Rebirth 99 to become a car giant

Self-owned brand car companies are the focus of Nanshan Group's domestic strategy.

But it does not mean that Nanshan Group does not pay attention to international auto giants.

In fact, the largest customers of Nanshan Group are Ford Motor and General Motors, and they are the main contributors to Nanshan's profits.

Although the contribution of Volkswagen still lags behind that of Ford and GM, its sales are actually higher than most of the domestic independent brands.

After all, they are global suppliers, and they can contribute hundreds of thousands of gearboxes casually.

Besides, in addition to the gearbox, there are other parts such as hub bearings and nut plates.

Therefore, Nanshan Group attaches great importance to the trend of Volkswagen.

After Zeng Tingting hung up Xu Liang's call, she immediately went to report to Cao Yang.

"According to your statement, Volkswagen has hated us?"

Cao Yang was not particularly surprised.

Although this ending was not what he wanted to see, it was not that he was not mentally prepared.

The most important thing is that although Volkswagen has this action, it is hard to say what it will look like in the end.

Just like the nut plate, after leaving Nanshan Group, can they find a cheaper manufacturer?

At least in Germany it is absolutely impossible to find.

In China, Nanshan Group currently has no rivals.

Other hub bearings and the like also have some similar situations.

So although this action will definitely lead to a decline in the turnover of Nanshan Group in Volkswagen, the decline may not be very large.

"In addition to the Chuncheng public, I also asked the Shanghai public, and a similar situation happened."

"This shows that Volkswagen is taking action, not Chuncheng Automobile Group or Modu Automobile Group."

"Mr. Cao, I don't think we can sit still on this matter, we have to think of a way."

Zeng Tingting is not someone who is easy to compromise.

Even if there are difficulties, we must face them head on.

"Look at their actions first."

"If they want to switch our parts to other manufacturers on mass-produced models, then we have to think about whether there is any way to check and balance."

"You have to keep an eye on the orders of each month to see if there is a sudden drop."

"If there's no movement on the production model, it means they're going to do something on the new model."

"When the time comes to quote, you can properly lower the price on the previous basis."

"As long as there is still money to be made, these projects can be robbed."

"At that time, even if other manufacturers use our price to review, they will not be able to do so."

"In this way, there will probably be different opinions on the practice of de-Nanshanization from the people of Shanghai Magic Capital and the people of Spring City."

Cao Yang quickly gave some directional suggestions.

The purchase of auto parts is different from the general purchase of materials. It is not something that you can cut off a certain supplier today, and it will be realized tomorrow.

Not to mention that the change of component manufacturers involves some technical verification and internal company processes. Whether this extreme change will cause supply issues is worth thinking about for OEMs.

"Well, I will also keep in touch with the procurement of North and South Volkswagen to see if there is any new news from them."

Seeing that Cao Yang wasn't panicking at all, Zeng Tingting felt more confident.

Don't put this matter in her hands, just follow up in time.

...

"President, the procurement of Volkswagen has contacted us on its own initiative, asking us to re-quote the price of the 6AT automatic transmission, it seems to give us another chance."

Aisin Seiki, the head of the sales department, Okumura, was very excited to report the latest news to the president, Hisato Yoshikawa.

In the past two years, due to the emergence of Nanshan gearboxes, Aisin's gearboxes have lost a large number of orders from various auto giants around the world.

Today, apart from Toyota, Subaru, Suzuki, Isuzu and other Dongying car companies that still use Aisin gearboxes in large quantities, other OEMs only use Aisin products for some models.

This alone will cost Aisin at least several hundred million yuan in profits every year.

It can be said that if anyone in this world hates Nanshan gearbox the most, Aisin dares to say the second, and absolutely no one dares to say the first.

Neither does ZF.

"Isn't Volkswagen's gearbox partially purchased from ZF, partially purchased from Nanshan, and partially produced by itself?"

"They have almost kicked us out of their supply system in the past two years?"

Hisato Yoshikawa naturally has a good understanding of the situation of major customers.

In particular, the development momentum of Volkswagen in the past two years is also good.

"Yes, because of this, the inquiry this time is even more different."

"I specifically asked someone to inquire about it. I heard that Nanshan Gearbox did it on its own and offended Volkswagen."

As the head of the sales department of Aisin headquarters, Okumura is already considered a top executive of the company.

Naturally, things will not be so unstable.

So before reporting to Hisato Yoshikawa, he had already found out the general situation.

"How could Nanshan gearbox do something to offend Volkswagen?"

"Isn't this a bit unusual?"

No matter how powerful the supplier is, under normal circumstances, they will not easily offend customers.

Even the sales staff of Bosch, Continental and Denso, the international auto parts giants, adhere to this spirit to deal with various customers.

"It's not that the people from Nanshan Transmission want to offend Volkswagen, but that Nanshan Group now wants to produce both auto parts and cars."

"A company called Xingchen Automobile was established under its banner, and it is actually planning to build a high-end brand belonging to China."

"In a few years, the Olympic Games will be held in the imperial capital, and Xingchen Motors has set its sights on sponsoring the Olympic Games."

"But Volkswagen is also bound to win, and their partners in China are also very influential."

"But in the end, for some unknown reason, part of the identity of this sponsor was taken away by Xingchen Automobile."

"As a result, Volkswagen is naturally very annoyed."

"They took the initiative to ask us about the 6AT, obviously they are considering us to replace Nanshan's 6AT."

"So I plan to offer Volkswagen this time, and offer our most competitive price."

"We can even remove some development costs and sharing costs of plant equipment, and strive to achieve the same level as Nanshan Transmission."

Okumura also knows that after Volkswagen does this, if Aisin's quotation is still much more expensive than Nanshan, he will not have much chance.

So he still attaches great importance to this offer.

He wanted to take back the order that once belonged to him from Nanshan.

"If you act like you, then we won't make any money, at most we won't lose money."

Yoshikawa Hisato was a little confused.

As the president of Aisin, he needs to consider the company's profitability.

Otherwise, there is no way to explain to shareholders.

"As long as we don't lose money and we can make our production plants work, we are already making money."

"The most important thing is that we want Volkswagen to make up its mind to replace the Nanshan gearbox, so that there will be more opportunities for cooperation in the future."

After Okumura said this, Yoshikawa didn't struggle anymore.

The truth is indeed this truth.

...

"Old Liu, I just got a piece of news that I think is useful to you."

Zhang Sheng from Jier Machine Tool Factory is an old acquaintance with Liu Yanjie, head of the Purchasing Department of Changan Automobile.

Yesterday, when Zhang Sheng went to Spring City Volkswagen to discuss the bidding for the stamping production line of the new factory, he overheard a piece of news.

After a little inquiring, I found that the news seemed to be true.

He immediately wondered if there was something he could do.

Although Nanshan Equipment and Jier Machine Tool Factory are competitors to a certain extent, they are partners more often.

Now that Nanshan Group is developing so well, Zhang Sheng is also thinking about building a good relationship with the other party.

"Old Zhang, have you heard anything good about 'inquiry'?"

Liu Yanjie replied weakly.

For Changan Automobile, the life in 2005 was not so easy.

They are far less beautiful than Great Wall Motor or Geely, Chery, or BYD.

As the exhibitor of the procurement department, Liu Yanjie can be regarded as the middle and senior management of the company, so he can naturally feel a little pressure.

"Didn't you envy Great Wall and BYD's development speed when I had a drink with you last time?"

"At that time, you were still thinking about how to form a closer cooperative relationship with Nanshan Group, and see if you can gain some light."

"It would be best if Mr. Cao is willing to give you some advice."

"Now there is an opportunity in front of you, it depends on whether you are interested or not."

Zhang Sheng understood Liu Yanjie's current situation very well.

So it didn't go too far in circles.

"what chance?"

Liu Yanjie straightened himself up, and immediately became interested, "I still have a bottle of Moutai from 1982 at home. If what you said is useful, I will drink it next time."

"I don't know if it will work, but I think it's definitely an opportunity."

"It is estimated that you will hear some rumors about this matter sooner or later, but you can only get people's favor if you express your position early."

When Zhang Sheng said this, Liu Yanjie was a little confused.

He could guess that what Zhang Sheng said must have something to do with Nanshan Group.

But Nanshan Group is living a happy life now, right?

Why did Zhang Sheng's tone sound like something else was hidden?

"Old Zhang, what is the relationship between us?"

"You don't have to keep it up."

"Say it directly, I'm going to die in a hurry."

Liu Yanjie was really a little anxious.

"It's like this. Star Motors and Volkswagen have both become sponsors of the 2008 Olympic Games. You should know about this, right?"

Zhang Sheng did not continue to play tricks.

Liu Yanjie was obviously a little anxious.

"This news has been circulating on the Internet for several days, so I naturally know about it."

"But what does this matter have to do with what you said?"

Liu Yanjie didn't think too much, and didn't know the story behind these two things.

"Normally, there will only be one sponsor in each category for the Olympic Games."

"Like beverages, there will be no Coca-Cola after Pepsi."

"Like clothing, with Adidas, there is no such thing as Nike."

"Similarly, like cars, with Volkswagen, there is no such thing as other brand car companies."

"But this time, Xingchen Motors snatched a piece of fat out of Volkswagen's mouth abruptly."

"This not only really harms the interests of Volkswagen, but also makes the other party very shameless."

"In this case, do you think Volkswagen will not move at all?"

When Zhang Sheng said this, Liu Yanjie realized it.

But he still didn't understand what this matter had to do with the development of Chang'an Automobile.

"I heard that Modu Volkswagen and Spring City Volkswagen have issued internal instructions to stop using parts from Nanshan Group as much as possible in the future."

"Not only is Volkswagen's domestic joint venture taking this action, it is said that Volkswagen headquarters is also making some targeted actions."

"In this way, it means that Nanshan Group is likely to lose such an important customer as Volkswagen."

"Although Volkswagen is not the largest customer of Nanshan Group, it is also a very important customer."

"This change must have some impact on the development of Nanshan Group."

"If Chang'an Automobile turns to Nanshan Group in an all-round way at this time and uses their parts on a large scale, then it will definitely get strong support from Nanshan Group."

"As far as I know, for the H6 of Great Wall Motors, Mr. Cao from Nanshan helped to make many suggestions."

"Even some development strategies of Great Wall Motors have Mr. Cao's suggestions in them."

"Similarly, let alone the situation of BYD Auto, you must have heard some news."

"This is a car company that cooperates most closely with Nanshan Group, and you have seen it in the end."

"From what I have learned so far, as long as the domestic self-owned brand car companies cooperate closely with Nanshan, the development in the past two years has been very good."

"If a few months ago, Changan Automobile expressed its intention to cooperate with Nanshan Group in an all-round way, it is estimated that people's reaction would be like that."

"But at this time, the situation is different. The other party will definitely look up to you."

Zhang Sheng spoke so clearly, Liu Yanjie naturally understood now.

"Before we used some parts in the system or related manufacturers, we did not dare to use Nanshan parts too much."

"However, judging from various parameters, the suppliers we use now are indeed inferior to Nanshan in many places."

"I'll report to the general manager in charge of purchasing right away, and then see if I can get the company's consent to cooperate with Nanshan Group in all aspects."

"Then let's see if we can ask Mr. Cao to check the pulse of Chang'an Automobile and give us some advice."

There are so many successful role models out there, Liu Yanjie is also very motivated this time.

After talking on the phone with Zhang Sheng, he arranged for someone to quickly sort out a report, and then went to the company leader to report in person.

Seeing that the life of colleagues in the same industry is very nourishing, the leaders of Changan Automobile naturally hope to keep up with the pace of development.

Otherwise, simply relying on Changan Ford to make money is definitely not a long-term solution.

In this way, Liu Yanjie's proposal was naturally agreed by the company's deputy general manager Zhang Lin and general manager Yi Jia.

Soon, the group of them flew directly to Yangcheng and had a direct meeting with Cao Yang.

"Mr. Yi, Changan Automobile is firmly the king of mini-cars this year. This year's sales should have increased a lot compared to last year, right?"

Although more than ten years later, Changan Automobile's sedan and SUV businesses have developed very well, but in 2005, Changan Automobile only sold miniature cars such as vans.

Even in terms of sales, the total sales of Changan Automobile are higher than those of Chery, Geely, Great Wall and BYD.

But as a mini car, the sense of presence is still very weak.

When you talk about China's own auto brands, you mention Chery and Geely more often than Changan Automobile.

"Although the sales of microcars are good, they hardly make any money."

"It's ashamed to say that the sales of the entire Changan Automobile Group have increased this year, but the revenue has dropped significantly."

"I am also very anxious about this situation."

Since Yi Jia was going to come over to discuss cooperation with Nanshan Group, she naturally wouldn't hide it.

Otherwise, you will definitely not get any good advice.

"I heard that Great Wall Motor's revenue this year is the best among domestic independent brand car companies. The main reason is that the sales of their H6 models are very hot."

"The sales of an H6 is three or four times that of our mini-car, and the profit gap is even bigger."

"Mr. Cao, I heard that Great Wall Motors is transforming into the SUV market. Did you suggest it?"

Zhang Lin, the deputy general manager, also interjected.

As an automobile group under Bingzhuang, Changan Automobile was established to make money.

Then is the development and growth of China's auto industry.

Today, car sales continue to rise, but profits continue to decline.

Even if it wasn't for Changan Ford and Changan Suzuki to contribute some profits, microcars alone would not make money at all.

This situation is definitely not what they want to see.

It is no wonder that Liu Yanjie, head of the purchasing department, is under a lot of pressure.

Good sales, but no money.

Isn't this the fault of the purchasing department?

But in fact, this kind of thing must not be viewed simply in this way.

"I did chat with Mr. Wang about his views on the future development of the auto industry, and I also gave them some suggestions."

"However, in the end, the development strategy of Great Wall Motors is still their own internal decision."

At this time, Cao Yang naturally wanted to be humble.

Otherwise, if it gets out, Great Wall Motors will probably be unhappy.

"Our Changan Automobile basically only has the mini-car business now, and there are almost no achievements in the business of other cars and SUVs."

"In this case, does Mr. Cao have any suggestions?"

This time, Yi Jia really wanted to come to learn from the scriptures.

So keep your posture low.

Since he also mentioned how to strengthen the cooperation between the two parties in the parts business, Cao Yang is naturally very active and willing to give Changan Automobile some ideas.

After all, although Changan Automobile's current sales are not bad, they are almost all mini cars.

In this case, if they want to develop cars and SUVs, there will be more intersections with Nanshan Group.

Is the engine for sale?

Is the gearbox for sale?

Is it possible to sell the ESP that is completely unused on the micro car?

Anyway, Nanshan Group does not intend to make cars of the level of more than 100,000 yuan, so it is very meaningful to support some OEMs that are willing to use a large number of parts from Nanshan Group.

"The current passenger car market, whether in China or the world, is mostly dominated by cars."

"Even in many places in China, it is believed that a car with a head and a butt is a real car."

"But I think the wind direction is actually changing."

Similar words, Cao Yang has also said to people from Great Wall Motors and other car companies before.

Naturally, many reasons can be found casually in the communication with Changan Automobile this time.

"The several medium-sized SUVs that are selling well in the market now have great potential for development."

"Changan Automobile wants to shift from a situation dominated by mini-cars to a variety of models going hand in hand."

"I think SUV is the best development direction."

"Of course, if you feel that the competition for medium-sized SUVs is already fierce, you can directly start with medium-sized and large-sized SUVs."

"Develop a 7-seater medium-to-large SUV, and then launch medium-sized SUVs and small SUVs after success. There are three SUVs. It is estimated that it can contribute hundreds of thousands, or even 200,000 to 300,000 sales to Changan Automobile a year."

"Of course, the car business is not impossible at all, but I don't think there are too many car models."

"First make a good mid-level car, like the size of Mondeo, but make the price less than 100,000, and even start at 60,000 to 70,000 for the entry-level version."

"Then maybe the car can catch fire."

"As long as these models are successfully developed, there will be many ways for Changan Automobile to develop in the future."

"Basically, this is enough for you to be busy for the next three years."

While Cao Yang was talking, Yi Jia was recording in his notebook, obviously listening to everything.

"Mr. Cao, is the SUV market really that big?"

Zhang Lin next to him didn't intend to question Cao Yang, but the strategy of obviously favoring SUVs was a bit unbelievable in 2005.

"Mr. Yi, Mr. Zhang, for consumers and OEMs, SUVs have several advantages that sedans cannot match."

"First of all, SUVs have a better view and are less likely to be blocked by vehicles in front."

"Then the road conditions in our Huaxia are more complicated. Even in big cities, there are some bad roads with potholes."

"In this case, SUVs have a clear advantage over sedans."

"Then there are SUV models of the same level, which can be sold at a higher price than sedans. This is very important for domestic independent brand car companies."

"As we all know, now self-owned brands mainly rely on price advantages to win, otherwise consumers will all buy products of the same size from joint venture car companies."

"But to win by price means that the cost of various components must be made very low, and the profit margin is very limited."

"Compared with a sedan, the cost of an SUV of the same level has a very limited increase."

"However, the price can be as high as 10,000 to 20,000 yuan, which leaves enough profit margins for car companies."

"A company can only have a future if it can continue to make money."

When Cao Yang said this, both Yi Jia and Zhang Lin couldn't help but nodded.

The current dilemma of Changan Automobile is that it does not make much money.

In particular, the self-owned brand business seems to be very beautiful, but in fact only they themselves know it.

"Mr. Cao, if these new models of ours use a large number of components from Nanshan Group, can we give you a special discount?"