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Discussion Starter #21
dragin said:
In its pursuit of success, I would suggest that Wuzheng and its agents use Hino as a case study.
Hino is a great truck. I also feel Freightliner, Isuzu, Mitsubishi/Fuso, Mack, etc., most all are excellent trucks. No sarcasm intended at all, they are simply great trucks.

And, if I had $70,000 to blow on one that compared to the standard features of a Wuzheng (Turbo-Diesel Intercooled, Cab and a half, 5 ton payload, hydraulic dump) I would do so.

However, a consumer can buy THREE Wuzheng Series 5 trucks with the above specs, and have $10,000 left over for ONE of thier trucks.

We are not talking 5% less in price, or 10% less in price - we are talking a FRACTION of the price.
 

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But you're also talking about no local dealers to repair the trucks...and no local mechanics who even know what the truck is. Buyers of these trucks expect them to be reliable and repairable AHEAD of purchase price. What is the point of a $10,000 savings if the truck sits around waiting for someone to fix it? Isn't that $10,000 being wasted in downtime?

These are just questions I have....questions that potential buyers will have.
 

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Wuzheng:

I am honestly asking these questions.

I work in the industry and if you're going to make a go at this, I would like to have a better view of your chances in the marketplace.

How do you see the US market next year and why? And while having fewer distributors saves money and increases the profitability of each distributor by providing larger dedicated markets, it seems to limit the range of potential commercial buyers.

These are just questions based on points you brought up. If you'd rather not air these answers publicly, we can arrange something. I am genuinely interested in your business.
 

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Discussion Starter #24
Hudson said:
But you're also talking about no local dealers to repair the trucks...and no local mechanics who even know what the truck is. Buyers of these trucks expect them to be reliable and repairable AHEAD of purchase price. What is the point of a $10,000 savings if the truck sits around waiting for someone to fix it? Isn't that $10,000 being wasted in downtime?

These are just questions I have....questions that potential buyers will have.

I am honestly asking these questions.

I work in the industry and if you're going to make a go at this, I would like to have a better view of your chances in the marketplace.

How do you see the US market next year and why? And while having fewer distributors saves money and increases the profitability of each distributor by providing larger dedicated markets, it seems to limit the range of potential commercial buyers.

These are just questions based on points you brought up. If you'd rather not air these answers publicly, we can arrange something. I am genuinely interested in your business.
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Hudson
These are all acceptable, valid questions.

First and foremost, every distributor will have a service department, but it is NOT expected, nor is it hoped for, that buyers will have the vehicles serviced at the distributor. Engine is of a standard diesel design, and can be serviced, rebuilt, tuned, and cared for by ANY competent diesel engine mechanic. Over 85% of all commercial trucks in this class are serviced by private mechanics.

When I state "Standard Design", I mean that it is a recognizable, proven design. Parts supply will be kept in a 10% reserve for the first 2 years of importation. That is an extraordinary percentage of spare parts. Any parts not held at distributor will be overnight shipped, at Wuzheng's expense.

How do I see the US automotive market next year? In our limited target audience (Light Heavy Duty Commercial Diesel Trucks) i see a downturn in overall sales. Notice I said OVERALL sales. This size truck and smaller (pickups) follow the housing/construction market closely, for obvious reasons. And the housing/construction market is in a downturn.

However, and EXACTLY AS IT IS IN THE HOUSING MARKET, the lowest price always sells, regardless of what the overall market is doing. The FIRST to fall off in sales, be it trucks or houses, are the expensive, loaded, luxury, exclusive models.

For decades I was associated with a company that built entry level homes. There are always first time home buyers, or buyers who would not be purchasing a home at all if the prices were not so low, NO MATTER WHAT the overall market was doing.

These vehicles fall into that catagory. Excellent work trucks. Strong turbodiesel engines. Hydraulic dumps. Cab and a half. But you will never see power windows, leather seats, or a CD player in one. Not installed by us, anyway. Which makes the price right, which, regardless of the market, makes this vehicle attractive to buyers.

With regards to distributorships - Keeping the number low is not necessarily intentional. However here is the thought process behind this; We are purposely, intentionally, introducing these vehicles slowly. For the 2007 model year, there are only two models, the Series 5 and the Series 7. If we deliver 500 vehicles during the 2007 Model Year, we will be very, very pleased.

Why? With a limited distribution network at this time, added to the fact that the vehicle will be scrutinized beyond belief, delivering 500 in the first year of operations will allow close monitoring of use & feedback. We can hover over the buyers, respond to needs, adjust where necessary, pay attention closely. Concentrate on the customer, NOT on expansion. I believe this is where most others fail.

I appreciate the intelligent questions - I hope I replied to your satisfaction, and feel free to question anything.
 

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Two more questions:
WuzhengNA said:
First and foremost, every distributor will have a service department, but it is NOT expected, nor is it hoped for, that buyers will have the vehicles serviced at the distributor. Engine is of a standard diesel design, and can be serviced, rebuilt, tuned, and cared for by ANY competent diesel engine mechanic. Over 85% of all commercial trucks in this class are serviced by private mechanics.
...When I state "Standard Design", I mean that it is a recognizable, proven design.
But aren't the large majority of current trucks powered by diesel engines supplied by Navistar, Cummins, Detroit, or Cat? Most competent private mechanics know these engines forward and backward. Do engines used win Wuzheng trucks mirror the designs of these common engines to the point that a mechanic wouldn't be afraid to work on them?
WuzhengNA said:
Parts supply will be kept in a 10% reserve for the first 2 years of importation.
But if a mechanic hours from the "local" distributor needs a part, it'll be a day before they see it if the part is on hand at the distributor...and longer if it's not. Isn't this a large barrier that you have to cross when your vehicle is compared to a Ford with a dealer ever few miles or even to Mitsubishi Fuso or Isuzu or Hino who have a network of dealers?
WuzhengNA said:
How do I see the US automotive market next year? In our limited target audience (Light Heavy Duty Commercial Diesel Trucks) i see a downturn in overall sales. Notice I said OVERALL sales. This size truck and smaller (pickups) follow the housing/construction market closely, for obvious reasons. And the housing/construction market is in a downturn.
But the truck market as a whole is heading for a downturn due to emissions regulation changes, which will have a greater effect than a downturn in the housing market.

While price might lure buyers in the housing market, in the trucking market name brand means plenty. Nearly anyone (including most home owners) can fix things that go wrong around the house, but when it comes to trucks that provide your way of life, you need to know that it will be reliable and easily fixed when something does go wrong.

With all due respect to your experience in the housing market, I don't see these two industries running parallel the way you've described. There are few trucks sold as luxury items (aside from the Western Stars of the industry). Nearly all of the Class 4, Class 5, Class 6, and Class 7 trucks sold in the US are tools...and easily decontented to their basics if the market requires it.

WuzhengNA said:
...We are purposely, intentionally, introducing these vehicles slowly. For the 2007 model year, there are only two models, the Series 5 and the Series 7. If we deliver 500 vehicles during the 2007 Model Year, we will be very, very pleased.
I'm glad to see that you're not expecting the market to blow wide open with the introduction of your trucks. But even your number of 500 units in the first year is about half the number of Class 5 and Class 7 trucks Hino sells in the US, and they have a US factory to support.
 

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Discussion Starter #26
Hudson said:
Do engines used win Wuzheng trucks mirror the designs of these common engines to the point that a mechanic wouldn't be afraid to work on them?
That would be a correct assumption.

Hudson said:
But if a mechanic hours from the "local" distributor needs a part, it'll be a day before they see it if the part is on hand at the distributor...and longer if it's not. Isn't this a large barrier that you have to cross when your vehicle is compared to a Ford with a dealer ever few miles or even to Mitsubishi Fuso or Isuzu or Hino who have a network of dealers?
I would have to say it is our largest barrier.

Hudson said:
But the truck market as a whole is heading for a downturn due to emissions regulation changes, which will have a greater effect than a downturn in the housing market.
Not if our trucks already meet proposed 2010 emission standards.

Hudson said:
While price might lure buyers in the housing market, in the trucking market name brand means plenty. Nearly anyone (including most home owners) can fix things that go wrong around the house, but when it comes to trucks that provide your way of life, you need to know that it will be reliable and easily fixed when something does go wrong.
We are in complete agreement on this.

Hudson said:
With all due respect to your experience in the housing market, I don't see these two industries running parallel the way you've described. There are few trucks sold as luxury items (aside from the Western Stars of the industry). Nearly all of the Class 4, Class 5, Class 6, and Class 7 trucks sold in the US are tools...and easily decontented to their basics if the market requires it.
The housing/construction market DIRECTLY affects the truck market, they simply do run in parallel. Also, I completely agree - there are few "luxury" class 4, 5, 6 and 7 trucks. It is our humble opinion that the vast majority of pickups manufactured by Ford, GM, Dodge, however, both large & small, are more toys than trucks. Most with Nascar stickers on them.

Hudson said:
I'm glad to see that you're not expecting the market to blow wide open with the introduction of your trucks. But even your number of 500 units in the first year is about half the number of Class 5 and Class 7 trucks Hino sells in the US, and they have a US factory to support.
Notice I did not say "sell" 500 trucks, I said "deliver". For us to sell fewer than 500 Series 5 and Series 7 Wuzheng trucks in 2007, we would have to cancel some orders.
 

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WuzhengNA said:
The housing/construction market DIRECTLY affects the truck market, they simply do run in parallel. Also, I completely agree - there are few "luxury" class 4, 5, 6 and 7 trucks. It is our humble opinion that the vast majority of pickups manufactured by Ford, GM, Dodge, however, both large & small, are more toys than trucks. Most with Nascar stickers on them.
Construction does have a direct effect, but so do the emissions regulations. It's not passing the 2010 regulations that's the problem, it's the fact that many buyers have purchased 2006 models in anticipation of more expensive 2007 models, which happens ever time there's a major change in the laws. Next year will be a big down year on that fact alone. And then there's a housing downturn....

As for pickups, until the 2008 model year, all pickups were Class 1, 2, and 3. Ford will introduce the first Class 4 pickup in the next model year, but I don't see that having a huge consumer following. Current Class 4 and Class 5 Ford/GM/Dodge trucks are not pickups and rarely find their way into consumers' hands.
 

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Discussion Starter #28
Hudson said:
...many buyers have purchased 2006 models in anticipation of more expensive 2007 models, which happens ever time there's a major change in the laws. Next year will be a big down year on that fact alone..
I don't necessarily agree with that first part - I won't argue it, because I only have a "gut feeling" on it. I must assume you are going on a "gut feeling" also, because I don't believe the average truck buyer follows the regulation/law/standards as closely as you say. Again, I don't know (but you are wrong.....)

There definately will be a downturn in next years truck sales due to the rise in prices to keep with compliance. That is a positive for us - price will look even more attractive at $19k+/-

Thanks for the back & forth - it was enjoyable.
 

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WuzhengNA said:
I don't necessarily agree with that first part - I won't argue it, because I only have a "gut feeling" on it. I must assume you are going on a "gut feeling" also, because I don't believe the average truck buyer follows the regulation/law/standards as closely as you say. Again, I don't know (but you are wrong.....)
I follow this market for a living. There's history to back up my claim, not just "gut feelings."
 

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Discussion Starter #30 (Edited)
Wuzheng Trucks - NE States Road Show

Just to let you know, our website is up at www.wuzheng.com, where you can review models, see gallery pictures, etc.

From November 29th to December 6, We will be visiting interested parties in the PA, NY, DE, MA, NJ areas with both the Series 5 and Series 7 vehicles. If you wish to take a look, with absolutely no obligation, please reply to mjp at wuzheng dot com to let us know - we will be happy to bring one directly to you!

We are planning the Nation-Wide introduction of Wuzheng on April 4th in NYC at the New York International Auto Show. This promises to be an extraordinary event, as the first Chinese vehicle imported into the United States available for sale to consumers.

We also have developments for both the Series 5 and Series 6 trucks to be manufactured in 4wd, single / crew cabs, as well as a 6.6 liter Turbo-Intercooled diesel model (all models currently have 3.8 liter Turbo-Intercooled engines)

Please, if you have any questions, I invite you to see the trucks, call, or email!
 

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Discussion Starter #31
Wuzheng Trucks in USA - Introducing Series 6

Introducing the Wuzheng Series 6 Work Truck.

POWERTRAIN: Turbo-Diesel, Intercooled 6.6 Liter engine. Plasma/Trap Emission Control System, most clean-running diesel in North America. 5-Speed manual.

CONFIGURATION: Dump Body or Flat Bed, Single or Cab-and-a-half.

OPTIONS LIST: You want Blue or White?

WARRANTY: 5-Year, 50,000 mile bumper to bumper standard, 10-year 150,000 mile optional at extra cost (Best warranty on commercial vehicle on the planet for this class)

All for under $24,000. Delivered, no less.



www.wuzheng.com

Discussion/comments welcome.
 

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good looking exteriors wuzheng. looks like what we would call a category 2 truck-3-5 ton payload. do you have tech specs? i'm curious to know if there is a big demand in north america for trucks of this size. i'm thinking that given the good road conditions & the american mentality-bigger is better-the bread & butter line would be in the 7-ton & above categories. Sorry, don't have much experience in the north american market.

btw, do you have distributors in the southeast asian region? malaysia, indonesia, thailand, vietnam. i really want to compare notes w/them.
 

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My question, how do you expect Wuzhen's score in 2007? Do you have a target?
And if Wuzhen already start sale in 2006, I know it will be tough at first. But I will be very glad to hear the news about the first Chiense vehicle sold in USA.


thank you
 

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Discussion Starter #34 (Edited)
Score? How do you mean, sales volume? Prior to EPA/DOT/NHTSA approval, we had a sales goal in mind for 2007. We have already surpassed that figure for 2007, and it is still 2006! Our figure was where we felt comfortable knowing that there WILL be issues, there WILL be problems - we want sales, but not so many that we cannot thoroughly follow up with the customer, get feedback, make changes.

It is incomprehensible to us when we read about Malcom bringing in 50,000 units in year one. Not that it can't be done, we feel it SHOULDN"T be done. Only sell what you can thoroughly service. This strategy will either work, or it won't. We believe it is correct.

Our main concern is/will continue to be the following; Parts availability, service, availability of parts, customer feedback, parts warehousing, growth control, parts, service, parts, and parts.

There have been failures in this sector, and, in my opinion, the failures were due not so much because of quality issues, but when something breaks/goes wrong (As there is no doubt, something WILL be wrong, something WILL break) we have to be able to fix/replace/repair it immediately. We warehouse 10% parts, which is 50 times average. We don't see it staying at this level forever, but it is cheap insurance.

Today, one of the users of this forum test-drove one of our trucks because he may become a distributorship. As always, the main concern and topic of conversation was service & parts. At $19,000 per truck, it is basically a throw-away tool, but it still needs service.

Ask anything.
 

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Hudson said:
I follow this market for a living. There's history to back up my claim, not just "gut feelings."
I sell refuse and septic bodies and I agree with you. We have two Wuzheng
trucks at our shop as the importer could not get them running. They are shipped without fuel or battery. The first one smoked to beat the band. Looks like they are worth about $6,000 to $10,000. All depends on the selling price and parts availablity.
 

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Second Look

Perhaps I was a little too harsh in my previous comment about the Wuzheng. Today I drove the second truck. The truck has obvious value in that it has a decent sized cab, a diesel engine and a dump body for a low price. This truck will compete against much more expensive American and Japanese trucks which have to be outfitted with an extra cost dump body. I was very impressed with the whole package.
 

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Discussion Starter #40
Why Thank you - that is very kind. Same to you and yours.

Our ramp up is going well. Orders for vehicles are currently well above expectations. Business wise and by the numbers, Wuzheng North America is doing very well and is very strong.

There are concerns, as with every new venture;

Parts - As previously mentioned, we have 5% spare parts shipped with the vehicles, as well as every 10th vehicle is simply dismantled for future parts needs. There has been little to no draw as of yet on the parts base, and, although everything is inventoried & shippable within an hour, we do not have the time factor in to see what areas are weak. It is a learning curve.

Distributors - We have met with literally HUNDREDS of interested parties wishing to become distributors. Most, if not all, have been successful, friendly, just darn nice people. Very few of them, unfortunately, have been in the position to become a distributor. Unlike every other auto dealership on the planet, we do not charge a fee for a distributorship, nor do we charge for parts inventory. Even so, most people who have represented themselves as "ready, willing and able" to be a distributor have shown to be "ready and willing" at best. Our first question for potential distributors has become, as rude as it may sound "Do you have $200,000 liquid assets available now to invest in inventory?" If the answer is not yes, we don't even ask any more questions. We wish we had started this way 12 months ago.

Chinese - There has been reluctance in purchasing a Chinese vehicle. This was expected, and has actually not been as bad as we thought it would be. We recently signed with Cummins to supply Cummins Turbo Diesel 210HP engines as an option which, since their availability, has increased sales by 40%.

We are pleased with the product. We are making adjustments where necessary. We have the parts & service. Certainly there will be more of a learning curve.

With the exception of the potential Distributor qualifications, we are simply overjoyed with the progress thus far.
 
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