Smart Industrial Empire
029 Deere's olive branch
() Numerical control technology, whether it is in the United States, Germany, or even any country in Europe, is not comparable to a small Chinese private enterprise.
Therefore, after visiting the CNC workshop of Qingfeng Machinery for a while, the leader of the inspection team, Smith White, asked Yunfei to take them to visit the ordinary machining workshop of Qingfeng Machinery.
White's attitude discouraged Wang Qingfeng, who had tried his best to get foreigners to recognize his CNC workshop, and Ren Zhiguo, from Kmart.
During this period of high-precision parts processing, both Kamart and Qingfeng Machinery made a lot of money.Therefore, they all wanted to get more orders for high-precision parts processing from foreigners and earn more dollars, but they didn't expect that the purpose of White and his party was not high-precision parts processing, but low-quality processing. Precision rough machining link.
Yun Fei has a clear understanding of this.Foreigners, if it is not a last resort, high-profit jobs will definitely not be produced in China, a market that they have not yet had a deep understanding of.
Yun Fei introduced the general machining workshop to the members of the inspection team, and led them towards the machining workshop.
"Our factory currently has 54 high-precision ordinary horizontal lathes of various models and two vertical lathes, which can process various rotary parts with a diameter of 0.5mm~5000mm, and the maximum processing length is ten meters. 22 lifting tables are universal Milling machines, three high-precision turret milling machines; eight radial drills, ten high-precision internal and external grinding machines, and eight surface grinders. We are about to set up the second machining workshop, and various equipments have signed contracts with manufacturers. These devices will be installed in our newly established second machining workshop in June this year..."
Yun Fei's words stunned Ren Zhiguo from Kamart.In the past few months, I have been dealing with Wang Qingfeng every day, and I have never heard him say that he has such a plan.Ren Zhiguo knows Wang Qingfeng too well, and he doesn't have a strong purpose in doing anything. His processing plant can grow to such a large extent, to a large extent, it is only in the past six months that the less than [-] people in front of him What about young people?
Wang Qingfeng was even more stunned. Yun Fei had never mentioned this plan to himself. Before today, he didn't even mean it.But in front of the foreigners, he didn't reveal his secrets, he buried everything in his heart, waiting for Yun Fei to explain to himself after the foreigners left.
"Mr. Yun, we have learned about the scale of your company in detail before coming here. Can you please introduce your company's technical level and processing cost?" Maxim finally asked what was in his heart. simmering problem.The technology of the Germans is top-notch in the whole world.However, their processing costs are also top-notch in the entire world.
"It's like this. Since our ordinary equipment is divided into many processes in the process of processing mechanical parts, if it is a large-scale processing of low-level and difficult parts, our total cost is only three-fifths of the international average. Even less. Among them, the labor cost is only one-third of that of Europe and the United States. Due to our equipment resources, the cost of highly difficult and high-precision parts processing is only about 20.00% lower than the international level, and some are even higher than International level..."
For these foreigners, Yun Fei must not tell them his bottom line, otherwise, it will take a lot of effort to bargain with these foreigners, and it will be exhausting, and he will not be able to earn any money from the foreigners.
"Mr. Yun, you are not being very honest. As far as we know, the cost of your company's difficult and high-precision parts processing is less than one-third of the international level..." Carlos heard Yun Fei directly Reporting high production costs, he hastily interrupted Yun Fei's words.Negotiations, the Germans can't do it, and the Americans have to come forward.
"Mr. Carlos, what you understand has indeed happened. Eight months ago, our costs were indeed like that. But now, our costs have risen a lot. Because of the expansion of the factory, our management team is the same as before. Several times, and other related departments have been established. To be honest, the increase in labor costs is not too great, mainly due to the expansion of the factory scale, and the increase in management costs. I don’t know how I explain it, can you understand? "
Regarding Carlos' thoughts, Yun Fei, who has been a man in two lifetimes, may know better than himself.It seems that the other party already has the intention to cooperate, but I don't have the slightest understanding of the other party.And management cost is an unavoidable problem in any country and any region in my original time and space.
In this era when there is no ferry aunt, this is a big disadvantage.It is difficult to determine the bottom line of your opponent.
Ren Zhiguo gave Wang Qingfeng a questioning look, but he was also confused.
Yun Fei was silently thinking about the identity of this investigation group mixed with Germans and Americans.For the introduction of ordinary machining workshops, I was also a little absent-minded.Logically speaking, in the early 90s, it was difficult to meet a delegation with personnel from several countries.
I saw that Qingfeng Machinery divided most of the products in the entire workshop into countless detailed processes, and even the work steps were divided into extremely detailed.A group of foreigners couldn't help but widen their eyes and open their mouths.You know, even if it is an assembly line production, the working steps are not so detailed.With a large number of CNC machine tools, most of the processes began to be centralized.
The backwardness of mechanical processing in mainland China can be seen from this!
In foreign countries, assembly line production is more popular because of the use of CNC machine tools to replace advanced cao workers.In North America and Europe, two industrially developed regions, although they have begun to pursue humanized management.However, with a large number of CNC machine tools replacing high-quality skilled workers, the production of the assembly line is more perfect.
Workers, not robots, especially skilled workers.If they are asked to repeat the same actions every day, it will easily cause mental exhaustion, resulting in a reduction in the level of precision and scrapping in batches.It is precisely because of this that the wage costs of the machinery manufacturing industry in the two industrially developed regions of Europe and the Americas have risen to the point where shareholders can no longer bear it.
Due to the slowdown of economic development throughout Europe, countless companies have set their sights on the increasingly dynamic Chinese mainland.This is not only because China has a vast and incomparable market, but also because China has low-cost skilled workers.Of course, the foreign-funded enterprises at this time are far from the nb of later generations, and they are not as attractive to skilled workers as local enterprises.
After visiting the factory, Wang Qingfeng led the group to the large conference room on the second floor of the office building.
"Boss Wang, Director Yun, please take a look at this contract first." As soon as he sat down in the office, Ren Zhiguo took out two documents from the briefcase held by the secretary next to him, and handed them to Wang Qingfeng and Yun Fei. people.He knew that in this factory, the young man in front of him could be Wang Qingfeng's master. Of course, Ren Zhiguo also knew that this young man was not as good at fooling around as Wang Qingfeng.
Carlos, White and others also stared expectantly at Yun Fei and Wang Qingfeng, the two potential partners they had chosen for a long time.
When Wang Qingfeng saw the contract written in both Chinese and English, he felt dizzy. Seeing that Yun Fei was watching with relish, he directly threw the document in his hand to Yun Fei, asking him to take a closer look.The person who saw Ren Zhiguo was talking to Smith White and Carlos in a low voice in English, and began to lean on the back of the sofa and close his eyes to rest.
Seeing the contract, Yun Fei understood the identity of the other party.But after knowing their identities, they became even more confused.
Ren Zhiguo brought this eight-member foreign delegation from Deere, the world's largest manufacturer of agricultural machinery.As early as 1958, Deere Company surpassed the International Combine Harvester Company and became the largest agricultural machinery manufacturer in the United States. After becoming the world's largest agricultural machinery production company in 1963, its status has never been shaken.
Deere's main business in China has always been technology transfer, engineering and technical personnel training, and complete machine export.Now it is actually starting to build a factory in China!
This confuses him no matter what.It is not that Deere has no presence in China, but it does not occupy a large market share in the Chinese market.
In the original world, although Deere had business relations with China in 1978 at the beginning of the reform and opening up, it had to wait until 1995 to establish an office in bj, and established the first in China's agricultural machinery industry with hlj Jiamusi Combine Harvester Factory The first joint venture will have to wait until 1997.
The contract given by Ren Zhiguo is very simple, that is, the three joint ventures of American Deere, Kmart and Qingfeng Machinery will establish an agricultural machinery production company.Kamart is responsible for the market, Qingfeng Machinery is responsible for most of the parts production, and Deere is responsible for the overall technology, providing power equipment and after-sales service.The new factory is established in Zhengzhou, responsible for final assembly.
Deere Company invested 500 million US dollars and technology, the shares of the new factory were held by Deere of the United States, which accounted for 51%, and Kamat Company invested 600 million US dollars and occupied 42% of the market channels. Qingfeng Machinery provided all skilled workers for parts processing and assembly to get 7 %.
The shares of the new factory will be redistributed after receiving new capital injection.Seeing this, Yun Fei smiled.
In the [-]s, many foreign-funded companies played such capital games.Due to the unsound market mechanism in China, it is difficult for foreign wholly-owned enterprises to open up the market in China.Therefore, they all find excellent local Chinese companies for joint ventures, and then inject a large amount of capital into the joint venture company to dilute the Chinese party's equity.Among them, SH FAW is the most famous example, not only produced the vast majority of skilled workers, but also had a lot of land and market share.Later, with the continuous capital injection of German companies, SH Volkswagen was only a subsidiary of German Volkswagen, and most of the profits were distributed by German Volkswagen!In the end, not only did he lose his own advantages, but he was also subject to the Germans.
Many foreign-funded companies use their own technology and capital advantages to find Chinese companies with great potential in mainland China to partner with them, and finally completely annex them.
In this regard, the most disadvantaged are state-owned enterprises that are joint ventures with foreign-funded enterprises.Domestic infrastructure construction needs money everywhere, but due to the shrinking foreign market, foreign-funded enterprises have poured a large amount of idle funds into the Chinese market.The foreign party injected capital into the joint venture, but the Chinese party took the hlj Jiamusi Combine Harvester Factory as the most obvious example.From the establishment of the factory in 1997 to the end of 2004, this joint venture has become a wholly-owned company of Deere.
After reading the agreement, Yun Fei was even more confused.Closing the document in his hand, Yun Fei clapped his hands lightly. Seeing that Ren Zhiguo and the members of Dill's inspection team were looking at him, he said seriously:
"Everyone, I'm very sorry for interrupting everyone's communication. I have great doubts about this contract, and I don't know who of you can help me."
"Mr. Yunfei, what doubts do you have about this preliminary contract of intent?" Carlos asked Yunfei with a smile.He believed that the company they were looking at would fully agree to such generous terms.
"Let's not talk about the content of this contract. My biggest question is that you are a giant in the agricultural machinery industry in the world. In China, there are not a few manufacturers of agricultural machinery. Whether it is their scale or technology , are far more than our newly established machinery processing factory that only makes accessories, I would like to ask, why did you choose Qingfeng Machinery.”
Therefore, after visiting the CNC workshop of Qingfeng Machinery for a while, the leader of the inspection team, Smith White, asked Yunfei to take them to visit the ordinary machining workshop of Qingfeng Machinery.
White's attitude discouraged Wang Qingfeng, who had tried his best to get foreigners to recognize his CNC workshop, and Ren Zhiguo, from Kmart.
During this period of high-precision parts processing, both Kamart and Qingfeng Machinery made a lot of money.Therefore, they all wanted to get more orders for high-precision parts processing from foreigners and earn more dollars, but they didn't expect that the purpose of White and his party was not high-precision parts processing, but low-quality processing. Precision rough machining link.
Yun Fei has a clear understanding of this.Foreigners, if it is not a last resort, high-profit jobs will definitely not be produced in China, a market that they have not yet had a deep understanding of.
Yun Fei introduced the general machining workshop to the members of the inspection team, and led them towards the machining workshop.
"Our factory currently has 54 high-precision ordinary horizontal lathes of various models and two vertical lathes, which can process various rotary parts with a diameter of 0.5mm~5000mm, and the maximum processing length is ten meters. 22 lifting tables are universal Milling machines, three high-precision turret milling machines; eight radial drills, ten high-precision internal and external grinding machines, and eight surface grinders. We are about to set up the second machining workshop, and various equipments have signed contracts with manufacturers. These devices will be installed in our newly established second machining workshop in June this year..."
Yun Fei's words stunned Ren Zhiguo from Kamart.In the past few months, I have been dealing with Wang Qingfeng every day, and I have never heard him say that he has such a plan.Ren Zhiguo knows Wang Qingfeng too well, and he doesn't have a strong purpose in doing anything. His processing plant can grow to such a large extent, to a large extent, it is only in the past six months that the less than [-] people in front of him What about young people?
Wang Qingfeng was even more stunned. Yun Fei had never mentioned this plan to himself. Before today, he didn't even mean it.But in front of the foreigners, he didn't reveal his secrets, he buried everything in his heart, waiting for Yun Fei to explain to himself after the foreigners left.
"Mr. Yun, we have learned about the scale of your company in detail before coming here. Can you please introduce your company's technical level and processing cost?" Maxim finally asked what was in his heart. simmering problem.The technology of the Germans is top-notch in the whole world.However, their processing costs are also top-notch in the entire world.
"It's like this. Since our ordinary equipment is divided into many processes in the process of processing mechanical parts, if it is a large-scale processing of low-level and difficult parts, our total cost is only three-fifths of the international average. Even less. Among them, the labor cost is only one-third of that of Europe and the United States. Due to our equipment resources, the cost of highly difficult and high-precision parts processing is only about 20.00% lower than the international level, and some are even higher than International level..."
For these foreigners, Yun Fei must not tell them his bottom line, otherwise, it will take a lot of effort to bargain with these foreigners, and it will be exhausting, and he will not be able to earn any money from the foreigners.
"Mr. Yun, you are not being very honest. As far as we know, the cost of your company's difficult and high-precision parts processing is less than one-third of the international level..." Carlos heard Yun Fei directly Reporting high production costs, he hastily interrupted Yun Fei's words.Negotiations, the Germans can't do it, and the Americans have to come forward.
"Mr. Carlos, what you understand has indeed happened. Eight months ago, our costs were indeed like that. But now, our costs have risen a lot. Because of the expansion of the factory, our management team is the same as before. Several times, and other related departments have been established. To be honest, the increase in labor costs is not too great, mainly due to the expansion of the factory scale, and the increase in management costs. I don’t know how I explain it, can you understand? "
Regarding Carlos' thoughts, Yun Fei, who has been a man in two lifetimes, may know better than himself.It seems that the other party already has the intention to cooperate, but I don't have the slightest understanding of the other party.And management cost is an unavoidable problem in any country and any region in my original time and space.
In this era when there is no ferry aunt, this is a big disadvantage.It is difficult to determine the bottom line of your opponent.
Ren Zhiguo gave Wang Qingfeng a questioning look, but he was also confused.
Yun Fei was silently thinking about the identity of this investigation group mixed with Germans and Americans.For the introduction of ordinary machining workshops, I was also a little absent-minded.Logically speaking, in the early 90s, it was difficult to meet a delegation with personnel from several countries.
I saw that Qingfeng Machinery divided most of the products in the entire workshop into countless detailed processes, and even the work steps were divided into extremely detailed.A group of foreigners couldn't help but widen their eyes and open their mouths.You know, even if it is an assembly line production, the working steps are not so detailed.With a large number of CNC machine tools, most of the processes began to be centralized.
The backwardness of mechanical processing in mainland China can be seen from this!
In foreign countries, assembly line production is more popular because of the use of CNC machine tools to replace advanced cao workers.In North America and Europe, two industrially developed regions, although they have begun to pursue humanized management.However, with a large number of CNC machine tools replacing high-quality skilled workers, the production of the assembly line is more perfect.
Workers, not robots, especially skilled workers.If they are asked to repeat the same actions every day, it will easily cause mental exhaustion, resulting in a reduction in the level of precision and scrapping in batches.It is precisely because of this that the wage costs of the machinery manufacturing industry in the two industrially developed regions of Europe and the Americas have risen to the point where shareholders can no longer bear it.
Due to the slowdown of economic development throughout Europe, countless companies have set their sights on the increasingly dynamic Chinese mainland.This is not only because China has a vast and incomparable market, but also because China has low-cost skilled workers.Of course, the foreign-funded enterprises at this time are far from the nb of later generations, and they are not as attractive to skilled workers as local enterprises.
After visiting the factory, Wang Qingfeng led the group to the large conference room on the second floor of the office building.
"Boss Wang, Director Yun, please take a look at this contract first." As soon as he sat down in the office, Ren Zhiguo took out two documents from the briefcase held by the secretary next to him, and handed them to Wang Qingfeng and Yun Fei. people.He knew that in this factory, the young man in front of him could be Wang Qingfeng's master. Of course, Ren Zhiguo also knew that this young man was not as good at fooling around as Wang Qingfeng.
Carlos, White and others also stared expectantly at Yun Fei and Wang Qingfeng, the two potential partners they had chosen for a long time.
When Wang Qingfeng saw the contract written in both Chinese and English, he felt dizzy. Seeing that Yun Fei was watching with relish, he directly threw the document in his hand to Yun Fei, asking him to take a closer look.The person who saw Ren Zhiguo was talking to Smith White and Carlos in a low voice in English, and began to lean on the back of the sofa and close his eyes to rest.
Seeing the contract, Yun Fei understood the identity of the other party.But after knowing their identities, they became even more confused.
Ren Zhiguo brought this eight-member foreign delegation from Deere, the world's largest manufacturer of agricultural machinery.As early as 1958, Deere Company surpassed the International Combine Harvester Company and became the largest agricultural machinery manufacturer in the United States. After becoming the world's largest agricultural machinery production company in 1963, its status has never been shaken.
Deere's main business in China has always been technology transfer, engineering and technical personnel training, and complete machine export.Now it is actually starting to build a factory in China!
This confuses him no matter what.It is not that Deere has no presence in China, but it does not occupy a large market share in the Chinese market.
In the original world, although Deere had business relations with China in 1978 at the beginning of the reform and opening up, it had to wait until 1995 to establish an office in bj, and established the first in China's agricultural machinery industry with hlj Jiamusi Combine Harvester Factory The first joint venture will have to wait until 1997.
The contract given by Ren Zhiguo is very simple, that is, the three joint ventures of American Deere, Kmart and Qingfeng Machinery will establish an agricultural machinery production company.Kamart is responsible for the market, Qingfeng Machinery is responsible for most of the parts production, and Deere is responsible for the overall technology, providing power equipment and after-sales service.The new factory is established in Zhengzhou, responsible for final assembly.
Deere Company invested 500 million US dollars and technology, the shares of the new factory were held by Deere of the United States, which accounted for 51%, and Kamat Company invested 600 million US dollars and occupied 42% of the market channels. Qingfeng Machinery provided all skilled workers for parts processing and assembly to get 7 %.
The shares of the new factory will be redistributed after receiving new capital injection.Seeing this, Yun Fei smiled.
In the [-]s, many foreign-funded companies played such capital games.Due to the unsound market mechanism in China, it is difficult for foreign wholly-owned enterprises to open up the market in China.Therefore, they all find excellent local Chinese companies for joint ventures, and then inject a large amount of capital into the joint venture company to dilute the Chinese party's equity.Among them, SH FAW is the most famous example, not only produced the vast majority of skilled workers, but also had a lot of land and market share.Later, with the continuous capital injection of German companies, SH Volkswagen was only a subsidiary of German Volkswagen, and most of the profits were distributed by German Volkswagen!In the end, not only did he lose his own advantages, but he was also subject to the Germans.
Many foreign-funded companies use their own technology and capital advantages to find Chinese companies with great potential in mainland China to partner with them, and finally completely annex them.
In this regard, the most disadvantaged are state-owned enterprises that are joint ventures with foreign-funded enterprises.Domestic infrastructure construction needs money everywhere, but due to the shrinking foreign market, foreign-funded enterprises have poured a large amount of idle funds into the Chinese market.The foreign party injected capital into the joint venture, but the Chinese party took the hlj Jiamusi Combine Harvester Factory as the most obvious example.From the establishment of the factory in 1997 to the end of 2004, this joint venture has become a wholly-owned company of Deere.
After reading the agreement, Yun Fei was even more confused.Closing the document in his hand, Yun Fei clapped his hands lightly. Seeing that Ren Zhiguo and the members of Dill's inspection team were looking at him, he said seriously:
"Everyone, I'm very sorry for interrupting everyone's communication. I have great doubts about this contract, and I don't know who of you can help me."
"Mr. Yunfei, what doubts do you have about this preliminary contract of intent?" Carlos asked Yunfei with a smile.He believed that the company they were looking at would fully agree to such generous terms.
"Let's not talk about the content of this contract. My biggest question is that you are a giant in the agricultural machinery industry in the world. In China, there are not a few manufacturers of agricultural machinery. Whether it is their scale or technology , are far more than our newly established machinery processing factory that only makes accessories, I would like to ask, why did you choose Qingfeng Machinery.”
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