Rebirth 99 to become a car giant

The emergence of NS9155 can be said to have intensified the involution among China's new energy vehicles.

Just after Qiantu Motor officially announced that it would become the first car company to be equipped with the NS9155 chip, other car companies such as Future Auto also announced that one of their cars would start to be equipped with NS9155.

Suddenly, NS9155 became extremely popular.

Even people who don't know anything about chips have heard more or less about it.

For China's automobile industry, this volume is just the beginning.

Because the market share of independent brands has risen to a relatively high level.

Whether it is Nanshan Hongqi or Changan Automobile, or car companies such as Chery, Geely, Great Wall and BYD, they all hope to achieve a sales leap in 2015.

For the sales departments of car companies, the simplest and crudest way to increase sales is to reduce prices.

As long as the price is lowered low enough, sales will definitely increase.

However, as a result, the competitive pressure of the entire industry has become much greater.

In particular, the cost pressure on the purchasing departments of various car companies is higher than in previous years.

"Mr. Liu, our sales department received a courier this morning, and the stuff inside is very special."

Over at Bosch, sales manager Ren Cai came to sales director Liu Zhenbo's office with a strange expression, and then placed a package in front of him.

Although Liu Zhenbo and Ren Cai are old partners, they have a very good relationship.

But this kind of thing of directly delivering a courier has never happened before.

Liu Zhenbo opened the express box out of curiosity, but was shocked!

His first reaction was to think about whether he had offended anyone recently.

"Mr. Liu, here is a kitchen knife and a contact letter for a special price reduction. It was given to us by Geely's purchasing express."

"They asked us for a special price reduction of 10% before, but our reply was that they could only reduce the price by 1%."

Ren Cai saw Liu Zhenbo's fright and quickly explained to the side.

It would be bad if this caused any misunderstanding.

"Don't say we can't do a 10% price reduction, even any mainstream parts company can't do it, right?"

Liu Zhenbo had a dark face and picked up the kitchen knife in the box speechlessly.

It’s not light in weight, and it’s really a real kitchen knife!

That's not how you bargain, right?

Although we know that China's automobile market is getting more and more popular, the competitive environment faced by Bosch is also getting worse and worse.

In particular, Bosch's previous main customers were various joint venture car companies such as Volkswagen, Mercedes-Benz and BMW. Now the sales of China's own brands are rising rapidly.

This is also an important reason that makes Bosch's life more difficult.

Although Bosch also has some share in its own brands, it is definitely not as good as Nanshan Auto Parts.

"Yes, I have communicated with the other party many times before."

"If we follow this price reduction, we will lose money."

"But the other party said that our profits last year were higher than theirs, and there was room for price reduction."

"The two sides have never been able to form a common opinion, and then this express happened."

Ren Cai also explained a little speechlessly.

Although some car companies have released very high price reduction targets in previous years, some customers even have higher price reduction targets than 10%.

But the final result of the negotiation is often a slight price reduction, which is far from the target.

The middle is more about the two sides wrangling, and the other party's high goals are also a means of wrangling.

It was completely unexpected to directly deliver a kitchen knife like today.

"Don't talk about express delivery of kitchen knives, even if we express delivery of an ax, we can't reduce the price."

"Of course, we don't want to refuse so bluntly."

"Didn't you agree to a 1% price reduction before? Then let's reply with a 1.5% price reduction now."

"Anyway, according to the budget we made a year ago, we will only reduce prices by 2% for them this year. Now releasing 0.5% can be regarded as giving them a step down."

"If they had the ability, they would let Nanshan Auto Parts cut prices by 10%."

Liu Zhenbo was speechless as he gave his solution.

He also wanted to overturn the table directly, but he knew that if he did this in the Chinese market, the final outcome would definitely be a lose-lose situation.

Even some other customers are a little more afraid of Bosch.

This will definitely be very detrimental to their future development.

…

"Mr. Yu, I just heard the news that Geely Auto sent Bosch a kitchen knife and a price reduction letter, hoping that the other party can cooperate with a 10% price reduction this year."

"I think if we can create a special topic around this topic, I think many people in the industry will be very interested."

He Ling has been at Autohome for so many years and has acquaintances in every OEM. She also has a good relationship with many leading auto parts giants.

Therefore, she can learn a lot of news in the industry in advance.

For example, the sales manager of Bosch took the initiative to reveal the matter to her this time.

Then He Ling asked someone from Geely to inquire, and the other party confirmed the authenticity of the news.

In this case, this topic is naturally worthy of a thorough discussion.

Those who engage in news should highlight something "new" and something "odd".

This matter should still be very topical in the context that China's automobile industry has ranked first in the world in sales for many years.

"This year's market competition is so fierce, it seems that it has affected parts suppliers."

As the general manager of Autohome, Yu Yu is naturally very aware of the changes in China's automobile industry in recent years.

Especially in the past two years, as the share of self-owned brands has increased, and the sales of some self-owned brands have begun to stagnate or even decline, competition in the industry has become more intense.

The most direct reaction is that after consumers go to 4S stores, they find that the discounts on various models have increased.

Some models that were previously subject to price increases now have discounts.

This change can be said to be very rapid.

For example, Toyota's Highlander used to not have any discounts, but now it has a discount of more than 10,000 yuan per car.

In this case, it is inevitable that the cost pressure on the OEM will increase.

After all, any additional price reductions given to consumers are taken out of other people's profits.

"Yes, even foreign parts giants like Bosch have felt such great cost pressure, so naturally other parts manufacturers are not to mention it."

"These OEMs have generally been accustomed to bullying the weak and fearing the strong in the past. For some manufacturers that were unable to handle the problem, they eventually chose to give up."

"But being so tough this year shows that the pressure is really great."

Yu Yu naturally recognized He Ling's statement.

After all, the relationship between OEMs and suppliers is a game process.

Overall, the OEMs must have taken the initiative.

But when it comes to specific parts and manufacturers, the situation is naturally different.

In the past, this classification was relatively clear. OEMs also knew which manufacturers could be exploited and which ones could not be dealt with.

But now the distinction is starting to blur.

All suppliers must consider reducing prices, otherwise they will not be able to cope with market competition.

"Although Bosch has a great influence in the global auto parts industry, Nanshan Auto Parts is the largest parts company in China."

"And Nanshan Automobile Group is the largest automobile group in China. In this case, the topic we are going to engage in will not only affect Xingchen Automobile, Jaguar Land Rover and Future Automobile, but also Nanshan Automotive Parts, Nanshan Engine and Nanshan Transmission. It’s also influential.”

"So we need to have a good communication with them about whether we should do this topic, whether we can do it, and how we should do it, so as not to shoot ourselves in the foot."

It has to be said that Yu Yu's position is still relatively high.

Autohome is China's largest automotive professional media, but it is also a member of the Nanshan Group.

When doing something, we must also consider the interests of the group's brother companies.

Otherwise, it would be meaningless if Autohome itself gets part of the benefits and its brother companies suffer greater losses.

Yu Yu knew that Cao Yang definitely didn't want to see such a situation.

"Well, then I will talk to several companies such as Nanshan Auto Parts later and listen to their ideas."

He Ling naturally understood her boss's concerns, so she immediately prepared to communicate.

Otherwise, it will be delayed too much, and after the news spreads, it is likely to be preempted by other websites.

After all, other websites don’t have so many concerns.

…

"Minister Song, Geely Auto has already forced its suppliers to send kitchen knives by mail. Should our purchasing department also raise the price reduction target for this year?"

Chery Automobile and Geely Automobile are both located in the Yangtze River Delta region, and they are relatively well-informed about each other.

After Yin Chuan heard about Geely Automobile mailing kitchen knives and price reduction letters to Bosch and other manufacturers, he immediately called Song Xianming, the director of the purchasing department.

As a boss, no one does not want the company's costs to continue to decrease.

Especially in the current harsh competitive environment, Chery Automobile's sales have declined to a certain extent.

It can be said that Yin Chuan is under a lot of pressure.

"Mr. Yin, among the goals we have announced to our suppliers this year, we hope that everyone can come up with a 20% price reduction plan."

"Although not all of these price reduction plans may be implemented within this year, at least the direction should be clarified first, and then our R\u0026D and procurement sides will work with the suppliers to discuss specific cost reduction plans."

"It is difficult to reach a level of 10% simply by reducing prices."

When Song Xianming heard that his brother's company mailed kitchen knives to Bosch, he thought that Yin Chuan would mention this topic to him sooner or later.

Fortunately, their purchasing department has already done relevant promotion work, so they are not afraid of Yin Chuan's inquiries.

"The situation of Geely Auto is relatively similar to ours. Sales have also begun to decline in the past two years."

"So everyone must find ways to improve their competitiveness."

"In addition to designing and developing more competitive products, reducing the price of existing mass-produced models is also a very important thing."

"When some of our models are sold at terminals, they are actually selling at a loss. This is not a long-term solution."

Yin Chuan must be trying to find a way to put pressure on Song Xianming.

Price reduction is an eternal topic for car companies.

Without enough pressure on the purchasing department, no one knows where the price reduction limit is.

So sometimes, even if he knows that the goal set is not very reasonable, Yin Chuan still has to push forward.

"This is indeed a problem. I have arranged a special visit to Nanshan Auto Parts, Nanshan Transmission and Nanshan Engine next week to communicate with them about the price reduction this year."

"Although the number of our own engines is increasing, Nanshan-based companies still account for a very high proportion in our supply system."

"If the other party does not reduce prices, it will be impossible for us to achieve the high target price reduction."

Song Xianming must have diverted the trouble to the east at this time and found several suppliers to share the pressure with him.

Otherwise, wouldn't the pressure be on his shoulders?

"The price reduction of parts from Nanshan manufacturers is indeed a very important topic."

"I have vaguely communicated this topic with Mr. Cao before, but he only promised to reduce the price of Chery Automobile, which will not be less than that of other manufacturers."

"So if we compare purely from the perspective of industry competitiveness, the price cuts of Nanshan Group companies will not drag down our competitiveness."

"After all, if their price reduction this year is only 3%, then other OEMs will also have the same ratio. In the end, our advantage will be reflected in the price reductions of other manufacturers."

Yin Chuan knew that companies in the Nanshan system could consider reducing prices by a few points, but it was simply impossible to reduce prices by 10% or 20%.

At worst, they won't supply it.

It is really difficult to find someone who is better than others in QCD.

"Well, with this bottom line in place, our situation shouldn't be so passive."

"However, the competition in the auto parts industry has been fierce in recent years. The profit margins of most manufacturers are relatively limited, and the space they can squeeze out is also very limited."

Song Xianming must explain some problems to Yin Chuan from the supplier's perspective at this time.

Otherwise, they will feel very uncomfortable when they fail to achieve their goals.

In this regard, Yin Chuan just said that he knew.

Everyone has difficulties, but no matter how difficult it is, the work must continue.

…

"Mr. Cao, the topic of annual price reductions between automobile OEMs and suppliers is very popular online right now."

"Whether it is Autohome, Bitauto.com, or NetEase Auto Channel and other media, there are various related reports."

"I have also preliminary sorted out the price reduction requirements and actual implementation status of each OEM this year."

As the general manager of Nanshan Auto Parts, Dai Hanbiao basically has business dealings with all domestic OEMs. The only difference is the amount of business.

Therefore, Nanshan Auto Parts is aware of the annual price reduction requirements of various OEMs and some of their final implementation.

Especially the requests sent out, this is the easiest to grasp.

Their own actual price reductions are also clear at a glance.

"The bosses of several car companies have called me directly, but it is impossible for us to reduce prices at a level of 10%."

"The purchasing departments of various OEMs are under a lot of pressure, and I understand this."

"In view of this situation, we can change the price reduction method."

Cao Yang will not blindly put the pressure on others, but will often discuss it from the perspective of solving problems.

Therefore, the working atmosphere of enterprises in the entire Nanshan system is relatively relaxed.

"Another way to reduce prices?"

Dai Hanbiao looked at Cao Yang expectantly.

As long as the boss can decide on some better plans, then he will not be under so much pressure when facing various OEMs.

"Yes, in the past, the prices of our various parts have been reduced by 1% to 3% per year, but now the requirements of various OEMs are often double digits."

"Although the final actual execution results are not that high, at least it sounds scary."

"This year we will communicate with our customers and express our willingness to provide greater cooperation."

"In previous years, prices were reduced by 2%. This year, prices can be reduced by 4%. However, our parts prices themselves will not be reduced. Instead, we will compensate customers in one go at the end of the year, corresponding to 4% of sales."

When Cao Yang said this, Dai Hanbiao understood immediately.

In fact, similar solutions have not been used in the past, but the scope of use is not so wide.

If the price of parts drops, it will not only affect the current year, but also the future turnover.

But if some discount compensation is provided at the end of the year, it will only affect that year.

In this case, a 1% price cut on parts may have a greater impact than a 2% rebate at the end of the year.

"This is also a method. At least this year, the various OEMs will have better communication, so the data will not be so ugly."

Dai Hanbiao can naturally understand the impact of this plan.

Using this plan, it seems that Nanshan Auto Parts will suffer a little loss this year, but in fact, Nanshan Auto Parts still takes advantage of the whole cycle.

Of course, the customers must also know this situation.

It just depends on whether they choose to overcome this year's difficulties first.

"Yes, and then when you communicate with customers, you can also use some words. No matter how much we reduce the price, we treat customers equally."

"Even if the price is reduced to 0, it will not affect the competitiveness of their products in the market."

"After all, if the price is reduced to zero, we will reduce the price to zero for all customers."

Anyway, Cao Yang will definitely not let Nanshan Auto Parts reduce prices significantly to cope with the current market competition.

Cao Yang has no objection to each independent brand opening its own book.

But the result of opening the book is to sacrifice the interests of Nanshan Auto Parts, which is not acceptable.

Cao Yang has always been promoting that Nanshan Auto Parts relies on technology to get orders, not simply competing on price.

Of course, the products produced by Nanshan Auto Parts will not be more expensive than those of international counterparts.

…

"Mr. Zhu, I see that the topic of price reduction of auto parts has been hotly discussed in the industry recently."

"Whether it is foreign auto parts giants such as China or domestic giants such as Nanshan Auto Parts, we have received some related contacts."

"Our key parts are purchased from Nanshan Auto Parts, Nanshan Engines and Nanshan Transmissions."

"If they don't give us additional price reductions, it will be difficult to fully participate in the price war at the terminal."

Tao Wen came to Zhu Zhengfeng's office with a little entanglement, reporting on the current hot topics.

The existence of Nanshan Hongqi is quite special.

It is naturally not so easy to find shareholders to reduce prices.

Especially at present, Nanshan Hongqi is still highly dependent on Nanshan-related companies.

If the relationship between the two sides is very rigid, it is naturally not a good thing.

"I have discussed this topic with people from other OEMs. At present, Nanshan Auto Parts and other Nanshan-related companies are no less cooperative with the price reduction of various customers than in previous years."

"It is completely impossible for them to really achieve a price reduction of 10%."

"So I think everyone just needs to try appropriately to see if they can get a larger price reduction ratio than in previous years."

Zhu Zhengfeng's mind is very clear.

This is not the time to mess with Nanshan-related companies.

Besides, Zhu Zhengfeng is confident that the quotation provided by the other party to Nanshan Hongqi will not be worse than that of other customers.

In this case, continuing to pressure Nanshan Auto Parts and other manufacturers to reduce prices is obviously not a good solution.

After all, from the results, this is impossible to have a good result.

For example, the gearbox and some key parts, Nanshan gearbox's solution is already the best in the industry.

Even if you change to other manufacturers, there will be no more cost benefits.

In this case, it is meaningless to mess around.

"I also think that this attitude should be adopted. There is no need to disrupt our arrangements because of the rhythm of other manufacturers in the industry."

"The sales of car companies such as Geely and BYD declined to a certain extent last year, so they are under greater pressure than us. They want to win part of the market by lowering prices to increase sales."

"But if everyone lowers prices like this, all products will eventually be unprofitable. This is definitely not a sustainable solution."

Tao Wen actually doesn't like price wars very much.

Especially Nanshan Hongqi's positioning is higher among domestic independent brands.

Fighting price wars is not what they are good at, nor is it what they should do when improving brand power.

It's just that sometimes you don't do it, it doesn't mean that others won't do it either.

So the industry is getting more and more competitive, which is almost inevitable.

Where to go in the end remains to be seen!