant a part of WABCO's global strategy. A commanding height. At present, Qingdao factory has gradually developed into an export-oriented company. For example, ABS systems supplied by WABCO in the United States are all produced in the Qingdao factory. Last year, WABCO's global share was nearly 70%, but it did not stabilize this figure. Currently, WABCO's global market share fell to 62%. However, Wealko is pleased that its share of the Chinese market has increased year by year. This is also the main factor that WABCO has been actively cultivating the Chinese market. “There is no doubt that China is the largest and fastest-growing commercial vehicle market in the world, and its output has surpassed that of Europe and North America. The rapid growth of the market provides us with many opportunities. We will consistently use advanced products and professional technologies. Introduce China and increase investment in production facilities and human resources according to the needs of the market." In the interview, Gu Jie has repeatedly emphasized the importance of the Chinese market for the development of WABCO. As Qingdao has increasingly become a global supplier and exporter of spare parts, Gu Jieke and WABCO's board members decided to establish a sole proprietorship in Jinan, China, with the main purpose of serving the Chinese local market. "So, this factory in Jinan focuses on the Chinese market, which is the identity of the factory that distinguishes it from other factories." Gu Jie can say. Like the Qingdao factory, Jinan also implements the VISCO lean manufacturing philosophy. Gujie hopes that WABCO can provide products that are better than competitors in terms of quality and execution and provide better services to customers. Gu Jieke's localization strategy Gujie was born in Paris, France, and then worked in the R&D department of NASA and the Ministry of Defense of the French Ministry of Helicopter. He then spent more than 6 years in the Aviation Business Unit of Honeywell International, Inc. since 2004. From the leadership of WABCO Automotive Control Systems. The experience of these jobs allowed Gu Jie to deeply appreciate the value of globalization. Therefore, he is not afraid to explore new fields and explore new cultures and markets. He is always eager to have a global vision. And Honeywell's work experience, Gu Jie can be considered very valuable, in Honeywell's Six Sigma management philosophy was later ported to WABCO, "This is WABCO's success is an important factor." At present, the team led by Gu Jieke is from 9 countries on 4 continents. Six years ago, he began to implement WABCO's globalization strategy. However, at the beginning of the implementation of the globalization strategy, WABCO faced an economic crisis and Gujee was gratified that the company has achieved double-digit growth rates even at the most difficult times, and has remained until now. In Gu Jie's view, an international company that is committed to becoming a worldwide company must strongly promote its localization strategy. Gujie can not hide his favor for the Chinese market: "It is the growing market like China that has played a crucial role in every step of WABCO's development." The relationship between WABCO and the Chinese market cannot be separated from CNHTC. WABCO became a supplier of China National Heavy Duty Trucks in 1997, and its strategic agreement extended to 2016, with cumulative sales reaching several hundred million US dollars. China National Heavy Duty Truck Group is China's largest heavy truck manufacturer. The establishment of the Jinan Plant is also where WABCO hopes to dig deep into the local market. “The official operation of the Jinan Plant fully reflects the localization of WABCO's commercial vehicle production commitment. We will continue to We will introduce advanced products and technologies into China and deepen cooperation with local customers.†Gu Jie believes that only by adhering to the localization strategy can he adapt to the fast-growing environment. Competitive players When WABCO laid out China, the Knorr Group, which is also a supplier of commercial vehicle brakes and control systems, took an important step in the Chinese market and took the veteran state-owned enterprise, Chongqing Kafu. After successfully entering into the domestic major truck and passenger vehicle supporting systems and establishing a marketing service network, Chongqing Kafu has increased the investment scale of passenger car chassis products in recent years, forming a multi-system and multi-category operating situation. This does not adapt to the current professional, large-scale business philosophy. After the joint venture with Knorr, Chongqing Kafu stripped off commercial vehicle air brake component product business, and will mainly focus on R&D and production of commercial vehicle steering rods, arm products and passenger car chassis products; in technology, Knorr It is possible to narrow the gap between Chongqing Kafu in the automotive brake system and advanced countries and accelerate the upgrading of the entire vehicle. This is seen by the industry as a joint venture of "strong alliances and complementary advantages." For WABCO, it is undoubtedly the most powerful competitor. "We welcome the competition. We have the right strategy for WABCO's successful operations in China in the past." Liu Liang said that WABCO will pay attention to every trend in the market and will continue to implement it in the future. The three strategic pillars of technology leadership, localization strategy, and outstanding execution force strengthen the core competitiveness in technology leadership and local integrated application capabilities. For the future, the opponent’s strength is not weak, and the Chinese market is still filled with smoke. Gujie is convinced that as long as he persists in the localization strategy and seizes this trump card, they will seize more sites in China's commercial vehicle sector. Jinan Bosch Bearing Co.,Ltd , https://www.bosch-bearing.com
WABCO China Market Killer: Localization Strategy