Rebirth 99 to become a car giant

The hot scene of the auto market in 2009 was not known until January 1st.

So in December, the China Automobile Association arranged to hold an automobile industry conference on January 4 to discuss future development.

Big bosses from various car companies, especially the heads of various automobile groups and independent brands, will participate.

Leaders of ministries and commissions and relevant associations also participated. It can be regarded as the largest event in the Chinese automobile industry in recent years.

Cao Yang naturally wanted to attend this kind of meeting.

Of course, because there were so many leaders participating, the location had to be chosen as the imperial capital first.

Cao Yang arrived at the Imperial Capital first on the afternoon of January 3, and Mr. Wang of Great Wall Motors invited him to have dinner with him that evening.

"Mr. Cao, congratulations. Xingchen Motors has firmly ranked first in terms of business scale this year. It is estimated that no other car company will be able to surpass you in the future."

When the two met, it was natural for them to engage in a business exchange.

Whether it is Great Wall Motors or Xingchen Motors, their performance last year was very impressive, so there is no need to brag about it.

"Great Wall Motors achieved sales of 468,000 and successfully entered the TOP10 rankings. It is also gratifying and congratulatory."

"Although there are no complete statistics, the sales volume last year should be around 14 million. This is a grand event for our entire automobile industry."

"Tomorrow's meeting is expected to be very lively."

Great Wall Motor's gearboxes are all purchased from Nanshan Transmission. Some of the engines are produced using technology authorized by Nanshan Engine, and some are purchased directly from Nanshan Engine.

Many of the remaining body parts were purchased from Nanshan Auto Parts.

Cao Yang also wanted to have a better relationship with the general manager of such a large customer.

After all, the future development and growth of Nanshan Group's auto parts business will still depend on independent brand car companies.

Different from the same period in history, independent brands now have such a scale, with a market share of more than 40%. In the future, they will further expand and surpass the performance of joint venture car companies. It is also just around the corner.

"To be honest, our original target of 500,000 was still almost not reached."

"The main reason is that the goal of the export business is a bit different from what we thought."

"But I see that Xingchen Automobile's overseas business development has been very stable. Mr. Cao, please teach us your experience."

Great Wall Motors is one of the domestic car companies that began to take the export route relatively early. Their pickup trucks and SUV models still have certain markets overseas.

However, due to the impact of the financial crisis last year, the entire overseas market was not very prosperous.

It is not surprising that Great Wall Motors failed to achieve its export goals.

However, Wang Ying definitely does not want to give up the export market and wants to expand it.

In the future, if exports can be the same as Xingchen Motors and achieve the same level as the domestic market, then Great Wall Motors can definitely hit the number one position in the TOP10.

"Great Wall Motor's advantageous products are pickup trucks and SUVs, especially pickup trucks. Although they are limited in the domestic market, they are very popular overseas."

“However, many overseas markets often have higher requirements for power performance.”

"But at present, your pickup trucks only have 2.0T engines at most. In the future, you can consider using 3.0T engines or even higher-displacement products."

"On the contrary, some configurations in other aspects can be appropriately reduced based on the sales market."

"This can prevent the total price from being too high, causing many consumers to want to buy but cannot afford it."

"In addition, market selection is also very important."

"If we regard the U.S. market as our main market, it will probably be very challenging to succeed."

"But in places like South America, Africa and our neighbors to the north, the situation is different."

"Creating one or two classic products, and then launching various derivatives based on the needs of various places, may have unexpected effects."

Great Wall Motors' overseas development will not have any negative impact on Xingchen Motors.

Even if China's independent brands go abroad together, it can enhance the overall influence of China's independent brands, allowing Xingchen Motors to enjoy some benefits.

So feeling that Wang Ying sincerely wanted to communicate, Cao Yang didn't hide anything.

"Now we are struggling with how to expand the local market, whether to form our own sales team or cooperate with local dealers."

"Both options have their own benefits."

Wang Ying also brought up the actual problems he encountered.

If you are not familiar with the place, it will definitely be more challenging to engage in marketing.

Especially since there are so many overseas countries, the situation in each market is different.

"I don't think these two plans are actually contradictory. For example, in some relatively large markets, the two plans can be implemented together in the early stage, and then gradually develop into Great Wall Motor's own implementation."

"But some smaller countries can consider finding a local dealer to cooperate with and give them more benefits at the beginning so that they can expand the market."

"It will be fine if we can eventually increase our sales."

"Of course, for sales staff who are arranged to expand overseas markets, I suggest that the incentives should be different from those in China."

“Even incentives in different countries need to be separated.”

"Selling one more car will give the sales team a certain amount of bonus. Set the rules in advance so that everyone can be motivated."

"If these overseas salespeople can earn an annual salary of 700,000 to 800,000 yuan a year, or even more than 1 million yuan through hard work, then everyone's enthusiasm will definitely increase."

"Slowly, Great Wall Motors started to expand its overseas markets internally."

Cao Yang felt that it would be impossible to let sales staff go overseas to expand markets without providing them with meat.

In particular, the public security situation in some countries is not that good. If the salary is still similar to that in China at this time, then no one will be willing to go.

Even if he went there, he probably wouldn't put much thought into selling the car.

It is better to learn from Warwick's policy. As long as there are achievements, the rewards are not ambiguous at all.

Then, everyone will naturally work hard for their own income.

"There must be brave men under heavy rewards. This method can indeed be considered. I will arrange for the International Business Department to formulate a new incentive plan when I get back."

"When the time comes, I also ask Mr. Cao for your support in purchasing large-displacement engines."

Wang Ying was very decisive and felt that what Cao Yang said made sense, and was immediately ready to implement the proposal.

As for the purchase of large-displacement engines, you must only look for Nanshan Engine.

There is no other domestic manufacturer that can provide them with better solutions.

"By the way, some places overseas have a soft spot for diesel engines. I think you should also consider whether to launch a diesel version of your pickup truck."

"At that time, you can discuss it with Cheng Tao from Nanshan Engine in detail."

New business came from eating, and Cao Yang was in a good mood.

Nanshan Group is now very large. In addition to the automobile business, it is still relatively difficult for other businesses to continue to achieve rapid growth.

It would be a great thing to be able to get more orders now based on the original ones.

After eating with Wang Ying, Cao Yang did not go back to the hotel directly.

Because I also made an appointment with another Mr. Wang for a second show.

Cao Yang's visit to the imperial capital won't be very long this time, but many people want to have a chat with him.

Tomorrow's conference will definitely have limited time, so tonight is the one many people want to make an appointment with.

First come, first served. Wang Ying from Great Wall made an appointment first, followed by Wang Fu from BYD, so Cao Yang arranged two events tonight.

"Mr. Wang, your place is quite secretive. It's actually in a small alley."

Wang Fu worked in the Imperial Capital in his early years, and he was relatively clear about the situation in the Imperial Capital.

Normally, the second event is usually at KTV.

However, a bunch of stars at Nanshan Film and Television have made numerous appointments with Cao Yang, and Cao Yang is even more unlikely to go with Wang Fu tonight.

Everyone found a teahouse that was converted into a courtyard house, and it was enough to chat while drinking tea.

Besides, secretary Mi Ying was also following her, so it was obviously not suitable for her to know that she was going to KTV.

"Mr. Wang, your complexion is getting better and better."

The first time he saw Wang Fu, Cao Yang smiled and started chatting with him.

It’s not the first day that we all got to know each other, and all kinds of cooperation are relatively close.

"I'm old, I can't compare with you, Mr. Cao."

"Now I can basically only sleep five or six hours at night. If I sleep more than that, I can't fall asleep. Even if I want to sleep in, it's difficult."

Although Wang Fu made an appointment with Cao Yang today, he must have something serious to discuss.

But when we just met, we definitely wanted to exchange greetings.

The two started from chatting and talked about the outstanding performance of China's automobile industry last year, and then slowly got to the topic.

"Mr. Cao, I think new energy vehicles definitely represent the future, but the promotion of new energy vehicles still faces many problems."

“Whether it’s the inconvenience of charging, consumers’ range anxiety, or battery safety issues, there are still many things that need further improvement in all aspects.”

"I think we can convene the heads of various independent brand car companies to have a meeting with the ministries and commissions to propose a general direction for the development of new energy vehicles."

"Although China has made great breakthroughs in powertrains due to the emergence of Nanshan Group, looking at the world, there is still a gap between us and international automobile giants."

"I think it would be very difficult for China's automobile industry to dominate the world in the era of fuel vehicles."

"But if we can promote new energy vehicles in advance and occupy the highest technological point and market, then not only can our domestic market share be further increased, but overseas markets can also be successfully expanded."

"This is very meaningful to the economic development of China as a whole."

I have to say that Wang Fu's standing is still very high.

While the boss of some car companies is still thinking about how to copy other people's best-selling cars, he has already begun to consider the future development of the entire Chinese auto industry.

Not everyone has this vision to link the development of an enterprise with the economic development of the entire country.

The most important thing is that he not only plans these things purely for the development of his company, but also fully considers the actual situation of China.

In the previous life, in 2012, the ministries and commissions convened major independent brand manufacturers to formulate a strategy for comprehensive development of new energy.

In this life, the emergence of Nanshan Group has caused the development pace of China's electric vehicle industry to be much faster than in history.

For example, Yangcheng Trumpchi's Trumpchi S has now become a phenomenal product.

The electric buses and electric buses produced by Nangoat City Commercial Vehicles are also famous.

This situation has made many people see the bright future of electric vehicles.

Wang Fu, who has always valued new energy vehicles, is no exception.

"New energy vehicles are indeed very promising, and this is recognized by everyone."

"It's just that overseas automobile giants generally feel that new energy vehicles will not be popularized quickly within ten years."

"For example, Japanese car companies are currently focusing on hybrid models. They want to make the transition through hybridization and eventually directly enter the era of hydrogen energy vehicles."

"In the United States, although both General Motors and Ford are developing electric vehicles, they are more about the accumulation of technology through trial and error."

"They have no plans for real large-scale applications."

"After all, in the American market, there is still a market for models with large-displacement engines, and it has always been the main market for General Motors and Ford."

"As for Europe, although BMW has actively started to explore electric vehicles, car companies such as Volkswagen, Mercedes-Benz, and Peugeot Citroën are still relatively slow."

"In this case, we do have a chance to overtake in corners."

"However, the development of new energy vehicles must still comply with the laws of economic development and cannot simply rely on subsidies. The company itself must be able to form profitability."

Although Nanshan Group is now also a beneficiary of the new energy vehicle subsidy policy, Cao Yang felt very emotional when he thought about the new energy vehicle market in future generations.

By 2023, the market share of electric vehicles will already be very high.

But except for a few car companies such as Tesla, most of the electric cars produced by car companies do not make money.

Even because the industry is so crowded, traditional fuel vehicles produced by various car companies have to cut prices significantly, and ultimately profits fall sharply.

Although this situation is a good thing for consumers, after all, car prices are falling and the cost of buying a car has been reduced.

But for the long-term development of the automobile industry, it is not necessarily a good thing.

After all, no one is making money anymore, and an industry will not be making money either.

The development of enterprises is for the purpose of profit.

If you don’t make any money, big problems will occur sooner or later.

Employee salary cuts, layoffs, and even business closures will occur one after another.

This situation is definitely not what China and various OEMs want to see.

This is not what Cao Yang wants to see.

"In the long run, this is indeed the case. The route that does not make money will definitely not be sustainable."

"However, in the short term, because the cost of new technology parts is too high, it will definitely be difficult to develop without policy support."

"So I think there should still be subsidies from the country, provinces and cities."

"After a few years, we can adjust the scope and requirements of subsidies and continue to urge companies to improve their technical capabilities instead of relying on subsidies to get by."

"During this period, I have also heard that some places seem to be producing new energy vehicles to defraud subsidies. This situation must be avoided."

"Otherwise, one rat droppings will spoil the whole pot of porridge. This is definitely not a situation that everyone wants to see."

Wang Fu naturally agreed with what Cao Yang said.

From Cao Yang's words, he can also feel the other party's support for the new energy development route.

If everyone has this consensus, many topics can be discussed in depth.

"Subsidy fraud must be stopped, otherwise we, the well-behaved manufacturers, will also be affected by the time."

"In addition, in some special cities, local governments can also be persuaded to take some additional incentive measures."

"For example, in Shanghai, a license plate for a fuel vehicle costs nearly RMB 100,000. If you can get a license plate for an electric vehicle for free, it will be very attractive to many people."

"There are rumors that the Imperial City will also implement purchase restrictions in the future. License plates can only be obtained by drawing lots, and the number of license plates is limited each year."

"If this purchase restriction can exempt new energy vehicles, it can also stimulate consumers to purchase new energy vehicles."

"Of course, there is another critical issue, and that is the charging issue."

"The construction of charging piles cannot be built by one company alone. There are many problems if everyone builds their own."

"So it would be best to have an industry association to unify the standards for charging ports, so that everyone can use unified charging piles for charging."

“We can even encourage local governments to invest in building some charging piles, which is most beneficial to the development of electric vehicles.”

Cao Yang's proposal made Wang Fu's eyes light up.

Unifying charging interfaces and building charging piles is of great significance to the development of electric vehicles.

And the earlier you start planning for this kind of thing, the lower the cost will be, and everyone’s objections will not be that big.

If each company later has a certain amount of stock and has its own standards, it will be difficult for you to modify it.

It’s hard to reconcile everyone’s opinions!

"Mr. Cao, I think we can jointly propose the establishment of an electric vehicle agreement at tomorrow's conference, and then promote the formulation and introduction of relevant standards through the Electric Vehicle Association."

"In the past, many of our standards were brought from abroad. Now we will not lag behind foreign countries in the development of electric vehicles, or even be faster."

"In this case, we may be able to achieve standard external output, which has a very different meaning."

Wang Fu's inspiration was opened immediately and he thought of many other things.

Nanshan Battery and BYD Battery are the largest battery companies in China.

BYD Auto and Nanshan Group are also relatively forward-looking in their plans for electric vehicles.

The establishment of the Electric Vehicle Association at this time will definitely be beneficial to the two companies.

Sometimes, the meaning behind the right to speak is also very rich.

They can even directly modify a standard, leaving you exhausted and suffering heavy losses.

"This proposal is very good. We can communicate with the ministries and commissions and the China Automobile Association tomorrow. I think this proposal is also beneficial to the entire industry."

"It would be best if this association could be directly affiliated with the Ministry of Industry and Information Technology. This would be more beneficial to the advancement of subsequent work."

First-class companies set standards, and second-class companies make products.

Nanshan Group has developed to this point, and naturally it needs to consider setting standards.

Especially in the field of electric vehicles, the technical level of Nanshan Group is definitely the highest now.

It would be a pity not to take advantage of this.

If Wang Fu hadn't reminded him, he wouldn't have thought of setting up an industry association.

"Okay, let's work hard together tomorrow."

"By the way, I think Toyota and Honda are paying much more attention to FHEV models now."

"On the contrary, in terms of PHEV and electric vehicles, they haven't made much action yet, or they feel that these two fields are not developing so fast."

"I know that Xingchen Motors also has an FHEV system and is planning to promote it."

"But I think Nanshan's battery technology is the most advanced in the industry. For Xingchen Motors, if it can launch a PHEV model, the effect should be better."

"At that time, we can define new energy vehicles through ministries or industry associations."

"Models such as FHEV are not considered new energy vehicles. Only PHEV and BEV are considered electric vehicles."

"In this way, new energy subsidy policies, including possible car licensing policies in some places in the future, and purchase tax preferential policies can kick FHEV out of the game."

Wang Fu said while watching Cao Yang's reaction.

This proposal is obviously not so friendly to Nanshan Group.

After all, this is equivalent to changing the strategy of Nanshan Group.

Even if this strategic change does not have much impact on Nanshan Group at the technical level, it is still a relatively sensitive matter.

"The FHEV system is essentially the same as the PHEV system, except that the battery size is different. It is really not difficult for us to convert FHEV into PHEV."

"Mr. Wang, are you confident in promoting the definition of new energy vehicles, defining PHEV as a new energy vehicle, and then excluding FHEV?"

Cao Yang thought for a moment and didn't directly agree or object. Instead, he asked more questions.

Things related to new energy vehicles are closely related to policy support.

In this case, if the policy really excludes FHEV from the definition of new energy vehicles, the impact on this type of vehicle will definitely be huge.

For example, for an FHEV model worth 200,000 yuan, the purchase tax is close to 20,000 yuan.

When changing the 200,000 FHEV model to a PHEV model, the cost increase may be around 20,000, or even more than 10,000.

However, the energy consumption of PHEV models of the same level is definitely much lower than that of FHEV.

It is equivalent to a more high-end existence.

PHEV can be exempted from purchase tax. If FHEV is not exempt, their prices will be the same.

In this case, it definitely makes more sense to engage in PHEV.

"Yes, I am confident!"

Wang Fu gave his reply with certainty.

Although Cao Yang was not sure of the source of the other party's confidence, Wang Fu had no reason to deceive Cao Yang.

Therefore, although the previous strategy has been adjusted, Cao Yang feels that it is acceptable.