Countercurrent 1982

Chapter 1619
What Duan Yun said is not to flatter Volvo, but in fact, the quality of Volvo cars is almost the same as that of German Volkswagen, and the two cars also have the same design elements of European cars. As far as the 940 luxury car is concerned, it is not much different from the Volkswagen Santana in appearance, and it is difficult to distinguish the two models at a glance.

"6 cars a year!?" Hearing the number reported by Duan Yun, several Volvo executives present were shocked.

Because Volvo executives are quite familiar with the car sales of major European brands. According to their understanding, German Volkswagen established a joint venture factory in China in 1984. By the end of the 80s, it had produced a total of less than 10 vehicles. Last year alone, 6 cars were produced, which is quite a staggering figure.

Because Volvo’s total output last year was 46 units, 6 units can account for about 1/8 of Volvo’s total annual production. Only less than 8 vehicles were sold. In this way, the potential of the Chinese market is comparable to that of the United States.

But in fact, everyone knows that the current automobile market in mainland China is far from being comparable to that of the United States. However, the United States is the largest automobile market in the world, with a large volume and very cruel competition. It can be said that there are all multinational automobile companies The Shura market in China, especially the cars from the United States and Japan occupy a dominant position there. Volvo can sell less than 8 cars to the United States.

"Is the data you said true?" Ericsson, the vice president, couldn't help asking.

For a long time, Volvo executives, including Eriksson, have believed that Volvo cars are of a higher grade than German Volkswagen. Their benchmark is the German bba, which is Mercedes-Benz, BMW and Audi. Since Volkswagen can sell them in China So good, then Volvo, which also has luxury car technology, should not lose to them in the Chinese market.

Moreover, the sales volume of 6 cars a year is enough to make them tempted. For Volvo, this is almost equivalent to another American market. Although they also know that there are many factors for the success of German Volkswagen in China, but because of Their own company's strength and self-confidence in technology make them feel that Volvo can also succeed in China.

"One of the two next to me works in the municipal government, and the other is the director of a state-owned automobile factory. They have a deep understanding of the development data of China's automobile industry, so you don't have to question the sales data of German Volkswagen in China. " Duan Yun paused, and then said: "But there is one thing I hope everyone can understand, that is, if you want to invest and set up factories in China, you must follow the rules set by our country. It is backward, so after so many years of reform and opening up, it has always adopted the strategy of exchanging technology for the market to attract foreign investment. That is to say, if you want to make money, you have to provide some technical support. Of course, if you can succeed, the return is quite good. Considerable, after all, we are the most populous country in the world, with that 10 billion people, even if there is one rich person out of 100 people, that is 1 million potential customers, so over the years, more and more companies have come to China to invest and set up factories. There are more and more world-renowned multinational high-tech companies, because they all clearly see the huge potential of the Chinese market..."

Duan Yun's negotiations always focused on profit and rate of return. He knew that this was the most important thing for the Volvo Group, and they had to arouse their desire for investment before talking about other things.

"This... Our investment in foreign markets requires strict market evaluation, but China is indeed a very potential auto market." At this time, Johnson thought for a while and said.

Duan Yun's words really aroused their desire to invest, especially since Volvo's current development in the European and American markets has fallen into a weak stage, and the company's auto project profits have not increased for three consecutive years. It is not an acceptable thing, and it is precisely because of this that Johnson, as the president, feels a lot of pressure.

If it can successfully develop the Chinese market, it will be a major strategic victory for the company.

"If the Volvo Group is really willing to invest in China, the Chinese government will provide a lot of preferential policies, including plant land, tax relief, and the establishment of related supporting facilities, and we will give full support." At this time, Liu Donghai also looked at the The other party seemed to have the willingness to invest, so he continued: "In addition, in terms of related hardware facilities, our side in Shenyang also has very unique advantages. Our side itself is the heavy industry base in mainland China, with well-developed train and road transportation, and labor force. It is quite cheap, and there are a large number of skilled workers and technicians engaged in the automobile industry, it can be said to be the best heavy industry investment area in China!"

This time is also the opportunity for Liu Donghai to speak out. After all, Duan Yun is just an ordinary businessman, and Liu Donghai has a government background. His words are more convincing. This is also the main purpose of Duan Yun's invitation to visit Sweden together. .

"But I heard that BJ and Shanghai are the most developed places in China. Didn't the German Volkswagen choose to invest in Shanghai? I have never heard of Shenyang before..." Johnson said with a slight frown.

Like Johnson, these senior managers of Volvo have only heard of BJ and Shanghai before, and know that these two cities are the most developed cities in China, so before Duan Yun and his arrival, these people also felt that BJ and Shanghai are the best in China investment city.

"Mr. Johnson, you may not know it. In fact, BJ and Shanghai are indeed the most developed cities in China, but they are not the most developed heavy industry areas in China." Duan Yun also interjected at this time, only to hear him continue: "I I suggest that you investigate the distribution of industries in China. The Northeast region has always been the center of China's heavy industry. It has never changed since the founding of the People's Republic of China. When Volkswagen built a factory in Shanghai, there were certain political factors. Simply put, Shanghai is the most suitable city for the automobile industry. In fact, in the past few decades in China, Northeast China has been the most important automobile production area in China. It has the most complete supporting facilities and the most technicians and skilled workers. If you can invest and set up a factory in Shenyang, China, it means occupying the center of China's heavy industry. BJ and Shanghai are indeed good, but these two cities are too crowded and there are many joint ventures. It is impossible for them to provide you with better policy support. and resources."

(End of this chapter)