From car overlord to the world's top tycoon
Chapter 119
Audi is a good example of this.
A brand has forced all car companies in the Celestial Empire to cut prices.
Including domestic car companies.
This is like a butterfly effect, the price of the brand at the top of the pyramid has plummeted, so if the following car companies have the same model in this price range, the price must also fall.
Otherwise, there are luxury brands, and fools will spend the same amount of money to buy your car.
But fortunately, the models with price reductions this time are mainly between B-class cars and C-class cars.
As for the A-class cars below, although they have also been appropriately reduced, they have little impact.
Domestically produced cars are unable to compete in the B-segment and C-segment markets.
They only compete in the A-class and compact SUV market, and the price is basically under 130,000.
These people are worried that Lin Feng will be an ordinary brand, so with the urine of Baoao Group, I don't know if it will set off another bloody storm in the low-end car market.
As a result, the already difficult domestic car was completely driven into the abyss.
Lin Feng thought about it for a while, and then understood what his uncle meant, and at the same time knew the meaning of the country.
That is to let him leave a way to live for domestic cars.
Otherwise, if he enters the low-end car market, then a large number of domestic cars without their own core competitiveness will surely die.
"Brother Lin, please forgive us our difficulties, my brothers have no choice, so I begged Minister Ye, but don't worry, we know that this will make you lose a lot of benefits, and we are willing to join forces to make up 10 billion for you to compensate for your interests!!"
Li Dali has guilt on his face, 10 billion is a fart compared to a huge low-end car market!
With Baoao's ability, if you want to get involved in this market, you can earn back 10 billion in less than two years.
However, they are indeed afraid that Lin Feng will get involved in this market, in that case, the domestic cars that are already struggling to survive will definitely be beaten into the abyss by Baoao and those foreign brands.
After all, domestic cars do not have their own core technology, basically they are bought car assemblies and parts assembly, and the only thing that belongs to them is the appearance of the car.
In this way, the cost of domestic cars is relatively high, and if you have to sell them at a lower price, then the profit margin will be lower.
Li Dali told Lin Feng about the difficulties of his car companies, hoping that Lin Feng could understand.
"Give 10 billion for nothing? This proposal seems to be not bad!"
Lin Feng's face remained unchanged, making it impossible to see his expression.
But in fact, his heart has long been happy.
Because
From the beginning, he had no intention of getting involved in the low-end market.
In my previous life, an old man from a mobile phone and communication company said that although we know that our prices are high, I will not consider reducing the price, because I want to give my brand below and leave room for survival, because if we reduce the price, then they will definitely compress the profit margin to compete, so that a vicious competition will be formed.
The same is true in the automotive industry, when Lin Feng decided the price of Audi, he had already decided that he would not touch the low-end car market.
But
Not touching the low-end car market does not mean that he does not want this piece of profit.
So how can you get the profit of low-end cars if you don't sell low-end cars?
Very simple!
Learn from Japanese car companies and sell powertrains.
The powertrain of today's domestic cars is almost all bought from Japan or Germany, and the reason for the high cost of domestic cars is inseparable from the expensive powertrain.
Just like when Baoao produced minivans in the past, the small trucks that cost 30,000 yuan, almost half of the price, were used to buy three major pieces. In the same way, referring to the famous tape measure car company Zotye in the previous life, it is a typical assembly car factory.
It is conceivable how much money those car companies made in the Celestial Empire by selling powertrains.
Li Dali and the others waited nervously for Lin Feng's answer, if Lin Feng agreed, then they would be relieved.
If Lin Feng didn't agree, they wouldn't blame Lin Feng, after all, their own and the others' demands were a bit excessive.
"Brother Li, let me ask you a question. "
Lin Feng thought for a moment and spoke.
"Brother, you ask, our Lao Li must know everything!"
Li vigorously patted his chest and promised.
Lin Feng smiled: "Actually, there is nothing else, I just want to ask, the powertrains of your car companies are all purchased from Japanese and German, right?"
After he finished speaking, more than a dozen CEOs on the opposite side nodded at the same time.
"That's good, that's right, I can promise you never to touch the low-end car market, but there is one condition!"
"On what terms?"
These people's faces changed, for fear that Lin Feng would make some excessive demands, so they didn't know if they would be able to fulfill them.
Lin Feng knew what these people thought, so he waved his hand: "Don't worry, it's not that you want to do anything difficult to choose, it's like this, we Baoao plan to set up our domestic power company, specifically to provide powertrain support for other car companies, whether it is any displacement engine and what kind of chassis technology, we can provide it, and the price you can rest assured, it is definitely so low that you can't imagine!"
Selling a car is a piece of!
You have to build your own factory, build a 4S store, and pay so much vehicle tax.
Selling engines, transmissions, and chassis is the most profitable!!
"Really?"
I thought that these CEOs would struggle and hesitate, but I didn't expect that after they heard it, they instantly became excited.
Among them, Li Dali was the most excited, probably seeing Lin Feng's doubts, he explained.
"Oh, Brother Lin, even if you don't say it, we will go to you to buy an engine, our own country can buy an engine, and your technology is absolutely world-leading, anyway, we all want to buy it, why don't we buy our own people!"
"Brother Lin really deserves to be a conscientious entrepreneur of our car company, I thought you didn't plan to sell engines!"
"That is, we have long been dissatisfied with the engines sold by the Japanese, and the ones sold to us and the ones they use themselves are simply two extremes!"
"Yes, why do our domestic cars have a bad reputation, and the machine is always prone to problems, which is all a good thing done by those black-hearted foreign car companies!"
A topic has caused a scar in the hearts of many car company CEOs.
"In this case, then it is okay, in the future, we will solve the powertrain part of the vehicle for you, and I promise you, in terms of price, it will definitely surprise you!"
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