Rebirth 99 to become a car giant.

Chapter 495 New company!Another strategic transformation of Nanshan Group

Lingnan Province moved quickly.

On the day after China released the "Automotive Industry Adjustment and Revitalization Plan" and the "Notice on Carrying out Pilot Demonstration and Promotion of Energy-saving and New Energy Vehicles", Lingnan Province's new energy vehicle production subsidy policy was introduced.

Yangcheng City provides a subsidy of 5 yuan for each vehicle that meets the standards.

The same is true for Lingnan Province.

The only difference is that Lingnan Province’s subsidy requirements have appropriately reduced the cruising range content.

After all, Nanshan Group is not the only automobile company in Lingnan Province.

For today's people, the reduction of the range of electric vehicles from 400 kilometers to 300 kilometers is actually not a small amount.

The battery life of buses has been reduced from 300 kilometers to 200 kilometers, which is barely enough.

Such conditions can be regarded as fully considering the needs of most enterprises in the province.

Of course, to put it bluntly, BYD's needs have been taken into consideration.

So when they saw this policy officially announced, BYD people breathed a sigh of relief.

"Mr. Wang, the province will basically provide subsidies based on the driving range we propose. In this way, we can not only build electric buses, but also electric taxis."

"As for plug-in hybrid vehicles, the requirement for a minimum range of 50 kilometers has also been clarified, and they can be included in subsidies in the same way."

“It’s just that the amount of subsidy has been reduced from 5 yuan per unit to 3 yuan per unit.”

"Taking into account the national, provincial and municipal subsidies, I think it is more appropriate to focus on promoting plug-in hybrid power."

Wu Huabing, director of BYD Auto Sales Department, immediately came to Wang Fu's office with R&D heads Liang Chuanqing and Lu Faxiang.

For BYD Auto, their current focus is on lithium iron phosphate batteries.

The energy density of this kind of battery is relatively low. When used in electric vehicles, although it can barely reach 300 kilometers of driving range, the cost is not low and it is not as cost-effective as a plug-in hybrid.

Taking into account subsidies, plug-in hybrids appear to have a greater chance of making a profit.

The most important thing is that although the plug-in hybrid can be charged, it can also run without charging, which can solve the range anxiety of electric vehicles to a certain extent.

This is actually a very important thing.

"From the perspective of cultivating consumer habits, it is actually more appropriate to directly produce electric vehicles."

"But what you said makes sense. Enterprises also need to consider cost issues."

"We will focus on promoting plug-in hybrid vehicles first, and then just find an electric vehicle and make modifications."

Wang Fu still attaches great importance to Lian Furong's feedback.

As the company becomes larger, we cannot rely on the boss to judge everything alone. We must fully mobilize the work enthusiasm and subjective initiative of the people below.

Otherwise it won’t be enough if the boss is exhausted.

"From the perspective of battery cost, if there is a dedicated electric vehicle platform, the cost of the battery pack can be reduced by at least 10%."

"From a long-term perspective, converting gas-powered cars to electric cars is definitely not an option."

"Mr. Wang, should our company directly develop an electric vehicle platform?"

"In this way, the battery pack can be made more square, and other models can be further produced based on this electric vehicle platform in the future?"

As the person in charge of BYD batteries, Lu Faxiang also has clear ideas for future development.

In his view, a dedicated electric vehicle platform is definitely needed.

It’s just a matter of whether you do it now or do it later.

"There are very few companies engaged in electric vehicles in the world, and most of them are based on a certain traditional fuel vehicle and transformed into an electric vehicle platform."

"If you want to specifically develop an electric vehicle platform, the investment may be a bit large."

"I think we should wait until the development of electric vehicles becomes clearer before considering this aspect?"

As the overall R&D leader, Liang Chuanqing has many issues to consider.

The electric vehicle platform is good, but it costs money to build it.

The cost of directly plagiarizing a certain platform may not be very high.

But if you do original work yourself, the situation is completely different.

Maybe the money spent on building an electric vehicle platform is enough to develop several new models.

Although BYD Auto has developed rapidly in recent years, its sales last year reached 30.

But BYD Auto's single-car profits have never been very high.

Producing a car only earns a processing fee of about 3%. Some models do not even have a 3% profit margin.

Under such circumstances, Liang Chuanqing must be more cautious when it comes to spending a lot of money to develop an electric vehicle platform.

After all, if you spend more money here, there may be less R&D investment elsewhere.

"With this policy announcement, China has ushered in the first stage of the development of electric vehicles."

"At this stage, most companies should rely on subsidies to survive, and there are probably not many electric vehicles purchased on the market."

"So at this stage, we really don't need to develop a special electric vehicle platform, and consumers won't care."

"After three years, I think China's electric vehicle development will have entered the second stage."

"By that time, both battery and motor technology should be more mature."

"Ordinary consumers are beginning to consider accepting some electric vehicles."

"We were investing money in the research and development of electric vehicle platforms at that stage."

Wang Fu made the final decision on the development of the electric vehicle platform.

Do it, definitely do it.

But not now, but three years from now.

In this regard, neither Liang Chuanqing nor Lu Faxiang said anything.

……

Within Nanshan Group, a special meeting is being held regarding the two automobile policies announced by China a few days ago.

The entire Nanshan Group's senior management, except for some personnel who had nothing to do with this policy, attended the meeting.

"Mr. Lin, what is the theme of today's meeting?"

Zhang Jing sat next to Lin Cheng in confusion.

In today's meeting, the heads of companies such as Nanshan Special Steel and Nanshan Carbon Fiber were not invited to participate.

As the person in charge of Nanshan Semiconductor, Zhang Jing found it strange that he was called to attend the meeting.

It's just a car policy release seminar, what does it have to do with him?

"I don't know at all."

"Why don't you ask Minister Zeng?"

Lin Cheng shrugged, saying that he didn't understand anything either.

Of course, he kicked the ball to Zeng Tingting by the way.

"I may not know as much information as you do."

"I want to ask you what the theme of today's meeting is."

Zeng Tingting didn't lie to everyone. She really didn't know what she was going to do today.

Of course, since it is related to the released policies, the topic must be related to new energy vehicles.

Everyone knows this.

But Nanshan Group is actually already working on new energy vehicles with Yangcheng Automobile Group. Could it be that Mr. Cao has new ideas?
"I heard that after the announcement of this policy, various car companies are actively developing electric buses. That should be the best thing to develop."

"Every place that is included in a new energy demonstration city will definitely have corresponding policies to support the implementation of relevant projects."

"In this case, when it comes to purchasing buses, leaning towards electric vehicles should be the easiest goal to achieve."

"Otherwise, as a model city, it would be quite embarrassing if we fail to achieve the above goals."

Dong Shengnan, the Minister of Finance, interjected from the side.

As the Minister of Finance, she is relatively clear about the benefits of electric vehicles.

Without the support of subsidy policies, she feels that electric vehicles would not be able to go far at all.

Similarly, she also supports Nanshan Group's electric vehicle plan and tries its best to develop electric buses and electric buses first, which can make full use of the support of Yangcheng City.

"I heard in the United States that Tesla is preparing to go public this year."

"In fact, I think that with the help of this policy, the group can set up a company similar to Tesla to specialize in research and production of electric vehicles."

“Maybe it will bring unexpected joy to everyone when the time comes.”

After Lin Cheng said these words, everyone was silent for a moment.

This is not the first time that similar topics have been raised in Nanshan Group.

But before, the conditions were obviously immature.

Now, the situation seems a little different?

"I think Mr. Lin's proposal is very good. We now have technical accumulation of batteries, motors, electronic controls and other related components. Producing electric vehicles is not a particularly difficult task for our company."

"If the electric vehicles sold are mid-to-high-end products priced at RMB 50 million, then after taking into account subsidies, it is still possible to achieve profitability."

"Of course, how to get consumers to choose our electric vehicles may be something that requires careful planning."

As the vice president of the group and also in charge of research and development, Rao Yongxiang carefully considered Lin Cheng's plan.

After considering this, I really feel that this plan seems feasible.

"Low-end cars rely on Nanshan Hongqi, focusing on sales of cars within 25 yuan."

"High-end cars rely on Xingchen and Jaguar Land Rover, covering all products ranging from 50 to 500 million."

"In this way, our group really lacks some models between 25 and 50."

"It just so happens that the space in this part of the market is not small, and it is worth exploring."

"Before, I was thinking about letting Jaguar Land Rover or Xingchen launch a model with a price of less than 50 yuan, but Mr. Cao did not agree."

"Now it seems that this part of the market is probably reserved by Mr. Cao for electric vehicles?"

Zeng Tingting boldly gave her "guess".

Her guess was naturally not nonsense, but based on some previous conversations between Cao Yang and her.

Some of the content of the discussion may have been just a simple discussion at the time, but it also reflected some of Cao Yang's thoughts.

"Although there is a subsidy policy now, the conditions for developing electric vehicles may not be very mature, right?"

As the general manager of Nanshan Engine, Cheng Tao actually has some subconscious resistance to new energy vehicles.

What electric car do you want?

Isn’t it nice to have a large-displacement petrol car?If the power is not enough, the engine will help!

Fuel consumption is too high, use a hybrid car!
There is no range anxiety, and there is no need to develop any new technology. How great?

"To say that the conditions are ripe, it is definitely not ripe now."

"But when conditions mature, there may be many electric vehicle brands on the market."

"At that time, it will be much more difficult for us to fight our way out."

"And if it is late to launch electric vehicles, it may give people the feeling that Nanshan Group cannot keep up with the pace of new technology development, which is very fatal."

As soon as Dai Hanbiao said this, many people couldn't help but nodded.

This angle is indeed quite special.

However, it’s not completely unreasonable.

For example, Mercedes-Benz in later generations was relatively slow to launch electric vehicles, and the sales of electric vehicles were very poor.

It has even begun to affect its sales of fuel vehicles.

On the contrary, BMW does a slightly better job in this area.

"From a cost perspective, it is definitely not cost-effective to build electric vehicles. Even with subsidies, it is difficult to make big money."

"However, from the perspective of capital market preferences, companies with room for imagination in the future may be able to get a lot of support in terms of financing."

"I think if the group wants to develop electric vehicles, then it is best if this electric vehicle can develop at a different pace from Xingchen Motors."

“Either we need to find investment institutions to raise money and burn money, or we go public as soon as possible to raise money and burn money.”

"Even if we don't take this path, other companies will definitely take it."

Dong Shengnan further added his opinion.

At this time, Cao Yang finally reached the meeting room.

"The discussion is so lively, does anyone have any thoughts?"

Most of the meetings of Nanshan Group are not so formal and do not make people feel so restrained.

When Cao Yang came in, he naturally heard a few words discussed by everyone.

Today's meeting was originally meant to discuss with everyone.

So now is the time for everyone to sort out what we just discussed.

"Mr. Cao, it's like this, just now..."

Zeng Tingting looked at everyone and quickly summarized what everyone discussed.

"It seems that everyone's minds have been opened up."

"Actually, my thoughts are similar to what you discussed."

"China's promotion of the development of new energy vehicles has now risen to the level of national development strategy."

"Especially last year, the price of crude oil once exceeded US$150 a barrel, and the proportion of domestically imported crude oil was increasing."

"Although oil prices have fallen now, as the economy recovers, oil prices will definitely rise slowly."

"In addition, domestic car sales are increasing year by year, and the consumption of oil is also increasing year by year."

"So new energy vehicles will definitely be supported by policies, and the support is likely to become stronger and stronger."

"I think the establishment of a new electric vehicle company that everyone just proposed is very good."

"This is also one of the main purposes for which I convene everyone to discuss today."

Since everyone below has already talked about it, Cao Yang naturally does not need to let everyone discuss it step by step.

Speak out your thoughts directly, we just want to develop electric vehicles.

The rest is how to do this electric car.

"Our group's current battery technology is the most advanced in China and the most advanced internationally."

“The biggest technical obstacle to developing electric vehicles is as if it no longer exists.”

After Cao Yang finished speaking, Lin Cheng was the first to stand up and express his support.

Regardless of whether there was any doubt before, there is definitely no doubt now.

Besides, Nanshan Battery is the biggest beneficiary of electric vehicles, and Lin Cheng absolutely supports it both publicly and privately.

"At Nanshan Auto Parts, we have completed the development of core components related to motors and electronic controls and are ready for large-scale mass production at any time."

Dai Hanbiao naturally wanted to stand up and express his stance at this time.

For electric vehicles, the component structure is definitely very different from that of fuel vehicles.

Many companies are stuck on this threshold.

Although there are some companies outside that are researching new parts in this area, the technical level is a big question.

"I have a worry, why should consumers buy electric vehicles?"

“What are the advantages and selling points of electric vehicles?”

"You can't tell consumers that electric vehicles are more environmentally friendly. Can you support them?"

"Out of 100 consumers, 99 will not buy electric vehicles because of environmental issues."

Zeng Tingting raised a more pointed question.

As the director of the sales department, she needs to consider the future sales of electric vehicles.

If you don’t consider this issue clearly in the planning stage now, you will definitely be in big trouble later.

In fact, before 2020, or before 2017, although China's electric vehicle market was very lively, sales were not that good.

One of the very important questions is what Zeng Tingting mentioned, what is the selling point of electric vehicles?
If you want to talk to consumers about environmental protection, few people will buy it.

Chinese consumers never consider environmental issues when buying things.

It is obviously unrealistic to hope that everyone will change this view.

In this case, it is very important to highlight the advantages of electric vehicles.

"What Minister Zeng said makes sense. If you simply replace the engine and gearbox of current fuel vehicles and put batteries and motors in them, consumers will not buy it."

"An electric vehicle like this has no advantages at all."

"So we have to give electric vehicles something different."

"The group has now established an intelligent network connection center, and a large part of the research content here can be used on electric vehicles."

"Of course, there are many things that our Star Cars and Jaguar Land Rover can definitely use."

"Intelligent and connected, electric vehicles have a completely different driving experience than fuel vehicles. Only in this way can we attract people to buy electric vehicles."

"For example, most of today's fuel vehicles do not have screens, or the screens are very small."

"Then if we want to develop electric vehicles, we must have a big screen and concentrate as many functions as possible on the screen control, so that everyone will feel that this vehicle is different from a fuel vehicle."

"Of course, this is not the most critical content."

“Intelligence is the real advantage of electric vehicles.”

"If our electric vehicles can achieve autonomous driving in the future, it will definitely attract many young people to buy electric vehicles."

"This also involves the replacement of many parts."

"For example, semiconductor components are not used in many current fuel vehicles."

"But in the era of electric vehicles, the usage of chips will increase exponentially, and the computing power requirements for chips will also rise rapidly."

"This is also very different from traditional fuel vehicles."

Cao Yang appropriately revealed his thoughts and plans.

However, some things were not said in particular.

So far!

Just let everyone clarify the direction of development.

If the electric vehicles produced by then are similar to traditional gasoline vehicles, they will definitely fail.

Historically, many car companies' early electric vehicles had this problem.

In addition to promoting energy conservation and environmental protection, there are not many promotional points.

Electric vehicles like this are destined to be unsold in China.

Only by taking a new track that is different from that of fuel vehicles can we have a future.

"Mr. Cao, I feel that many things about our electric vehicle brand are a little different from the group's traditional projects. Should we give it a separate name that people cannot directly associate with Nanshan Group at a glance?"

Mi Ying interjected from the side.

The group is about to establish a new company. To a certain extent, this is also another strategic transformation of Nanshan Group.

Once this company succeeds in the future, it is likely to drive the development of another industry chain.

The engine is gone!

The gearbox is gone!
But parts like batteries and motors have come up.

Even Nanshan Semiconductor has followed suit.

It seems better to develop two different tracks separately.

"Future Auto Co., Ltd.!"

This time, Cao Yang gave the answer directly.

Nanshan Group should have its own electric vehicle company to produce models with prices below 50 yuan and above 30 yuan.

This was something he had thought about long ago.

Including the name, I have considered it before.

"The future represents the future of electric vehicles, and it also shows that our group has full expectations for this electric vehicle company."

"The name sounds a bit ordinary, but after tasting it carefully, I think it's pretty good."

Mi Ying's analysis was immediately recognized by others.

Soon, the name Future Automobile Co., Ltd. was officially decided internally.

"Mr. Lin, you will serve as the executive deputy general manager of this company, and Zeng Tingting will also serve as the deputy general manager."

"Although the future of this company is limited in the short term, in ten years, the future market value may be higher than that of Xingchen Motors and Jaguar Land Rover combined."

"I hope everyone can run this new electric vehicle brand well and the new company well."

When it’s time to draw a cake, it’s natural to draw a cake.

It is higher than the combined market value of Xingchen Motors and Jaguar Land Rover. Only Cao Yang dares to paint this pie like that.

(End of this chapter)