Bus Makers Try to Lower Costs
14 July 2009
The city of Xiamen, a southeast city in Fujian province in China, is a major buses & coaches production center. Two bus giants locate in here - Xiamen King Long United Automobile Co Ltd (Kinglong for short) and Xiamen Golden Dragon Bus Co Ltd (Golden Dragon for short). The city of Xiamen produces about 30,000 big and medium-sized buses every year.
Currently, this city is deeply impact by the global economic crisis. Bus enterprises take many measures to control their costs and the cost control is seen as an important measure to tackle the sluggish bus industry. Raw materials account for more than 85 percent of our total cost for a bus. For example, through joint purchases, Kinglong saved nearly 38 million Yuan at last year. In addition, their cooperation with the Shanghai Auto Mart E-Procurement Co. Ltd and on-line purchases saved the company a total of 100 million Yuan. According to Kinglong’s plan, in order to reduce cost further in 2009, they increase online purchases from 40 percent in 2008 to 100 percent in this year. Golden Dragon also cuts its costs through daily work. For example, all offices try to use only two-thirds of the fluorescent lights at a time and employees are encouraged to reuse paper.
All of people hope this financial crisis passes very quickly. But, no one knows when it can pass away. Experts in the industry say that the government should offer more policy support to help China's bus industry face its current difficulties.
Source : english.chinabuses.com
Editor : Frederick
Views：3156
