Manufacturing Empire in the Valley

Chapter 1373 Representative of WorldCom
This can be regarded as an early restraint, followed by Niu Xiaoqiang, who started to rise later: "But what I want to say is that any enterprise develops step by step from scratch. Packard Motors and Asia Machinery Both factories have the perseverance and perseverance to make the auto industry bigger and stronger. The two companies have strong continuous hematopoietic capabilities, and both have independent industries with high profits. They had a very candid exchange and jointly formulated a very ambitious plan. Development plan, in order to realize this lofty development plan, we specially commissioned the district government to hold this investment promotion conference.”

Niu Xiaoqiang said that he paused for a while, and then continued: "The reason why Mr. Fang called you here before the opening of the investment promotion conference is mainly to talk to you about cooperation, and to say something you don't like to hear. In fact, you are facing the same situation as Fang's Automobile. We are all weak in the auto industry, so weak that we are not taken seriously by others. Because of this, we should stick together and work together for a better future. Work hard, here, on behalf of Fang's Automobile, I would like to extend the most sincere invitation to all of you, and hope that everyone can join Fang's Automobile's supply system, and let us join hands and make great achievements together!"

After listening to Niu Xiaoqiang's impassioned speech, more than 20 people present all showed joy.Niu Xiaoqiang has already shown the attitude of Fang's Automobile, which is what these people want to see most, so some people can't help but speak immediately.

The person who spoke was a white man who looked about forty years old. He suppressed the joy in his heart and pushed the gold-rimmed glasses on the bridge of his nose: "Mr. Niu, I am from WorldCom Corporation in Canada. Representative, my name is Steve, our company is very happy to start a long-term cooperation with Fang's Motors, what preparations do we need to make to cooperate with your company?"

Shitong Company specializes in the production of car wipers, and also produces a small amount of brake pads and rearview mirrors.The main service provider of this enterprise is Chrysler Motor Company of the United States.

Because they do not have an advantage in technology, it is very difficult for them to live a very difficult life. The turnover is less than US$500 million in one year, and the profit is only US$30.

The company has been established for 58 years, which can be described as a long history. The reason why it can persist until now is mainly because the company adopts the business model of a family workshop. There are only six employees in the whole company, and the business venue is its own warehouse.

Of course, WorldCom was not so shabby at the beginning. At its peak, they had a factory in Detroit covering an area of ​​more than [-] acres, with more than [-] employees.

WorldCom got where it is because they were a parts supplier to Packard Motors.

All auto companies that have reached a certain scale will develop their own spare parts supply system. For auto parts companies, as long as you hug a thick thigh, you can eat well and drink hot.However, this is not without risks. Once the thigh you are holding falls down one day, you will also fall down along with it.

The relationship between spare parts suppliers and auto companies is very close, and it can be regarded as both prosperity and loss. If you want to get rid of this situation, you must either stand at the top of the entire industry, or have a certain field that cannot be ignored. Technical strength.

So far, there are very few auto parts companies that can really do this. For example, Bosch, Germany, their suppliers cover almost all well-known auto companies in the world, and they will not be restricted by a certain auto company at all.

Another example is Japan's Aisin Seiki, which is one of the best in the field of gearboxes, and it will not be restricted by a certain car company.

It's a pity that WorldCom didn't have this kind of strength, so when Packard Motors went bankrupt, they died with them.If the founder of WorldCom had not had such a little personal friendship with a certain executive of Chrysler, this company might have gone bankrupt like Packard Motors, and it was impossible to survive until now.

The reason why Steve rushed to China to participate in the investment promotion conference after receiving the invitation letter was not only because he wanted to try his luck, but also because his company had a long-term cooperative relationship with Packard Motors.Seeing the resurrection of Packard Motors and its plans to invest hundreds of millions of dollars to build a car factory in China, Steve wanted to rely on the advantages of his previous cooperation to seize the opportunity that might make WorldCom come back.

The reason why Niu Xiaoqiang chose WorldCom as a partner is also the reason why WorldCom had previously cooperated with Packard Motors.

He nodded slightly after listening to Steve's words, and sighed: "It turns out that your Excellency is the representative of WorldCom. As far as I know, WorldCom was a high-quality partner of Packard Motors. Unfortunately, Packard The car companies have fallen in the midst of fierce competition, and WorldCom has been implicated."

Niu Xiaoqiang played the emotional card first, and then answered Steve's question: "Your Excellency just asked what preparations should be made for cooperation with Fang's Automobile. What I want to say is that as long as your company can set up a production base in Aoshan, And it is enough to produce products that meet the requirements of Fang's Motor Company, and no other additional conditions are required."

If you want to become a spare parts supplier of an automobile company, the common practice in the world is that you must submit a certain deposit.The security deposit is mainly used to compensate the loss of the car company.

For example, if there is a quality problem in a certain batch of parts you produce, which affects the production progress of the car company, the car company will calculate the loss based on the actual production volume, and the money they lost will be paid from the deposit. deduction.

If you didn't submit a security deposit in advance, in case of a major problem that caused huge losses to the auto company and you quit, who would they turn to for reasoning?

What Steve was most worried about just now was that Fang's Automobile would ask him to provide a security deposit. The amount of money is quite a lot. If he can't get it out, he will lose this excellent opportunity.

At this moment, when Niu Xiaoqiang said that there is no need to submit a deposit, Steve was completely relieved, and other company representatives were also relieved.

There is no way, everyone is not rich, and it is really impossible to pay the deposit.

Steve nodded excitedly: "That's good, we can use more funds to invest in building factories!"

(End of this chapter)