Siheyuan starts from a better life

Chapter 870 Instructions
In fact, Qi Lei's words hit the nail on the head, which made Jiang Yan fall into deep thought.

Historically, our automobile industry actually developed very well at the beginning. Although there were various problems, it was just the beginning after all, so who doesn’t have some problems?
No automobile power can be achieved overnight. Instead, it is achieved through repeated failures and lessons, countless research and huge investments, and only then can a country gradually become an automobile power.

Everyone knows the subsequent history. We adopted the strategy of introducing foreign automobile companies and building factories together.

In the end, although the automobile industry has developed well, each automobile company has been turned into an assembly plant. The production of core engines, gearboxes, etc. is not located in the country at all, so we still cannot learn their technology.

This has resulted in the majority of cars on domestic roads being international brands, and one can easily see their own car brands. As for exports, there are almost none at all.

This situation continued until the advent of the electric car era, when it gradually changed. The layout of the new energy vehicle industry was far-sighted, and there was a gradual trend of overtaking others. Automobile exports also increased significantly.

This is obviously unbearable for a big country with a population of more than one billion.

The huge automobile market has fattened up foreign automobile manufacturers, and they all look down on you and treat you differently.

Thinking of this, Jiang Yan naturally had some enlightenment. He thought about it and then spoke directly.

"I remember the former commander said that it is true to walk on two legs. Why don't we first introduce advanced manufacturing from abroad to transform the automobile industry? At the same time, we should also seize the time to pay attention to our existing good automobile industries and improve their R&D and design capabilities. Compared with related foreign products, our country's automobile manufacturing industry is not much behind. What we lack is production and manufacturing capabilities and advanced machine capabilities. Let's make improvements based on this situation."

"Will foreign manufacturers do this?" Qi Lei asked.

"Yes, we don't want to exchange the market for the technology in his hands. With the reform and opening up of the country, this is a huge market worth more than one billion. Just imagine, such a large market is enough to make those capitalists salivate. So this is our advantage. We must pay attention to our advantages. If we want to enter, we must show some sincerity, otherwise we will let them in for nothing."

"This, will they protest?" Qi Lei asked again.

"The market is ours, and the decision-making power is ours. We should have screening rules to determine which companies can enter and which cannot. It's not easy to find fault with something." Jiang Yan said with a smile while smoking a cigarette.

"You are quite insidious, boy, but I like it." Qi Lei smiled and patted Jiang Yan's shoulder.

"In addition, our country has abundant human resources, which is also an intangible wealth. The monthly salary of the same type of workers in our country is really a world apart from that in other developed countries. We can use our advantage in labor costs to create wealth."

"How do we create it specifically?" Qi Lei asked. "This is simple. We can do the business of processing supplied materials. The materials are provided by them, and we are only responsible for production, and then we give them to them after production. Believe it or not, even with the addition of sea transportation, our production cost is lower than their own production in their country. This is our advantage." Jiang Yan took a sip of water and said.

"So, what can we get?"

"A large number of skilled workers and wealth, but we still have to pay attention to the issue of workers. It would be a bit unrealistic if this were to turn into a sweatshop." Jiang Yan said after thinking for a while.

There are two modes of "OEM", OEM and ODM. OEM production, also known as fixed-point production, is commonly known as OEM (production). The characteristics of OEM are: technology, capital, market, and only production are inside. The basic meaning of OEM is that brand producers do not directly produce products, but use their own key core technologies to design and develop new products, control sales channels, and entrust other manufacturers of similar products to produce specific processing tasks through contract orders. After that, the ordered products are bought out at a low price and directly affixed with their own brand trademarks. This cooperative mode of entrusting others to produce is referred to as OEM, and the manufacturer who undertakes the processing task is called OEM manufacturer, and the products it produces are called OEM products.

In the industrial society, OEM and ODM are commonplace. For reasons of manufacturing cost, transportation convenience, and saving development time, well-known brand companies are generally willing to find other manufacturers for OEM or ODM. When looking for other companies to do OEM or ODM, well-known brand companies also have to bear a lot of responsibilities. After all, the product is crowned with their own brand. If the product quality is not good, at least customers will come to complain, and at worst they may have to go to court. Therefore, brand companies will definitely carry out strict quality control during the commissioned processing.

However, the issue of workers still needs to be taken into consideration. After all, there are too many examples here in the past, and these capitalists are not good people. Instead of letting those Taiwanese companies in the future do such business, it is better for us to do it ourselves. At least under the leadership of the government, we can solve these problems.

"How do we do it specifically?" Qi Lei asked again.

"I have already written the solution in the plan. Don't we have trade unions? They can play a role here. Just like the migrant workers, the trade unions can take the lead in setting up labor dispatch companies. The labor dispatch companies can negotiate with the factories to stipulate working hours, wages and other things. If there are any problems, the trade unions can solve them. As long as we can reach a balance, we can guarantee the interests of both workers and enterprises, and the trade unions can play a major role. This is killing three birds with one stone."

"Well, I just took a quick look at it. I will read it carefully when I go back. But you can do it. I think you are just a half-hearted teacher in school. It would be better for you to be a consultant here. You will have more free time and can take care of your own things. Consider it."

"Are there any specific benefits?" Jiang Yan asked.

"Oh! No wonder others say that you capitalists are stingy the richer you are. You don't even want to let go of this little bit of money. We only have this little salary, and you still want this little thing."

"That won't do. After all, at my level, who would do the work without getting paid? I must get the proper treatment. After all, I can get a pension when I retire. This will prevent my children from looking down on me. Only when you have money can you have confidence," Jiang Yan said.

"I think you really think long-term. You are so young and you are already thinking about retirement. But you are right. If we want the horse to run, we need it to eat grass. Okay, I will discuss this with my superiors. I think they will agree. After all, you are a rare talent."

Is Jiang Yan short of this little money? Obviously not. With this identity, his business journey will be much smoother. After all, Jiang Yan is quite clear that it is easier to get things done with someone.

(End of this chapter)