Li Mingde reported the good news to Feng Yu, saying that sales in Europe and the United States were no longer a problem. Crazy Field responded, but it was also affected. In particular, Crazy Field's profits this year will definitely be lower than expected.
But Feng Yu felt that things would not be that simple.
Feng Yu is not worried about Kuangtian's counterattack. Feng Yu is not worried about confronting any company in the world. But if those car companies unite, it will be very serious for Bingcheng Machinery Manufacturing Group.
Sure enough, Feng Yu's worries were not unreasonable. Li Mingde called him the next day and told him some bad news.
Fantian further cooperated with Yiqi and authorized two more models to Yiqi's joint venture. At the same time, Yiqi paid a sum of cash to Fantian.
But Yiqi is also very weird. They insist on not extending the cooperation period. In other words, these two cars can still only bring profits to Crazy Field for more than ten years. After more than ten years, this joint venture, Yiqi Crazy Field, will definitely It will become a wholly-owned subsidiary again.
This kind of condition is actually very disadvantageous for Kuangtian. It is equivalent to them constantly selling vehicle model technology to the joint venture company to help improve their technical strength. Although Crazy Field will also be able to share some profits from the cars produced in the future, it is too small, compared with their joint venture factories in Europe and the United States.
When Fengtian cooperated with Yiqi, they planned to use the joint venture to build their Fengtian brand and occupy the emerging potential market in China.
Then they rely on exporting to China to gain more profits. It would be better if the joint venture's shares could be increased in the future. If that doesn't work, they will enter into joint ventures with other car companies.
But at this time, the leaders of China stopped the joint venture for the new factory. It is impossible for Chinese car companies to continue to have foreign joint ventures in the next few years.
This is of course the result of Feng Yu's efforts. He told the above about the disadvantages of this foreign joint venture. If some joint venture factories appear every few years, what is the point of the previous hard negotiations? When the contract here expires, a new joint venture factory appears over there. Isn’t the market flooded with joint venture cars of various foreign brands
If we really want a joint venture, we should let the other party provide technology, develop new models ourselves, and retain our own brand. If we still use foreign brands, in ten or twenty years' time, even if the joint venture is over, those car companies will be in trouble again if their own brands have no visibility.
When the superiors heard this, it seemed that what Feng Yu said made sense. But they still have to study the specific situation. Therefore, matters involving foreign joint venture car companies have been suspended, and they will decide whether to reopen after thorough research.
In any case, Feng Yu's goal was achieved. This can greatly inhibit the invasion of foreign brands, although they have already invaded.
Originally, Feng Yu also believed that in this way, major car companies would definitely receive instructions from above to develop and promote their own brand cars. It is also hinted above that if the quality of the car is up to standard, some purchase orders for official cars can be given, which can be regarded as support for these car companies.
Common people always have a mentality that the car that an official rides must be a good car! Just like the domestically produced Hongqi, Jeep, etc., as well as the later joint venture Poussin, they were all used as official vehicles before they entered the public eye and were regarded as good cars.
After purchasing official cars in this way, a psychological suggestion will be formed, which is also a publicity for these state-owned brands.
The leaders above had good intentions, but they failed to guard against Kuangtian's move. According to the contract, they need to continue to provide new models to the joint venture company, but it was originally planned to take two years, but now it is ahead of schedule.
For Yiqi, it is obvious that it is easier to produce joint venture cars, the technology is more mature, and less capital is required. The funds required to independently develop a car are not a small amount, especially after the impact test.
Unexpectedly, the matter is not over yet. The joint ventures of other Chinese car companies have also obtained authorization for new models. Previously, these could only be imported.
These models have also gained a certain degree of popularity in China. After being produced in China, although the selling price will be reduced, it will not be reduced too much. But many people should know that the selling price of imported cars is about three times the CIF price. After the joint venture, there are no such high tariffs, but the selling price can still be very high, and the profits have greatly increased.
There are two paths facing these Chinese car companies. One is to vigorously produce these joint venture cars, which will be more profitable, although about one-third will be given to the joint venture partners. The other is to work hard to develop its own brand of cars, which also requires investing a lot of money and giving up the high profits of the joint venture cars.
This profit is not a small amount, and even the profit of many cars can reach 100%.
Those car companies that used to be joint ventures now have new models, and they also cover mid- to low-end cars. When Li Mingde learned about this news, he immediately felt in trouble.
They can't make those car companies give up producing joint venture cars. After all, the majority shareholder is still state-owned, and the money earned belongs to the state. If you keep making suggestions, or even talk about the shortcomings of joint venture cars, you will be disliked by the superiors.
Why, your private joint ventures can make money, but our state-owned joint ventures cannot? Didn’t you say that your technology is very good? What are you afraid of
Besides, with the authorization of new models, those car companies have also improved their technical capabilities.
The answer from the above leader is that we can use the money from selling joint venture cars to develop our own car brand. Otherwise, where will the research and development expenses come from
After Feng Yu learned the news, he also felt a little headache. This was the case in China in the previous life. If it weren't for the rise of car companies like Li Dafu and others, China would almost have no own car brands in the previous life.
Although the Hongqi car still exists, no one recognizes it at all. The technology is backward, the appearance is not beautiful, the interior is average, and the performance is even more average. Although the price is cheap, not many people buy it because there are not many people who are good at repairing this model.
Cars are inevitably damaged, and even if they are not too damaged, they still need maintenance. After-sales service is very important. Not to mention the 4S stores of Songjiang cars, there are also many private repair shops. There are also many repair shops for Volkswagen, Fengtian, Bentian, Ford and other cars.
But if you talk about the repair shops of Modu Automobile and Hongqi Automobile, they are rare. Even some small bread repair shops are much more numerous than these.
In such a vicious cycle, private brands will gradually decline. In the previous life, Hongqi launched a concept car worth 5 million to showcase its new technology, but the sales of Hongqi cars were not very good? The most profitable and most popular products in Yiqi are still Fengtian and the public.
"Mr. Feng, how about we announce the true cost of those joint venture cars? So that they are forced to cut prices?" Li Mingde came up with a ruthless trick to reduce the salary under the kettle.
Feng Yu shook his head. This move was too damaging, and it hurt the interests of those car companies and the interests of state-owned assets. In that case, Songjiang Automobile would become the target of public criticism.
Think of other options.
(End of chapter)