Rebirth 99 to become a car giant
Chapter 119 Carrying out Another Proposal from the Secretary
When Cao Yang boarded the plane back to China, the anti-monopoly of auto parts in the United States was in full swing.
As NTN jumped out to backstab SKF, some other component giants also began to backstab their counterparts.
For example, Lenny of Germany exposed the fact that Toyo Yazaki cooperated with them in the wiring harness field to pit Ford.
This makes more parts giants trembling, for fear that they will become hot spots of public opinion if they are not careful.
Ford Motor and General Motors took advantage of this opportunity to continuously complete their own price reduction negotiations.
Normally, OEMs certainly do not want to see component suppliers being fined.
Because this means that the ability of the other party to lower the price for itself has decreased.
Therefore, if suppliers are willing to cooperate in lowering their prices, whether Ford Motor or General Motors, they are willing to lobby the American judiciary to let these suppliers go.
I have investigated dozens of American judiciary agencies in one go, and I also know that my energy is limited, and it is impossible to understand every factory clearly.
Besides, Ford Motor and General Motors are their parents to some extent.
Now that the parents want them to let go, they are naturally willing to find a way to get down.
So although this wave of anti-monopoly investigations came suddenly, the progress was very fast.
It is normal for such an investigation to continue for several years, but this time it has been carried out for a month and it seems that the end can be seen.
Of course, these are things to come.
At this moment, Bu Defan was discussing anti-monopoly matters with Cao Yang who had just returned to China.
"Japan's parts companies have gone too far in monopolizing supply, especially for OEMs outside of Japan, and this approach is even more excessive."
"This time, GM and Ford are also deeply hurt, so they will take action against these suppliers."
"Although in China's auto market, European and American cars such as Volkswagen, GM, and Shenlong are currently selling better."
"However, both Honda and Toyota have established joint ventures in China, and there are rumors that Nissan also intends to establish a joint venture in China next year or the year after."
"At that time, the Japanese car companies and parts companies will further squeeze the living space of European and American brands."
"Taking advantage of this opportunity, it is absolutely possible to allow more excellent local suppliers from Huaxia to enter Volkswagen's supply system."
"Let the Volkswagen headquarters unite with other car series to push the EU to do something in the anti-monopoly of auto parts."
"In this way, whether it is the price reduction task of the Volkswagen Headquarters Purchasing Center, or the annual price reduction of the Shanghai Volkswagen Purchasing Department, it will become much easier."
For Bu Defan to take the initiative to propose anti-monopoly within Volkswagen, it is natural to make the other party fully aware of the benefits of this matter to Volkswagen.
Otherwise, why do people bother?
Cao Yang, who has already had successful experience in General Motors and Ford Motors, can naturally find many high-sounding reasons to convince Bu Defan.
"Cao, you just came back from the United States. You should have heard that General Motors and Ford Motors took advantage of the antitrust opportunity to find suppliers to cut prices. I don't know how effective it is?"
Bu Defan did not directly agree with Cao Yang's proposal.
But he asked this, which showed that his heart was already a little moved.
"It's going very well!"
"I heard that NTN has cooperated with the price reduction by 10%."
"Lenny's wiring harnesses are also down."
"Although some other suppliers may not necessarily cut prices by 10%, 5% is certainly no problem."
"Even after the news broke, Ford's stock price went up a few points."
When Cao Yang said this, Bu Defan was completely moved.
The price reduction pressure of Modu Volkswagen is not very great.
After all, in 2001, China's auto market was far from fiercely competitive.
As long as the car is built, even a product that is several years behind the international market can be sold at a high price.
Even for the so-called products of the same generation as those in the international market, it is very common to reduce the allocation, which does not affect sales at all.
Therefore, Bu Defan's price reduction pressure in recent years is really not great.
If we really want to talk about pressure, that is, the pressure of increasing the localization rate under Huaxia's special policy is a little bit.
However, there is not much pressure from Shanghai Volkswagen to reduce prices, which does not mean that there is no pressure from Volkswagen headquarters.
Volkswagen has surpassed DaimlerChrysler to become the fourth largest car company in the global auto industry.
However, the gap with the third-ranked Toyota Motor has not only not narrowed, but has become larger.
This is true both in terms of sales and profits.
"Cao, I will report your proposal to the headquarters properly."
"I heard that in the US antitrust investigation case, some of the evidence submitted by NTN is also related to Huaxia."
"I don't know if you have any clues in your hand that you can give me?"
Bu Defan is not stupid.
There must be a purpose for Cao Yang to be so active and considerate of Volkswagen.
We have not known each other for a day or two.
Bu Defan was willing to hear what benefits Cao Yang wanted to gain.
"Don't tell me, we at Nanshan have indeed obtained some information, which may be of some help to you."
"This part of the evidence is somewhat similar to what NTN submitted to the American judiciary, that is, SKF united with several bearing manufacturers to deal with Shanghai Volkswagen, Shanghai General Motors and Shenlong Automobile."
"They even cooperated with bearing manufacturers and machine tool manufacturers to deliberately raise the price of machine tools sold to Nanshan Technology Co., Ltd."
"This kind of behavior of abusing one's own market monopoly position must not be tolerated."
"Otherwise they, Party B, will climb to the head of Party A in the future."
Hearing Cao Yang mention SKF, Bu Defan immediately understood many things.
During this period of time, Bu Defan was very clear about the grievances between SKF and Nanshan Bearing.
In order to suppress Nanshan, SKF has also adopted many means.
He didn't like some of the methods.
For example, SKF and Modu Automobile have established a joint venture bearing factory, and they want to get orders directly through Huaxia's shareholder relationship.
This approach, to a certain extent, is detrimental to the interests of Volkswagen.
Now that Cao Yang took the initiative to give himself a weapon against SKF and other parts giants, Bu Defan had no reason to refuse.
"You are right. Volkswagen cannot allow something like this to exist."
"Don't worry, I believe that the headquarters will push the EU to start an anti-monopoly investigation in the field of auto parts as soon as possible."
"Especially in the field of bearings, more attention should be paid."
Not only GM and Ford know about this, but also Bu Defan.
They are all to be attacked anyway, it doesn't matter who is attacked first and who is attacked later.
That being the case, then sell Cao Yang a favor.
After all, the relationship between OEMs and parts companies is not so simple as that between Party A and Party B.
Sometimes, OEMs also have requirements from suppliers.
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