Rebirth of the Evil Life

Ren Derong was afraid that he would not be able to afford the compensation. Lin Feng's full trade-in plan is indeed the biggest killer of car sales, but the financial black hole it brings is also obvious. He really couldn't think of any way to prevent the company's funds from falling into a financial black hole five years later due to this trade-in activity.

"Mr. Lin, it is feasible to replace a new car at a discount, but it is not possible to replace it with a full equivalent price. This will put Chrysler in trouble again. Maybe the reports will look good in the past few years, but what about five years from now?" Ren Derong wry smile.

Lin Feng chuckled.

"Five years from now? Mr. Ren Derong, how is the automobile market going now?" Lin Feng asked.

"Well, at present, the major auto giants are Japan's Toyota Group, Germany's Volkswagen Group, and General Motors. However, among them, Toyota and Volkswagen are the most profitable. Although GM's sales far exceed ours, it does not make money." Ren Derong smiled bitterly.

American automobiles are now in total decline, and have long since lost their glory that once occupied 80% of the global market share. Today's American cars have a reputation but no market. Not only is its sales volume far less than that of Japan's Toyota Group and Germany's Volkswagen Group, but its profits are also far behind. Basically, GM has been losing money in recent years. With the exception of General Motors, there are no American cars among the world's top ten automobile giants. As for Chrysler, the second largest automobile giant in the United States, it can only rank 15th in the world.

"So what do you think the future of Chrysler is under normal development?" Lin Feng asked. .

Ren Derong thought for a moment.

"Mr. Lin, under normal circumstances, Chrysler's current situation is to vigorously develop the hot-selling SUV market. However, this market has been occupied by Toyota in advance. The other major car companies are working hard to develop SUVs. The competition in this market is quite fierce. Cruel. It will be difficult for Chrysler to find a way out of this. I predict that the company will remain in the red within five years. Let’s see if it can turn a profit!” Ren Derong said helplessly.

This is not an understatement, but a cruel fact.

"There has been no improvement in five years, and I see it that way, but I am even less optimistic about the results ten years from now. Today's car market is no longer dominated by American cars. For all consumers, they either choose fashionable appearance, Japanese cars that are light and have low fuel consumption can either choose German cars with solid workmanship and good reputation. American cars with rugged style have long been on the rise, and Korean cars are hot on their heels, as well as other European cars. With the national automobile giants eyeing it, it may be difficult for Chrysler to recover its former glory!" Lin Feng said solemnly, "So we must have a breakthrough in the SUV market, but in the direction of women's exclusive cars!"

Ren Derong frowned repeatedly.

He really didn't like this ladies-only car. Does this woman drive a good car? For a man, letting a woman drive his car means being on tenterhooks, because he might not know what the car will look like when he comes back from a trip. This ladies-only car is just a gimmick, hoping to make a profit. This ideal is too good.

"Mr. Lin, let's not talk about whether women's exclusive cars can become Chrysler's flagship product. Let's just talk about the trade-in wave in five years. Women like the new and hate the old. Since they can be replaced at the original price, I believe that they will be replaced by new ones at the original price. There are many women coming to buy new cars! Especially with the 10-year interest-free period, I don’t think anyone will come to buy new cars. Just like if other car manufacturers announced this promotion, I’m afraid all men would come to buy new cars.” Ren Derong! Said with a wry smile.

"I know, you are worried that in five years, people who buy cars today will come back to replace them with new cars. Is there anything wrong with this?" Lin Feng spread his hands, "I think this is a good thing. They will replace them with new cars. It will only get better and better, allowing us to make more and more money!”

Ren Derong looked dull. Lin Feng's logic was too logical. How could this be making more and more money? This is too exaggerated. Indeed, if it is replaced every five years, the company's sales will indeed be very high and it will maintain a strong demand for cars. But what about this old car? What to do with old cars? This is a full exchange at equivalent value, not depreciation.

Assume that a car will sell for $30,000 in five years and the car purchased today will depreciate by $24,000. Then the car owner only needs to pay an additional $6,000 to buy the latest model car. But the cost of a $30,000 B-class car is far from being just $6,000. Then the difference in the middle needs to be filled with the depreciated second-hand cars. This second-hand car is usually sold and will be much cheaper after five years. Although it is not like electronic products, brand-new ones are depreciated by half. After a long time, they can only be exchanged for 30% or even 20% of the original price. The car's value retention rate is much higher, but it can't fill the $24,000 gap.

Moreover, used cars are not that easy to deal with. Especially since this is a ladies-only car, its customer base is only women, and women have always liked the new and dislike the old, and have a preference for new things. I am afraid that even fewer of these second-hand cars will be able to accept it. And if it is dismantled and sold as scrap metal, the loss will be even greater. In short, what does Ren Derong think and feel is a loss? This loss is too much, too much. What if this policy becomes popular among women all over the world and 10 million units are sold in five years, it will be really fun. If this loss continues, even if Lin Feng has trillions of dollars in assets, it will not be enough to compensate him.

Indeed, with regard to the current policy, major automobile companies believe that it is completely digging their own graves. It seems crazy. On the first day of the auto show, orders exceeded 50,000, and online orders exceeded 100,000. This newly launched car series is very popular, and the world is talking about this car for women. Especially women are discussing this. But Lam Feng's full depreciation and replacement policy has reassured all major automakers. If Lin Feng plays like this, he will kill himself sooner or later.

Therefore, the major car manufacturers are no longer planning to launch some of the promotional activities targeting surnames. They are now just watching and waiting to see how Lin Feng plays in five years. They don't even mind pushing the envelope. Anyway, this Constellation car is specifically aimed at women and has no conflict with their current major car series. So what if they help Lin Feng and let him sell more and more. Let him be proud of it in the past five years. Let's see what he does in five years. , how to cry!

"Mr. Lin, I just received news that the total number of orders for Constellation cars from dealers around the world has exceeded 2 million! And many places are urging us to deliver the goods. Conservative estimates suggest that this year's sales may exceed 3 million, or even More!" Ren Derong's face became even more ugly.

This year, orders exceeded 3 million vehicles, and sales will only increase in the future. In the past five years, sales may reach 20 million vehicles. This is basically the same as Chrysler's previous full-year sales of all vehicle models. From the perspective of automobile production lines, Chrysler can definitely meet the needs of the global market. It’s just that I sold too much, so I can’t afford to lose money!

"Ha, that's a good thing. Is our productivity enough? If not, we will start working at full capacity and let the workers work overtime. In the past few years, the workers have had a hard time. Now that the company is making money, let them make more." Lin Feng said with his hands. laugh.

"Mr. Lin, there is definitely no problem with this productivity. If we produce at full capacity, there will be absolutely no problem with the annual output exceeding 6 million vehicles. If we work day and night, there will be no problem with the annual output exceeding 10 million vehicles." Ren Derong mentioned Productive and extremely proud. After all, Chrysler is a century-old factory and the second largest automobile company in the United States. There is absolutely no problem in terms of productivity. This is comparable to any automotive giant today.

But then, Ren Derong smiled bitterly.

"Mr. Lin, haven't you heard me clearly? If you sell more, you will lose more in the future. I wonder if this full depreciation and replacement policy is only limited to the US market? Or, is it limited to this country? One year?" Ren Derong suggested.

If it’s just the first year, or in the US market, then it’s not a big deal to suffer some losses for the sake of promotion.

Unexpectedly, Lin Feng's eyes widened.

"Mr. Ren Derong, don't I, Lin Feng, mean what I say? Am I, Lin Feng, the kind of person who talks in vain! Since I, Lin Feng, have made a promise, I will definitely do it. I will do what I say, this is me, Lin Feng The basic principle of life. Regarding full depreciation and replacement, if I say it, it will be realized! And it is for the whole world, no time limit!" Lin Feng said enthusiastically.

Ren Derong was shocked by Lin Feng. After being stunned for a moment, he looked at Jessica with an aggrieved expression. To be honest, the president of this company is Jessica, and the largest shareholder is also Jessica, but you are stepping in and announcing such an important decision to the company without notifying anyone. This is against the rules. This kind of matter should be discussed at a shareholders' meeting. As a result, as soon as you came on stage, you slipped out with just one sentence, and now you can't even take it back. You old man, if you are still talking about the same things here, you are just doing that!

"President, what do you think about this matter?" Ren Derong looked at Jessica, "I think Mr. Lin is just a director and does not hold any position. It is better to use this as an excuse to announce..."

"Shut up! Ren Derong, in the company, I am the president and the largest shareholder, but please remember, I am Lin's woman, and my shares are also his shareholders. Therefore, he is the largest shareholder of the company! His words, Those are my words! Remember this! If you are not satisfied, you can choose to resign, but the company will definitely do what Lin said!" Jessica shouted coldly.

Ren Derong was dumbfounded. After feeling depressed for a long time, he quietly asked, "Mr. Lin, how are you going to deal with it?" To be continued.

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