Rebirth 99 to become a car giant.

Chapter 850: Kill one thousand enemies and suffer eight hundred losses to yourself. Nanshan Group is not a fool.
"Mr. Cao, this comprehensive suppression by the United States will have the greatest impact on Nanshan Automobile Group."

"I think it is also necessary to make a strong counterattack in the automobile industry so that American companies can also feel the pain."

"Otherwise, they would suppress us every time and always feel that they can bully us unscrupulously."

"This time we are going to take some serious measures, which will directly cause American companies such as General Motors and Ford Motor Company to feel the pain."

Within Nanshan Automobile Group, Cao Yang personally chaired a high-level meeting.

All heads of subsidiaries and group executives attended the meeting.

Nanshan Automobile Group is a major profit maker, contributing more than 1000 billion yuan in profits every year.

Now that the United States is targeting this big profit maker, Cao Yang must take some targeted actions.

People in charge like Zeng Tingting could clearly feel some of Cao Yang's ideas, so they also began to put forward some specific plans.

"Mr. Zeng is right. General Motors and Ford, as the two largest car companies in the United States, have actually developed very fast in China in recent years."

"Nowadays, our independent brands have completely emerged, and their existence has little meaning."

"General Motors and Ford Motor Company are also involved in this suppression by the United States. Even if they want to explain that they are innocent, they are not worthy of belief."

"I suggest using the U.S. policy to directly cut off supply to GM and Changan Ford starting tomorrow, so that they can continue production without parts."

Rao Yongxiang is ready to resort to the big move of cutting off the confession.

Over the years, Nanshan Auto Parts has never cut off supply to any OEM.

But that doesn't mean this action can't be used.

Especially now that the United States has gone too far. As long as public opinion is properly guided, this supply cutoff will not affect the reputation of Nanshan Auto Parts at all.

There are even a large number of netizens on the Internet who support Nanshan Automobile Group's approach.

"Although our sales with Modu GM and Changan Ford will quickly return to zero after the supply is cut off, the market of Modu GM and Changan Ford is likely to be taken away by independent brand car companies such as Nanshan Hongqi."

"We also supply a large number of parts to these companies. When the time comes, the overall sales will not only not decline, but may actually rise further."

"So we at Nanshan Auto Parts are also very supportive of cutting off supply to GM and Changan Ford, so that GM and Ford will completely lose the Chinese market."

As the general manager of Nanshan Auto Parts, Dai Hanbiao also expressed his views clearly.

For some parts companies, cutting off supplies can be said to be self-destruction, and it is basically an act of betrayal.

But for Nanshan Auto Parts, it is actually able to profit from it.

"If we want to cut off supply, I suggest we do it more thoroughly and cut off all parts exported to General Motors and Ford."

"Anyway, with the policies of the United States, General Motors and Ford must be rapidly advancing the use of parts from other suppliers to replace our solutions."

"People may even have started to implement some actions."

Zeng Tingting also put forward her own opinions based on everyone's opinions.

"If the supply is suddenly cut off, we still have some finished products, semi-finished products and raw materials in our own warehouses and production sites."

"In terms of raw materials, most of them can be used in other parts."

"But some other inventory is likely to be wasted."

Dong Shengnan, the person in charge of finance, mentioned an issue that seems to have been ignored by everyone.

Although the automobile industry has developed to this day, inventory in all aspects has been controlled to the minimum possible.

But true zero inventory is definitely unrealistic. Whether it is the OEM or the supplier, there is more or less a large inventory of parts.

Nanshan Auto Parts is naturally no exception.

"I don't think we have anything to worry about. Most of the products we sell are standard products and are not supplied to Ford and General Motors separately."

"As for the parts specially supplied to these two customers, we can find ways to sell them to the American after-sales market through third parties later."

"It's just a little bit more fiddly."

Zeng Tingting has been in charge of sales business and is quite familiar with this aspect.

The after-sales market in the United States is still quite different from that in China.

Many parts are not original parts from the manufacturer.

So as long as there is profit, there must be a company that will do it.

"Modu GM and Changan Ford both have domestic shareholders."

"And these two companies are also important sources of profits for Modu Automobile Group and Changan Automobile."

"Before we cut off their supply, should we say hello to the people from Modu Automobile Group and Changan Automobile?"

Seeing that she was about to make a decision, Mi Ying couldn't help but remind her.

After all, Nanshan Automobile Group still has many business dealings with Changan Automobile and Modu Automobile.

If the relationship becomes too rigid because of this matter, it is definitely inappropriate.

Of course, it is certainly impossible for Nanshan Automobile Group to change its decision based on their opinions.

"Mr. Cao, this reminder from Director Mi is very important. I think you can say hello to Mr. Yi and the others in advance?"

Naturally, Cao Yang had no objection to Zeng Tingting's proposal.

It's just a matter of making a phone call to communicate and explain.

The Nanshan Group has been completely suppressed by the United States. Isn't it allowed to fight back?

Do we really have to wait until the other party is ready to switch parts before waiting to die?
Since we are going to stop shipping to GM and Changan Ford soon, there is no need to wait.

As soon as the meeting ended, Cao Yang called Yi Jia from Changan Automobile.

"Mr. Cao, what the United States has done is really too much."

"If there is anything you need help from Changan Automobile, you can always ask."

As soon as the call was connected, Yi Jia made a statement first.

After all, Nanshan Group has been suppressed by the United States in all aspects, and this matter has become known throughout the country.

It would be strange if Yi Jia pretended not to know.

However, what he said was exactly in line with Cao Yang's thoughts.

"Mr. Yi, to tell you the truth, there is really something related to Changan Automobile Group."

When Cao Yang said this, Yi Jia immediately said: "What is it? As long as I can help, I will do my best."

Changan Automobile's passenger car engines and gearboxes are 100% from Nanshan Automobile Group, as are a large number of other parts on the car.

Therefore, whether it is from the heart or to maintain the relationship between the two parties, Yi Jia's attitude is very cooperative.

"According to the policy of the United States, all American companies will not be allowed to import any parts, equipment and other products from Nanshan Group in the future."

"We will stop exporting all parts and components we export to General Motors and Ford Motor Company in the future."

"Similarly, we will no longer supply relevant parts to Changan Ford and Modu GM."

When Cao Yang said this, Chang Anlin immediately made a thud.

Changan Ford is now the company with the highest profit margin among Changan Automobile.

If this suddenly collapses, the impact on Changan Automobile Group will definitely be huge.

"Mr. Cao, according to the policy of the United States, it will not be fully implemented until January 1 next year, right?"

"If there are difficulties with some things, they don't need to be implemented immediately."

Obviously, Yi Jia also carefully studied the suppression policies of the United States.

However, even if he said this, Cao Yang would definitely not change his mind.

"That's true, but during this period, General Motors and Ford will definitely quickly switch the parts we produce to other manufacturers for supply."

"Behind this incident, people from General Motors and Ford were also involved, and before the news was officially announced by the United States, they were already working on parts replacement internally."

"In this case, there is no need for us to earn the money in the last few months."

When Cao Yang said this, Yi Jia probably understood what was going on.

But for a moment, he didn't know how to answer.

After all, such a big piece of fat will fly away at once. To say that it is not a pity at all would definitely be a lie.

"Mr. Yi, Changan Ford and Modu GM will definitely see a significant drop in production or even a complete shutdown due to parts supply issues during this period."

"This is the best opportunity for Changan Automobile to seize the market."

"Especially in the Changan Ford market, your people are most clear about the advantages and disadvantages of each model."

"As long as we can seize part of the market, we can basically make up for most of the losses."

"After all, the guys at Changan Ford only own 50% of the shares. In fact, they can't even get half of the profits from the industry chain."

Although Cao Yang could ignore Yi Jia's thoughts, it would definitely be beneficial to find some steps for others to step down.

Besides, what he said was right.

As long as Changan Automobile can seize some market from Changan Ford, it will not be considered a loss this time.

"If Ford was involved in this incident, it would indeed be a bit excessive."

"I remember that the models of Xingchen Motors are sold by Ford Motor Company in North America. They should make a lot of money from it every year."

Yi Jia sighed inwardly, knowing that she actually had no choice this time.

Facing the pressure from the United States, Nanshan Group will definitely fight back.

Nanshan Automobile Group is the most affected sector among all groups. However, there are Ford Motor and General Motors behind this incident. It is not surprising that Cao Yang wants to deal with Ford Motor and General Motors.

After thinking about these issues clearly, Yi Jia no longer struggled.

"Yeah, while eating the rice from the pot, I was doing things like smashing the pot."

"If we don't teach American companies a lesson, they may come up with even more disgusting tricks in the future."

Cao Yang chatted with Yi Jia for a while and didn't say much more.

He still has to call the Modu Automobile Group.

……

While Cao Yang was busy communicating on the phone, Nanshan Automobile Group was not idle either. [Dear Modu Automobile General Co., Ltd.:

Thank you for your continued support and help in the past!
Due to well-known force majeure factors, our company will not be able to continue to supply parts to your company from now on!
Nanshan Auto Parts strongly condemns the United States' practices that undermine normal commercial development...

Over the past decade, the partnership began with a nut plate...

Now the cooperation between the two parties has to come to an end, and I deeply regret this! 】

When an official letter stamped with the company seal from Nanshan Auto Parts was sent to the Purchasing Department of Modu General Motors, chaos immediately broke out there.

Affected by Toyota's JIT production model, various OEMs are doing their best to reduce inventory in each link.

Therefore, if Nanshan Auto Parts starts to stop supply today, then some models of Modu GM will have to stop production tomorrow, and in two or three days at most, all models will stop.

Modu General Motors has been the sales champion in China's automobile industry in the past two years and has made a lot of money from the market.

Now that there is suddenly no supply of parts, it's strange that they can't be in a hurry.

"Jim, if we are now fully promoting the parts switching of Nanshan Auto Parts, when will the fastest we can resume production?"

As the general manager of Modu GM, Austin also had many dealings with Nanshan Group back then.

He also called Cao Yang several times in the past two days, but Cao Yang didn't answer even once.

Considering some of the practices at the headquarters, Austin knew that the relationship between the two parties was completely broken this time.

Modu GM can only reap the consequences and first choose new suppliers to produce corresponding parts.

But where is this kind of thing so easy to do?

For example, for the hot stamping parts supplied by Yangcheng Huaqiang Group, the production time of this mold alone takes at least six months, and even with overtime work, it still takes three months.

And this requires other hot stamping manufacturers to have relevant production capabilities.

Otherwise, it would take even longer to invest in a corresponding hot stamping production line.

The most critical thing is the hot stamping manufacturers in China. More than 80% of the equipment is purchased from Nanshan Equipment.

At this critical juncture, which company would dare to easily provide emergency assistance to Modu General?
If it is a good company, Nanshan Equipment can definitely do something about the maintenance of equipment and teach people how to behave well.

This is just a hot stamped formed part.

In addition to these parts, there are various important parts such as ESP, high-pressure oil pumps, instruments, touch screens, etc. on various models of Modu GM, all of which are supplied by Nanshan Auto Parts.

Even the gearboxes of some models are produced by Nanshan Gearbox.

The replacement of parts on the car often requires various tests and matching confirmation.

Even if most of the content is omitted, it will be impossible for GM to resume production in the next three months.

There will be a chance to restart the production line after half a year.

But in a fiercely competitive market, will there be anything happening with Magic City in half a year?

Do you really think that the sales of other joint ventures and independent brands are just for nothing?

"Austin, the situation is not optimistic."

"As the largest auto parts company in China, each of our models uses a large number of Nanshan Auto Parts products."

"In addition, some of our suppliers also purchase materials and equipment from Nanshan Special Steel."

"It may take at least a week just to figure out the current situation, and it may take another week or two to communicate with the headquarters and Pan Asia about the solution."

"After we have a plan, we still need to find a suitable new supplier to review production."

"Even if all the work such as quotation is carried out in parallel, it will take at least half a year to replace all the parts."

"This still saves a lot of testing."

Jim felt like his head was getting bigger now.

If I had known there was a chance to return to China last year, I would have gone back directly.

Who knew that the situation would suddenly develop into what it is now?

"Is Nanshan Auto Parts still unwilling to continue supplying parts?

"What they did violated the basic transaction contract, right?"

"Can we sue them?"

Since they are about to break up, naturally any means can be used.

At this time, Austin will not care about his previous friendship with Cao Yang.

In fact, the relationship between them is more about interests than true friendship.

"Nanshan Auto Parts' attitude is very firm and we will not deliver any more parts."

"Even the parts that are already in the warehouse in Shanghai will not be shipped."

"As for the contract, there is indeed a force majeure clause in it. If people insist on citing the policies of the United States, we may not be able to win the lawsuit in the end."

"Especially if the lawsuit is filed in China, there is almost no hope of winning."

When Jim said this, he immediately silenced Austin.

He's a little helpless now.

"Austin, why don't you report it to the headquarters as soon as possible?"

"There is no reason for us to solve all the troubles they have caused, and we cannot solve them."

"We are all very aware of the influence of Nanshan Group in China."

"It is a pillar enterprise of China's economy and a key enterprise that has mastered a large number of core technologies."

"We will definitely be retaliated against this time."

Jim saw the troubled look on Austin's face and couldn't help but persuade him.

At this time, throw the pot away quickly.

Otherwise, life will be unbearable.

After all, starting tomorrow, various factories will begin to suspend production for a long time.

However, various expenses continue.

"We really need to report to the headquarters as soon as possible."

"Let's see what instructions the president has!"

Sighing in his heart, Austin knew that his comfortable days were over.

While Austin and Jim were struggling, Changan Ford actually received contact letters from Nanshan Auto Parts, Nanshan Transmission and other companies at the same time.

The contents are all very similar.

Knowing that they could not solve this problem, the people from Changan Ford immediately reported to Ford headquarters and expressed that they would listen to the headquarters' instructions.

"Chris, Nanshan Automobile Group took action. They first cut off Changan Ford's parts supply."

"Exports to the United States are expected to stop soon."

"The other party even stopped sending us contact letters regarding export business."

Mulally called Chris, director of Ford's purchasing center, into his office to see what he could do.

Compared with the situation where Changan Ford is about to cease production, the situation at Ford headquarters is slightly better.

On the one hand, Nanshan Auto Parts does not supply as many types of parts to Ford Motor Headquarters as Changan Ford.

On the other hand, for imported parts, Ford will also have more inventory prepared by itself.

There is no need to worry about running out of parts for at least the next month.

As for a month later, Mulally will definitely ask the procurement center to find replacement parts no matter what.

Otherwise, some models will be discontinued by then.

"Nanshan Group's response was more intense than we imagined."

"I thought they would just protest and then quietly accept the fact."

"I didn't expect that they didn't even ask for a buffer period and just cut us off."

"In this way, we are indeed a bit passive."

Although Chris was a little worried about this situation before, he had already started preparations for parts switching with the designer early.

Some of the parts have been notified to other suppliers to start preparations.

But he didn't expect Nanshan Automobile Group to be so tough and cut off the supply directly.

In this case, the other party will suffer a lot, right?

Of course, their own losses are even greater!
"Hey, there is no other way. Boeing has united so many companies, and there is also the Pentagon to coordinate behind the scenes. If we don't agree in the end, this suppression plan will also be introduced."

"Boeing communicated with us in advance and bought us some time."

Mulally came from Boeing, so naturally he would not always speak ill of his former employer.

"In the case of Changan Ford in China, we can only let them find a solution as much as possible."

"Individual parts can also be temporarily transported from the United States."

"As for the headquarters, we can only speed up the replacement of parts."

"For some models that cannot be switched within a month, we can only rely on the dealer's inventory for another month or two."

"Anyway, most of our models have one or two months of inventory at each stage."

It was impossible for Chris to think of any particularly good plan at this time.

After all, some situations after the suppression of Nanshan Group have been discussed within the company before.

"That's all it can do."

"I'll call the president of General Motors later to see how the situation is on their side."

It would definitely be hard to accept if it was just Ford that was unlucky.

But other car companies such as General Motors and Chrysler are facing the same situation, and the situation is different.

(End of this chapter)