Yuchai's Nirvana——The Observance and Reconstruction of Traditional Power Companies in the Era of New Energy

With the opportunity of the national six new product R&D, after three years of system reengineering, Guangxi Yuchai Machinery Co., Ltd., which has moved from the middle to the high end, has been reborn.

This is a rebirth-like rebirth.

This traditional power company, which has 67 years of history and has maintained its leading position in the industry for more than 10 years in sales of its diesel engines, has already started the tackling of the second venture in 2013.

“Yuchai’s transformation has entered the midfield, but the market will not leave us with the time and space for half-time breaks.” As head of Yuchai, Fuping always reminds himself, “Be alert and uneasy, small It is full of thinking and consciousness."

"Competitors are advancing at an accelerating rate. How far can Yuchai go in the face of the same market and industry situation?"

"With existing courage and wisdom, can Yuchai win the battle of the Sixth National era?"

"To break through the bottleneck of the current scale, what are the unconventional means of achieving curve overtaking and leapfrog development?"

......

These questions are all interrogated at the same time. They are Yuchai's "can't pass around" and "need to cross the slope."

And this time the full range of new products released by the National Six Power will give an answer?

The Leap from "Follower" to "Leader"

"The whole family," "14 models," and "world-class standards," are just these ridiculous words. Yuchai's press conference is enough.

On January 8th, at the Yulin headquarters in Guangxi, despite the frequent turbulent rains, this did not affect Yuchai’s aggressiveness in releasing sixteen-stage six-stage engines .

This is the first time that the internal combustion engine industry in China has released series of standard-compliant products, and it also marks Yuchai's once again leading edge technological advancement in China's internal combustion engine industry.

Guests together to help the new six new products

Guests together to help the new six new products

Even if it takes another three hours to drive to Yulin after arriving at the Nanning Airport in Guangxi, it is not only the Austrian AVL, the Southwest Research Institute of the United States, the Italian IAE, etc. Yuchai that come to witness this event but also far from abroad. Partners, as well as testing organizations such as China Automotive Engineering Research Institute Co., Ltd., Xiamen Environmental Protection Vehicle Pollution Control Technology Center, China Automotive Technology and Research Center, and more than 50 vehicle manufacturers, suppliers and distributors from across the country, Large customers, service stations and other representatives. Thousands of people participated in the meeting, making the conference crowded.

Fuping Yupu, chairman of the Chinese Academy of Engineering, who is cooperating with the Chinese Academy of Engineering to open a new product, is also spring breeze. “All of Yuchai’s high-end, 14-country, six-engine new products targeting the world are available. This is Yuchai’s major event and industry event.”

As early as 2015, Yuchai started a project for the development of six-stage engines for vehicles in the country. At that time, the product positioning was “world-class” and the company was fully benchmarked. "To this end, from the beginning of the early planning and design program, we introduced the concept of departmentalization and modularization, and made every effort to build a six-stage engine platform with three powers of S, K and Y covering 100 to 650 horsepower." Yuchai Wu Qiwei, president of the company, told reporters.

Of the 14 new products released this time, 10 are diesel engines and 4 are gas engines. The meanings of S, K and Y are blue sky and white clouds. In Yuchai's opinion, they are not only the common pursuit of the living environment by human beings, but also coincide with the development mission of the company: while persisting in the exploration of new energy sources, they insist on cleanliness. The development of high-efficiency internal combustion engines has helped the global village hold up a blue sky and white clouds.

Heavy trucks equipped with Yuchai engines Heavy trucks equipped with Yuchai engines

S, K, Y also condense Yuchai's positioning of new products. According to the official explanation, S is smart, smart and flexible, and is designed to create the most satisfying products for users, providing power, economy, and affordable NVH priced medium-sized power; K is king, king style, and represents the domestic future. The trend of heavy-duty, high-tech, high-performance and high-quality products is expected to lead the industry in the direction of new technologies, new processes and new materials. Y is Young, vibrant, light-hearted, and represents a new generation of lightweight power in China with high quality and comfort. the trend of.

"In addition to the drastic reduction of emission targets, the new products released this time have achieved significant improvements in terms of comfort, light weight, appearance, value, reliability, and economical performance. The world-class level, and better than the international first-line brands of similar products, has the strength to compete with world-class brands on the stage of the international internal combustion engine industry.” Wu Qiwei can't hide his pride.

The “six most severely” national emission regulations, the pollutant emission limits, have crossed the A and C stages of Euro VI, and have jumped directly to the D segment level of Euro VI. At the same time, it also requires that the engine still meets the emission requirements at an altitude of 2400 meters, while the European VI standard only requires an altitude of 1700 meters; in addition, the S6 regulations require that the remote monitoring data of the entire vehicle be sent to the environment in real time. Administrative departments, and these are not the VI standards. Therefore, it can be said that Yuchai’s S6 engine stood on the world stage since its birth.

In Fuping’s view, in the development of the global internal combustion engine industry, this is the first time that Yuchai has changed the role of the “follower” of China’s internal combustion engine products, creating a product value of global significance, and not only achieving comprehensive leadership. And transcendence also promotes Chinese manufacturing to create a leap forward for China.

Three-year system reconstruction

In 2020, China will implement the Sixth National Emission Standard. The new product was put on the market two years ahead of the market, and Yuchai left sufficient preparation time for the entire vehicle company.

In fact, not only is the State Six engine. Starting from the country's three emission standards, Yuchai has planned ahead of schedule and made arrangements early. It has always maintained the tradition of launching new products for more than two years. It has been leading the industry trend in emission upgrading.

Among them, the first four-engine with completely independent intellectual property rights was four years ahead of the implementation time of the national emission standards, and the first national five-engine was five years ahead of schedule.

Even so, Junping admits that Yuchai still has a gap from the international advanced level in the three national, national and national phases. Therefore, in the development of the State Six, Yuchai “has seized the opportunity to integrate various forces. "Major changes have been made in systems such as research and development, quality, manufacturing, management, sales services, and human resources.

“Yuchai is now in the period of the second venture. We have made the Sixth National Development as an opportunity and platform for the rebirth of Nirvana.” Fuping’s goal is very clear: Taking China’s Sixth Emissions Upgrade as an Opportunity, and Striving for the Sixth National Emission Regulations by 2020 In the year of implementation, self-transcendence has been achieved, and the company has made great strides toward internationalization, becoming the first echelon of the international internal combustion engine industry.

To this end, Yuchai conducted a comprehensive survey of user needs as early as 2014, and invested 5 billion yuan in new product R&D and manufacturing. The R&D cost alone reached 2.5 billion yuan. In addition to comprehensive hardware and software upgrades, Yuchai also has a product platform. Subversive major reorganization was carried out: From the beginning of the plan, the research and development concept of platformization, modularization, departmentalization, and generalization was introduced, and the previous thousands of product models were streamlined and optimized, and the product platform was reduced by more than 30%.

Yuchai also introduced a group of experts to reengineer the company's systems and mechanisms to improve top-level design and find innovative ways. In the development process, Yuchai’s internationalization, deployment of European R&D centers, promotion of international high-end R&D cooperation, and integration of European and American concept designs have enabled its six-nation engine to have an international core since birth and become a Chinese-born one. International Core.

With Yuchai Engineering Research Institute as the core, Yuchai breaks the convention, and cooperates with international research institutes such as Austrian AVL, Southwest Research Institute of the United States, Italian IAE, and other international scientific research institutions to develop horizontally and jointly develop new products of the six countries, and learn from foreign advanced vehicles. And power manufacturing companies have extensive experience in the development process.

In order to accelerate the progress of development and ensure the fit of components, engines and vehicles, Yuchai also coordinated with upstream component suppliers and downstream vehicle manufacturers to achieve simultaneous planning, simultaneous design and synchronization. Development and so on.

Yuchai production workshop Yuchai production workshop

At the same time, in order to ensure the optimum engine overall, Yuchai has also made difficult but drastic changes to more than 300 formal component suppliers in the upstream of the industrial chain, and has introduced a large number of world-class suppliers. The final guarantee is that 80% of the key components come from the world's most advanced suppliers, such as Bosch, Delphi, Honeywell, ThyssenKrupp and others.

After bringing together the world's most advanced partners, Yuchai has realized the curve overtaking. “The quality and R&D of Yuchai have set the best level in history. Not only has the performance of the S6 engine surpassing that of its competitors. The company's management level, technical level, and the right to speak in the internal combustion engine industry have been greatly improved.” In this regard, Fuping is very proud of Yuchai's three-year system of research and development, manufacturing, management and reengineering projects have achieved remarkable results. The development of T4 has pushed Yuchai to a higher level.

He judged that with the arrival of the Sixth National Government, the degree of industry concentration will change and the current number will be reduced to 50 to 60. "But Yuchai is not afraid at all. We are fully capable of coping with this change. In two years' time, Yuchai's overall system level will surpass the world's advanced level."

In 2017, Yuchai's truck power, construction machinery power, agricultural power, ship power, power generation, and sales in overseas markets rose across the board. The company’s sales revenue and operating efficiency both approach historical best levels.

At the press conference that day, Yuchai held strategic signing ceremonies with 22 truck companies including Dongfeng Liuzhou Automobile and Dongfeng Commercial, and eight bus companies including Yutong Bus and Jinlong Bus, and awarded 50 strategic suppliers.

Facing new energy

For Yuchai, the emergence of new energy vehicles has actually produced a significant impact on them.

Take the bus market with the largest sales volume in the bus industry as an example. In the past three years, with the promotion of the national subsidy policy, the proportion of new energy in the domestic bus market has reached 85%, and it is expected to reach 95% or more in 2020—this will maintain the market share for the long-term in the passenger bus sector. For Yuchai, the impact is subversive:

"Yuchai attaches great importance to the impact of new energy vehicles." Yu Cheng Ping Cheng, China's new energy strategy affects the world, 2017 Frankfurt Motor Show 80% are new energy vehicles.

To this end, Yuchai has established a new energy power division with more than 50 R&D personnel. It not only invests 300 million yuan each year, but also injects the most advanced management system and introduces equity incentive mechanisms, which is totally different from the traditional engine's institutional mechanism. .

But for this new team, Junping is not in a hurry to ask him to put new products on the market. "For us, the impact is even more of an impetus, but we must be able to endure loneliness and fight for preparation and talent. Yuchai is not a small business. It is difficult to choose the wrong direction."

The technology of new energy vehicles will soon be updated and will be renovated in less than two years. The industry quipped that there are now 100 claims that can be made about the R&D direction and technology of batteries. Even Japan, which has developed a new energy battery for the past forty years, is still not conclusive.

"But time will eventually prove everything." Youping told reporters that Yuchai must find the right time and make a breakthrough. The first priority is to closely follow the current technological trend and master the direction of technological development. Second, make great efforts to make a good reserve of talents and choose first-rate partners.

At present, Yuchai's new energy products have evolved from parallel and hybrid to purely electric. The types of Yuchai's products have expanded from passenger cars to trucks and non-roads, and the market for pure electric products has also been opened in local strategic markets. Nanning Bus received 85 orders for pure electricity, and Guangzhou Zhenbao Bus received 130 orders for pure electricity.

In 2018, Yuchai will also launch a new generation hybrid system development and fuel cell system integration project. At the same time, Yuchai will also establish cooperation with the axle plant and start the development of bridge products.

The energy structure of our country determines that new energy vehicles cannot completely replace traditional cars in the short term. Therefore, Yuchai has not relaxed the enhancement of traditional engine R&D and manufacturing technologies. It must be noted that the increase in emissions from traditional power sources will have a significant impact. Yu Ping said that Yuchai will use the national six engine as an opportunity to work hard on thermal efficiency and achieve a breakthrough of 50%. “Product upgrading is the strategic opportunity for Yuchai to become stronger and expand its foundation, and it is also a major measure for Yuchai to move toward high-end and internationalization.”

Undoubtedly, with the changes in the market structure and the continued intensification of deep integration, the future industry competition will become even more fierce. “We must always put research and development at the forefront, and at the same time establish the strongest, most advanced, and most competitive cadre team and team culture. Otherwise, Yuchai will not go far.” In this regard, Fuping is very clear and will continue to Will continue to build a more scientific salary system, employment system.

To this end, the company has spent 50 million yuan to reward innovative talents, 60 million yuan to reward and create effective talents, 70 million yuan to award special R&D talents, and advocate high returns for high performers. In the course of the development of the State VI, a lot of labor has been initially formed. Incentive systems and cultural atmosphere to encourage innovation; not only promoted a large number of 80, 85, but also gradually introduced more than 10 senior experts from abroad, and appointed the real power to change the system of Yuchai.

“At present, we have completed the cultural integration of external experts. In addition to strengthening the expatriate learning of outstanding internal personnel, in the next three years, Yuchai will also introduce and train 100 talents with an international perspective and level.” .

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