reborn industrial empire

The Germans did not waste too long. Even if they understood this account and wanted to take a stake in Huayang Power, it seems impossible at present.

However, Huayang Power has put forward a very good suggestion, that is, the two parties can cooperate on the truck project, and now is the time when Mercedes-Benz has some initial financial crisis.

In terms of family passenger cars, the so-called luxury high-end cars, their sales are indeed in trouble. Facing the aggressive offensive of BMW and Audi, although Mercedes-Benz is making adjustments to its sales strategy and R&D direction, a giant car

For an aircraft carrier, it also takes time to adjust its course.

Therefore, the company needs to increase revenue and reduce expenditure, but in Germany and the EU, if you want to reduce expenditure, close factories and lay off workers, you will have to pay a very heavy price. In this way, Mercedes-Benz can only focus on how to increase revenue.

To be honest, China's truck market, which has been growing rapidly in recent years, has long been coveted by Mercedes-Benz. Since 2004, Mercedes-Benz's Umonik brand has frequently participated in China's police special service vehicle exhibitions.

Yes, we hope to further expand the market in China.

But it is a pity that because of Umonik's high price, although the quality of their products is indeed good, there are really very few Chinese customers who are willing to pay for their products.

Now Huayang Dynamics has established a firm foothold in China, and its popularity and customer loyalty in China are increasing day by day. The most important thing is that it is said that the relationship between their company and the Chinese government is quite good.

Now they want to enter the truck market, but they are still lacking in technology, so they extended an olive branch to Mercedes-Benz. Such an opportunity is absolutely not to be missed for Mercedes-Benz.

In the past, because the price of Umonik was too expensive, they missed out on many markets, but if they produce it through a joint venture this time, it will bear the Huayang Dynamics logo and brand. In this way, their products can be greatly reduced in price, but they are not the same as

Rivals in the market compete.

Isn’t that what Scania and Volvo trucks do in China?

This was an opportunity, so just a few days later, Mercedes-Benz agreed to Huayang Power's invitation. The two parties decided to jointly open a truck factory in China to jointly produce ordinary transport trucks, as well as special trucks suitable for various situations.

.

Among them, Huayang Power will account for 60% of the shares of this company. They will invest in infrastructure such as land and factories, and they will also be responsible for the subsequent recruitment and training of staff.

Mercedes-Benz will provide technologies, especially some technologies that are unique to Umonik and are not particularly sensitive. They will provide unreserved technical support to Huayang Dynamics' truck company, and both parties will also set up a special project

The research team specializes in developing special vehicles for some companies and government departments in China that have special requirements.

And because of the special relationship between Mercedes-Benz and some European production equipment manufacturers, this time this truck production line with an annual output of 200,000 units will have Mercedes-Benz coming forward to purchase it in Europe.

After all, if they come forward, they will save a lot of money than if Huayang Power comes forward. After all, they are close relatives with many production equipment manufacturers in Europe.

And it was on the grounds that Mercedes-Benz provided production equipment that Huayang Power approved to provide them with second-generation turbochargers and transfer the 8at transmission technology patent. Of course, the turbocharger patent will not be transferred, but they

We can provide long-term supply to Mercedes-Benz at a price lower than the market price.

In this way, Huayang Power will hold 60% of the shares in the newly established truck company, while Mercedes-Benz will hold 40% of the shares.

As for the location of the new company, Jin Xiaoqiang made up his mind to put the company's address in the capital. After all, the capital city government and the central government have a close relationship, and many officials of the capital city government will become officials in the future.

of state officials.

Now is the time when they need political achievements, and the economic growth indicator is currently the most important political performance for state officials to evaluate, so giving them such good political achievements at this time is also to cultivate connections for themselves.

Both sides got what they wanted without much effort.

Huayang Power has received truck technical support from Mercedes-Benz, which will make a big difference in China's truck market in the future, while Mercedes-Benz has received the second-generation turbocharger they dreamed of. There is also an 8at transmission, and a new

In this way, both parties can be said to be happy.

The most important thing is that through such a cooperative relationship, Mercedes-Benz has formed an implicit alliance with Huayang Power, which they are very happy about.

And in order to show their importance to Huayang Power as a partner, they also deliberately shared some of the electronic technologies that Mercedes-Benz is proud of with Huayang Power, making Huayang Power's in-vehicle electronic systems significantly improved.

A big step forward.

After finalizing the contract with Mercedes-Benz, all that's left is Audi's request for negotiation.

However, Jin Xiaoqiang really doesn’t have much time to quarrel with Audi now, so he handed over the negotiation task to Wang Jiao, and flew to France with his team to see where he was going to visit the world’s largest tire manufacturer.

Michelin.

Anyway, Audi has no technology to extort. Their original TFSI technology now belongs to Huayang Power. Their unique four-wheel drive technology is now also understood by Huayang Power. So in Jin Xiaoqiang’s view,

Audi no longer has any technology that is ahead of Huayang Power.

But now they also need second-generation turbochargers and 8at transmissions to equip their high-end luxury cars, so okay.

If you want, it's not impossible. Please spend real money. Anyway, Mercedes-Benz and BMW already have these two technologies. It wouldn't be good if Audi doesn't disrupt the situation.

The task that Jin Xiaoqiang assigned to Wang Jiao was to keep the price low, not even a penny cheaper, and they could provide long-term supply to Audi, but if Audi wanted to purchase the patent, that was absolutely impossible.

They will either agree to Huayang Power's conditions, or they will break up. I believe that if Audi's negotiator is not an idiot, he will definitely agree to Huayang Power's conditions.

After explaining Wang Jiao, Jin Xiaoqiang took his negotiation team and embarked on the journey again. This time the destination was the birthplace of the tire man, Clermont-Ferrand in France.

Jin Xiaoqiang wants to visit Michelin's headquarters, and then talk to them to see if he can get a second-hand production line from them.

Jin Xiaoqiang has wanted to get involved in the tire business for more than a day or two. In recent years, domestic car sales have soared, especially with Huayang Power qualifying ahead of schedule. The current domestic car market is heating up year after year, and the annual production and sales of cars have increased.

It is growing at a rate of more than ten percent every year.

As more cars are purchased, more matching tires are also purchased. Huayang Power alone needs to purchase millions of various tires from major tire manufacturers every year.

And the tire brands they buy are also very complicated, including expensive German Continental, American Goodyear, and French Michelin, although they have never purchased Korean Hankook, Kumho Tire, and Japanese Pris

Tong, Yokohama and other brands, but the fact that there is no suitable domestic independent tire supplier also makes Jin Xiaoqiang very annoyed.

In the next few years, Huayang Power's domestic market share will not only increase significantly, but its share in the international market will also grow rapidly. In this case, will it still be necessary to equip its own cars with these foreign tires in the future?

And there is one more critical point, and that is cost.

Due to certain circumstances, the models produced by Jin Xiaoqiang's company are never equipped with tires from Korea's Hankook or Kumho, but it is undeniable that the tires of these two brands are the cheapest among all tire brands.

tire.

And because of their low prices, almost all compact models on the market currently use these two brands of tires. Even Kumho Tires are far ahead of other brands of tires because of their ultra-low prices, becoming

Currently the number one selling tire brand in China.

And in the next few years, with the development of the national economy and the subsequent high oil prices and high inflation, compact models will become the main force in the market. As a result, the assembly of automobile tires will have a great impact.

to the cost of the entire vehicle.

Michelin from France, Goodyear from the United States, and Continental from Germany are indeed of good tire quality, but it is undeniable that their prices are not cheap either, so Jin Xiaoqiang had to start thinking about how to make them better.

It’s a matter of good cost control.

On the one hand, it is about cost control, and on the other hand, it is also a matter of market expansion.

In a few years, the annual number of cars in China will reach or exceed 20 million, and at least 15 million of these cars will be compact cars or mini cars.

With these cars including spare tires, each car requires five tires. Calculating, there will be a usage of 75 million tires. How big a market will this be?

If you don't grab such a market, will you let the Koreans run wild in this market?

And the quality of Korean tires doesn't seem to be very good, right? You have to know that at the March 15 party every year in those years, Korean tires had a very high complaint rate in terms of cars. They are making money from us while doing this.

Jin Xiaoqiang feels that companies that do not take our consumers seriously will not survive in this market at all.

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