Rebirth 99 to become a car giant.

Chapter 858 From a big car country to a powerful car country, Nanshan Automobile Group has contributed a lot
One super, many strong.

China's independent brand car companies generally have such a pattern.

Under such circumstances, most automobile companies will not jump out to oppose many projects led by Nanshan Automobile Group as long as they do not affect their own interests too much.

Therefore, at this China Automobile Industry Development Forum, all topics were carried out relatively smoothly.

Although some things may not have reached specific conclusions at the meeting, the general direction of advancement is already clear.

Later, each company will arrange dedicated people to follow up and implement it.

After some media reports, some of the contents of this forum were more or less reported.

Although no specific problems can be seen from the content of the report, some international automobile giants are still a little worried.

"Ai Moha, the Chinese automobile market has changed too much in recent years."

“The current landscape is completely different from what it was ten years ago.”

"Didu Hyundai, Xifeng Yueda Kia, Modu GM, Changan Ford, Yangcheng Toyota, Spring City Toyota, and even North and South Volkswagen, which company has not been dealt with?"

"But exporting is definitely not that easy. In the end, it is likely that they will still compete within China."

"Once we miss the opportunity in the Chinese market, it will be very difficult for the company to accept."

"We at BMW are preparing to continuously launch more low-priced entry-level models, and even reduce the lowest selling price to less than 20."

"But at this time, the number of consumers choosing our Passat has not only not increased, but has actually decreased."

"If the prices of Volkswagen brand models can be reduced, the sales volume will be worth looking forward to."

"Actually, I think there are too many independent brand car companies in China. Sooner or later, they will also usher in a reshuffle within themselves."

"Even our BMW cars have been tortured."

Although Volkswagen China's profit rate is not bad, there is not much room for further significant decline.

On the night before the auto show, General Manager of Volkswagen China Fondel and BMW China General Manager Aimoha gathered in a bar near Yanjiang Road to exchange views on the Chinese automobile market.

"At the same price, I think most Chinese consumers are still willing to choose products from international automobile giants such as Volkswagen."

The most important thing is to further reduce costs, which basically means restructuring the supply system and using a large number of local parts companies in China.

"But now the price of our Passat has been reduced to less than 20 yuan, while the price of the same level of cars of China's own brands has generally exceeded 10 yuan."

How could it be so easy to just lower the price with just one sentence?
"Hey, I also want to reduce the cost, but no matter how much I reduce it, it will be difficult to achieve the same level as Huaxia's own brands."

I have to say that Amoha’s judgment is quite accurate.

"In the past, our Passat was sold for 25 yuan, while the price of the same level of cars of China's own brands was less than 10 yuan, but consumers would still give priority to buying our Passat."

"This is basically the inevitable result after any industry develops."

"Because the space left for them to expand in China is no longer that big."

"I think Volkswagen also needs to continue to lower the prices of various models."

"For example, the Skoda model from Volkswagen in Shanghai has developed very well in the past two years."

"Xingchen Motors has taken the international route from the beginning, not to mention the acquisition of Jaguar Land Rover later."

"The market share of China's own brands has exceeded 50%, and will even exceed the 60% mark soon."

"Under such circumstances, China's independent brand companies are increasingly demanding control over the industry's voice, and their desire to enter markets around the world is also becoming stronger."

"This can be regarded as a lead for other independent brands in China, allowing everyone to see the prospects of the export market."

"In recent years, they have been able to communicate unanimously to the outside world, and their internal conflicts are not so fierce, mainly because under the leadership of Nanshan Automobile Group, everyone has focused on joint ventures."

"Our brand premium is decreasing rapidly. If the price is doubled before, everyone thinks there is no problem at all."

Although Volkswagen's Audi and BMW have a certain competitive relationship, they are both German car companies, and Vondel and Aimoha are actually relatively familiar with each other.

"Although the Chinese market is huge, it can no longer accommodate so many independent brand car companies."

"This will definitely have a big impact on our development."

"In this case, it is inevitable that they will start to pay attention to exports."

Otherwise it will be difficult to achieve this goal.

Vondel is very impressed by the cost competitiveness of Chinese companies.

"Through these methods, we will further increase Huaxia's sales."

"If this leads to further competition, we will be under greater pressure."

"As the largest automobile market in the world, the Chinese market cannot be compromised for us."

"Through these efforts, the market share of China's own brand car companies has continued to expand, and now it has surpassed that of joint venture car companies."

"We are not like General Motors and Ford, which have the support of the local market with more than 10 million sales."

It can even be said to be somewhat of a personal relationship.

"Even the newly established Future Automobile is taking the road of internationalization, but it has been relatively successful."

Therefore, he has a relatively thorough understanding of the situation in China's automobile market.

Aimoha can be considered a China expert. As the general manager of BMW China, he single-handedly brought BMW from tens of thousands of annual sales to hundreds of thousands of annual sales today.

"Now consumers can only accept a difference of about 20% at best, and even hope to reduce the price difference to 10%."

"This is really too difficult for us."

When Fondel said this, Aimoha couldn't help but give him a few seconds of silence.

BMW is a luxury brand. Apart from competing with Nanshan Automobile Group, it basically does not have much competition with other independent brands in China.

Therefore, he did not particularly feel the pressure of brand premium mentioned by Vondel.

Of course, this does not mean that he does not agree with Vondel's statement.

On the contrary, he felt that what Vondel said was very reasonable.

But apart from continuously reducing the cost of Volkswagen, there seems to be no good way to solve this problem.

The days when you could make a lot of money in China while lying down are obviously gone forever.

In the past, Chery and Geely only had low profits of 2% to 3%, but Modu Volkswagen and Spring City Volkswagen had profits as high as 20%. Gone are the days.

In the future, it will be almost impossible for Spring City Volkswagen and Magic City Volkswagen to maintain a profit margin of more than 10%.

Unless they completely abandon sales targets, use profit margins as the most important indicator, and only sell models with better returns.

But this is obviously not in line with Volkswagen's overall strategy.

They also want to become the world's number one car company in sales in the future.

"At this Yangcheng Auto Show, Chinese independent brand car companies launched many new products, among which the types of new energy vehicle products are very rich."

"Almost every car company has a flagship new energy vehicle, and the gap between us is still quite obvious in this regard."

"We at BMW are moving relatively quickly in this regard, but compared with others, the distance is still quite obvious."

"Do you think Volkswagen should consider accelerating its pace in this area?"

When Amoha asked, Fondel immediately felt an invisible pressure.

New energy vehicles are an even more difficult matter.

But since Amoha asked this, it would definitely be inappropriate for him not to say anything.

Fortunately, the Volkswagen headquarters has also announced part of its new energy vehicle development plan, and Vondel can take it and explain it carefully.

"Considering the hot sales of SUV models and the brand premium compared to cars, our headquarters is preparing to launch several SUV electric vehicles as a platform product in the next three years."

"Through this platform product, the headquarters hopes to catch up with the mainstream level in the Chinese market."

Volkswagen attaches great importance to the Chinese market, so it is naturally impossible to completely abandon new energy vehicles.

These days, there are still plenty of gimmicks for new energy vehicles.

Whether at home or abroad, various car companies are more or less engaged in technological development in this area.

Volkswagen is certainly no exception.

"Do you purchase your Sanden parts from local Chinese suppliers, or do you cooperate with German parts companies?"

Amoha asked a rather important question.

Today he also noticed a forum among China's independent brand car companies.

On this forum, the discussion of various standards for special parts related to new energy vehicles has been included in a very important position.

In the future, China will definitely formulate its own industry standards in this regard, which may not necessarily be a good thing for international automobile giants such as BMW and Volkswagen.

"We are going to take a two-step approach. We will cooperate with Nanshan Automobile Group for electric vehicles and electric and electronic components produced locally in China."

"For electric vehicles produced outside of China, we will look for other manufacturers internationally to cooperate."

"For example, manufacturers such as Continental, Bosch, Panasonic, and LG try to avoid Chinese manufacturers as much as possible."

When Vondel said this, Aimoha immediately felt that Volkswagen's approach seemed worth learning from.

However, this may not be the case for all parts, such as batteries.

Aimoha knows that the cost of Nanshan batteries is much lower than that of other international manufacturers.

However, in electric vehicles, the proportion of battery cost is very high.

If we blindly choose to get rid of the influence of Nanshan Automobile Group and finally choose an international parts company, it seems that we will lose more than we gain?
However, this kind of thing must be something that Amoha knows clearly in his own mind, and there is no need to talk about it.

……

"Mr. Cao, I just made final confirmation that GM and Changan Ford are definitely not coming to the Yangcheng Auto Show."

"Their booths are actually almost ready. I even heard that some of the exhibition cars have been transported to Yangcheng."

"But they probably also heard that many car owners planned to go to the auto show to cause trouble, so they finally canceled their plans to participate in the show."

On the first day of the China Automobile Industry Development Forum, there will naturally be a reception dinner.

Big names in the automobile industry gathered, and Cao Yang naturally participated.

But everyone has to attend the car show tomorrow, so this dinner will be over soon.

While taking Cao Yang off to the car, Zeng Tingting gave a brief report on some situations at tomorrow's auto show.

"I'm afraid it's not just a matter of worrying about someone causing trouble at a car show."

"As long as they are clear-headed, they will know that the future Chinese market will have nothing to do with them."

"Now they have to start thinking about how to retreat in a dignified manner." Cao Yang knew that Changan Automobile Group and Modu Automobile Group were doing some internal preparations for the closure of Changan Ford and Modu GM.

It is impossible that these news will not reach Changan Ford and GM.

Coupled with the news on the Chinese Internet during this period, it is normal for people from General Motors and Ford to feel that there is no hope for the factory to resume production.

"That's true."

"If they have accepted this reality, then it would be normal not to participate."

"Even all advertising can be removed, which can save a lot of money."

Zeng Tingting does not feel sorry for the fate of GM and Changan Ford at all.

These are all things they did themselves to commit suicide.

"I didn't expect that we had conducted so many encirclement and suppression campaigns. In the end, Hyundai Motor, Kia Motors, Toyota Motor, and Volkswagen did not fall. On the contrary, it was GM and Changan Ford that had a relatively good relationship with us before. ”

"This is really because the plan cannot keep up with the changes."

Cao Yang felt really emotional when he thought about the struggles between Nanshan Automobile Group and various joint venture brands over the years.

According to the normal plan, Modu General Motors was planning to wait until the other party developed a three-cylinder engine before doing something about it.

As for Changan Ford, when their sales reached their peak, quality problems also reached their peak.

At that time, if you follow 3.15 and make a big move, you can knock them down immediately.

However, in the end these options were not used.

……

The Yangcheng Auto Show has held its first auto show since 2003. As of this year, exactly ten years have passed.

These ten years have been a decade of rapid development for the automobile industry in Yangcheng and even China.

China's car sales have also rapidly increased from a few million to more than 20 million.

This speed is unprecedented in the world.

With the development of the industry, various independent brands have also made great achievements.

In previous auto shows, independent brand booths basically relied on beautiful models to attract the audience's attention.

There are relatively few people who really pay attention to various types of cars.

But in the past two years, the situation has slowly begun to change.

The new products released by various independent brand car companies are beginning to attract everyone's attention.

Especially in terms of new energy vehicles, there have been huge changes in the past two years, and consumers are also very interested in understanding the competitiveness of each company's new energy vehicle products.

"Mr. Cao, preliminary statistics show that in addition to our new electric cars from Future Cars, more than 8 new electric cars will be displayed for the first time at this auto show."

"More than 20 car companies will showcase their new energy vehicle products."

"Although there are still more traditional fuel vehicles, according to our preliminary understanding, various media and audiences pay more attention to electric vehicles than fuel vehicles."

Today is media day. Yu Yu brought the Autohome team to the Pazhou Exhibition Hall early in the morning.

After Cao Yang arrived at the scene, she took the initiative to report the relevant situation.

Although General Motors and Ford Motor Company are fighting to the death with Nanshan Automobile Group, other international automobile giants still attach great importance to the Chinese automobile market.

In particular, various luxury brands attach unprecedented importance to it.

After all, the growth rate of China's luxury car market in recent years has always been higher than the overall growth rate.

Especially in recent years, when the overall growth rate is not very fast, luxury cars are still growing rapidly.

This made everyone more interested.

"The development of new energy vehicles can be said to be a general trend."

"In the next five years, the market share of new energy vehicles is likely to rapidly increase from about 5% now to more than 30%."

"This has a huge impact on the entire industry, and this is where our Chinese car companies have an advantage."

"In the past, everyone has been talking about overtaking on corners, but in fact it has never been realized."

"But this time, I think there is a real possibility of overtaking in corners."

Cao Yang's view is definitely radical in the eyes of many people.

But Cao Yang himself knew that this was entirely possible.

Even with the rapid development of new energy vehicles, a series of new situations will emerge.

"Indeed, this year not only has everyone paid more attention to electric vehicles, but the influence of the parts exhibition has also increased significantly."

“Especially the parts related to Sanden have attracted a lot of people’s attention.”

As the general manager of Autohome, Yu Yu is very sensitive to matters related to industry changes.

"This is a good thing."

"Only when auto parts develop, can the auto industry truly become stronger."

"Otherwise, even if our car market sales reach 3000 million vehicles a year, we can only say that China is a big car country, not a strong car country."

Cao Yang attaches great importance to the auto parts industry.

At that time, Nanshan Group started out with nut plates, which was a very inconspicuous product among auto parts.

Later, it slowly expanded to various parts such as bearings and gears, and then slowly developed.

Finally, relying on the engine and gearbox, the foundation of Nanshan Automobile Group was successfully strengthened.

"It is said that the auto parts industry has developed, but in fact the most important thing is that Nanshan auto parts, Nanshan batteries, Nanshan gearboxes and other Nanshan-based companies have developed relatively quickly."

"Although there are many other parts companies in terms of quantity, there are also some that have reached a certain scale in terms of scale."

"But there are still relatively few companies with relatively high technological content."

"Of course, this situation is also changing rapidly. I think if it takes another ten years, the domestic parts industry will really develop."

Autohome has a special section related to the parts industry.

Therefore, Yu Yu is relatively clear about the situation of auto parts companies in China and even around the world.

Objectively speaking, if we exclude the companies from the Nanshan Group, China's auto parts industry still lags behind that of Germany, Japan, the United States, Korea and other countries.

Especially in terms of functional parts, the gap is even greater.

For example, Bosch's ESP and ABS, Denso's high-pressure oil pump and fuel version, and Aisin and ZF's gearboxes, there is simply no domestic manufacturer that can compete with them.

"Now that new energy vehicles are gaining momentum, domestic manufacturers may rise much faster than you think in terms of various new parts for new energy vehicles."

"It is estimated that it will not take ten years, but in five years they will surpass the international mainstream manufacturers in these fields."

"But in terms of traditional parts, even in another ten years, it is estimated that it will be difficult to surpass."

"But with Nanshan Auto Parts, it doesn't matter if other manufacturers are not good."

As long as there are companies in China that can produce, there is no need to worry about being ripped off.

On a car, there are no parts that Nanshan Automobile Group can't handle.

"If this is the case, then China has really transformed from a major automobile country to a powerful automobile country."

Yu Yu said with emotion.

This day came earlier than she thought.

……

Although Modu GM did not participate in this Yangcheng Auto Show, General Manager Austin and Sales Director Jim still came to the scene.

They need to report the situation in China to the headquarters in a timely manner.

These situations include various aspects, among which things related to Nanshan Automobile Group are naturally the focus of the report.

The performance of other international automobile giants in China is also the focus of everyone's attention.

Of course, the development of new energy vehicles in China is very fast, and General Motors is also paying close attention to it.

They even know that China has done no less than the international parts giants in accumulating some parts technology related to new energy vehicles.

"Jim, the showrooms of Chinese independent brands such as Chery, Geely, Great Wall, BYD, and Changan are very popular."

Austin has participated in the Yangcheng Auto Show in recent years, but this year's showrooms of these independent brands are obviously more lively than in previous years.

"In the past, China's own-brand models mainly copied the styling of popular models such as Toyota and Volkswagen. There was nothing particularly attractive in appearance. They mainly relied on cutting corners and lowering prices to attract consumers."

"But now they are slowly mastering the skills and processes of car design, especially exterior design. All major independent brand manufacturers in China have mastered it."

"They even understand the preferences of Chinese consumers better than we do, and the appearance of the models has indeed become much more beautiful."

Jim did not make any cover-up and truthfully expressed his understanding.

This made Austin feel very uncomfortable.

How many years has passed?

Why do you feel like the whole world has changed?
I have just started to work hard on the Cadillac brand, and I want to make good achievements in the Chinese market.

As a result, what greeted him was a complete withdrawal from the Chinese market.

Not reconciled!

"Nanshan Automobile Group, are there any new products released today?"

Austin is obviously most concerned about the situation of Nanshan Automobile Group.

Even if the competitive relationship between Nanshan Automobile Group and General Motors is not so fierce, it is still the most valued existence.

"Xingchen Motors has launched some updated products, and Jaguar Land Rover is also about the same."

"But the one that attracts the most attention should be an electric sedan from Future Auto."

"I've seen their schedule, and it will be officially released at ten o'clock."

Jim naturally knew that Austin would be very concerned about the products of Nanshan Automobile Group, so he made preparations in advance.

"It's almost ten o'clock now, so let's go over and take a look."

"I would like to see if future cars are really what they advertise and represent the future of the automotive industry."

Austin snorted coldly, opened his thighs, and headed towards the Nanshan Automobile Group's showroom.

(End of this chapter)