Countercurrent 1982

Chapter 1621 Dispel doubts
Foreigners always like to bring outdated technology to China and use the Chinese market as a dumping ground. If this was feasible in the 80s during the reform and opening up, it will be obviously unacceptable in the 90s.

Duan Yun is very familiar with the current Chinese auto industry, and he also knows that outdated models cannot gain a foothold in China. The president of Volvo proposed to produce their 140 in China, but the Volvo 140 belongs to the mid-60s. It is very classic, but its appearance is very similar to that of the domestically produced Shanghai brand cars, which are no longer popular in China.

"Can you guarantee that our Volvo cars will become the official procurement vehicles of the Chinese government?" Johnson asked suddenly at this time.

"No one can guarantee you this kind of thing." Duan Yun spread his hands, and then said: "But our country's government official car purchases give priority to using domestic cars as much as possible, but our domestic car technology is still very backward, so It can only be said that it can only be the second choice and choose the cars of the joint venture, so the joint venture still has a great advantage in the procurement of government official vehicles. In addition, our country has a very large gap in the procurement of official vehicles. After all, we have a population of 10 billion. A big country is expected to need at least one million official vehicles in the next 4 to 5 years, this is a very big cake..."

"Yes, there is a huge shortage of government vehicles in our country. I personally feel that Volvo Cars is not inferior to companies like German Volkswagen and Japanese Toyota in terms of technology and performance. If they can come to China to set up factories, they will definitely be very popular. Yes." Liu Donghai reacted quickly, and immediately echoed it at this time.

"Then besides the government procurement of vehicles, can you three distinguished guests tell me about the development of the Chinese auto market?" Johnson said respectfully.

At this moment, Johnson really has a strong interest in China's auto industry. After all, for an auto company like them with a total annual output of only more than 40 vehicles, such a huge market with potential is indeed very important to him. Attractive, even if you can only sell 1 more vehicles a year, that is not a small amount. Moreover, if the layout is in place and the publicity is increased, the sales will definitely increase year by year.

"I suggest that you Volvo Group can refer to the foreign models that are currently popular in the Chinese market in detail, and use them as technical benchmarks to launch models of the same level in China." Duan Yun paused, and then said: "In addition, consumption in various countries The situation is different. For example, in China, those who can afford family cars are either rich or expensive. They prefer models with a high-end appearance, simple maintenance, and high cost performance. Volvo models that are too luxurious may not be very competitive. After all, in our country, the German car bba can be called a luxury brand. Your Volvo brand is not well recognized in China. With the same price and the same technology, people prefer German cars like Mercedes-Benz, BMW and Audi, so I don't suggest you sell your most luxurious car in China."

"Yeah." Hearing this, Johnson nodded slightly.

Volvo's brand value is not as good as the BBA of German cars, Johnson is well aware of this, although in terms of technology, Volvo cars have undergone great technological innovations in recent years and have achieved good sales in Europe, but From a global perspective, it is an indisputable fact that Swedish car brands are not as good as Germany.

"Although my group company is now mainly engaged in microelectronics products, it also has its own automobile research and development department. The person next to me is the director of Shenyang Jinbei Automobile Factory. He has more than 20 years of experience in the automobile industry and also He is a very influential figure in our Chinese auto industry." Duan Yun smiled slightly, and then said: "From the perspective of the auto industry, our Chinese auto industry is still very backward and does not have advanced technology, but as a practitioner in the auto industry Staff, we have a very good understanding of China's domestic auto industry, what kind of products Chinese auto consumers like most, and the future development direction of China's auto industry, so if Volvo is willing to invest in China, we will also participate in Volvo Cars' development in China. China's localized innovation and improvement, better adapt to the Chinese mainland market, making it a new popular model after the Shanghai Volkswagen Santana!"

In the face of Volvo’s senior executives, Duan Yun will definitely not talk about technology with them, because everyone knows that China’s automobile technology is backward, but Duan Yun and the others still have the capital and the right to speak in terms of automobile localization. All automobile products need to be localized, which is also a very important job, which can be regarded as determining the success or failure of an automobile brand in this country.

"Mr. Duan is indeed very professional. Your analysis has given me a lot of inspiration. China is indeed a market worthy of attention." At this time, Johnson seemed to be a little touched, and he continued: "But I heard that you are in China. The Patent Act seems a bit immature..."

"You don't have to worry about this!" Duan Yun immediately understood what Johnson meant, so he said, "Actually, in the mid-80s, our country already had corresponding patents. For foreign companies' patented technologies, there is Guaranteed by the law, and let me tell you one more thing, that is, after Germany established a joint venture in Shanghai, although the Santana sedan they produced has entered the Chinese market for 7 years, until now, including the three major assemblies in the In China, more than 3% of the vehicle parts are still imported from Germany, and our domestic industrial base still does not have the level to localize these imported models..."

"Uh." Hearing this, all Volvo senior managers, including Johnson, immediately relaxed.

The main reason why Volvo is unwilling to set up a joint venture factory in China is that it attaches great importance to its own automobile technology and is unwilling to trade technology for the market, because if the rate of return is low, they will lose more than they gain.

However, what Duan Yun said made Johnson and others immediately dispel their doubts, that is, China also has a corresponding patent law, and with China's current industrial technology, it is still unable to fully absorb the technology brought by these foreign car companies. This allows Volvo to take a lot less risk, and they don't have to worry that Chinese companies will steal their technology and become their competitors.

"In addition, your company's heavy-duty truck technology is internationally leading, and we have no relevant local car companies and joint ventures in China, which is a blank market. If Volvo is willing to bring your heavy-duty trucks to China, I think it will definitely be a big deal. Welcome." Duan Yun added another sentence at this time.

(End of this chapter)