To withstand the cold winter Dongfeng Cummins has firmly implemented a diversification strategy

In October 2008, Dongfeng Cummins had two major events. First, it exceeded the target of 150,000 units for annual sales in advance. The second is the successful development of the self-developed National III engine. This project was considered by Cummins' US headquarters as Cummins' world-first low-cost electronically controlled engine.

Faced with these achievements, Liu Xiaoxing, general manager of Dongfeng Cummins, did not have a trace of relief. He said that Dongfeng Cummins can only be regarded as a child, growing up, but he has not experienced any major setbacks. Therefore, he has no way of knowing if he has the ability to fight against the "winter." Under the general downturn in the current auto market, if Dongfeng Cummins wants to live better, it must insist on implementing the “diversified” development strategy better.

"I have only two legs in my chair. I really hope it has four legs so that I can sit more steadily." Liu Xiaoxing vividly explained why Dongfeng Cummins has steadfastly implemented the "diversified" development strategy.

Liu Xiaoxing admitted that at the beginning of the joint venture, the development strategy of Dongfeng Cummins was not clear. It mainly relied on “one market, one customer, and two products.” One market was the truck market, and one customer was the Dongfeng Commercial Vehicle Company. Two products were Refers to Cummins B, C series mechanical engines. After years of exploration and practice, with a business philosophy of building a comprehensive, coordinated, and sustainable enterprise, Dongfeng Cummins began to comprehensively promote the development strategy of “product diversification, market diversification, customer diversification, and business diversification”.

In the past few years, Dongfeng Cummins has developed from a basic model at the beginning of product introduction to the current B, C, and L series mechanical and ISDe, ISLe and ISZ series all-electronically controlled diesel engines, and B series natural gas engines and nearly 10 basic models. With 100 varieties, engine displacement is 3.9 liters, 4.5 liters, 5.9 liters, 6.7 liters, 8.3 liters, 8.9 liters, and 13 liters. The power coverage is 125-545 horsepower, because the series products are fully equipped to meet the national II, the national III, The ability required by the National IV emission regulations has become the first choice for the supporting power market in the fields of vehicles, engineering machinery, ship power, and power generation.

The diversification of Dongfeng Cummins is not only reflected in the products, but also reflected in the market and customers. While serving the East Windmill market, Dongfeng Cummins has gradually developed other markets and non-vehicle markets. At present, its products have been widely used in light, medium and heavy duty trucks, medium and high-level intercity buses, large and medium-sized bus passenger vehicles, construction machinery, ship power, power generation and other fields, and has become the benchmark brand of China's diesel engine industry. In 2008, Dongfeng market accounted for 54% of the production and sales of Dongfeng Cummins engines, and non-Eastern market accounted for 46%.

In addition, Dongfeng Cummins has also made great efforts to expand overseas markets. Engine products are sold to South America, Russia, West Asia, South Asia, Africa and other countries and regions as vehicles. This has contributed to the “Chinese heart” of diesel vehicles to the world. At present, Dongfeng, Yutong, Jinlong, Zhongtong, and Huanghai are the OEMs that are cooperating with Dongfeng Cummins for export. An overseas market development alliance that is closely coordinated by engine manufacturers and vehicle manufacturers is being formed.

At the same time, Dongfeng Cummins has also applied the “diversity” strategy to the management and management of enterprises. Through the diversification of marketing and services, it has made full use of limited operating resources and operating capabilities to enhance the competitiveness of enterprises.

In management, Dongfeng Cummins emphasizes the difference between people and constantly optimizes the personnel structure, thus creating a diversified workforce. Use different backgrounds and experiences of employees to solve problems and provide customers with creative products and services. This just confirms the purpose of the Cummins Diversity Council - "Appreciate the same people and respect the difference."

Liu Xiaoxing believes that Dongfeng Cummins's strategy of "diversification" is to practice the scientific concept of development, and that Dongfeng Cummins's development road is a sustainable development path guided by the scientific concept of development. In the future, as long as we adhere to the concept of scientific development, even if we encounter a cold and bitter “winter”, Dongfeng Cummins can also survive.

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