Rebirth 99 to become a car giant

The Hilton Hotel in Detroit is located next to a small lake in the suburbs, and the scenery is very beautiful.

When Cao Yang and Zeng Tingting got off the plane, Austin drove an Escalade to pick them up.

This treatment made Cao Yang a little flattered.

Through this detail, Cao Yang also fully felt how much cost pressure the General Motors Purchasing Center is facing now.

As the world's number one car company, GM has sat in this position for too long.

Inevitably, it has a lot of historical baggage.

For example, the treatment of its workers is notoriously good.

General Motors has always given workers a very good lifetime pension and medical treatment.

As the baby boomer generation in the United States (Americans born around 1950) began to gradually enter or approach retirement, this problem began to become more and more serious.

It is said that the medical treatment of General Motors now averages 1,800 US dollars per car.

What is this concept?

A mid-level car only costs more than 20,000 US dollars in the United States.

The most troublesome thing is that the trade unions in the American auto industry are very powerful.

Even if they have driven the company down, they will not easily compromise on remuneration.

An hourly wage for a worker can reach around $70.

What is this concept?

The daily wages of most white-collar workers in China are not as high as the hourly wages of auto workers.

Not to mention the workers.

You work for a month, which is about the same as someone else's salary for a day's work.

Given the circumstances, it's no surprise that GM is having an easier time.

Ford's situation is very similar to that of General Motors.

In this context, their procurement director naturally wanted to find a solution to significantly reduce costs.

"Cao, this time, you can definitely surprise us."

"right?"

On the way from the airport to the hotel, Austin didn't say a word about work.

Just enthusiastically introduced the customs along the way.

But after Cao Yang checked in and Chris, the Purchasing Director of Ford, came over, Austin immediately switched the conversation to work.

"In the first quarter of this year, the total sales of cars in the United States reached 4.3 million units, leading the world."

"The major automobiles of Dongying alone accounted for a quarter of the market share, creating the highest record in 10 years."

"Relying on the price advantage, Dongying car companies can be said to be thriving in the American market."

"Complicating matters is the fact that Honda Motor opened a new plant in Alabama last November, and next year Toyota and Nissan will also open new plants in Alabama and Mississippi, respectively."

"It would put Ford and GM in a more passive position."

"Cao, if you can really reduce the procurement costs of our two companies by a large margin, then we will definitely not treat Nanshan Technology Co., Ltd. badly."

Chris's attitude today is also unusually sincere.

It's not at all like the attitude that the purchasing director of the OEM and the general manager of the supplier should have.

"EGL manufacturers rely on the depreciation of the yen to increase their profits, and they are also able to inject large amounts of funds in research and development."

"The parts they import from Japan are also equivalent to reducing prices invisibly."

"In the first quarter of this year, the total profit of Dongying car companies has been equal to that of our American car companies."

"It's very bad for us."

Austin was also deeply touched when he heard Chris complaining about Dongying Motors.

This year the yen has reached a level of 1 US dollar = 130 yen against the US dollar.

All EGL car companies are attacking cities in the United States.

"Chris, Westin, don't worry, I'm here this time because I have a win-win plan to share with you."

"If it's implemented well, it's perfectly fine to cut GM's and Ford's procurement costs by 5 percent."

"It is not impossible to even achieve a price reduction of more than 10% for some parts."

Hearing Chris and Westin's complaints there, Cao Yang was very happy.

Let you group of international giants dominate China.

Now is the time for you to beg me too.

"A 5% reduction in procurement costs?"

"Cao, are you sure it's the entire procurement cost, not a certain part?"

Chris and Westin glanced at each other, both of them were quite shocked.

Take Ford Motors as an example. Their sales in the first quarter were US$42.4 billion, their net profit was US$1.06 billion, and their net profit margin was only 2.5%.

This is completely unworthy of the second place in the world's cars.

If you can reduce procurement costs by 5%, then the net profit margin will look good.

With this credit, Chris has every hope of going to the next level in the interior of Ford vehicles.

It is even possible to become the next CEO in the future.

"That's right, all the purchase costs, not the nut plates, the wheel bolts or the hub bearings."

Cao Yang smiled and gave an affirmative answer.

This made Chris and Westin's curiosity explode immediately.

"Cao, as long as this goal can be achieved, Nanshan's wheel bearings can be installed on various models of General Motors immediately."

"I dare not say that it is 100% used, but a 50% occupancy rate is absolutely no problem."

"And I can promise that as long as there are new products from Nanshan in the future, General Motors will give priority to using Nanshan's products under the same circumstances."

Americans like to pay attention to interests most.

Austin is no exception.

So he first drew a cake for Cao Yang.

Seeing that GM took the lead, Chris regretted a bit.

If I had known earlier, I would pick up the plane at the airport today.

"Cao, the cooperation between our Ford Motor Company and Nanshan Technology Co., Ltd. has always been very pleasant."

"We also established a joint venture with Changan Automobile in China last month. In the future, both Changan Ford and Ford Global will consider using Nanshan parts to the maximum extent."

According to Chris, there are only a few products in Nanshan now.

Even if there is an increase in the future, it will not increase much.

Among them, nut plates and bolts have already begun to be used, and now it is nothing more than bringing bearings into the scope of procurement.

At this price, he can make a decision.

Of course, if Cao Yang lets them go, and the cost reduction plan he said is completely unreliable, then this big cake will naturally be unattainable.

Seeing that General Motors and Ford are so active, Cao Yang is full of confidence.

This time, SKF was doomed.

All the bearing manufacturers who participated in the Kengmeng Nanshan Technology Co., Ltd. will be unlucky.

Even other international giants should let them taste the lessons taught by the world's largest auto market in the United States.

"Chris, Austin, before I talk about the specific plan, I have a small request."