"President, something big has happened!" Junichiro Watanabe, the person in charge of Crazy Field Asia, rushed into the office of President Shifu Harutomi in a panic.
Zhang Fushifu put down the report in his hand, frowned and asked: "What's the big deal? Is it GM, is there any big move, or is there something new at Volkswagen or BMW? Or is it Tata Motors in India?" "
In the island country, Crazy Field has successfully suppressed Crazy Field and became the number one. In recent years, it has focused on developing the North American market. In the entire North America, it has been able to compete with General Motors, which is the headquarters of General Motors.
As for Asia, the two sides are similar, but with the further expansion of the Chinese market, they are confident that they can surpass GM. And it plans to become the world's largest automobile company in terms of production and sales within five to eight years.
This year, Crazy Field’s plan is for pre-tax profits to exceed US$6.5 billion, and next year’s plan is to increase it by another 15%. In this way, within three years, they can become the second in the world, and firmly believe that the number one car company in the future will definitely be theirs!
"No, no large car companies have made any big moves, and it's not right. One barely considered large car company has made a new move, which has a great impact on us." Junichiro Watanabe said hastily.
"What does it mean to be barely a large car company? If it is, it is, if it is not, it is not. Which company are you talking about, Nissan? Or Hyundai?"
"No, it's a Chinese car company, Bingcheng Machinery Manufacturing Group."
Bingcheng Machinery Manufacturing Group
Zhang Fushifu frowned, this company is really difficult to position. Let’s talk about car sales. It occupies most of the market in China, also occupies a lot of market share in Eastern Europe, and even extends its tentacles to the European and American markets.
But the technical strength of this car company is actually not very strong. It is just relatively good in terms of appearance design, comfort, etc. The engine, chassis, etc. that really consider technology can only be said to be second-rate.
But just because they dominate the Chinese market, their annual production and sales now exceeded one million vehicles last year. One million vehicles is the watershed between large car companies and ordinary car companies. Their production and sales last year were less than 6 million vehicles.
Although the gap still seems huge, when their Fengtian production and sales exceeded four million units, the Bingcheng Machinery Manufacturing Group was still making tractors!
This rising speed is so terrifying!
Zhang Fushifu was a little angry. If this company hadn't emerged, the conditions for their cooperation with Chinese companies would have been much more favorable, and the profits in this area would have increased by at least 500 million US dollars, or even more.
They can export more cars to China and create more profits. This Bingcheng Machinery Manufacturing Group has slowed down their expansion speed of Crazy Field, especially in the Chinese market.
In other words, the expansion of all car companies in China has been seriously affected. No way, they have an absolute price advantage over cars of the same class. Coupled with political support, the rapid development is justified.
From the perspective of Fengtian and other car companies, the fact that the Chinese government purchases more Songjiang brand official vehicles is a sign of support from the government! In fact, that's because Songjiang cars are cheap, easy to use, comfortable and stylish.
Even if there was no Songjiang brand to disrupt the situation in the previous life, China initially purchased most of its official cars from Audi.
"What's wrong with this company?" Zhang Fu Shifu asked in a deep voice.
"They have launched two new Oriental Shenlu, which is their SUV brand, with a displacement of 1.5 and 2.5 liters. And they have also launched a series of new models, pickup trucks. These are all models that we are vigorously promoting to China."
SUVs and pickup trucks are the main imported models that Crazy Field promotes to China. As for sedans, their sales are not that good, far inferior to those joint venture cars, let alone Songjiang-Guo'ao.
Originally, with their large-displacement SUVs and pickup trucks, they were confident that they would further expand the popularity of Crazy Field this year, but unexpectedly, the Bingcheng Machinery Manufacturing Group seemed to be working against them. While they were trying to expand sales, they were doing something with them. The same model is released, isn't this a clear competition for this market
What shocked Shifu Zhang most was that Bingcheng Machinery Manufacturing Group was able to produce large-displacement engines. This showed that their technology had improved a lot.
"How much do their two cars cost?"
"For the two cars of Oriental Shenlu, the overseas price of the 4.0-displacement car is US$49,900, and in the Chinese market it is 359,900 RMB, which is less than US$45,000. The overseas price of the 4.8-displacement car is US$59,900, and the Chinese market price The price is 459,900 RMB, which is about 55,000 U.S. dollars. The displacement of that pickup truck is also divided into 4.0 and 4.8, and it uses the same engine. The foreign price is slightly higher, and the Chinese market price is slightly lower... "
The price of their 4500 from Fengtian in China is more than 600,000 RMB. In such a comparison, the gap is too obvious!
This Bingcheng Machinery Manufacturing Group has really created a low-priced large-displacement engine!
Wait, overseas prices, are they selling this car to overseas markets
"You said overseas selling price, is it Eastern Europe?"
"No, it's not just Eastern Europe. They said in the press conference that they will soon launch in Europe and the United States. President, this pickup truck and SUV are very popular in North America, and they are not bad in Europe. There is even a market in Africa. If they are abroad We also produce such low-priced models, which has a huge impact on our market!”
"Not just Eastern Europe? Why can they sell it so cheaply in Europe and the United States without paying taxes? Don't they want to make money?" Zhang Fushifu couldn't figure it out. How much does it cost to manufacture this car, and what are the other expenses? Are there no fees for advertising, transportation, etc.
"President, the import tariffs on such products in Europe and the United States are inherently low. What's more, China has joined the WTO and its own taxes have been reduced. More importantly, Bingcheng Machinery Manufacturing Group has a joint venture factory in the United States. A joint venture factory has also been built in the UK!”
"Don't mention this to me, let me ask you, can our costs be reduced again?"
"President, in fact, in terms of efficiency, ours is higher, but their labor costs in China are too low."
"In addition to the Chinese market, European and American markets, can we suppress them?" They are all excuses. There is no labor cost advantage there, right
"This is absolutely no problem. Their selling price does not have much advantage in the European and American markets. And at this selling price, they certainly don't have much profit. I think they just want to open up the market quickly. I think we can compete with other car companies Join forces and suppress them!" A sharp light flashed in Junichiro Watanabe's eyes.
"Cooperating with other car companies? Do you think it is feasible? Are you sure you can do it?"
"How can we know if it doesn't work if we don't give it a try? After all, if Bingcheng Machinery Manufacturing Company is destroyed, then the Chinese market will be completely open to us! I think there is no reason why they should not be tempted by this big piece of cake."
"Okay, then you are responsible for contacting other car companies. If this matter is completed and we open up the Chinese market, I recommend you to be the vice president!"
(End of chapter)