Rebirth 99 to become a car giant.

Chapter 277 A business worth tens of billions is worth talking about

The more than one hundred years since the birth of the automobile is also an era in which human technological capabilities have advanced by leaps and bounds.

With the arrival of the electrical age, the electrical components on the car have also undergone tremendous changes.

One of the most representative is the development and evolution of vehicle headlights.

In the early cars, the primary consideration was how to make the car move forward quickly and stably, rather than lighting.

Therefore, there is no decent headlight installed on the car at all.

With the development of the automobile industry, the lights began to develop continuously.

Counting from kerosene lamps, automobile headlights have roughly experienced the era of acetylene lamps, incandescent lamps, halogen lamps, and xenon lamps.

Almost all low-end and middle-end models are halogen lamps, and almost all high-end models are xenon lamps, with few exceptions.

Xenon lamps are the headlights that Xingchen Automotive Research Institute has just begun to design.

In order to find qualified suppliers, the Purchasing Department has launched the first round of inquiries to manufacturers such as Hella, Koito Lighting, Stanley, and Xingyu.

However, for parts such as headlights, each model basically has its own design, and there are no so-called universal products that can be used.

In this way, it is equivalent to the fact that even if Star Motors only produces 1 units, it needs to develop and open molds to produce lights independently.

This price is naturally exaggerated.

For example, Hella directly quoted a price of nearly 5000 yuan for a headlight.

The prices of Koito lights and Stanley are slightly cheaper, more than 4000.

Only China's local company Xingyu Auto Lighting quoted a price of 3000 yuan, and the other party even said that if the production of Xingchen Automobile increased, there was still room for this price to drop.

Obviously, Xingyu Lighting really wants to get this order.

They even came to Yangcheng to visit Cao Yang.

"Mr. Cao, the xenon lamp is a heavy metal lamp. It is filled with various chemical gases, such as xenon and other inert gases, in the anti-ultraviolet crystal quartz glass tube, and then the 12-volt power supply on the vehicle is instantly increased to 23000 volts through a supercharger. Under the voltage, the xenon gas is ionized and produces a light source between the two poles of the power supply."

"In 1992, Hella and Bosch respectively released their first headlights with xenon technology, and the BMW 1992 Series released in 7 was the world's first model with xenon headlights."

"The BMW 730 currently on sale still uses xenon headlights."

"We, Xingyu Auto Lighting, have been researching xenon headlights for several years, but there has been a lack of a good platform for carrying them."

"So it seems that we don't have much production performance compared with Hella and Koito, but our technology accumulation is enough to complete the development of parts."

"We are willing to develop together with Xingchen Motors and supply the first model at a price that does not make money."

After a brief introduction to the supplier, Zhou Ling, the general manager of Xingyu Auto Lighting, personally explained to Cao Yang the importance they attached to this order.

Also very frankly explained their weakness in xenon headlights.

Because before they came to visit, they had already done various investigations and preparations.

Zhou Ling already knew that Cao Yang did not like to use parts from international parts giants such as Hella.

As long as Nanshan's own parts or Huaxia's own parts manufacturers can meet the technical requirements, Xingchen Automobile will definitely give priority to use.

"Xenon headlights are indeed the most advanced production light technology used on various car models today."

"I also believe that you can produce car lights that meet the requirements of the drawings."

"But I want to ask another question, do you have any research on LED car lights?"

Cao Yang's question stunned Zhou Ling for a moment.

LED headlights.

Although they heard that Hella and other auto lighting companies are already conducting research in this area, and even have some new products ready to be recommended to OEMs.

But their own accumulation in this area is really relatively small.

At present, it is mainly in the stage of theoretical research.

Does Xingchen Auto want to use LED lights so boldly?
"Mr. Cao, LED lights are energy-saving, have a long lifespan and good durability, and the LED components are small in size, compact and easy to arrange and shape design, with fast response speed and low brightness attenuation."

"It can be said that this is a very promising development direction in the future."

"The light intensity of a single LED is still insufficient, so it is not possible to reduce the number of LEDs at will to reduce the size of the lamp."

"At the same time, the small size is not conducive to the heat dissipation of the light source. This requires LED manufacturers to do a good job in thermal management of the product in order to give full play to the advantages of LED."

"In addition, the conversion efficiency of the LED drive system is also a key issue. In high-power applications, many solutions have low conversion efficiency while taking into account the cost."

"Besides, driving with a traditional constant voltage source cannot guarantee the consistency of LED brightness, and affects the reliability, life and light decay of the LED. Therefore, the LED must be driven by a constant current source, which is designed into a whole lighting system solution change."

"In addition, most of the production level of LED lamps is still not up to the application standards of car-level applications. Even if some manufacturers meet the application standards of car-level applications, they may not be able to produce enough and ensure product consistency. It is difficult to meet the requirements of mass-produced cars. high-volume high-quality demand."

Although Zhou Ling felt guilty in her heart, she showed great confidence.

It seems that they have done in-depth research and development of LED lights.

"Mr. Zhou, what do you think of the prospect of LED lights?"

Cao Yang did not refute Zhou Ling's point of view, but asked other questions.

"In the long run, LED headlights will definitely be a general direction, but I don't think domestically produced models will be equipped with LED headlights within the next five years."

"It is likely to start with some relatively simple lamp bodies such as fog lamps and interior lamps."

For this question, Zhou Ling can answer it very easily.

After all, there is no model on the market that is equipped with LED headlights. According to the logic of the past, even if there are new models to be equipped in the future, they will start on high-end models first.

After a generation of products, it will slowly expand.

In this way, let alone five years, she feels that it will not be applied on a large scale within 10 years.

"That is to say, Mr. Zhou, do you approve of the future development prospects of LED lights?"

Cao Yang was not surprised by Zhou Ling's answer.

The entire automotive industry is not focusing on LED headlights now.

Even xenon headlights are already relatively advanced configurations in the eyes of many people.

At most, it is to make some improvements in the lens.

"Of course, LED headlights have so many advantages, as long as their shortcomings can be improved, large-scale application in the future is inevitable."

"It's just this time, maybe ten years later."

Zhou Ling didn't quite understand why Cao Yang had been struggling with this issue with herself.

However, this gave her a bad feeling.

Could it be that Xingchen Motor wanted to engage in LED headlights as soon as it came up?
They can't handle this.

"If Xingyu Auto Lighting can now master mass-produced LED car lighting technology, then Mr. Zhou, do you think this will be of any special help to the development of your company?"

Cao Yang continued to ask questions at his own pace.

"Mr. Cao, our company attaches great importance to the research and development of new technologies, and I hope that we have mastered the technology of LED lights."

"But frankly speaking, according to the current progress, it will take at least another three to five years before we can develop mature LED car lighting technology."

"In the current market situation, any car lighting company, as long as it can come up with mature and reliable LED car lighting technology in advance, will definitely be able to occupy a leading position in the market competition."

"Not only domestic joint venture car companies may use it, but international auto giants may also actively seek cooperation."

"Especially on some high-end models, LED lights are still very attractive."

Zhou Ling felt that Cao Yang's question became more and more strange.

Do talented people have special ideas?
"Our Xingchen No. 1 model will use xenon headlights for low configurations and LED headlights for high configurations."

"Currently, your xenon headlights don't have any mass production results, are they just under development?"

"If Xingchen Motors uses LED headlight technology to cooperate with Xingyu, what cooperation plan can you provide?"

Make some parts by yourself, and cultivate a group of related parts companies to make some parts.

This can be regarded as the general direction of parts supply that Cao Yang has set for Xingchen Automobile.

Although this Xingyu car light is not particularly outstanding now, after it goes public in the future, it will be a company with a market value of more than 500 billion at its peak.

If you can get a few percent of the shares, then it would be a relatively cost-effective business to take out the LED car light technology to replace it.

A business of tens of billions is worth talking about.

After all, it is impossible for Nanshan Group to manufacture all the parts by itself.

At least in the past five or six years, it is not suitable to do it like this.

Although headlights are very important, the degree of monopoly is far less than that of control system parts such as ESP.

"Nanshan Group has mastered the technology of LED lights?"

Zhou Ling couldn't help showing a suspicious expression on her face.

There is no way, it is Cao Yang's formulation, which is too surprising.

I came here to ask for an order, but in the end, they wanted...

"This can be used as a prerequisite for cooperation and written in the agreement."

Cao Yang didn't explain so much, just saying it directly was more convincing than any other explanation.

Nanshan Group already has strong strength in many parts, and Zhou Ling naturally knows this.

Combined with Cao Yang's words, even if she still has doubts, she can only choose to believe first.

"Mr. Cao, if your company can really cooperate with Xingyu with mature and usable LED car lighting technology, then we can pay a considerable amount of money to purchase this technology."

"You can even take out a part of the shares for replacement."

Zhou Ling is also a very courageous person.

Otherwise, it would be impossible to develop Xingyu car lights to what it is now.

Nanshan Group is not short of money, she is clear about this.

So although she wants to use money to buy LED car lighting technology, she actually knows that it is impossible.

There is a high probability that the other party wants Xingyu's shares.

Although she was a bit reluctant about this, it was not unacceptable.

The premise is that the opponent's LED car lighting technology is really mature and reliable.

"This specific plan, I can ask Minister Su to discuss it with you later."

"Although Nanshan has this technology, we can also set up a factory to produce it ourselves, but our energy is limited after all. For some parts, we still want to make full use of Huaxia's existing resources."

Cao Yang didn't directly bargain with Zhou Ling here.

Instead, he handed over the matter of fighting for interests to the people below.

……

"51% is too much. The technology of LED headlights is of great value, but not to the extent that it is worth 51% of the shares."

When Su Mingxing talked about technical cooperation with Zhou Ling, he naturally asked the lion to open his mouth.

LED car light technology is now the most cutting-edge technology in the field of car lights. Nanshan Group has made breakthroughs earlier than other manufacturers. Naturally, he wants to make full use of this advantage.

"Mr. Zhou, you should be very clear that as long as Xingyu is the first to launch LED headlights, it will be a very powerful measure to improve brand power."

"In the future, when those international auto giants look at you again, they won't look at you with colored glasses."

"In the future, there is no need to simply compete with others on prices, but to rely on unique technical advantages to obtain a large number of orders."

"Once the first-mover advantage is formed, the production volume will be expanded quickly and the cost will be reduced, and more and more car companies will definitely use it."

"Even the 10,000+ cars of self-owned brand models will be considered to be equipped with some LED headlights."

"This potential is very worth looking forward to."

Negotiation is a game.

Su Mingxing must strive for the interests of Nanshan Group to the greatest extent.

For him, even if the conversation collapses, he is not afraid.

The big deal is that Nanshan auto parts will go to the factory for production by itself.

Of course, the schedule may be a little tight.

The second phase of Nanshan Industrial Park does not have so many empty workshops for various parts factories.

"Su Bu, up to now, Nanshan only has a shareholding cooperation with Yangcheng Huaqiang Factory. If I understand correctly, it should occupy 3% of the shares."

"If the LED car lighting technology provided by Nanshan has mass production value, then we can outline a maximum of 30% of the shares to replace this technology."

"After all, for Xingyu, the main business now is brought by halogen lamps."

"We have fully mastered this technology ourselves, and it will definitely continue to be used in large quantities on various models in the next ten years."

"We really want to take the opportunity of cooperating with Xingchen Automobile to make our newly developed xenon headlight technology be applied."

"It would be the best if the LED headlight technology can also be put into application."

"But this price needs to be a more appropriate payment."

Zhou Ling is also a very discerning person, able to realize the changes that LED headlight technology will bring to the company.

"How about this? When we sign the cooperation agreement, we can have some additional gambling conditions."

"If the LED headlight technology provided by Nanshan can be recognized by international mainstream manufacturers, then Xingyu will take out 51% of the shares to replace it."

"If we only supply LED headlights to Xingchen Motors, then we agree to your proposed 30% stake."

Before Su Mingxing came to discuss, he naturally grasped Cao Yang's request in advance.

Naturally, the more shares the better, but 30% is also an acceptable bottom line.

After all, Huaqiang Factory is only 30% now.

If too many shares are required, it is estimated that most manufacturers will not accept it.

Of course, since Xingyu's core interests are involved, this kind of negotiation will naturally not be able to come to a conclusion in a short while.

Su Mingxing only talked to Zhou Ling first.

At the same time, in order for Xingyu to see the technical level of LED headlights, the two parties first signed a non-disclosure agreement and an exclusive agreement for LED headlights.

If the cooperation between the two parties is not successful, Xingyu will not be allowed to produce LED headlights without the consent of Nanshan Group in the future.

This effectively prevents the opponent from learning the technology away, but does not cooperate with Nanshan.

……

"Mr. Zhou, judging from the technical information provided by the Nanshan Research Institute, their LED headlight technology has really reached the level of mass production."

"Especially according to what they explained, the logic of LED drive and control is already a very mature solution."

"Even if it is implemented according to their plan, the cost can reach a level that everyone can accept."

"I just don't know when they started to study LED headlights, and they have already achieved such results."

"I heard that Koito's research on LED headlights is at the forefront of the industry. Even so, their parts are still in the early verification stage, and they haven't said which models will be used."

Lin Ran, head of the technical department of Xingyu Auto Lighting, personally connected with Nanshan Research Institute and confirmed the technical information provided by the other party.

Although this set of technical information is not a complete version, it can already be seen that a lot of things.

"Nanshan Group has become the number one in China in just a few years in terms of auto parts business."

"Especially in terms of control system parts, their CNC system for machine tools has also won the first prize of the National Science and Technology Progress Award."

"Engine ECU, TCU and other parts also have the ability to independently develop and produce."

"So the opponent can have a relatively outstanding performance in the driving and control parts of the LED headlights. I think it is normal."

"After all, their technology accumulation in control parts is the strongest in China, and even giants like Bosch feel threatened."

"But it's a bit of a surprise that they're suddenly going into LED headlights."

"The parts they made before were mostly related to the powertrain and chassis."

"Not many electronic and electrical parts are made."

Zhou Ling has also been thinking about cooperation with Nanshan Group for the past week.

As for the information on LED headlights, she also read it herself.

Now that Lin Ran came to such a conclusion again, she felt relieved.

As long as Xingyu Auto Lighting really masters the technology of LED headlights faster than competitors in the industry, and can reduce the cost, then the company is expected to become the largest auto lighting manufacturer in China in the next few years.

At that time, even if there is only half of the shares, the value will be more than 100% now.

"Based on the current situation, the cost of this LED headlight is estimated to be similar to that of a xenon headlight."

"Even now we only need to make some changes related to the appearance of the lamp body on the basis of the technical information provided by Nanshan, and then we can provide it to other OEMs."

"According to the work style of each OEM to make an annual facelift model every two years, we have the opportunity to get orders for LED headlights for new models after 2006 from many car companies."

"The time in the middle is just for us to transform the production line and digest and absorb LED headlight technology."

"Mr. Zhou, judging from the cooperation between Nanshan Group and Yangcheng Huaqiang Factory, I think they are actually a good partner."

"Not to mention strong technical strength, it does not interfere with the daily management of cooperative manufacturers."

"Of course, 51% of the shares must be too much. Our company must not lose its status as a major shareholder."

Lin Ran felt that if Xingyu missed this opportunity, it would be a pity if Nanshan Group found other manufacturers to cooperate with.

No matter how many shares there are, they have to be valuable.

Otherwise it doesn't make any sense.

Besides, if the cooperation cannot be reached, and Nanshan Group directly enters the field of car lamp production, Lin Ran has no confidence in winning the competition.

"I'll communicate with Minister Su again, and the two sides will finalize the details of the cooperation."

"This time, let's take a gamble!"

"As long as they agree that we exchange 40% of the shares for this technology, I will sign a cooperation agreement with them."

Zhou Ling is not a grumpy person.

The more important the matter, the shorter the time to make a decision.

Opportunities won't wait for you forever.

……

"Mr. Cao, this is the cooperation plan that was finally discussed with Xingyu Auto Lighting. The main project is that we use LED car lighting technology to buy shares in exchange for 40% of the other party's shares."

"In addition, there are some details of technical cooperation and transfer. The other party also needs some designers from our research institute to join the new company."

"When we launch the second model in the future, they will consider building a factory in Yangcheng."

"At the same time, we need to help them approach Ford Motor, General Motors and Volkswagen to promote LED lighting technology."

Su Mingxing spent more than ten minutes reporting the cooperation between Nanshan Group and Xingyu Auto Lighting in detail.

However, since both parties want to keep a low profile on this matter, they do not intend to hold a large-scale cooperation signing ceremony.

"Since the negotiation is almost done, let's sign it."

"At that time, let the finance department arrange two financial personnel to go there, and the others don't need special intervention."

Cao Yang still has confidence in the management team of Xingyu Auto Lighting.

If there is no level, it is impossible for them to develop to that scale in future generations.

Instead of arranging people to meddle in the past, it is better to be straightforward.

Supervise the financial work well, and ignore everything else.

"Now that there is such a cooperation case between Yangcheng Huaqiang Factory and Xingyu Auto Lighting, can we also proactively find excellent domestic manufacturers to cooperate with other parts?"

"This should help us get orders from other OEMs in the future."

Although as long as the competitiveness of QCD is sufficient, Nanshan Auto Parts can also obtain orders from other OEMs.

However, with the development of Nanshan car companies such as Xingchen Motors, other OEMs will definitely have stronger and stronger fears.

Unless Nanshan Group's component manufacturers are only positioned to serve their own company, otherwise, adopting a cooperation model similar to Huaqiang Factory or Xingyu will definitely be more conducive to development and growth.

"Well, sort it out and see what other parts can be made like this!"

Cao Yang thought for a while and agreed to this direction.

Walk on three roads, and then slowly compare which road is the most suitable.

Maybe there will be unexpected surprises waiting for Nanshan Group.

(End of this chapter)