Rebirth 99 to become a car giant

"Mr. Cao, Japan and Korea are still discussing response plans. It is said that the Prime Minister of Japan will make an urgent visit to the United States tomorrow."

With such a big move being made by the United States, it is naturally impossible for Nanshan Automobile Group not to care at all.

After all, this is a major event in the global automotive market.

Not to mention that behind this incident, there is a certain causal relationship with Nanshan Automobile Group's ban on General Motors and Ford Motors in China.

So Zeng Tingting has been arranging people to keep an eye on the progress of this matter since she heard the news from the United States.

And will report to Cao Yang regularly every few days.

"Whether it's Japan or Korea, they don't dare to resist the United States. Compromise and communication are inevitable."

"But I'm curious how bold General Motors and Ford will be this time."

The United States is suppressing Japanese and Korean car companies, and Cao Yang is definitely happy to see the results.

Otherwise, he would target Nanshan Automobile Group every day. Although he was not afraid, it would not be a good thing after all.

Now let them bite the dog, and it's a rare opportunity for me to watch the excitement from the side, how nice it is.

"I guess the car companies in Japan and Korea must be feeling aggrieved right now."

"It's obvious that General Motors and Ford are fighting with our group, but they are the ones who are unlucky in the end."

Zeng Tingting's thoughts are similar to Cao Yang's.

In recent years, Nanshan Automobile Group has often attracted independent brand car companies in China to suppress Korean and Japanese car companies, and it has achieved some results.

But from a global perspective, the competitiveness of car companies in these two places is still very strong.

This is naturally not good for Nanshan Automobile Group and other independent brands to go global.

If we can use the help of the United States to reduce the competitiveness of Japanese and Korean car companies, there will be no harm in it.

You know, for a car company, the greater the sales volume, the lower the amortization cost of each vehicle.

For example, if Toyota develops a Camry, if global sales can reach 1 million units a year, then the development cost amortized to each vehicle will be very low.

As long as this sales volume is halved, the amortization of development costs will double.

This is only the impact on development costs.

There will also be knock-on effects in various aspects such as plant and equipment amortization.

Even due to a sudden decline in model sales, the production capacity of some factories cannot reach a relatively high level, which will cause a series of problems.

This is quite critical for the development of a car company.

"It seems that we need to completely make General Motors and Ford realize that they no longer have a share in the Chinese market."

"Otherwise, they might be able to relax under pressure this time when dealing with Korean car companies and Japanese car companies."

Cao Yang knew that the United States would take such drastic actions this time because General Motors and Ford Motors had lost their Chinese market.

However, this matter is not completely dead. Some people still have some expectations for the resumption of production of GM and Changan Ford.

What Cao Yang wants to do is to make this possibility completely impossible.

Only when there is no escape route will General Motors and Ford Motor's efforts to seize market share from Japanese and Korean car companies become more intense, and their will will become stronger.

Zeng Tingting is also aware of this.

"Mr. Cao, when it comes to dealing with GM and Changan Ford, we actually have more tricks we can use."

"Some of the tricks can be used first to make some people realize that the situation will not improve."

"It's like dragging various independent brands to recruit people from Changan Ford and GM, but it's a team-wide recruitment method, which puts some of their businesses into a state of paralysis, so they can take action early. "

"In addition, in terms of public opinion offensive, there are also some actions that can be taken to suppress the confidence of employees of Metro General."

"Some suppliers are not well prepared in their schedules and cannot cope with the production of alternative parts. They can also continue to do so."

"We can even give it a try to push Modu Automobile Group and Changan Automobile Group to start disposing of the assets of the joint venture."

Zeng Tingting threw out several plans at once.

Although none of these plans can directly kill GM and Changan Ford.

But it was very effective in further reducing confidence in GM and Ford.

The less confident the people at General Motors are in the Chinese market, the more they will try to find ways to grab the cake.

Then the pressure on Japanese car companies and Korean car companies is even greater.

"Well, I leave these to you."

"Anyway, I definitely don't want to see any joint venture factory between General Motors and Ford producing any cars in China this year."

Following Cao Yang's instructions, Nanshan Automobile Group, a huge organization, immediately took action.

There were immediately more reports on Modu General Motors and Changan Automobile on the Internet, but they were all negative news and not a single positive news could be found.

This has caused many people who are staring at this matter to have their own ideas.

As one of the parties involved, Changan Automobile Group is naturally discussing the next steps.

"Mr. Yi, I think Nanshan Automobile Group's attitude is that it definitely doesn't want to see Changan Ford continue to resume production."

"I think the company may need to consider arrangements to stop losses in a timely manner."

As the deputy general manager of Changan Automobile Group, Zhang Lin is mainly responsible for issues related to joint venture business.

Although the closure of Changan Ford is definitely not a situation he wants to see, if this result is inevitable, then it is necessary to make some preparations in advance.

Otherwise, a lot of messy things will appear, and he will have to clean up the mess in the end.

"The group's independent brand business has developed, and Changan Ford is no longer completely indispensable to us."

"Since Nanshan Automobile Group must force them to close down, if we interfere with them, the losses will indeed outweigh the gains in the end."

Yi Jia sighed inwardly, not too entangled.

Cao Yang had communicated with him about Changan Ford before. With the development now, it is absolutely impossible for Nanshan Automobile Group to allow Changan Ford to continue production.

Otherwise it would be a slap in the face.

Even relevant departments in China do not want Changan Ford to continue production.

It is not suitable for them to directly introduce policies to shut down Changan Ford like the United States, but they certainly do not want their own country's companies to be driven out of the other country's market, while the other country's companies are still enjoying a prosperous life in China.

Everyone wants to lose face.

If China's own independent brands are completely unsatisfactory and need international automobile giants to help develop the automobile industry like they did in the 1980s and 1990s, then forget it.

The situation is completely different now.

It doesn't matter even if all the international automobile giants withdraw from the Chinese market.

From the perspective of the entire China, the market is there.

Even if a dozen joint venture car companies go bankrupt, it doesn't matter.

Because the market of these car companies will be replaced by independent brand car companies.

In the end, whether it is GDP or employment, overall it will not be particularly affected.

It can even further promote the real transformation and upgrading of the domestic automobile industry.

From the perspective of the entire industrial chain, China's benefits have actually increased.

After all, in joint venture car companies, even if the shares are split 50/50, most of the benefits of the industrial chain are definitely taken away by foreign car companies and related parts manufacturers.

For example, Yangcheng Toyota, it seems that Yangcheng Automobile Group has obtained 50% of the shares.

But Toyota Motor holds 70% of the engine company's shares.

The gearbox was purchased from Aisin and has nothing to do with Yangcheng Automobile Group.

Many other parts are purchased from parts companies such as Denso, Yingtai, Toyoda Gosei, and JTEKT, which are also direct manufacturers of Toyota.

In the end, the Yangcheng Automobile Group took away 30% of the interests in the industrial chain of a car. It cannot be as much as 50%.

But if Yangcheng Toyota shuts down and the market is eventually replaced by independent brands such as Yangcheng Trumpchi, then all the profits will remain in the country.

Various private auto parts companies can also usher in a stage of rapid development, turning China into a real automotive power.

"Then I will directly contact Nanshan Automobile Group and convey our intention to shut down Changan Ford."

"Everything has been done, this favor cannot be lost."

When Zhang Lin said this, Yi Jia immediately nodded and said, "I will call Mr. Cao later."

"We will take this opportunity to see if we can gain some benefits for our own brands."

"As long as Nanshan Automobile Group appropriately tilts its resources to us, it can greatly make up for our related losses."

A person of Yi Jia's status naturally knows how to weigh the pros and cons and maximize the benefits of a matter.

Even if it is a bad thing, it is not without value.

The same thing is happening within the Modu Automobile Group.

Even various independent brand car companies are considering cutting off ties with American parts companies and not using each other's parts as much as possible.

After all, although the level of parts companies such as Delphi, Lear, and Dana in the United States is very good, they are not irreplaceable globally.

In the past, we didn't deliberately target it, so we would use the one with the cheaper cost.

The situation has changed now. Even if the other party has certain advantages, they will not consider using it.

…

"Mulally, Japan agreed to reduce tariffs on imported beef and promised to import more than $20 billion in agricultural products from the United States every year."

"Korea will also increase its imports of beef, corn and other products."

"Some people in the relevant departments have already loosened their tone, but I feel that no matter what conditions Japan and Korea offer this time, as long as our trade deficit still exists, our conditions cannot be loosened."

Seeing that the personnel of Korea and Japan were communicating urgently with the United States, they really gave some conditions within a week.

This kind of condition has been debated for a long time without any result.

However, this is obviously not the situation Mulally and Exxon want to see.

"We must not let go, but we must also consider other people's opinions."

"I think we can give the other side some hope. As long as Japan and Korea no longer have trade deficits with us in the future, then we can agree to cancel the additional tariffs on cars and parts."

"Until this condition is met, we will continue to implement it."

"In this way, even if Japan and Korea have objections, they can only hold back on writing."

Mulally was not a good person, and he immediately thought of a compromise plan that could be accepted by all parties.

Otherwise, if we blindly oppose it, it may drag on for a long time.

This is certainly not what they want to see.

"Well, this plan also gives an explanation to the Japanese and Korean people."

"All parties in the country should also be able to accept it."

Exxon doesn't care that after the implementation of this plan, Japanese and Korean car companies will actually be in trouble.

It is so easy to turn a trade deficit into a trade surplus.

At that time, it is not certain that this tariff will continue to be implemented.

Then General Motors and Ford will definitely be able to seize part of the market from each other.

Soon, with the unanimous promotion of both parties, the United States officially launched the formal process of imposing additional tariffs.

This made Japan very angry.

"We have made such big compromises, yet the United States actually wants to impose additional tariffs."

"We took in all the benefits and ended up creating a big pie for us."

Watanabe Jisaki was in a very bad mood at this time.

Toyota Motor is the biggest victim of this incident. It's no wonder that he is in a good mood.

"There is no way. If the United States makes up its mind to do something, we will not be able to withstand it."

"At this point, we can only think of ways to change this ratio."

“Aren’t they imposing additional tariffs on imported cars and parts?”

"Then we will focus on promoting locally produced models in the American market."

"As for parts and components, the impact is actually not that big. After all, a large part of our parts have been purchased from the United States."

Kobayashi Zhemin is also a little discouraged now. He feels that Toyota has worked very hard to coordinate this matter, but the final result is so unsatisfactory.

Fortunately, this time it is not just for Toyota, but for all Japanese and Korean car companies.

To a certain extent, as long as Toyota can seize the market from other Japanese and Korean car companies, its final sales in the American market may not necessarily drop much.

You can even find ways to make up for some of the losses from other markets.

There must be a road before the car reaches the mountain, and if there is a road, there must be a Toyota car.

As a car company with sales all over the world, Toyota can still take many adjustment measures.

Of course, this is because there is no way to change the situation in the United States now, so they can only comfort themselves like this.

Otherwise, who would?

"I'm not particularly worried about Toyota brand models. After all, most of them are produced in American factories."

"But for Lexus models, we have not yet built any factories overseas. After the tariffs are imposed, the situation will be very unfavorable."

Watanabe Jiaki said worriedly.

When Toyota first launched Lexus, a so-called luxury brand, it was targeting the American market.

The United States is also Lexus' largest market in the world by far.

If it loses the American market, it will definitely be a disaster for Lexus.

So Toyota definitely needs to consider some plans to change this situation.

"President, has the company considered building a factory in the United States to produce Lexus models?"

"The sales volume in the United States can support the construction of a factory."

Xiao Lin Zhemin has several plans in mind, but he needs to confirm the general direction first.

Otherwise, if he accidentally proposes a proposal that is completely opposite to the general direction of the company, then he, the person who proposed the proposal, will not only have no credit, but will also easily lose impression points with Katsaki Watanabe.

"Although Lexus's sales in the United States are okay, that is the cumulative result of many models."

"If you look at a single model, there are very few that are worth producing directly in the United States."

"And if we are now considering building a factory in the United States for production, we will not only build a complete vehicle factory, but also need to produce most of the parts there to truly reduce costs."

"But many of our parts are shared by multiple models. Putting the global production together, it can barely meet the investment requirements of the production line."

"If we invest in an additional production line in the United States, both parties will be starved of food, and the cost improvement effect will not be very great."

Watanabe Katsuaki's worry is obviously not unreasonable.

The production of a car requires consideration of the entire industry chain.

Now the United States not only imposes tariffs on complete vehicles imported from Japan, but also the corresponding parts.

In this case, it is necessary to consider integrated production from parts to complete vehicles simultaneously.

But this is not in line with Toyota's development strategy.

"If our factories are still located in China, then we may need to consider this issue from another angle."

"This requires the company to communicate with relevant departments and promote something from the perspective of the entire country."

After Xiaolin Zhemin was silent for a moment, he was ready to throw out a big plan.

As Japan's industrial overlord, Toyota's every move has huge influence.

Many companies in Japan are watching Toyota's actions and taking countermeasures.

Therefore, Toyota Motor also has the power to influence Japan's policies.

"If you have any ideas, speak up boldly."

Watanabe Yoshiaki still trusts Kobayashi Zhemin and knows that this subordinate is very capable.

At the moment, he didn't think of any better way, so he was naturally willing to listen to Xiaolin Zhemin's proposal.

"In the past two years, the exchange rate between the yen and the US dollar has been at a high level. The appreciation of the yen is actually very detrimental to our export business of automobiles and parts."

"But under this circumstance, the models we exported to the United States still sold well."

"If the depreciation of the yen can be promoted to promote the development of export business, it can reduce the impact of the U.S. tariffs this time to a certain extent."

"For example, 1 U.S. dollar can now be exchanged for about 100 yen, which has been at a relatively high level in the past few decades."

"You have to know that in the 1980s and 1990s, we reached a point where 1 dollar could be exchanged for 150 or even 160 yen."

"If the yen depreciates, from 100 yen to 1 US dollar to 150 yen, then we will also export Lexus products to the United States."

"Even after taking into account the increase in tariffs and the impact of exchange rates, the terminal sales price in the United States can be lower than now."

"Of course, such a large exchange rate depreciation will definitely take some time."

"We can communicate with relevant departments and continue to promote the depreciation of this exchange rate over three, even five or ten years."

"As an export-oriented country, a moderate depreciation of the exchange rate will do more good than harm to us."

Kobayashi Zhemin's plan was thrown out, and Watanabe Yoshiaki's eyes immediately lit up.

Although this solution cannot immediately solve Toyota's plight, it is indeed a good solution in the long run.

Even as long as the relevant Japanese departments take bigger and more radical actions, they can depreciate the exchange rate by 10% this year, which can offset part of the impact of additional tariffs.

Even because of the depreciation of the exchange rate, Toyota's exports to other markets can increase.

In the end, when calculated for the whole year, it is possible that Toyota's global sales not only did not decline, but also increased.

Japan's eight major car companies all have considerable export business, and it is in the common interest of all car companies to promote exchange rate depreciation.

So Toyota is not fighting alone.

Even other industries such as home appliances and equipment are export-oriented industries.

This solution is also in their interests.

Taking this into consideration, Watanabe Ketsaki believes that Kobayashi Tetsumin's proposal is very reasonable.

Of course, such a big thing cannot be handled by him alone.

The first thing Watanabe needs to do is to obtain the approval of Toyota Motor's board of directors, and then obtain the support of the shareholders and consortium behind it.

But as long as you have a direction to work towards, everything will be much easier.

Of course, the outside world is not aware of these actions of Toyota.

In the eyes of many people, the policy introduced by the United States this time is purely to suppress Japanese car companies and Korean car companies, and then the other parties are helpless.

"Mr. Cao, I got news from Spring City Toyota. The people at Toyota feel very depressed. They think why Nanshan Automobile Group needs to take the blame for the conflict with General Motors and Ford in the end."

"Toyota Motor seems to be planning to ease relations with Nanshan Automobile Group."

As a middleman, Zhu Zhengfeng called Cao Yang.

Although Spring City Automobile Group already has the rising star Nanshan Hongqi, if Spring City Toyota can also develop well, Zhu Zhengfeng will naturally be happy to see it happen.

So after Toyota Motor expressed its intention to ease the relationship with Nanshan Automobile Group, he did not refuse.

After all, Toyota is now the world's largest car company.

If the other party is willing to cooperate with Nanshan Automobile Group in some fields, it will actually be a win-win situation in Zhu Zhengfeng's view.

For example, Toyota Motor Corporation mentioned Nanshan Battery alone this time, and they intend to use Nanshan Battery products in newly developed electric vehicles.

China's new energy vehicle market is developing so fast, so it is impossible for Toyota to make no moves at all.

So even before, Toyota has always believed that electric vehicles do not represent the future, but hydrogen fuel cell vehicles are the future.

But in the end, for the sake of the market, Toyota is still preparing to launch several electric vehicles for the Chinese market to test the waters.

To this end, they are also preparing to expand their research and development capabilities in China and leave the development tasks of electric vehicles mainly to Chinese research institutes.

This change can be considered very huge.

After all, international automobile giants have always built factories only in China, and their research and development work is still located at their headquarters.

In particular, Japanese and Korean car companies are very slow in their research and development localization work.

Now Toyota is obviously going to speed up this move.