Rebirth 99 to become a car giant

Chapter 539: Master joins, Xingchen Automobile’s strength further increases

Xingchen Motors originally had an F1 racing project team.

Now that the acquisition of the BMW team has been officially completed, relevant personnel immediately made connections.

All work is being carried out in an orderly manner.

However, the impact of this incident on China did not subside so quickly.

Yangcheng City, as the city where Xingchen Racing Team, the first F1 team in China, is located, naturally has some ideas.

Liu Tianwu, who had just been promoted to acting mayor of Yangcheng City, definitely did not want to miss this opportunity.

"Leader, I have inquired about it. The investment in the Magic City F1 track has reached 2.5 billion yuan. In addition to formal competitions, it can be opened to general individuals and companies for test drives or test use."

"But overall, there should be a relatively large gap between the input and output of this track."

“Thinking purely from the perspective of return on investment, it may not be particularly cost-effective.”

Luo Yi knew what Liu Tianwu was thinking, and he also wanted to make a report that was in line with Liu Tianwu's wishes.

But facts are facts, and he doesn’t want to make up statistics.

It is very difficult for China now to invest in building an F1 track without losing money.

Of course, considering the hidden benefits brought by the F1 track and its effects on promoting tourism development, the situation may be slightly better.

But these things are difficult to quantify.

After all, even if people come to watch an F1 race, it does not necessarily mean that they will not come to travel when there is no F track.

"There are still many places in the east and north of Yangcheng where there is a large amount of land that can be used flexibly."

"There is a big gap between the economic development of these places and the Sixth Central District and Panyu."

"If investing in an F1 track can boost local economic development, then the investment will be valuable."

"The most important thing is that Xingchen Automobile has great potential and will definitely continue to grow and develop in the future."

"Then Xingchen Team also needs an F1 track of its own, otherwise they may put the team in the Magic City by then."

"This is not good news for us in Yangcheng."

When Liu Tianwu said this, Luo Yi had no way to refute.

After all, sometimes when looking at an investment, we cannot simply look at the return on investment, but need to combine it with other things.

Just like the subway, if you simply look at the investment and return rate of the subway, then there is no need to build the subway.

There are few subway companies in the world that can make profits without relying on subsidies.

But everyone is still actively building subways. The reason is that while the construction of subways can solve travel problems, it can also increase surrounding land prices.

This allows the city to gain overall benefits.

"Then let me check with Xingchen Automobile first to see what they think of the construction of this F1 track?"

Luo Yi asked tentatively.

"No, I'll call Mr. Cao directly when the time comes."

Liu Tianwu has been busy with his new position during this period and has not visited Nanshan Group for a while.

It just so happens that I have such a good reason now and my new attitude after fulfilling it, it is necessary to go to Nanshan Group for a visit.

As for the enthusiasm in Yangcheng City, Cao Yang also had a headache.

"Mr. Cao, I think Yangcheng City is willing to fund the construction of an F1 track. We have no reason to object."

"The best we can do is communicate with the FIA ​​and arrange more events to be held in Guangzhou."

"Then we can also consider organizing some domestic events with the China Automobile Association to promote the sport of car racing."

"In addition, this track can also be fully utilized by cooperating with the wind tunnel laboratory of Lingnan University of Technology."

"In this way, although it is difficult to fully recover the investment in Yangcheng City, it will not suffer any losses."

"If you take into account the role of this track in promoting tourism and consolidating the status of Yangcheng Automobile City, then it may still be a very meaningful investment project."

Rao Yongxiang didn't think so much.

In his opinion, Yangcheng City is willing to spend money to build an F1 track, and he has no reason to object.

As for why Yangcheng City acted like this, he actually didn't want to worry about it that much.

"That's what I said, but the company has now begun to consider the construction of the second factory of Xingchen Automobile."

"I haven't thought clearly about whether to put the new factory in Yangcheng."

"At this time, Yangcheng City proactively proposed to build an F1 track. If our new factory is not located in Yangcheng by then, it would be a bit unreasonable."

Most car companies will not build factories in just one city.

This is not just a matter of not putting eggs in one basket, but also involves various considerations such as logistics and distribution.

Just like Chuncheng Volkswagen, its base is in Chuncheng, but now it is preparing to build a new factory in Shudu, and in the future it is also planning to build a new factory in Lingnan Province.

There are factories all over the country, so when dispatching cars to 4S stores, the flexibility is much higher.

Even the transportation fees for some models can become cheaper.

The most important thing is that from the perspective of supply stability, if the products are concentrated in one city, the probability of all production halting when something goes wrong is very high.

"Mr. Cao, actually I think it can be considered this way."

Rao Yongxiang thought about it and put forward his own suggestion.

"The base of Xingchen Motors is in Yangcheng. In the future, the second factory and even the third factory will be located in Yangcheng."

"But we don't have to build all of them in Panyu and go to other districts to build new factories. This can also play a competitive role to a certain extent."

"Other than that, Jaguar Land Rover's factories will be placed elsewhere in the future."

"After the Modu factory is put into operation at the end of this year, based on Jaguar Land Rover's current sales growth, it is estimated that it will be necessary to consider the construction of a new factory within two years."

"At that time, the new factory will continue to be located in the Magic City, or it will be located in other cities."

"Furthermore, the first factory of our future cars will be located in Yangcheng, and the second factory can be located elsewhere in the future."

"In this way, our automobile OEMs have achieved multi-location deployment and have developed simultaneously across the country."

Nanshan Group has more cards in its hands, and often has many more choices.

Just like Rao Yongxiang said, in addition to Xingchen Motors, the group also has Jaguar Land Rover and Future Motors.

Even Nanshan Hongqi’s new factory in the future may be considered to be located in Lingnan Province.

In this way, one south and one north can be regarded as a better layout.

After hearing what Rao Yongxiang said, Cao Yang no longer struggled.

If Yangcheng City is willing to build an F1 track, then let’s build it.

For Nanshan Group, this is not a bad thing.

It can even be said that this is definitely a good thing.

However, as soon as the news spread that Yangcheng City was going to build an F1 track, Modu and Zhucheng became a little anxious.

As the previous window of contact between Modu and Nanshan Group, Wang Huiliang, who was already the deputy general manager of Modu Automobile Group, immediately received a task.

That is to review whether Modu Automobile Group can also enter F1.

This made Wang Huiliang very worried.

Although it has two profitable companies, Modu Volkswagen and Modu General Motors, Modu Auto Group is not short of money.

Buying an F1 team is also affordable.

But if you can afford it, you can’t support it, and if you can afford it, you can’t achieve results.

Wang Huiliang is very clear about this situation.

However, it would take a lot of effort to explain clearly to the leaders in the end.

Of course, this is not something Cao Yang and the others need to worry about.

On the contrary, at this moment, the Star Racing Team is receiving a group of unexpected visitors.

"Mr. Dong, are you, Weichai Power, willing to pay RMB 100 million to become the global partner of Star Racing Team?"

The visit by Dong Chunlin, the general manager of Weichai Power, and his delegation was originally a rather strange thing.

After all, Nanshan Engine can be regarded as a competitor of Weichai Power.

Even Nanshan Engine's entry into the diesel engine market has put tremendous pressure on Weichai Power.

Fortunately, the diesel engines produced by Nanshan Engine are all large-displacement high-end engines, and they have not directly made other domestic diesel engine manufacturers unable to survive.

Nanshan Engine has no intention of going it alone.

Especially in the field of diesel engines, it is even more special. You will not end well if you are alone.

"Yes, Weichai Power is willing to cooperate with the F1 team and promote itself as a title."

"Similar situations have happened to Patriot and Lenovo before."

"Patriot and McLaren became 'partners' in 2007. Since then, Patriot has held two F1-related events in China, but it is obvious that they do not know how to use the F1 platform to establish a new promotion concept."

"The McLaren team's outstanding record has caused the 'AIGO' logo to be frequently exposed on the TV screen."

"I think Weichai Power can definitely do better if it has such an opportunity."

Dong Chunlin is quite bold.

He actually chose to cooperate with Xingchen Racing Team.

However, if Weichai Power wants to enter the advertising sponsorship business of F1 teams, it will definitely be easiest to find Xingchen Motors.

Otherwise, it would take a lot of effort to find contact information for those foreign teams. Whether the negotiation can be concluded in the end is also a big problem.

The most important thing is that even if the negotiation is successful, the price will not be low.

Some media broke the news that the sponsorship fee of two Chinese companies for the F1 team was US$19 million for Patriot and US$30 million for Lenovo.

The sponsorship of both companies was from 2007 to 2009.

It can be said that the price is not low at all.

Of course, Weichai Power’s bid this time is not low.

100 million yuan only covers the advertising sponsorship business for the 2010 and 2011 seasons.

This is very sincere.

After all, in addition to accepting the sponsorship business from Weichai Power, Star Racing Team can also have other sponsors.

When the time comes, we can find a few more sponsors and earn hundreds of millions in revenue.

Of course, compared with the annual expenditure of more than one billion, the income of several hundred million seems completely insufficient.

"Mr. Dong has a good vision. As the first team in China to compete in F1, our Xingchen Racing Team will definitely attract a lot of attention in China regardless of our results."

"Weichai Power's publicity effect will definitely be much better than that of Patriot and Lenovo."

Cao Yang quickly weighed the pros and cons while talking to Dong Chunlin.

Weichai Power is unlikely to pose any great threat to Nanshan Group.

There may even be opportunities for cooperation between the two parties to a certain extent.

For example, Nanshan Auto Parts provides Weichai Power with high-pressure oil pumps, high-pressure oil rails and other diesel engine parts.

This is entirely possible.

On the contrary, if Weichai Power refuses the olive branch extended by the other party and refuses to give up, it will definitely continue to negotiate cooperation with the F1 team.

Historically, they also cooperated with Ferrari in 2013.

It shows that the other party is very enthusiastic about sponsoring F1 events.

You, Xingchen Motors, are not the only choice, but relatively speaking, Xingchen Racing Team is a better choice.

After thinking about this, Cao Yang made a decision in his mind.

"The main thing is that Mr. Cao has a good vision. When other teams are starting to launch F1, you buck the trend. When the time comes, Xingchen Motors and even the entire Nanshan Group will benefit greatly from it."

"Even China's domestic F1 events in the future will revolve around the Xingchen Racing Team."

As the two were chatting, they couldn't help but start exchanging business blows.

Fortunately, this scene did not last long, and Cao Yang relaxed and said: "Our Xingchen Racing Team is an open fleet and supports any domestic company to go global."

"In principle, I agree with this cooperation. The details can be communicated by the people below."

Hearing Cao Yang's words, Dong Chunlin breathed a sigh of relief.

To be honest, he didn't have high expectations before coming here.

Therefore, when giving the price, he directly stated the highest price he could accept.

Because he was worried that he would lose the opportunity directly.

From the final result, the situation is still very good.

This start of Weichai Power seems to have opened a lucky door for Xingchen Motors.

The next afternoon, Cao Yang unexpectedly received a call from Lai Ping.

The first thing the other party said to Cao Yang was: "Mr. Cao, do Xingchen Motors still need to recruit people?"

Upon hearing this, Cao Yang thought that Lai Ping was going to recommend some talent to him, so naturally he said without any hesitation: "Need it!"

However, Lai Ping's answer surprised Cao Yang, "Mr. Cao, then I will recommend myself. You won't dislike my age, right?"

As one of the top car design masters among the Chinese, Cao Yang wanted to recruit Lai Ping for a long time.

However, the other party had a deep relationship with Porsche and never let go.

Unexpectedly, this time he actually took the initiative to switch jobs to Xingchen Automobile. I have to say that Cao Yang was still surprised.

Of course, it’s definitely not appropriate to ask too many questions on the phone about why you want to change jobs.

On the contrary, Cao Yang made more promises to Lai Ping such as salary, salary and position.

Chief designer of Xingchen Auto and chief designer of future cars!

Cao Yang can finally hand over this position!

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