Perfection of Rebirth

Chapter 784 Pros and Cons of Localization
"President Kenny, as far as I know, although Audi has made a lot of money after being made in China, Mercedes-Benz and BMW have also suffered losses in the localization of the Chinese before. The sales volume is not as good as that of imports. Is it necessary for us to be so anxious to localize Jaguar and Land Rover? ?”, a director who seems to have a better understanding of the Tianchao market said first.

BMW was domestically produced in 2003. Domestically-produced cars were included in BMW’s original imported car network from the very beginning. Organizations and personnel were only slightly integrated, with responsibilities and powers. On the one hand, they gave up the dispute over the right to speak, and only wanted to make profits. .

但是，它栽在国产3系和5系的定价上，据说是先前国产奥迪A4以37万元的起价上市，把后来的国产宝马3系逼上了39万元以上的位——处不胜寒。

Shortly thereafter, the Audi A4 started another promotion, putting BMW in a desperate situation, forcing all domestically-produced cars to perform a "blocking battle" between Audi and BMW.

After Mercedes-Benz was made domestically produced at the end of 2005, the two organizations and channels for domestically produced cars and imported cars have their own operations, but they are all in one network.

However, LSH took advantage of its dominant position in the Internet and its status as a shareholder of Mercedes-Benz Tianchao to pay a partial price in distribution, which made it difficult for domestically-produced cars to improve.

In addition, because CKD was not done well at the beginning, the E-class car, the first domestically produced Mercedes-Benz, lacked competitiveness, and the joint venture lost money at the beginning.

"I've also heard about the situation you mentioned. Mercedes-Benz and BMW failed in domestic production at the beginning, mainly because of two reasons." Kenny has made full preparations for today's topic, and naturally he will not be easily accepted. asked.

"The first reason is that domestic cars were suddenly added to the original network of imported cars. The organization was reorganized. The Chinese side sent senior executives and brought their own system. Whoever decides inside the company, how to divide the money earned , the priorities of sales of domestic cars and imported cars, and the conflicts of differences, value orientations and corporate cultures are all mixed together."

"The new organization's own operating mechanism and the management of both parties are difficult to control these conflicts and internal conflicts, and the result can be imagined. But our joint venture between Jaguar Land Rover and Guanghui Automobile is different. It is originally a shareholder's thing, and there is no interest. conflict".

"The second reason is that after the original imported cars were made in China, the halo range of the origin of imported cars dropped by one level. Consumers who qualify for this level care more about prices and are more picky than consumers of imported cars.

In this case, if the price is too high, it will be miserable.And our parent company has a full understanding of the Tianchao market and has countless successful experiences, so I am not worried about setting an unreliable price.”

"Mercedes-Benz and BMW will fail at the beginning, mainly because of the above two reasons, and we, Brilliant Jaguar Land Rover, are destined not to step on these two thunders," Kenny said, even the name of the future joint venture, Brilliant Jaguar Land Rover Out.

In fact, it is normal for the director to worry.In the previous life, Land Rover's domestic production hit a wall, and the sales volume was not as good as before the domestic production.

At that time, the domestic Aurora was criticized from the very beginning.Competing Audi Q5 starts at 35.85 yuan, Mercedes-Benz GLK starts at 37.8 yuan, and Aurora starts at 44.8 yuan, about 8 yuan more than its rivals.

It is said that this is also the result of multiple PKs between the joint venture parties, but the market has proved everything.

In addition, the lack of strength of the joint venture also hindered Land Rover.

The domestic Aurora has the word "Qi Rui" on the tail.

For the Chinese side, these two words are a symbol of political correctness and are very important.

But the market will not consider politics, and the Aurora with the word "Chery" on the tail has created the worst halo effect of imported cars in history.

This feeling is like the difference between Louis Vuitton in France and Louis Vuitton in Yiwu.

Let those who have the money not want to buy it, and those who want to buy it still cannot afford it.

Some media later said: Qi Rui Jaguar Land Rover executives did not mention the word "Qi Rui" in their speeches at various important press conferences, but repeatedly mentioned the quality of domestic models that will be Land Rover...

It is obviously too late for Land Rover not to want its domestic models to have any association with Qi Rui.

"I think what we should consider now is not whether to have a joint venture or whether to engage in localization in Tianchao, but to consider which model should be promoted first and where to build a joint venture factory," Kenny said.

"President Kenny, currently Jaguar Land Rover has no cash on its books. Even if shareholders inject 5 million U.S. dollars, it will be used to develop new models. To build a car factory, at least an additional 5 million U.S. dollars is needed. We don't have this at all. strength,” said the director in charge of finance.

The construction cost of an automobile factory involves various factors. In addition to being closely related to the planned production capacity, various production equipment is also a big spender.

For example, in a stamping workshop, a 5000-ton imported stamping machine costs about [-] million yuan, and a stamping workshop must have at least two or three stamping production lines, and a production line must have four or five stamping machines.

The purchase cost of the stamping machine alone needs hundreds of millions, plus other auxiliary uncoiling and blanking machines, etc., a stamping workshop can cost hundreds of millions.

In addition to stamping equipment, all kinds of welding robots in the welding workshop are also very expensive, and the good ones are basically imported, so you don't have to discuss it.

In the early years, the welding workshops of many automobile companies used a lot of manual welding, and there were relatively few robots on them. Even in the factories of independent brands such as Qirui, there are basically few automatic welding robots now.

Of course, ten years from now, the situation will be completely different.

In the few years after 2008, the labor cost of China rose the fastest. Many factories began the process of automation transformation, and the robot industry ushered in the spring.

In addition, painting workshops, assembly workshops, etc. all cost a lot of money, and 5 million US dollars is not necessarily enough.

In particular, according to Jiang Hui's opinion, the production capacity of Jaguar Land Rover's localized factories will start at least 20. Jiang Hui will not follow the rolling development path of Kojima's Honda.

If we want to build, we need to spend a lot of money at one time. When the auto industry is at its hottest in the next few years, when other auto factories have insufficient production capacity, we will fiercely seize the market and let Jaguar Land Rover gain a firm foothold.

"In terms of funds, you don't need to worry. Guanghui Automobile will provide sufficient construction funds for the joint venture company. You must know that although Guanghui Automobile is a company that is not well-known in the automotive industry, there is a subsidiary of Guanghui Group. Funding is not a problem at all for major profitable players such as mobile phones and Brilliant Games,” Kenny said.

Money is not the problem, the problem is not having money.

Well, of course Brilliant Auto is not facing such a dilemma!
　The little lover was born today, I really wanted to add more, look at the inventory of less than four chapters...

　　
　
(End of this chapter)