Wanjie Technology System

Hyundai Group.

Zheng Dafu sat at the first seat in the conference room, his face unusually gloomy. Today is the annual summary meeting. But all reports are bleak.

"Mr. President, our car sales have continued to decline for seven consecutive years in the four quarters of this year. Our Hyundai cars sold a total of 1.23 million this year, and Kia cars sold a total of 700,000." A senior executive of the marketing department reported truthfully. (Kia also belongs to Hyundai Group.)

"So few? The year before last, our Hyundai sold 4.5 million cars and Kia sold 2.75 million cars! How come there are so many fewer cars this year?"

"Yes, we have almost lost this huge market in China. Our Hyundai and Kia cars have directly dropped by more than 80% in China compared with previous years."

"Our sales in the US market have also declined significantly. The decline rate is more than 30%."

"Our sales in other regional markets have also declined. But not as much as these two major markets."

After hearing this, Zheng Dafu's face was very ugly. The two major markets of their group, which are also the markets they value most, are the Chinese market and the US market. Most of the cars they produce are sold to these two regions.

"Our profit this year is only 372 million US dollars." The financial manager said.

"Only 372 million US dollars?" Zheng Dafu frowned. This is the lowest profit he has heard in all these years. This profit is already terribly low.

"So little?"

"Last year, there was a profit of 918 million US dollars! Only about one-third of it this year?"

"Alas..."

A group of senior executives were all dejected.

Now the company is really getting worse day by day. If it can maintain a profit of 918 million US dollars this year. It's not bad. After all, the profit of 919 million US dollars is pure profit. It is the money earned after all costs are truly eliminated.

But this year, there is only 372 million US dollars in pure profit, which is really too low.

At present, their company's annual profit has hit a new low in at least seven years. One of the important reasons is that the sales volume in the Chinese market has dropped sharply due to the emergence of Xingchen Automobile Company. In the US market, Hyundai and Kia have a good market reputation, but in recent years, they have relied too much on the wrong strategy of SUV models such as Santa Fe (Kia Shengda in China), resulting in poor performance in the US market, which does not prefer SUVs.

Now, few people buy their cars in China, one of the two major markets, and their cars are not popular in the US market due to wrong decisions.

This is the biggest blow to them!

If the two major markets are not good, how much can they sell in other small markets?

There is another reason why the company's net profit is so low. That is because their cars are generally high-configuration, high-value, and low-priced to gain market recognition.

But high configuration and low price are the reasons for their low profits.

Coupled with the current sluggish market, they are really very uncomfortable.

"Let me tell you another bad news. Since our cars are no longer in demand in China, the board of directors will definitely withdraw from China in the first half of next year." At this time, Zheng Dafu said in a deep voice.

"What? Withdraw from the Chinese market?"

"This..."

"Well, it's better to withdraw early than to struggle like this."

"The board of directors has decided to start developing the motorcycle business and invest in other industries at the same time..."

"Has Xingchen Automobile Company put pressure on us to this extent? The group is going to develop other industries?"

Some senior executives are panicking.

…………

Toyota headquarters.

Sato Kojiro is sitting in the shareholders' meeting room.

Today is the shareholders' meeting. As the president, he is reporting to the shareholders on all the company's situations this year.

"This year, our company has sold a total of 3 million cars worldwide, which is more than 51% less than last year. At the same time, the loss in the Chinese market is the most serious. Compared with last year, our sales have dropped by more than 70%."

"In the four quarters of this year, our company's automobile sales turnover is about 84.9 billion US dollars, and the profit is about 5.6 billion US dollars." Sato Kojiro reported while sitting upright. He knew that these shareholders would definitely be in a bad mood when they heard the news. He was ready to be criticized.

"What? It's down more than 50% from last year?" A major shareholder widened his eyes, looking angry.

"Last year, we were able to sell nearly 6 million cars, but this year we only sold 3 million?"

"The profit is more than half less than last year! Damn."

"Sato Kojiro, what do you do for a living?"

A group of shareholders, big and small, roared.

Obviously, they were very dissatisfied with such turnover and net profit.

"It's mainly because our sales in the Chinese market are dismal. Many series of cars can hardly be sold. Especially our Corolla, Camry, Crown, etc...."

"Now Chinese people don't want to buy our cars. Most of them are considering Xingchen Cars! Especially Xingchen A1 and A2, they like them very much."

"Humph, Xingchen Cars again! Didn't we have three major price cuts on our cars? Why are they still not selling well?" a shareholder questioned.

"This..." For a moment, Sato Kojiro didn't know what to say. You bargain, and they will also reduce the price slightly. Consumers still choose Xingchen Automobile.

In the past two years, there are more and more electric cars on the streets of China, that is Xingchen Automobile.

Not only them, but other Volkswagen, Ford and so on are still unpopular there.

"Sato Kojiro, the year before last. Our company sold 10.38 million cars a year, with a turnover of 257.4 billion US dollars and a net profit of 16.899 billion US dollars. Among many automobile companies, our sales volume is not the first, but our net profit and turnover are the first in the world!"

"But since last year, we have only sold more than 6 million cars in total, with a turnover of 160 billion US dollars and a net profit of 10.8 billion US dollars!"

"But this year you said that you only sold more than 3 million cars? The turnover is only 84.9 billion US dollars, and the net profit is only 5.6 billion US dollars! It is less and less every year, and the gap is still large!"

"If this continues, our company will be close to bankruptcy!" A shareholder roared.

"That's right, now our group doubts your ability, Sato Kojiro. Have you considered dismissing you?" Small shareholders shouted one by one.

Sato Kojiro was helpless after hearing this. He didn't want to, mainly because Xingchen Automobile Company showed too amazing strength and potential. The company was established three years ago. Three years later, it caused such a huge fluctuation and impact on the global automobile industry.