Rebirth 99 to become a car giant

"This time there are two main things that everyone is more concerned about."

"One is about automobile exports, and the other is actually related to industry standards."

"In fact, strictly speaking, these two things are closely related to a certain extent."

"For example, it is often troublesome for our independent brand car companies to export their products to Europe."

"The main reason here is that the other party uses various standards to block us."

"So everyone is also thinking about whether they can further restrict the entry of international automobile giants into the Chinese market by mastering the formulation of industry standards."

Zeng Tingting is the actual person in charge of this automotive industry development forum, so she naturally understands the demands of various aspects relatively well.

Every automobile market will have various protections for local companies, and this is the case in Japan, Korea, Germany and other places.

This is further illustrated by the fact that companies such as General Motors and Ford Motors in the United States have joined forces to establish Japanese car companies and Korean car companies during this period.

Although there are regulations in China that international automobile giants cannot invest more than 50% in setting up factories, it is actually quite open.

Basically, any car brand that wants to enter the Chinese market will have no problem.

Many places are also clamoring for it to come and invest in setting up factories.

In the past, when China's complete vehicle and parts companies were not good enough, they naturally had to open the door to welcome the auto giants to come in and develop the auto market.

But the situation is completely different now.

With the rise of Nanshan Automobile Group, it has driven the rapid development of independent brands such as Chery, Geely, and Great Wall.

To put it bluntly, even if all international automobile giants withdraw from the Chinese market, it won't matter much.

"Industry standards have been in the works for the past few years. Traditional parts have various standards, and it is difficult to change."

"But the parts related to electric vehicles can be dealt with properly."

"Previously, we mainly focused on establishing some standards for three-electronic components. The next step can be to set industry standards for smart cockpits, autonomous driving, intelligent network and other related components."

"Our Chinese automobile industry still has advantages in this regard."

"In addition, in terms of car-grade chips, China was almost completely not involved in it before."

"With the development of electrification, a lot more chips are used in cars. We can also work hard in this area."

Cao Yang has always been very active in formulating industry standards.

The significance behind making Nanshan Automobile Group the standard setter for China's automobile industry is absolutely huge.

Even the interests involved are actually not small.

To give a random example, for example, in the future, computing power chips related to automatic driving of automobiles will directly formulate standards based on Nanshan Semiconductor's products.

Only chips that meet the standards can be installed on cars, and foreign chip giants can be kicked out of the game in one fell swoop.

Do you think this is reasonable?

That is completely a matter of benevolence and wisdom.

Just like the later C919, which has been successfully developed, it has never been able to obtain airworthiness certificates from the United States, Europe and other places.

Is this because C919 really can't meet people's requirements?

That's not the case at all.

It’s not because the standards are in the hands of others. If they want you to pass, you can pass. If you don’t want you to pass, you will be stuck.

You can always find a reason anyway.

"Conservative estimates suggest that the sales volume of automobile exports will increase by more than 20% this year, which is higher than the growth rate of the entire automobile market."

"And the growth rate of exports in the next few years is likely to be higher than domestic growth."

"So now Great Wall, Chery, BYD and other companies are also very interested in how to further expand the export market and how we can work together to build a reputation in overseas markets."

“When our Chinese motorcycles were exported to Southeast Asia, our market share once exceeded 80%.”

"But due to disorderly competition, various companies have continuously lowered their quality, their reputation has plummeted, and now there is almost no sales."

"On the contrary, Honda and other Japanese motorcycle brands sell well in those places, even if their prices are higher."

When Zeng Tingting said this, Cao Yang really had some ideas.

It’s okay for everyone to pay the same price at home, but if you go overseas and pay the same price, it’s actually a thankless task.

I didn’t make any money, and my competitors didn’t make any money either.

The key is that local companies also have very strong opinions on you.

This situation is definitely not conducive to long-term development.

"The export market is indeed not suitable for disorderly competition. Through this industry development forum, I propose that all models exported by car companies are not allowed to be sold locally at a loss."

"The profit margin of export models must be no less than that of the same type of models sold domestically."

"Especially for electric vehicles, our production and sales are increasing rapidly, but prices are also declining."

"But in fact, few of the electric vehicles we produce make money."

"This is definitely not a long-term solution."

In any industry, continuing to lose money is definitely not an option.

Especially those in the industry who use Internet thinking to build cars every day are not necessarily beneficial to the ecological development of the entire industry.

Most companies in the entire industry chain can make some money, and only in this environment can they develop sustainably.

Otherwise, if we encounter a company that overturns the table, the entire industry will suffer huge losses.

"Yes, everyone has already felt this."

"The other aspect is after-sales maintenance. If various brands can cooperate and open a joint maintenance center in some countries, the cost will be easier to control."

"After all, for most brands, sales in a single country are often not very large."

"This leads to various problems in after-sales."

"If too much manpower and material resources are invested, huge losses will occur."

"If the investment is less, it will be difficult for consumers to find a repair shop, which will also affect its development."

Zeng Tingting had obviously collected and sorted out the main issues from all parties and reported to Cao Yang in advance.

"The situation in overseas markets is more complex, and it is impossible for all countries to use the same method."

"So you can discuss centralized solutions, such as several brands jointly investing in building repair shops, or finding a local dealer to cooperate, or building part of the local sales stores and repair shops yourself."

"Overseas, our competitors are mainly local companies and international automobile giants. We still have to focus on cooperation."

Cao Yang and Zeng Tingting first exchanged their views.

Although he will attend this forum, he will definitely not participate in the whole process.

At that time, the main representative of Nanshan Automobile Group will be Zeng Tingting.

…

The White Swan Hotel is considered an old five-star hotel.

Although it took a long time to build, the reputation has always been very good.

This time, the China Automobile Industry Development Forum was held in the White Swan Hotel.

There are some internal discussions that the media is not allowed to attend, but there are some forums where the media are definitely welcome to report and interview.

Tomorrow is the media day of the Yangcheng Auto Show, so whether it is the local media in Yangcheng or the automotive media from other places, all have come to Yangcheng.

"Mr. Yu, Nanshan Automobile Group's influence in China's automobile industry is growing."

"All the domestic mainstream independent brand companies are very considerate, and a group of CEOs came to attend this meeting."

He Ling looked at the name on the seat nameplate and felt quite emotional.

Unknowingly, Nanshan Automobile Group has become the well-deserved leader in the domestic automobile industry.

Even Spring City Automobile Group and Xifeng Automobile Group have no intention of jumping out to compete for the top spot.

As for domestic joint venture car companies, one of their shareholders is present at today's conference.

It can be said that even if the joint venture car companies have any ideas, there is no way to change the situation.

Especially recently, the production of GM and Changan Ford has been directly suspended by Nanshan Automobile Group, and everyone's thoughts have become even more complicated.

"Having mastered the core technology and the market, it is inevitable for Nanshan Automobile Group to become an industry leader."

"It would be strange if a company like this doesn't even have a say in the industry."

"After Nanshan Automobile Group has promoted 100% localization projects for many years, relevant parts for domestically produced cars can now be found in China."

"It is nothing more than that some foreign-funded parts companies habitually purchase some components from overseas, or for the purpose of centralized production, some parts are produced overseas."

"So China's various automobile companies and parts companies can now formulate various industry standards according to the way they want to develop."

“One of the themes of this industry development forum is also the formulation of industry standards.”

Yu Yu felt that the current scene was a normal one.

There are too many domestic car companies. If there is no strong company to stand up, then many things will be like a mess, allowing others to bully them.

China has begun to move from a major automobile country to a powerful automobile country. Naturally, everyone does not want the standards of this industry to be in the hands of others.

"I heard that Zeng Tingting will concurrently serve as vice president of the China Automobile Association, and that Nanshan Automobile Group will cooperate with the China Automobile Association to take the lead in establishing an auto parts standard setting committee."

"At that time, Nanshan Automobile Group will be responsible for producing relevant standards. After final discussion and approval by the committee, they will be issued and implemented within the industry or through relevant departments."

“This kind of work used to be done by Spring City Automobile Group and Xifeng Automobile Group.”

“I didn’t expect that things are starting to change now.”

He Ling has been involved in professional automotive media for more than ten years and is obviously very familiar with the development status of the entire industry.

"Not only that, the wind tunnel laboratory located in Panyu will also be further expanded."

“All future vehicle-related tests can be completed here.”

"And as long as it passes the test of this laboratory, it will be directly recognized by the relevant departments."

"The impact of this matter may be greater than everyone imagines."

“This means that business such as certification announcements for some models have also been separated from the subordinate agencies of relevant departments.”

“Even though Lingnan University of Technology is responsible for the specific daily business of this laboratory, it is actually controlled by Nanshan Automobile Group.”

"Whether a new car can be launched in the future is closely related to Nanshan Automobile Group to a large extent."

"I feel that this should be another major support given by relevant departments after the United States dealt with Nanshan Automobile Group."

During the chat, Yu Yu dropped another bombshell news.

In any country, when a new car needs to be put on the market, there are many review and confirmation processes to go through.

If any process is not completed, your car cannot be put on the market for sale.

Different countries adopt different audit methods.

Most of them are affiliated agencies of relevant departments or third-party agencies to complete some confirmations.

There are still relatively few people who directly hand over this "switch" to the automobile companies themselves.

And Nanshan Automobile Group is now equivalent to mastering this switch.

This is definitely something that all domestic joint venture car companies are very envious of.

"Although Nanshan Automobile Group lost the U.S. market because of this incident, it also lost the shares of General Motors and Ford in China."

"In the end, Nanshan Automobile Group's sales may not only have not declined, but actually increased."

"Coupled with various supports from relevant departments, the idea from the United States has completely failed."

Although the suppression of enterprises in the Nanshan system has not become so popular during this period.

But it will definitely take a long time to completely eliminate it.

In particular, companies in the Nanshan Group will make new moves every now and then, as if they are always reminding everyone of their existence.

"Based on the results, that's probably the case."

"Mr. Cao is still awesome!"

…

While people from Autohome were whispering at the forum, Cao Yang was also very busy.

"Mr. Cao, I think GM and Changan Ford, including GM and Ford's other affiliated companies in China, will not be able to resume production again."

"Anyway, there is no shortage of their models on the market. If they are shut down, they will be shut down."

After Zhu Zhengfeng met Cao Yang, he immediately expressed Spring City Automobile Group's attitude clearly again.

Anyway, the closure of GM and Ford-related manufacturers will have little impact on Spring City Automobile Group.

On the contrary, affiliated companies such as Nanshan Hongqi and Spring City Volkswagen can also benefit from it.

Therefore, Zhu Zhengfeng is willing to let Spring City Automobile Group contribute to completely driving General Motors and Ford Motors out of the Chinese market.

If you do it in the first grade, others will do it in the fifteenth grade.

This can also be regarded as the easiest one among the companies in the Nanshan Group to take out one-to-one retaliation against the United States.

"Mr. Zhu, thank you for your support. I think so too."

"No matter how much Modu GM and Changan Ford do internally on this matter, it will be in vain in the end."

Taking this opportunity to express his attitude can be regarded as one of Cao Yang's purposes.

Although everyone has speculated that Nanshan Automobile Group will not give GM and Ford factories in China a chance to resume production.

But speculation is speculation. Nanshan Automobile Group itself has never officially said anything like this.

They just stopped supplying parts to each other.

Now that Cao Yang said this, it confirmed everyone's guess.

It shows that Nanshan Automobile Group has other back-ups that it has not used.

"I heard that they have found other suppliers to design and produce parts, and some suppliers are even purchasing equipment to put into new production lines."

"By then, all these investments will have been wasted."

As the general manager of Spring City Automobile Group, Zhu Zhengfeng is naturally well-informed about all aspects of information.

This kind of matter in the industry has attracted special attention from everyone, and he has specially asked people to investigate and understand various situations, and make simple reports to him every day.

"These manufacturers are basically international auto parts giants. They have made money in China for so many years, and now they are making ineffective investments, even if they are making a small contribution to the development of local infrastructure."

"Anyway, if the money is not spent, there will be no way to stay in China in the end."

Cao Yang spread his hands, obviously not caring at all about the life and death of those manufacturers who dared to take orders from GM and Changan Ford under such circumstances.

This kind of manufacturer clearly wants to have trouble with Nanshan Auto Parts.

Then they are considered Cao Yang's enemies.

When doing business, sometimes you need to be a little domineering, otherwise everyone may want to bully you in the future.

"That's right. If you need help from Spring City Automobile Group later, just ask."

"Even if we have to adopt some policy-level solutions to deal with them, I can still find a way to do it."

Don't be stingy when it's time to sell favors.

Zhu Zhengfeng understands this very well.

Also having similar ideas is Xifeng Automobile Group.

The general managers of these two most influential automobile groups in the country have said this. One can imagine the attitude of other automobile companies.

That is to say, the mood of people from Modu Automobile Group and Changan Automobile Group will be a little more complicated.

But in order to avoid unnecessary misunderstandings, Changan Automobile's Yi Jia specifically clarified his attitude after meeting Cao Yang.

"Mr. Cao, our group has officially held a meeting to make some preliminary preparations for Changan Ford after it completely stops production in the future."

"As for Ford's involvement in suppressing Nanshan Automobile Group, we are completely on the side of Nanshan Automobile Group."

Although Yi Jia felt sorry for Changan Ford's loss of profits, she had no other choice but to accept it.

Changan Automobile's passenger car business has been able to develop to today's level, and Nanshan Automobile Group is definitely indispensable.

Especially in the development of new energy vehicles, Changan MINI was born after Cao Yang personally communicated with Yi Jia.

It can be said that without the help of Nanshan Automobile Group, Changan Automobile's passenger car business would never have achieved such dazzling results as it does now.

Among domestic independent brands, apart from private companies such as Geely and Great Wall, Changan Automobile's performance is relatively satisfactory.

And up to now, in addition to the mini-car business, Changan Automobile is researching and producing engines, engines and gearboxes for passenger cars and other major parts, all of which are supplied by Nanshan Automobile Group.

Regarding electric vehicles, Sanden parts are also supplied by Nanshan Automobile Group.

In this case, if the relationship between Changan Automobile and the other party becomes tense, Yi Jia will definitely not be able to bear the result.

In addition, Ford Motor's approach was indeed excessive. After Changan Ford stopped production, a lot of market share was smoothly eaten up by Changan Automobile.

So Yi Jia's attitude towards this matter slowly began to change from the bottom of her heart.

"Thank you, Mr. Yi, for your support and understanding. There is no other way for us to take this matter."

"The commercial struggle has reached this level, and we have no retreat."

Cao Yang was also happy to see Yi Jia truly accept the current situation.

After all, Changan Automobile is also a major customer of Nanshan Automobile Group. If the relationship is really too rigid, it will actually be a lose-lose result.

This is not the result he wants to see.

"Mr. Cao, various independent brand car companies use a large number of parts from Nanshan Automobile Group. I think Nanshan Automobile Group can play a greater role in handling after-sales business in the export market."

"I support Nanshan Automobile Group taking the lead and providing unified after-sales services to everyone in some overseas markets."

"We will jointly set up a company to develop the overseas after-sales market."

Changan Automobile has also begun to focus on the export market in the past two years, but its overall performance has been mediocre.

For a company with mediocre performance like theirs, after-sales maintenance in overseas markets is even more of a problem.

If you don't take care of the after-sales issues, people won't want to buy your car.

However, if the market share is very low, it will be very loss-making to provide after-sales service on a large scale.

In the end, it is easy to enter a vicious cycle.

If we can take this opportunity to solve this problem, it will definitely be a good thing for Changan Automobile.

"I'm afraid it may not be the best solution for Nanshan Automobile Group to take the lead, especially since everyone knows about our current relationship with the United States."

"But the plan you mentioned to jointly establish a company is very feasible."

"Even in terms of vehicle sales, we can cooperate with certain local dealers to take advantage of the advantages of one plus one to be greater than two."

Facing overseas markets, the methods that need to be adopted are definitely different.

And different methods are adopted at different stages.

Where China's independent brand car companies, such as Polar Bear, have developed relatively well, it is generally more appropriate for each to do its own thing.

But in some places in Southeast Asia or Africa, when everyone's sales are not very high, joining forces is a good solution.

Even if not all car companies unite, it still makes sense for three or five companies to form a small alliance.

"It makes sense. The best thing is to take advantage of this opportunity to unify industry practices and not let everyone fight against themselves in overseas markets."

"No one will make any money then."

Shuangqing City, where Changan Automobile is located, is a big motorcycle city.

Yi Jia is very clear about the stories of China's motorcycle industry being exported to Southeast Asia.

He even knows many CEOs of motorcycle companies and has exchanged views on this topic on many occasions.

Therefore, it is very meaningful to avoid the vicious competition in the automobile industry after export in the future, like that of motorcycles.

Even this time when he came to participate in the China Automobile Industry Development Forum, one of the main topics he brought was related to this topic.

"We want to grab the cake from the international automobile giants. Rolling is necessary, but if we can't roll it, we will have no way to survive."

"We will have a good discussion at the closed-door meeting later."

Cao Yang naturally agreed with Yi Jia's idea.

What's the point of working for a long time and not making any money?