My 1979

Chapter 866 Localization

He took a sip of tea and continued, "Take Poussin as an example. Its price varies across the country. In some places it is 180,000, in some places it is 190,000, and in some it is 200,000. In short, it is In this range. Do you know how much it costs to export abroad? 8,500 US dollars! And that Audi, the domestic price is about 270,000 to 280,000 US dollars, and the export price is only 15,000 US dollars."

Li Hedao said, “With the technical gap there, it is difficult to compete in similar foreign markets and we can only win at low prices.

How many years has the automobile industry in South Korea and Japan developed? It has only been less than thirty years, but they are already able to compete in the international market. Hyundai, Toyota, and Nissan can still defeat giants like General Motors in some parts of the world. We must learn from others’ strengths, and of course we cannot belittle ourselves. "

If we talk about the matter, compared with the technical quality of foreign cars, there is indeed a big gap between domestic cars. However, we must look at things from a historical perspective and stand at the height of development.

Chen Zutao said with a smile, "It's different, for example, South Korea, they started a little later than us, but they exploded faster than us. They had accumulated experience in the 1960s, and they didn't have the economic and technological blockade of Europe and the United States, and they banned foreign cars from entering the country. The market had its explosive period in the 1970s. Now that we have reformed and opened up, can we still engage in the isolation of the country? We are a big country, and big countries cannot do this. Anyway, we can't block foreign cars, so we might as well do joint ventures. Well, rather than trading the market for technology, it’s better to trade the market for time. I can’t afford to wait.”

Li He smiled, "South Korea's unique location and small market mean foreign car companies won't care about it. But our market is so big, and if we don't open it up, even the WTO won't be able to enter it."

Chen Zutao said with a smile, "Let's not be anxious. There are still many third-party technologies in automobile production. There are a series of upstream and downstream supporting manufacturers that are working with us or one step ahead of us. I won't talk about the core things like engines, just the most important ones. Basic.

Many domestic parts and material suppliers have a weak foundation. The first is that the material processing industry lags behind the automobile manufacturing industry. For example, the thin plates we use for body panels are all imported bake-hardened steel plates. Where was it imported? Japanese benzene. There is also the engine connecting rod production line, which we have in China, but it can only be used to process connecting rods made of non-quenched and tempered steel, so the connecting rod blanks are still imported from Japan."

"Other special steels are basically imported, and the self-sufficiency rate is less than 2 points. The cost of supporting suppliers is high, and our costs are also high. There is nothing we can do about it. Secondly, let's talk about this mold from the perspective of developing variant vehicles. Considering that mold development is also a key step, most of our body panel molds are imported from Japan."

"Third, foreign automotive electronics are all developing the fourth generation, including electronic technology, automatic optimization control technology, sensor technology, and automatic integrated coupling and cross-over technology."

"What we build is a mini truck. In terms of cost, it must be lower than Santana, Golf, Jetta, and even Xiali and Daihatsu. So how to control the cost? Use domestic parts as much as possible, and the localization rate should be 80% Above." After Chen Zu finished speaking, he looked at Li He with a smile.

"Master Chen, I understand what you mean." Li He smiled bitterly. Chen Zutao was telling him in disguise that it wasn't that they couldn't build a good car, but that they had to build a good car regardless of the cost, but the cost was too high. The price is naturally high. No matter how good the quality of a micro truck is, if it is more expensive than a joint venture car, it will be difficult to find a market, let alone a new car company like them!

Without the market, BMW has no need to exist.

You can not have it both ways!

Therefore, Li He’s previous complaints were unnecessary!

He continued, "Let me make a suggestion. In order to make all aspects of the production of automobile companies adapt to each other, we should increase our efforts to support supporting suppliers."

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