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Youngman to rejuvenate truck business through coalmine trucks

by Xie Guangyao

The truck department of the Zhejiang Jinhua Youngman Automobile Manufacturing Co., Ltd. (Youngman-MAN) held its 2013 business conference in Shi Zuishan, Ningxia on March 15. During the conference, Youngman-MAN announced entry into the coalmine self-dumper market in the Northwest and Southeast regions to realize its 3,000-unit sales target. The conference also unveiled the mystical Shi Zuishan base of Youngman-MAN.

Coalmine trucks in Northwest

Based in Zhejiang Province, Youngman has been well-known for its high-end buses. The truck sector of the company, though started in 2004, has maintained a sales volume of around 1,000 units without much improvement over the years.

According to Zhang Lijun, general manager of Youngman-MAN and the Shi Zuishan base, the plant was put into test operation in July 2011 and produced 300 to 400 wide-body coalmine self-dumpers in 2012. “One of the milestone events was the completion of the semi-automatic assembly line in September 2012,” said Zhang.

With an investment of ¥450 million ($72 million), the plant has a production capacity of 15,000 units in double-shift with the most advanced plant equipment nationwide, introduced Zheng Jian, president of the Commercial Vehicle Group of Youngman Group. The whole production line can realize continuous assembly and operation via handicraft cars. Automatic nut screwer and oil filling machines are also applied on the assembly line.

“The Shi Zuishan plant will also set up whole vehicle test lines and automatic painting lines, distinguishing it among coalmine truck manufacturers in China,” said Zhang.

According to Zhang, the Youngman Shi Zuishan plant has established strategic cooperation relationship with excellent suppliers in China. For example, the Da Jiang special-purpose axles, which originated from Benz technologies, are of Chinese military quality. The D12 12L 4 valves machinery pump coalmine engine developed by the China National Heavy-Duty Truck Corp. also showed great fuel-saving advantages. The FAST transmissions and Shiyan Minle hydro cylinders are also very mature supply resources. The company’s products have been tested by intensive consumer use for over a year and have outperformed many competitors in liability, mobility and fuel economy, said Zhang.

Clear responsibility and combination of measures

It is reported that Youngman-MAN plans to sell 3,000 trucks in 2013 with the Shi Zuishan base to deliver 1,500 units.

According to Gou Yong, vice general manager of Youngman-MAN Sales Co., the company’s headquarters in Jinhua will focus on oil field trucks, fire trucks, terminal tractors and high-end logistics vehicles. By obtaining special-purpose vehicle production certificate in June or July this year, the Shi Zuishan base will enter into the special-purpose transportation equipment field and produce stone transport vehicles, tunnel vehicles, watering cars, bridge transporters, and desert vehicles.

According to the company, the 50T, 60T wide-body coalmine trucks of Shi Zuishan plant have gone to mass production and sales. The 70T, 80T and LNG, CNG trucks will also go test production in the first half of this year.

The company will also establish sales and service networks within this year, said Li Wanjun, general manager of Youngman-MAN Sales Co. Youngman-MAN has signed contracts with 29 dealers with another 15 under negotiation. The dealers will promote sales and service together with Youngman-MAN in coalmine regions in Xinjiang, Inner Mongolia, Qinghai, Ningxia, Gansu, Shaanxi, Shanxi, Guizhou, Yunan and Fujian, said Li. “We plan to have 70-80 dealers in the next two to three years,” added the general manager.

Youngman-MAN will largely increase the reimbursement of dealers starting this year and will afford the transportation fees of vehicles to the dealers to reduce dealers cost largely. “We will also set up spare parts center stores in major regions to cope with the spare parts demand in coalmine areas,” added Zheng.

The average price of wide-body coalmine trucks is ¥500,000-¥600,000 in China, and mass sales would be impossible without financial aid, said Zheng. China Everbright Bank has provided small loans to Youngman-MAN’s coalmine truck business. With the assistance of the financial leasing business of Hangzhou Urban Construction & Investment Group Co., Ltd., potential buyers will have a trouble-free purchasing experience, added the president.

(Rewritten by Jennifer Chen based on author’s article on cvworld.cn)

 

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