Facing recession in logistics, Dongfeng to launch Tianjin series light truck

The financial crisis sweeping all over the world, has been affecting Chinese economy by varying degrees. The logistics industry starts showing symptoms of depression. Chinese truck makers are busy with making strategies of how to deal with the recession. Dongfeng, as a major truck maker in China, how will the company relieve itself from the terminal market recession? What will they do?

In 2007, sales volume of Dongfeng’s "Tianlong" series heavy truck is expected to exceed 50,000 units. However, Mr.Huang Gang, party secretary and deputy general manager of Dongfeng Commercial Vehicle Co. does not feel any easy. “What we’re worried about is the global financial crisis may trigger a chain reaction in China’s domestic economy, which may hit logistics industry seriously.” says Mr. Huang

Chen Bin, sales department head of DFC, says that export is heavily impacted by the global economic recession which starts to lead a turndown in China’s freight industry.

When asked whether DONGFENG has a strategy to deal with the current situation, Mr. Huang says no matter how uncertain the current economy is, cost control, market development and new products promotion are still the most important things for them to do. “However, under different circumstances, some measures may be given preferences to others.” from which it is predicted that cost control, agile combination of policies and the improvement of ability to resist risks will be the core part of Dongfeng’s strategy to face the global recession in 2009.At the same time, in order to disperse risks of heavy truck market, Dongfeng will launch a small “Tianjin” truck about 3 tons.

Mr. Huang says Dongfeng will continue to promote their market role transformation work trying to become a road transport program provider in the future.

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