Rebirth 99 to become a car giant.

Chapter 935: Who can escape the curse of one million cars?

"Many parts of our engines are designed and developed based on Nanshan Engine products. The problem is that the quality department and purchasing department did not allow the suppliers to produce the parts as required."

“No matter how good the design is, it is meaningless if the supplier cannot provide qualified parts.”

Zhang Wu supernaturally couldn't admit that it was the R&D department's fault.

If that happens, he might even lose his position.

He had already said it, and he felt that what he said was correct.

Even if the complete set of drawing data of the Nanshan engine is given to Chery Automobile, after they finally assemble the parts purchased from their own suppliers, the quality will not be as good as the Nanshan engine.

There are many methods here, and they are not easy to learn or even surpass.

In the previous life, Chery Auto also suffered a lot and invested a lot of resources, and finally achieved relatively good results in the engine.

"The suppliers we choose are all very good domestic suppliers, and many of them are also suppliers of Nanshan engines."

"And when these suppliers were introduced, they were confirmed by the quality department and R&D department, and it was believed that their capabilities in all aspects were satisfactory."

The Minister of Purchasing, Song Xianming, naturally had to stand up and speak out at this time.

The ball has already been kicked over, so he must kick it out.

Otherwise, the pot would have been purchased.

Although within the company, he often has to take the blame for procurement, but he can't take the blame.

"The parts delivered by our suppliers are only received if they meet the quality requirements."

"Each batch of parts has various inspection results, and all data can be traced and managed."

"If you have questions about which supplier's parts, you can organize various departments to jointly inspect them."

Naturally, the quality department has to stand up and say that there is no problem.

Anyway, no one thinks they are at fault.

Listening to the quarrels among the ministers below, Yin Chuan looked ugly.

"That's enough, now is not the time to shirk responsibility."

"What we need to do is how to change the current situation, how to increase our sales, and how to improve the competitiveness of our products."

According to Yin Chuan's original plan, Chery should now be firmly sitting at the top of the industry's sales volume.

Regardless of whether it is Geely, Great Wall, BYD or Changan, their previous sales were far behind their own.

After all, Chery is the first company among its own brands to have annual sales of more than 100 million vehicles.

However, if you only enjoy this joy briefly, you will no longer be able to do it.

Even part of the history of one million vehicles was achieved through inventory reduction.

But in the past August, Chery Automobile's sales just exceeded 8 vehicles, and the sales volume from January to August just exceeded 6 vehicles.

It needs to sell 4 vehicles in the remaining four months to stabilize sales of 50 million vehicles.

Judging from the current situation, it is obviously impossible.

It is even directly impossible to do.

That's why Yin Chuan held such a meeting specifically within the company.

Sales of 100 million units are like a curse.

Modu General once reached this number, and now it has been wiped out.

Both Modu Automobile Group and General Motors have given up on this joint venture and are discussing the dissolution of the company.

Spring City Volkswagen and Modu Volkswagen were once powerful contenders to hit 100 million units in sales. However, despite their efforts for many years, they have not successfully reached 100 million units. In fact, their sales even declined in the first two years.

Other car companies such as Zephyr Nissan and Hyundai Motor have also made slogans to sell 100 million vehicles annually.

Now let alone 100 million vehicles, it will be difficult to reach 50 vehicles.

If the curse of joint venture car companies is because Nanshan Automobile Group is suppressing them with its own brands, then the performance of car companies such as Geely, Great Wall, and BYD, which once claimed to exceed 100 million sales this year, undoubtedly illustrates the curse. It is common to everyone.

None of these car companies have any hope of selling more than 100 million vehicles this year.

Even if it is to achieve positive sales growth, it is very difficult.

"Mr. Yin, our sales department has analyzed the market situation and found that our sales are not the only one that is declining."

"Great Wall Motor's decline is no slower than ours, and BYD and Geely's sales are also declining."

"Even companies that are very close to Nanshan Automobile Group, such as Yangcheng Aian, are seeing a decline in sales."

"Among the mainstream car companies, namely Spring City Volkswagen, Modu Volkswagen, Shenlong Automobile, Changan Automobile and Nanshan Hongqi, as well as various luxury car companies, sales are increasing."

"This shows that the situation is not necessarily an internal problem within our company. It may be that the general environment has changed."

Wang Ze knew that if the internal strife continued at this time, Yin Chuan would definitely be unhappy.

So he quickly changed the topic.

Anyway, what he said were facts. Even if the conclusion he drew was incorrect, there was no need to worry about saying the wrong thing.

Sure enough, there were smart people present.

After hearing what Wang Ze said, he immediately changed the topic and said: "The increase in sales of luxury cars has suppressed our sales growth to a certain extent."

"In the past, everyone thought that luxury cars were only for a small number of consumers and would not have a big impact on the sales of the entire automobile market."

"But if we add up the sales of Xingchen Motors, Jaguar Land Rover, BMW, Audi, Mercedes-Benz and Lexus, Volvo, Infiniti and other car companies, we will find that the overall sales volume of luxury cars is not small at all."

"The sales volume of the luxury car market in one year has exceeded 200 million units, and the market share has reached 10%."

"This is something that cannot be ignored."

When Zhang Wuchao said this, everyone present couldn't help but nodded.

This is indeed the truth.

It just doesn’t solve the dilemma of what Chery Automobile will do next.

We can’t let Chery Automobile produce luxury cars, right?
Even if they want to do so, they still have to be approved by consumers.

"I analyzed the situation of Changan Automobile and Nanshan Hongqi, two independent brand car companies with relatively good sales performance."

"Actually, the paths taken by the two companies are not exactly the same. Changan Automobile has achieved very good results among low-cost models, and has gained a large market with low prices."

"Nanshan Hongqi is just the opposite. They have always promoted themselves as mid-range cars and are the closest to joint ventures among independent brands."

"The performance and price of various models launched by Nanshan Hongqi are in line with similar products from Volkswagen and Toyota."

"Coupled with the promotion of two special shareholders, Spring City Automobile Group and Nanshan Automobile Group, we have achieved the current results."

"It can be said that in terms of foundation, their strength is very strong."

"We at Chery Automobile also need to find our own focus to make it have a unique impression in the minds of consumers."

Song Xianming did not shirk responsibility at this time, but actively discussed the next step with everyone.

Those present are all old people in the automobile industry.

In fact, we are relatively clear about many things in the industry.

After everyone brainstormed, we were able to find some solutions.

In the end, Yin Chuan summarized everyone's opinions and said: "Our overseas layout was relatively early, and now our overseas sales are slowly improving."

"However, compared with Nanshan Automobile Group, there is still a very big gap."

"Since everyone feels that we need to take a differentiated path, we must further pay attention to overseas markets and let domestic consumers know our strength by expanding overseas markets."

"The next step for the company is to stabilize the domestic market and actively explore overseas markets."

"We want sales in overseas markets to be on par with sales in the domestic market. In this way, annual sales of 100 million vehicles will not be a problem."

To make this decision, there is no doubt that a certain amount of determination is required.

Although the cakes in overseas markets are very attractive, it is not that easy to make them well.

After all, Toyota, Honda, Hyundai-Kia Motors, General Motors, Ford, Fiat and other car companies have been deployed around the world for so many years. It is not something that your Chinese independent brands can easily surpass.

For example, Fiat Motors is doing very badly in China.

It obviously entered the Chinese market very early, but in the end it couldn't survive and quit.

Even though it has now cooperated with Yangcheng Automobile Group to enter the Chinese market, life is not easy at all.

But don’t look at how difficult life is for people in China. Their influence in South America is greater than that of most car companies.

Fiat Group's life is actually pretty good every year.

The same situation is actually similar for Peugeot Citroën.

Later Peugeot Citroën no longer has much presence in China, but its global performance is booming.

This is because in other overseas markets, their performance is very good.

……

Also like Chery Automobile, Great Wall Motors is holding high-level meetings internally.

Great Wall Motors has always taken a different path by relying on various SUV models.

Although sales have not exceeded 100 million units, they are about to reach this threshold.

In order to reach the high goal of 100 million vehicles, or even 200 million vehicles in the future, Great Wall Motors has also made relatively large adjustments internally.

On the one hand, it is beginning to enter the sedan market and wants to grab some share from other brands.

On the other hand, they have also begun to operate Haval as an independent brand, and have established some high-end brands internally to launch more high-end models.

After all, they are also a little jealous of the rapid development of the luxury car market.

Although there were many actions and several new models were launched, the final sales did not increase at all.

There was even some decline.

This situation of adding new models without increasing sales must have made Boss Wei very dissatisfied.

"In the past year, we have launched two new sedans. According to the original plan, the overall sales volume needs to increase by at least 15 units."

"Coupled with the two sedans that are still in progress, our sedan sales will eventually exceed 30 units, contributing to the company's goal of hitting 100 million sales."

"But what about the actual results?"

"The combined sales of our two sedans in August just exceeded 8 units, not even one-tenth of the plan." "All development fees and mold fees have been wasted."

"The company's image to consumers has always been that of SUVs, and we cannot give up this important advantage."

"The two cars that are still advancing are stopped indefinitely."

"After the current inventory of parts and materials is consumed, the cars that have been produced will also begin to be discontinued."

"In the next three years, the company will focus on SUVs and pickup trucks, and put aside sedans for now."

Boss Wei's decision made Wang Ying a little embarrassed.

As the general manager of Great Wall Motors, Wang Ying has accompanied the development of Great Wall Motors step by step.

It can be said that her contribution is still very great.

The decision to enter the car industry this time was also made by Wang Ying who tried his best to persuade Boss Wei.

However, if the final result is not ideal, it will definitely affect Wang Ying's prestige.

Although it will not directly cause her to lose her position as general manager, it is inevitable that her influence within the company will decline.

Even the level of trust in Boss Wei's heart will decline to a certain extent.

Do people think you are a little too arrogant?
"Director Wei, although the performance of our company's sedans is not very good, looking at the entire automobile market, sedans still account for 50% of the market share."

"Whether it is Nanshan Hongqi, Geely, or BYD, their cars have made a great contribution to the company's sales."

"Do I think it would be a pity to completely abandon the sedan market?"

As Wang Ying's direct subordinate, Lian Furong didn't want to confront his boss, but it was obviously inappropriate not to say a word at this time.

After all, Wang Yingdu has not expressed his position yet.

She was probably just waiting for the people below to explain it to her.

This situation is also very common.

Many leaders do not stand up and speak easily. Instead, they wait until everyone's speeches are almost finished before expressing their views.

"Other car companies are other car companies, and we, Great Wall, are Great Wall."

“If we don’t have our own uniqueness, how can we seize market share?”

"Cars are important, everyone knows this, but not every company can make cars well."

"Look at Yangcheng Trumpchi. It was also very strong at the beginning and launched many sedans. But so far, no sedan has been completed. In the end, it still bet on SUVs and MPVs."

"That is to say, Geely and BYD have their own unique advantages in this regard."

Boss Wei is not that easy to fool.

People also have their own persistence.

If it were ten years ago, he would definitely support entering the car market.

However, Great Wall Motors has already established its image as an SUV. If it tries a sedan, it can continue if it succeeds.

But now that it has failed, there is no need to continue.

Admit defeat and surrender quickly!

The automobile market is not something you can succeed just by being stubborn.

"What Director Wei said makes sense. Our conditions for making cars are indeed not mature enough."

“It’s okay to put the car project on hold for a while and then wait until the time is right in the future.”

Wang Ying, who had been silent all the time, directly chose to support Boss Wei's decision without explaining anything.

If the car project is unsuccessful, there will be twists and turns in the future. This is something she has anticipated.

Boss Wei even expressed similar thoughts to her before the meeting.

So she decided to cancel at this time, and she didn't say anything more.

The two big guys have already agreed to cancel, so naturally no one else will say anything.

However, this change will naturally spread within the industry very quickly.

After all, several car models involve many suppliers, and there is more or less overlap between the suppliers of various OEMs.

So it is inevitable that the news will spread.

The first person to get the news was Autohome.

Yu Yu specially collected some news from major automobile companies, and made an appointment with Mi Ying for an hour to report to Cao Yang.

"Mr. Cao, after entering September, many car companies have adjusted their strategies in response to the arrival of the Golden Nine and Silver Ten."

"Especially for those self-owned brand car companies whose sales performance has not been very satisfactory in the past few months, their actions are not small at all."

Yu Yu is very good at seizing various opportunities to report to Cao Yang.

There are so many companies in the Nanshan Group. If Autohome does not create opportunities to report to Cao Yang, then maybe Cao Yang will not listen to Autohome's news specifically for several months.

At most, when I listen to the progress of key projects of various companies in the group every month, I will listen to relevant content.

But at that time, a bunch of companies gathered together to report within a day or two, leaving Autohome with less than 20 minutes.

There is definitely no way to communicate feelings.

"The overall growth rate of the automobile market has begun to slow down, but the production capacity of various automobile companies has been expanding rapidly, and overall supply has exceeded demand."

"Faced with this change, many car companies will definitely be affected."

Nanshan Equipment is the most important equipment manufacturer in China.

The construction of new factories of all self-owned brand car companies has more or less participation from Nanshan Equipment.

Even in the construction of new factories by various joint venture car companies, there is no way to completely avoid Nanshan equipment.

Therefore, Cao Yang is relatively clear about the production capacity expansion actions of various domestic car companies.

Especially in the past two years, various car companies have built new factories and new bases.

The country's automobile production capacity has already exceeded 3000 million vehicles, but the market sales have not even exceeded the 2500 million mark.

As a result, the market will naturally become more volatile.

"Chery Automobile clarified its next development direction at an internal company meeting a few days ago and will continue to increase its efforts to expand overseas markets."

"It is said that they want to learn from Xingchen Motors' original development path and in turn enhance their brand influence by increasing overseas sales, thereby increasing domestic sales."

The first thing Yu Yu introduced to Cao Yang was Chery Automobile, the former self-owned brand sales champion.

Relying on Chery QQ, Chery Automobile's rise was actually quite fast.

When other independent brand car companies were not performing well, they had already suddenly emerged.

After in-depth cooperation with Nanshan Automobile Group, Chery Automobile has continued to develop at a high speed for more than ten years.

Nowadays, when it comes to independent brand car companies in China, Chery Automobile is no longer a topic that can be avoided.

"Is there any news from other car companies?"

Cao Yang did not comment on Chery's decision.

This development direction did not appear suddenly. People have actually been moving forward many years ago.

Only now it’s clearer.

"Also, Great Wall Motors has officially given up its plan to develop sedans internally, and all sedans still under development have been stopped."

"It is said that the two sedans that are already on sale will be officially discontinued."

Great Wall Motors' influence in the Chinese automobile market is not much worse than that of Chery.

Especially in the field of SUVs, as long as everyone wants to buy a self-owned brand SUV, they will definitely compare it with models such as the Great Wall H6.

So Yu Yu was also prepared to give a good introduction to what was going on at Great Wall Motors.

"In the past few years, everyone's mentality has gradually become wild. Each company has launched more new models than the next. It seems that if it does not have ten or eight models, it is not a big company."

"This path cannot be said to be wrong, but if everyone rushes into it, it will definitely not be successful."

It was Cao Yang's suggestion to Great Wall Motors to focus on developing SUVs.

At that time, the cooperative relationship between Great Wall Motors and Nanshan Automobile Group was even closer.

Unlike now, everyone's communication has been reduced a lot.

Great Wall not only produces its own engines, but also produces part of its gearboxes.

Great Wall Motors also encountered the same problems that Chery Motors encountered.

Coupled with the unfavorable development of cars, there will naturally be more actions.

"Yes, our domestic companies like to do things this way."

"In the end, the market was thrown into chaos and no one made any money."

Yu Yu definitely agrees with Cao Yang's point of view.

Today's report was originally an information sharing meeting, and Yu Yu had no intention of persuading Cao Yang to accept any new ideas.

"Autohome's advertising revenue has been increasing in recent years. Now that the market has become fierce, have various car companies placed more advertising?"

Cao Yang hasn't asked about Autohome's situation for a while.

But that's not to say that he doesn't pay attention to Autohome's business, but that all businesses are on the right track and he doesn't need to worry about it.

"Yes, advertising revenue not only has not decreased, but has a clear trend of increase."

"No one wants to be eliminated by the market, so they have already begun to roll in."

This situation is actually what Yu Yu wants to see.

If every car company is already flat, then Autohome will not have much appeal.

This was not a situation she wanted to see.

“Is there any particular negative news about Volkswagen that’s worthy of some attention?”

Cao Yang thought of the sales growth of Spring City Volkswagen and Magic City Volkswagen that he mentioned when communicating with Zeng Tingting before, and felt that it was necessary to suppress it.

The sales volume of joint venture car companies is sufficient if it is stable, and growth is unacceptable.

(End of this chapter)