Rebirth 99 to become a car giant.

Chapter 881 Gearing up, a new war is about to begin

The Spring Festival is a very important festival for China.

As long as it's not an urgent matter, every company will definitely have a holiday.

Enterprises in the Nanshan system are naturally no exception.

However, Chinese people celebrate the Spring Festival, which many countries cannot do well.

Their Christmas and New Year holidays are over.

Even in Japan, although they also have the Spring Festival, the Spring Festival has changed its concept and is celebrated together with the New Year's Day.

So when China celebrates the Spring Festival, they are already working normally.

January 2014 has passed, but for Japan, they are accustomed to using April to March of the following year as their fiscal year.

So in early February, they were busy preparing for various plans for the next fiscal year.

As the global car sales champion in 2013, Toyota is naturally discussing internally how to maintain this position.

"President, I'm afraid the North American market will be more troublesome this year."

"General Motors has lost its No. 1 position in the market, so there will definitely be some actions."

"But this year, General Motors' sales in China will basically return to zero. If they lose more than one million shares, they will definitely want to find it through other methods."

"Judging from the situation in the past few months, both General Motors and Ford Motors hope to exert force in the domestic market of the United States and suppress the survival space of our Japanese car companies."

Tetsuaki Kobayashi, as the vice president of Toyota Motor, once served as the head of the North American headquarters, and he is relatively familiar with the situation in the American market.

The more this happens, the more he knows the thoughts of American car companies.

In the past, the situation had not reached the point where General Motors would lose its position as the industry leader, so maybe General Motors would just tolerate it.

But after General Motors began to lose its No. 1 position in the industry, it took many more actions.

Especially in recent months, this situation has become increasingly obvious.

Tetsuaki Kobayashi is worried that local American companies like General Motors will use more means to deal with them.

This is obviously not a good thing for Toyota.

Japan's domestic market only has a few million vehicles, but it is divided up by a bunch of car companies such as Toyota, Honda, Nissan, Mazda, Suzuki, Daihatsu, Subaru, etc.

Relying on the local market alone, Toyota will definitely not be ranked first in the world.

It can be said that Japanese car companies are the biggest beneficiaries of globalization.

Now that the United States is starting to target Japanese car companies, Toyota will definitely be hit the hardest.

However, the American market is Toyota's largest market. If it were lost, Toyota would not even be ranked number one in the world, and it would not even have a place in the TOP3.

"In the Chinese market, Nanshan Automobile Group, with its various independent brands, has been suppressing us in the past two years."

“It is estimated that there will be no small movement in this regard this year.”

"General Motors and Ford in the United States are leading local companies to suppress us, and their actions are getting bigger and bigger."

"It's obviously a fight between General Motors, Ford Motor and Nanshan Automobile Group, but in the end they both targeted us. This is too much."

Watanabe Jiashi felt very depressed.

He had the feeling of being shot while lying down.

It is clear that Toyota has done nothing wrong and no one has provoked it. Why did it end up being the two leading companies in the world's first and second markets, America and China, taking the lead in suppressing it?

What about the promised level playing field?
Are they all made for people to see?

This is not the attitude when it comes to attracting investment.

Even some states in the United States are still trying their best to encourage Toyota to build new factories.

However, the actions of General Motors and Ford do not look like welcoming Toyota to build a new factory.

"They have all driven each other out of their own markets, and each other's sales have been affected to a certain extent."

"In this case, they naturally hope to make up for this part of the loss from other places."

"However, our performance in these two markets is still acceptable, so naturally it is easy to become a thorn in the eyes of others."

"President, I think that if this big development strategy does not change, our lives in China and the United States will probably be difficult."

Kobayashi Tetsuaki has basically expected that he will not be able to continue to sit at the top of the world this year.

General Motors and Ford are sharpening their knives and are preparing to take action on Toyota.

In this case, if there is no change in market share, the other party will definitely not give up.

Thinking of this, he felt even more depressed.

"I'm going to communicate with the cabinet to see if we can start from a high-level perspective to improve the relationship between Japan, China, and the United States."

"Otherwise, it would be difficult to dispel some of the ideas of General Motors and Nanshan Automobile Group."

As an industrial enterprise with a pivotal position in Japan, Toyota Motor naturally has some backers in the cabinet.

At the critical moment, they want to start from this aspect.

There is actually no problem in this direction.

However, it is naturally impossible for things to develop according to the situation they want to see.

Just when Toyota was trying hard to change its unfavorable situation, the CEOs of General Motors and Ford Motors gathered together to discuss the next step of dealing with Japanese and Korean car companies.

"Mulally, Ford used to be number one in the world, but now it doesn't even have a chance to enter the top three."

"This is all the result of Japanese car companies and Korean car companies seizing market share."

"For the development of American industry, I think any means can be considered."

Exxon will not be lenient at all when it comes to dealing with Japanese and Korean car companies.

The relationship between these two places and the United States is inherently special.

When Americans go to these two places, everyone will feel like they are superior to others.

Even if they say that everyone is equal, they know what is actually going on.

Now for the sake of its own interests and the interests of the United States, it is a matter of course for Exxon to sacrifice the interests of the car companies in these two countries, and there is nothing kind and merciful.

"Yeah, I think so too."

"Last year, the market share of Japanese car companies in the United States reached 38%. In addition, the cumulative sales of Korean car companies in 2013 also broke the highest record set in 2012, reaching 72 units. Basically, the shares of these two companies have gone. It’s 43%.”

"This is completely unacceptable."

"Our combined market share in Japan and Korea is less than 10%."

"This situation must change."

Mulally naturally fully agrees with Exxon's opinion.

He is already gearing up to suppress Japanese car companies and Korean car companies.

As long as this task can be completed, both General Motors and Ford will be able to achieve an increase in sales in 2014.

The impact of losing the Chinese market will be minimal.

You know, the stock prices of both companies fell sharply some time ago. The reason is that investors feel that the two companies are going to lose the Chinese market, which will have a huge impact on the future.

Although they immediately made some moves and began to grab the market from Japanese car companies and Korean car companies, they restored the stock price to a certain extent.

But until now, stock prices have not returned to their 2013 highs.

This is obviously not a situation Mulally and Exxon want to see.

As CEOs of companies, a large part of their income actually comes from stocks.

If the stock price drops, their income will also drop.

Cutting off someone's money is like killing one's parents.

This kind of hatred must be very big.

They definitely want to save this situation.

If you can't handle Nanshan Automobile Group, then look for other soft persimmons to pinch.

Obviously, various car companies in Japan and Korea's Hyundai and Kia Motors are the soft persimmons chosen by General Motors and Ford.

"Our trade deficit is getting bigger year by year, which is something that many departments cannot tolerate."

"70% of the trade deficit with Japan is caused by cars and auto parts."

“As long as we make good use of this information and ask the relevant departments to impose an additional 25% or even 30% tariff on cars and auto parts produced in Japan, the cost advantage of Japanese cars will be significantly reduced. "

"Especially for Lexus models that are completely dependent on imports, the cost has increased proportionally after the tariffs have increased."

As the president of General Motors, Exxon is now pulling Ford to take action, and it will definitely not be a trivial matter.

Since we are ready to take action this time, we must make a big one.

The best thing is to solve the problem once and for all.

Things like tariff increases involve the entire United States and Japan. Although it will be difficult when the tariff is increased, it is also very difficult to cancel it once it is increased.

"This is a good idea, and we can not put it forward so bluntly, but let the relevant departments ask Japan to come up with a plan to eliminate the trade deficit."

"If the other party cannot provide a plan within the limited time, we will immediately implement the plan to increase tariffs."

"We can also use the same plan to deal with Goryeo."

"At that time, just this move will put Japanese car companies and Korean car companies under tremendous pressure."

Mulally would not sympathize with Japan and Korea. He was Boeing's vice president at the time. As the military-industrial complex of the United States, Boeing has done many things to deceive its allies.

Otherwise, how can we ensure that our products have high profit margins?
Now as the CEO of Ford Motor Company, the situation is not as good as that of Boeing.

In this case, he is absolutely willing to do anything as long as it can improve Ford's situation.

Besides, the plan proposed by Exxon is beneficial to the entire United States.

The trade deficit is a big problem for the entire American society.

General Motors and Ford Motors have raised this topic and will definitely gain more support.

Those companies that want to increase the export share of their products, especially those that want to enter the Japanese and Korean markets, definitely want to implement this matter as soon as possible.

For example, they have always wanted to sell American beef to Japan and Korea, but the other countries always use one way or another to prevent America's cheap beef from entering their market.

They would rather let their own people buy so-called domestic beef at high prices than import or increase imports.

In the eyes of many people in China, things made in China often represent average quality, while imported things often represent good quality.

Whether it is in the field of materials, equipment, or other fields, many people have this impression in their minds.

But in Japan and Korea, domestically produced beef and domestically produced vegetables all represent good quality, while imported ones represent poor quality.

This situation can be said to be completely opposite to that of China.

"Well, let's bring this topic up as soon as possible, otherwise if we drag it on, one quarter of this year will be over."

"It will be much more difficult for us to ensure that our respective total sales do not drop compared to last year."

Exxon knows that General Motors' sales in China this year are basically zero.

At least that's been the case for the past month.

Although Modu GM has not completely given up promoting the supply of replacement parts to resume production, fewer and fewer people have confidence that Modu GM can resume production.

Even some alternative suppliers have begun to require Modu General to pay for molds before they are willing to prepare parts.

The situation at Changan Ford is similar.

Exxon and Mulally quickly reached a consensus.

Then each exerted their influence, and the situation soon began to change.

After all, General Motors and Ford still have a very large influence in the United States.

Various media outlets are reporting on the trade deficit and proposals by relevant authorities to impose an additional tariff of at least 25% on imported cars and auto parts.

Although many car companies sell their products in the American market, they more or less involve import business.

But as the Japanese car company with the largest market share, it is naturally at the forefront of this incident.

"President, I asked around. The request from the United States to impose additional tariffs on imported cars and auto parts was initiated by local car companies such as General Motors and Ford."

"We have to ask the relevant departments to come up with a plan as soon as possible, otherwise it will be particularly detrimental to our situation."

Kobayashi Zheming didn't expect that the United States would use such a big move.

If this tax increase plan is really implemented, it will definitely have the greatest impact on Toyota.

It's hard to say whether Toyota can maintain its number one position in the world by then.

Although this is not the first time that the United States has proposed a similar plan, it is still very rare when it is so powerful.

"Do you think the United States is bluffing this time and wants to gain other benefits through this matter, or does it really want to impose tariffs?"

Watanabe Jiachaki felt something was wrong in his heart.

In the past, when the United States wanted Japan to relax controls or reduce tariffs on specific products, it also mentioned some similar methods.

But that's just a means, not an end.

This time, he really felt that the other party wanted to impose tariffs on Japanese car companies, which was an end, not a means.

That's a bit troublesome.

"If Nanshan Automobile Group were not fighting against General Motors and Ford, then America's actions this time would be a bluff and preparations for other purposes."

"But since October last year, the Chinese market, which is the world's largest market, and the world's second largest market, and the American market, have been fiercely competitive. They have directly competed to the point of exterminating each other."

"If General Motors and Ford want to maintain their positions in this situation, they need to make up for lost sales from other places."

"Our Japanese car companies occupy the majority of the American car market, so they are definitely the most direct target."

"Then there is Korea. There should be no good fruits this time."

Although Kobayashi Tetsuaki didn't want to see this situation happen, he knew that if he didn't tell the truth at this time, it would waste time.

When the time comes, Katsaki Watanabe makes a misjudgment, and Tetsuaki Kobayashi may take the blame.

"I'll talk to people from the relevant departments right away. You can also talk to people from Honda and Nissan to see what ways everyone can think of to deal with this situation."

Time waits for no one. This time, the United States is very tough and requires Japan and Korea to provide a response plan within a week, otherwise the increase in tariffs will be implemented next month.

Therefore, the time left for Japanese car companies and Korean car companies is actually very little.

Normally when it comes to such a big matter, it is normal for both parties to argue for months or even years.

Unlike this time, it was directly limited to a week.

That is to say, Japan and Korea have a very special relationship with the United States, and they can use their plans unscrupulously.

However, Japan and Korea did not dare to resist, and could only desperately find a solution.

And just as Japan and Korea are thinking of ways to deal with this situation, various car companies in Germany are also feeling the pressure.

Although the United States is mainly targeting Japanese car companies and Korean car companies this time, there are also many similar businesses in Germany.

As long as the relevant departments in the United States lower their guns a little bit, these German car companies will also follow suit.

This is certainly not a situation that car companies such as Volkswagen, Mercedes-Benz and BMW want to see.

"Phillips, the United States is planning to impose additional tariffs on cars and parts imported from Korea and Japan this time. What do you think about this?"

As the CEO of BMW, Krueger felt the crisis from this incident.

BMW built a local factory in 1992 in order to seize market share in the United States.

But building a factory does not mean that all parts and components are purchased from the United States.

In addition, not all BMW models are produced in this factory, and some models are produced in Germany and then exported to the United States.

Although in terms of total number, BMW exports much fewer models to the United States than Toyota.

But Krueger is worried that this approach in the United States will cause other markets to follow suit, which will have a particularly large impact on the development of BMW cars.

In particular, he probably knows that the actions of the United States this time have a certain relationship with the competition between American and Chinese car companies.

It would be very troublesome if the Chinese side also followed suit.

"Kruger, I think this matter needs appropriate attention, but there is no need to worry about it for the time being."

"The United States' actions this time were so swift and violent, and its response was so large. It is said that local car companies such as General Motors and Ford Motor Co. were behind it."

"According to reports from some media, they will make such a big move because they do not want global sales to decline this year."

"After all, both of them have disappeared from the Chinese market this year. This part of the sales volume must be found somewhere to make up for it."

"Otherwise, both General Motors and Ford will decline in global sales rankings this year."

As the president of BMW Asia Pacific, Phillips is relatively clear about the struggle between Nanshan Automobile Group and General Motors and Ford Motor.

Combined with his understanding of the situation in China, Japan, the United States and other countries, he quickly made his own judgment.

However, Kruger's pressure has not diminished much.

"The automobile industry is the most important industry in Germany. More than half of the cars we produce domestically are exported."

"So any major auto market imposing tariffs on imported cars is something we don't want to see."

"Do you think the United States will really impose additional tariffs on cars and parts from Japan and Korea this time?"

This is a question that not only Kruger wants to know, but also people from many other car companies.

Although no one dares to say what the final result will be until things are finally settled.

But it is definitely necessary to discuss it in advance.

"I think the possibility is very high."

"Especially combined with the background of the plan proposed by the United States this time, the possibility of its eventual implementation is infinitely greater."

"I even think the final implementation time will be faster than we think."

When Phillips said this, Kruger was shocked.

Is such an important thing coming to fruition soon?

This is not in line with the American way of doing things.

Especially since the two people involved are America's younger brothers.

But thinking about what Phillips just said about the situation faced by General Motors and Ford, he felt that what Phillips said was not impossible.

"The Chinese market, the American market and the Japanese market are the first, second and third largest automobile markets in the world respectively."

“The actions between these parties this time will have an impact on the global automotive industry to a greater or lesser extent.”

"You should pay more attention to the relevant situation and report any information to me in a timely manner."

Although the matter has not affected BMW yet, Kruger feels that a new war in the automotive industry is about to begin.

(End of this chapter)