Reborn Industrial Tycoon

Chapter 670 Problems again and again

Following Li Weidong's ideas, the Scientific Research Department began to conduct research on small and micro agricultural machinery.

Ni Guilin from the Fukang Agricultural Machinery Research Department pointed to a small internal combustion engine and said: "With the current technology of small internal combustion engines, there is no problem with power. The problem is the load of the machinery.

We found in experiments that if the soil is relatively hard, the mechanical load will be too large, the chain cannot be buffered, and breakage will often occur.

Our country has a vast land area, and the climate and soil conditions vary from place to place. Even in the paddy field areas in the south, there are places where the soil is relatively hard. If you use a chain, you cannot meet all the needs."

It is very common for mechanical equipment with small internal combustion engines to use chains as transmission devices. The chain transmission structure is simple, cheap, and easy to maintain.

However, the chain has one disadvantage, and that is its insufficient load capacity. Anyone who has ever broken a chain while riding a bicycle can understand that it needs to be borrowed a little.

So Li Weidong asked: "Is there any solution?"

"Changing the transmission components is the simplest solution. Currently, I think of two transmission components. The first is to use gear transmission, and the second is to use belts for transmission. Both have their own advantages and disadvantages."

Ni Guilin continued, "If you use gear transmission, the stability is the highest and you can maintain high power output. However, we are making small and micro agricultural machinery. It is technically difficult to install gear transmission in a limited space.

In addition, the cost of gear transmission is definitely higher, and there are certain requirements for manufacturing technology and installation accuracy. Later maintenance will be more troublesome, at least it is difficult for ordinary farmers to replace it manually.

If the belt drive is used, the cost will be much lower, and the belt has good toughness, which can alleviate the impact. It is also relatively simple to replace, and farmers can replace it manually.

However, the belt drive also has two very fatal shortcomings. One is that it is easy to mix with sand. For agricultural machinery, this is unavoidable in daily operations.

The second disadvantage is that the belt is prone to slipping when it gets wet, which will directly affect the efficiency of the machine. If we are only farming on dry land in the north, we don't have to worry about the belt slipping.

But in the southern region, paddy fields are the main area, and long-term paddy field operations are bound to cause the belts to get wet. When the belt slips, our machines may fall down!"

Li Weidong thought for a moment and said: "The belt must not be used. Not to mention that the belt slips when exposed to water, which is an unsolvable problem. Let's just say that the belt drive has a relatively simple structure and can easily be copied by competitors.

What we want to do is small and micro agricultural machinery with a certain technological content. It is not a crude low-end product, so it cannot be easily copied by other companies.

As for gear transmission, I don’t think it’s appropriate. Gears are too delicate after all, and they also involve a lot of material technology and processing technology. We have the ability to research high-end material technology. We still have to make small ones.

Micro agricultural machinery?

So I think both of these are undesirable. I do have a third idea here, Mr. Ni, what do you think about us using the transmission shaft?"

"Using transmission shafts on small agricultural machinery? I really haven't considered this. Looking at the country, it is still a blank field!" Ni Guilin said.

Li Weidong said: "In the past, transmission shafts were used on medium and large agricultural machinery. Those large agricultural machinery companies looked down on small and micro agricultural machinery, so they would not do research and development on small and micro agricultural machinery, let alone think of it.

Drive shafts are used in small and micro agricultural machinery.

I think we can give it a try. The drive shaft has good stability and is not as delicate as a gear. Although the cost is higher than that of a belt drive, it has strong adaptability to the environment. There is no problem whether it is used in paddy fields or dry land."

"Okay, I'll try it with the drive shaft!" Ni Guilin nodded and agreed.

Li Weidong continued: "The best way is to design a universal set of power transmission components for small and micro agricultural machinery based on the transmission shaft. Then we apply for a patent. This way we can avoid imitation by other competitors."

"

…

Since the eradication of counterfeit and shoddy products, the sales of Puppy Electric Appliances have seen a significant increase.

In overseas markets, thanks to the publicity effect of F4, Puppy Electric's products have quickly become popular in East Asia. Sales of kitchen appliances, beauty products, etc. are even more popular.

At this time, F4 had already begun touring concerts in East Asia, and F4's popularity was about to reach its peak.

The main fan base of F4 is mainly women, so beauty products for women and kitchen appliances for housewives will naturally sell better.

Holding a very eye-catching piece of data, the smile on Wang Jiuyang's face became even stronger.

"Chairman, last quarter our domestic profits increased by 50% year-on-year. It seems that the effect of combating counterfeiting is still very obvious. Based on the overall increase in profits, I want to increase investment in publicity and find more celebrity endorsements

." Wang Jiuyang said.

"Is there a suitable candidate?" Li Weidong asked.

"Kitchen appliances and beauty equipment account for a large part of the profits of our products, so I think we can find popular female celebrities to endorse them, which is more in line with our products."

Wang Jiuyang paused for a moment and then continued: "The most popular female star in the past two years should be Miss Zhang. Moreover, she is also internationally famous and is considered a big name in the entire entertainment industry!"

"Ms. Zhang's advertising endorsement price is not cheap! Although she is very famous, her price-performance ratio may not be very high." Li Weidong pondered for a moment, and then said; "Although I have made money in recent times, I still have money.

Don’t spend it indiscriminately.”

"Chairman, do you have any suitable candidates?" Wang Jiuyang asked.

"With the Athens Olympics this year, have you ever thought about looking for sports stars to do advertising endorsements? The advertising endorsement fees of sports stars are cheaper than that of entertainment stars, and their image is not bad. The most important thing is that they can use the Athens Olympics to make a splash.

heat."

Li Weidong continued: "There is a young man named Liu Xiang in hurdle sports. Do you know? Our country has always been relatively weak in men's track and field racing events, and short-distance track and field events are not very good in Asia.

If he can achieve results in the Olympics, it will be a very significant breakthrough for our country's sports. If he can really win an Olympic gold medal, it will be more exciting than the men's football team entering the World Cup."

"Hurdle, Liu Xiang, I've written it down!" Wang Jiuyang wrote down Liu Feiren's name in his notebook, and then said, "But this Liu Xiang is a man, right? I think we should find another female spokesperson.

After all, our products are positioned with female consumers as the main group."

"Then add a women's volleyball team!" Li Weidong continued: "The women's volleyball team has special significance to our country. We have all experienced the era when the women's volleyball team won five consecutive championships.

The results of the women's volleyball team in the past few years were somewhat unsatisfactory, but in the past two years, the results of the women's volleyball team have improved. Didn't they win the World Women's Volleyball Grand Prix and the Women's Volleyball World Cup last year?

If the women's volleyball team can win the championship again in this year's Olympics, it should arouse many people's memories, and the entire women's volleyball team will also have a high commercial value. And the endorsement fees for the women's volleyball team shouldn't be expensive, right?

This is a way to spend a small amount of money to do big things, and the price-performance ratio is very high. In addition, you can ask the experts from the General Administration of Sports to see which athletes still have a chance to win the championship. Just sign a few more athletes. When we wait for the Olympics, we will be ruthless

Get some heat!"

"Okay, I'll go find out." Wang Jiuyang nodded and agreed, and then continued: "Chairman, there is one more thing I need to report to you. After a while, there will be a Consumer Electronics Exhibition in Las Vegas. The content of the exhibition

Including household appliances, computers, and communication equipment, I want to participate."

"Las Vegas? That's the largest convention and exhibition city in North America!" Li Weidong then asked: "There should be many big brands participating, right?"

"Several big brands in Europe and the United States should be attending. In addition, several major Japanese electrical appliance companies, as well as South Korea's Samsung, will also participate, especially Samsung Electronics. I heard that they also have high hopes for this exhibition. They not only spent money to book big...

exhibition area, and we plan to bring a lot of new products there." Wang Jiuyang said.

"What about domestic home appliance brands?" Li Weidong asked next.

"The first person to receive the invitation letter was Haier, so Haier will definitely go. We also learned about this home appliance show from Haier. I also asked about it with colleagues in the industry. Midea, Gree, TCL, and Skyworth have already decided

I have participated, and Supor, Boss, Changhong, Hisense, and Oaks are also interested in participating. However, you have to pay a registration fee of US$30,000 for each booth." Wang Jiuyang replied.

"Thirty thousand U.S. dollars is not expensive, and all the well-known domestic home appliance brands are leaving! Then we can't be absent!" Li Weidong sighed lightly, and then said: "Our country's home appliances have developed from scratch.

It’s been more than ten years, and it’s time to break out of Asia and go global!”

…

Puppy Electric is making great progress here, but Fukang Engineering has encountered some troubles.

Fukang Engineering Company, Ding Youliang handed a document to Li Weidong and said, "The China Insurance Regulatory Commission has just issued a document suspending car loans!

You also know that these days, self-employed individuals rarely purchase construction vehicles in full, and they basically rely on loans. If we do not have car loans, our sales will be greatly affected."

"The car loan has been suspended?" Li Weidong recalled it carefully, and vaguely remembered that such a thing seemed to have happened.

In 2004, car loans were indeed suspended for a period of time by the China Insurance Regulatory Commission. Later, the China Banking Regulatory Commission issued new "Automobile Loan Management Measures" to further standardize the car credit business, and car loans were resumed.

As early as the late 1980s, private loans to buy cars began to appear in China, but the number was not large.

After all, everyone with a driver's license at that time basically had a job, and a car was not something you could just buy. Government agencies and institutions that wanted to buy a car had to go through the back door to get a note, so there were no extra wheels to buy privately!

In the 1980s, private cars were purchased for transportation purposes, and since there were no professional car loans, all loans offered at that time were general loans, which required not only asset mortgages and qualified guarantors, but also connections in banks.

, to get the loan.

It was not until 1993 that the then Northern Ordnance Industry and Automobile Trading Company proposed the concept of installment payment for cars.

There were two methods of installment payment at that time. One was that car dealers raised funds themselves to provide installment services to consumers.

The second is that automobile manufacturers provide vehicles to dealers, and dealers provide installment payment services to consumers, and then return the money to the manufacturers after receiving the money.

Either way, car dealers need to have relatively strong financial strength, capital operation capabilities and risk control capabilities. There are only a few car dealers with these capabilities across the country, so the overall scale of installment payments is very limited.

By 1995, financial institutions began to directly participate in the automobile credit consumption business. Companies such as FAW, SAIC, Tianjin Automobile, etc. all established special financial companies, and then cooperated with banks to carry out automobile credit business.

The strength of banks' operating capital is naturally much stronger than that of ordinary enterprises. After banks intervened, the domestic car loan business really started.

However, at that time, the country had not yet established a personal credit system, and banks lacked experience in this area and effective risk control methods, which exposed many frontline problems. Therefore, in September 1996, the People's Bank of China ordered the suspension of the auto credit business.

In order to control risks, the country established an automobile credit consumption limit at that time, and the annual amount of automobile loans could not exceed this limit to prevent the disorderly expansion of automobile loans, thereby also reducing risks.

For example, in 1998, the amount of automobile consumer loans was only 400 million yuan. As far as the banking system is concerned, if 400 million yuan is loaned out, even if it is not repaid, it can still bear the loss.

With a market as big as China, the loan limit of RMB 400 million was not enough for Mr. Ken, so in September 1998, the People's Bank of China issued the "Management Measures for Automobile Consumer Loans" to loosen restrictions on auto loans.

Subsequently, the central bank issued the "Guiding Opinions on Developing Personal Consumption Credit". From then on, automobile credit consumption has a clear policy basis.

The liberalization of policies has led to a rapid increase in private car consumption. In big cities such as Beijing, Shanghai and Guangzhou, the proportion of private car purchases has exceeded the proportion of corporate car purchases, and cars have begun to enter the homes of ordinary people.

It was at this time that major insurance companies also began to get involved in automobile consumer credit. Insurance companies launched car loan insurance, which shared the risks of banks. Since then, a four-way cooperation between banks, insurance companies, car dealers, and manufacturers has formed.

consumption patterns.

China's auto loan consumption also began to explode. It was 2.9 billion yuan in 1999, 18.6 billion yuan in 2000, 54.6 billion yuan in 2001, 94.5 billion yuan in 2002, and the credit scale exceeded 200 billion yuan in 2003.

It only took five years to go from 400 million to 200 billion. Such an astonishing growth rate also means that it must be accompanied by great potential risks.

Finally, this potential risk emerged at the end of 2003.

Due to the imperfect credit reporting system at that time, a large number of bad debts occurred in financial institutions, and the compensation rate of car loan insurance remained high. As we all know, when it is time for insurance companies to pay compensation, they will come up with various clauses and details.

, in short, the right of interpretation is mine, and I will not compensate you for this or that.

And the bank is not a vegetarian. When it comes to interpretation, the bank is the ancestor! If you give less money, you will not be responsible for leaving the bank. If you give too much money, you will get back unjust gains. Anyway, it is the same.

My bank is right!

As a result, gangsters came into contact with gangsters, and many legal disputes often arose between banks and insurance companies over compensation issues.

But if the compensation is not paid, the insurance company must have ignored it. Therefore, it was not the central bank or the China Banking Regulatory Commission that stopped the car credit, but the China Insurance Regulatory Commission.

The China Insurance Regulatory Commission's suspension of automobile credit also directly caused the collapse of the automobile consumption model that had been a four-party cooperation between banks, insurance companies, automobile dealers, and manufacturers.

Among them, the market for medium and heavy-duty commercial vehicles, such as various freight vehicles, large buses, special transport vehicles, and construction machinery, was naturally affected the most. Sales fell instantly.

All this, until October 2004, the China Banking Regulatory Commission issued the "Automobile Loan Management Measures", which replaced the previous "Automobile Consumer Loan Management Measures", re-standardized the automobile credit business, and also diluted the role of insurance companies in the car loan business.

, domestic auto credit is back on track.

Car loans were suspended, and the impact on Fukang Engineering was fatal. Because a large part of Fukang Engineering's customer base are self-employed.

This is mainly because Li Weidong's technical school uses machinery from Fukang Engineering, and during the teaching process, the teacher is also subtly instilling information into the students that Fukang excavators are good, Fukang loaders are good, etc.

Therefore, after graduating, students will definitely give priority to purchasing equipment from Fukang Engineering.

How can ordinary people afford a construction machine worth hundreds of thousands of dollars with the full payment? So they all need a car loan.

Now that loans are no longer allowed, those students can no longer afford construction machinery. The sales of Fukang Engineering's products have been cut off from the head down to the ankles.

Li Weidong frowned and thought for a long time. This was a problem caused by policy, and the best solution was to wait for the policy to be relaxed.

In about half a year, the China Banking Regulatory Commission will issue new regulatory policies, auto loans will be restored, and the crisis of Fukang Engineering will be resolved by then.

It's just that this is a passive response.

As an entrepreneur, you can't just wait for everything and rely on passive responses to solve problems. The company will be ruined sooner or later. So you still have to take the initiative.

So Li Weidong said: "Well, let's do car finance. We can set up a financial company to use funding channels other than banks to break the current deadlock. There are precedents in Western countries in this regard. We can learn from it.

."

"Chairman, as far as I know, there were car sales companies doing this business before, but in the end they didn't continue, mainly because they would lose money." Ding Youliang paused and then explained:

"After all, we are an enterprise. We are far inferior to banks in terms of capital, and our risk management and control capabilities are not as good as those of financial institutions. Now even financial institutions cannot manage the risks of car loans. How can we, a private enterprise, manage the risks!"

"I'm talking about looking for funding channels other than banks. Did you mention doing car credit business?" Li Weidong said with a smile.

"If you don't do car loans? What will you do?" Ding Youliang asked in confusion.

"We do car financing leasing!" Li Weidong said, smiling like an old fox again.

Today's update is delivered. Thank you for subscribing. The temperature has been hot and cold recently, and the occupational disease has occurred again. My cervical and lumbar spine are sore, and I feel more comfortable when I lie down on the bed. Therefore, the update may be unstable. I hope you can forgive me.

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