2003: Starting with Foreign Trade

Chapter 1013 Mountain City Trip VS New Lifan

They made their argument and then ran away, but the matter didn't end so quickly.

While Big Mouth appears very magnanimous in front of the media, as a tech company with extremely strong marketing capabilities and a sales and management expense budget of up to 100 billion, it can retaliate very quickly.

Fans of both sides argued endlessly about the related comments online. Just a few hours later, it became a trending topic, and Weibo and short video platforms were filled with edited highlights of their statements.

"Our autonomous driving technology is the most advanced in the world, surpassing Weilai and outperforming Tesla."

"Any technological innovation must be built on a safe background. Please do not disregard life. We also urge certain corporate executives to pay attention to this point and to the Advertising Law."

The editing of self-media is about creating confrontational emotions and amplifying most of the comments to attract traffic. After editing, the short videos look extremely inflammatory.

Two nationally recognized private enterprises and two entrepreneurs with tens of millions of followers across the internet appeared before the public for the first time in a head-to-head confrontation, entering the public eye in a way that broke out of their niche.

"It just goes to show how fierce the competition is in the new energy vehicle sector right now. Although it's a bit unsightly for these two to argue, it's actually beneficial for both companies."

In a sense, Tan Jincheng's direct and confrontational response brought a lot of attention to Da Zui and Ju Hua's autonomous driving solutions, even though photos of Da Zui with a livid face at the scene were repeatedly posted online.

However, now Chrysanthemum's autonomous driving solution has been linked with Wynn and Tesla in a way that has broken out of its niche. These two companies are currently the leading players in the field of intelligent assisted driving. Isn't this exactly what Dazui wanted?
In addition, Chrysanthemum's counterattack was swift. Within just a few hours of the controversy gaining traction, countless articles attacked Wei Lai and Tan Jincheng online.

Tan Jincheng's response, centered on security, garnered a large following. However, there were points for counterattack. Tan Jincheng's statement avoided direct confrontation, and a similar counterattack could be launched by not mentioning security at all.

The press release adopted a conspiracy theory tone to question Tan Jincheng's obstruction of the progress of autonomous driving promotion. It analyzed the situation from the perspective of the immaturity of L3 technology and believed that Tan Jincheng was trying to use his industry influence to block his competitors.

They were trying to buy time for Wei by delaying the promotion.

In the era of New Energy Vehicle 2.0, there really isn't much innovation in terms of vehicle appearance anymore. It's just a matter of you copying me and me copying you. So where is the differentiating selling point? It's nothing more than intelligent assisted driving.

If everyone is at L2, how can you show your advantage? But if you are at L2 and I have L2.9999 or L3, then it's different.

In fact, Tan Jincheng suggested that the promotion should only be carried out after the legislation is passed. Not only did the US disagree, but Baidu and Tesla would also join in the criticism. Musk has been touting his self-driving car all year.

Besides establishing a new brand with Geely, Baidu is currently focusing on promoting its "Radish Express" driverless taxi, which is the most direct demonstration of driverless technology. If it waits until comprehensive legislation is enacted, it will be too late for Baidu.

These two companies also took this opportunity to enter the fray and boost the hype. In addition to these three giants, some emerging brands that use intelligent driving as their selling point, including Xiaopeng in the Weilai camp, do not want Tan Jincheng's suggestion to be adopted.

There's no other reason than that the current L3 is really immature, it can only be said to be relatively mature, but to talk about mass production is just wishful thinking. But if we don't use this to promote our cars, how can we sell them?
When Tan Jincheng landed in Chongqing, it was already evening. He was stopped at the airport by several professional automotive media outlets, including Han Lu, who had a very close relationship with Li Xiang.

"Mr. Tan, have you noticed some of the comments online? What are your thoughts on them?"

As one of the first three employees of Autohome, Han Lu and Li Xiang both left Autohome, but their relationship remained very close. When Li Xiang took over Lotus, Han Lu became Lotus's Key Opinion Consumer (KOC).

After Li Xiang became the CEO of Weilai Group, Han Lu became Weilai's most steadfast KOC. As one of the first generation of internet celebrities in the car review circle and a top influencer on Weibo, Han Lu, like other car reviewers, had a polarized reputation.

However, it must be said that during his collaboration with Weilai, he did bring a lot of traffic to Weilai, especially the Weilai L1. Li Xiang really liked this model, and Lao Han naturally promoted this model the most.

"Is it about Wei Lai's remarks obstructing the promotion of autonomous driving? I have noticed that, and I can only say that it is pure nonsense."

Then Tan Jincheng changed his tone and said very seriously: "If any car company wants to promote this, it's simple. It means that, given the current imperfect laws and regulations, the car company will fully cover the safety and losses of vehicle users in intelligent parking scenarios."

"Forget about insurance. To put it simply, as long as it's not the user's fault, the car company will be fully responsible for any accidents. Would they dare to do that?"

Han Lu and the other media were stunned. Goodness, President Tan really went all out today, even revealing a comprehensive safety net plan.

There's no point in discussing this plan anymore. Under the current circumstances, no car company would dare to do this. If we're talking about companies with the capability, it's probably only Wei Lai, with a wealthy tycoon and a powerful major shareholder. If Wei Lai were to promote autonomous driving in this way, very few companies could withstand it.

At that time, all those car companies that use autonomous driving as a selling point will have to shut up. It seems that Mr. Tan still held back at the forum meeting.

"Okay, thank you, Mr. Tan. I hope to have the opportunity to arrange an exclusive interview with you. I won't take up your time this time."

Han Lu came with a mission. He was originally participating in an event in the southwest region, but after receiving a call from Li Xiang, he rushed to Shancheng. Li Xiang also revealed Tan Jincheng's itinerary to him.

Within hours of the news breaking, Li Xiang urgently activated his public relations plan, but no matter how much public relations he did, it was not as direct as the boss responding personally.

Tan Jincheng nodded: "Okay, there will be an opportunity."

Tan Jincheng was already acquainted with Lao Han, and the moment he saw this guy, he roughly guessed that Li Xiang had sent him. Li Xiang was really confident in his response, not afraid that he would mess things up unprepared.

As an important base for the automotive industry in Southwest China and a traditional hub for automobiles, Chongqing has always held a very important position in the history of China's automotive industry and is a key area for major automakers to develop their industrial chains.

Currently, leading automakers such as Changan, BYD, and Weilai have established production bases here. Weilai even directly participated in the bankruptcy reorganization of Lifan Motors, a local automaker in Chongqing, and took over some of Lifan Motors' resources.

Just like Lifan's bankruptcy and restructuring, although Chongqing is a major center of the automotive industry, the local car companies have all had a difficult fate. Including Lifan and Seres, there are currently about five major local car companies in Chongqing, engaged in the production and sales of passenger cars and commercial vehicles.

Without exception, local car companies in Chongqing have not fared well during the transition from traditional automobiles to new energy vehicles. Some have gone bankrupt or are experiencing operational difficulties. This is also a pain point for traditional automobile production bases.

It's not just Chongqing that's facing this problem; other major traditional automobile production bases, including Wuhan, Beijing, and Guangzhou, are also experiencing similar challenges to varying degrees. If we're talking about traditional cities that have done a good job in transformation, Shenzhen and Luzhou are probably the most outstanding examples.

It goes without saying that Wuhan, apart from Lotus, has no other new energy vehicle brands to speak of. The same is true for Beijing, which is partly why Xiaomi Auto was born. The same applies to Guangzhou, where GAC has faced difficulties in its transformation in recent years.

If it weren't for Xiaopeng Motors settling in Guangzhou, they would hardly have any new energy vehicle brands to boast about.

Traditional car manufacturers are facing the impact of tech companies like Huawei and Xiaomi entering the car manufacturing industry. Dealers are a very important part of this. Tan Jincheng came to Chongqing for two reasons.

The first thing is naturally about Lifan Motors, and the second thing is the reorganization and optimization of dealerships, mainly focusing on Yuechi Motors dealerships.

The reason for choosing Chongqing as the first pilot city was not only to gain a comprehensive understanding of the progress of Lifan Motors' restructuring, but also because Chongqing is one of the largest sales cities for Yuechi A1 in the era of gasoline-powered vehicles.

The mountainous city has a complex geographical environment, and there is still a great demand for SUVs like the Yuechi A1, which offer excellent value for money, are durable, have brand influence, and have a comprehensive after-sales service system.

"Boss, should we go back to Lifan Motors first or go to the hotel first?"

Zeng Jixiang, CEO of Weilai Technology and also the current legal representative and general manager of Lifan Motors, has almost always stayed in Chongqing since taking over Lifan, except when he returns to headquarters to report on his work. This time, he personally came to pick him up at the airport.

As former first assistants, along with current Meizu Technology Chairman Zhao Xinyi, they, along with Zhang Xuhui, Li Xiang, and others, represent the rejuvenation of senior management at Meizu.

As members of the same post-80s generation, Li Xiang had a higher starting point and more outstanding abilities, while the abilities of the three of them were cultivated little by little by Tan Jincheng, starting as assistants and gradually getting involved in the business of the entire system.

By developing themselves in different positions, any one of the three of them would be capable of taking over the CEO position should Li Xiang leave one day.

Even by 2030, these three individuals will all be under 50 years old, belonging to the prime of their lives. Their succession to the CEO position will not be limited by age. In addition to them, Weilai has also begun to focus on cultivating middle-level managers in the post-90s generation.

Tan Jincheng's cousin, 26-year-old Tan Jinen, is currently the deputy general manager of Weiling Mobility. During the period when Didi had its problems and the ride-hailing industry restarted its subsidy war, Tan Jinen worked with Weiling Mobility, Gaode Maps, and Orange Group, gaining valuable experience.

There are many post-90s like Tan Jin'en, and quite a few at the Weilai Research Institute as well. In terms of talent reserves, Weilai is the youngest among car companies. Tan Jincheng has always admired Midea Group's choice of successor. Midea can be said to be the most successful company in China in terms of succession, and Weilai's goal is to learn from Midea.

"Let's go back to the hotel first. Tomorrow we'll go to Lifan Technology to see your work results."

Transforming the dealer system cannot be accomplished in a day or two. Traditional car companies rely mainly on 4S store sales. Currently, Yuechi Auto has approximately 1100 4S stores nationwide, in addition to some lower-tier and distribution channels.

Of these, less than 5% are directly operated by Yuechi Auto. In terms of bargaining power, Yuechi Auto is not as strong as Weilai Auto, which mainly uses a direct operation model. Yuechi Auto has gasoline vehicles, hybrid vehicles, and subsequent pure electric vehicles.

All three aspects are proceeding in parallel, with the future focus on the sales of new energy vehicles. However, this will not work if 4S stores do not cooperate. Currently, the focus is on promotional discounts. Dealers are willing to cooperate if they can make money, but such discounts are certainly unsustainable.

In today's business environment, the 4S store operating model no longer has the advantages it used to have. For example, the entire system of the Weilai APP has actually affected the business of some Yuechi Auto offline 4S stores.

However, even if Wei Lai himself didn't do it, the situation wouldn't change much, because other companies are currently using this model, including BYD, Geely, and Great Wall, all of which are actively transforming their offline channels.

In addition to regaining some say, Yuechi Auto should also find ways to encourage dealers and 4S stores to actively participate in the transformation. The Xinghe P1 has no shortage of orders, and any dealer or 4S store that wants to make a difference should realize that this is a great opportunity.

The transformation of Yuechi's own directly operated stores is relatively simple: open technology experience stores in business districts of first- and second-tier cities, with 50% vehicle display, 30% technology interaction, such as battery disassembly models, and another 20% rest area.

In terms of service, we offer weekend science workshops to users to popularize automotive knowledge. Our directly operated stores are not primarily focused on selling cars, but rather on showcasing the brand image.

Regarding the transformation of traditional 4S stores, Tan Jincheng has also brought a solution this time, which is to force dealers to add a digital pre-configuration area, a large screen for automatic configuration selection, real-time rendering effects, and a transparent workshop live broadcast.

This live stream is not only targeting online car sales that emerged during last year's special period, but also includes allowing users to view the entire vehicle maintenance process through the app, making the service transparent and giving users greater peace of mind.

For the lower-tier markets, a flexible coverage model is mainly adopted, using a mobile exhibition vehicle to quickly open pop-up stores, setting up short-term locations in shopping malls in third- and fourth-tier cities to reduce channel costs.

This year, the headquarters of Weilai will also organize multiple training sessions for all dealers to improve the skills and sales techniques of sales consultants, enabling frontline sales staff to better understand their models and avoid focusing solely on discounts when promoting cars.

For most users, spending tens or hundreds of thousands of yuan on a car and receiving a discount is certainly a happy thing, but what's more important is to help users understand why they bought this car and why they chose this brand.

During use, you'll gain a better understanding of your car and have some technical knowledge, which can help avoid misunderstandings during after-sales service.

Tan Jincheng disapproved of Da Zui's promotion of autonomous driving for this very reason. Da Zui couldn't stop exaggerating, saying things like you could let go of the steering wheel and sleep, but some users actually believed it.

After an incident, the person in charge at most gets a few scoldings and has to apologize, but the actual handling of the situation is the job of the grassroots service staff, which increases communication costs.

Advertising is necessary for businesses, but exaggerated or even false advertising not only damages the brand but also increases the workload of frontline staff. Over time, customers become dissatisfied, and frontline staff also complain, making it impossible to provide any real service.

The next morning, Tan Jincheng arrived at Lifan Motors.

Lifan Motors, which completed its entire restructuring at the end of last year, is now completely taken over by Wei Lai's team, and its A-share listed entity has been changed from the original Lifan Co., Ltd. to Laili Technology.

The decision not to use the name Lifan also represents Tan Jincheng's attitude: he is willing to take over Lifan's assets and revitalize them, but the Lifan brand will no longer appear in the automotive market.

However, out of local sentiment, Tan Jincheng retained the character "Li" in the company's new name. Although the name "Laili Technology" is a bit vulgar, it is still considered auspicious. In the magical A-share market, there are companies that speculate on their names.

"Speaking of which, we control quite a few listed companies now, and Laili Technology is one of the smaller ones in terms of market value."

The minimalist, black-and-white style of Zeng Jixiang's office here is just like the style of Wei Lai's headquarters office.

Through equity penetration, Tan Jincheng has successively controlled three listed companies in the US and Hong Kong stock markets: Orange Group, Orange Live, and Lotus. In the A-share market, he controls Weilai Shares, Flash Technology, Bafang Electric, and Laili Technology after its name change.

Tan Jincheng actually controls as many as seven listed company platforms, and these seven financing platforms have built Tan Jincheng's capital empire.

When Lailai Technology was suspended from trading, its market value was only 50 billion yuan. After Wei Lai took over, its market value doubled and is currently around 120 billion yuan, which is more than 10 billion yuan more than Orange Live's market value.

Tan Jincheng's shareholding ratio in these two listed companies is not high. After the restructuring, Lifan is jointly controlled by Weilai Technology and Shancheng Liangjiang New Area through funds and other means. Weilai Technology holds 33.33% of the shares, while Shancheng Liangjiang New Area holds 20%.

As for Orange Live, Tan Jincheng currently holds only 37.2% of the shares through various channels, and the combined market value of the two companies is about 70 billion yuan.

"One financing platform is enough. The market value doesn't matter, since we can't cash out much anyway."

The new Lifan belongs to the Weilai system, yet it is not entirely separate from it. Therefore, it relies heavily on local and listed company platforms for financing. Weilai Technology initially injected some funds and resources, but only in the early stages.

Currently, through industrial integration, Xinlifan has completely abandoned gasoline vehicles and shifted to the new energy vehicle business. In addition to operating charging piles, it is mainly responsible for producing cars for the Aion series, targeting the B-end market of ride-hailing and taxis.

After completing the renovation of the production base, Xinlifan has fully resumed production. However, this year's production capacity is relatively limited, with a total annual production capacity of only 10,000 vehicles. Considering the scale of the factory, the production of the Aion Y model will be transferred to Chongqing in the future.

According to Lifan Industry's financial report in 2019, the company suffered a huge loss of 46.82 billion yuan. However, through restructuring, divestiture of non-performing assets, and other measures, Lifan turned a profit in 2020, achieving a net profit of 5800 million yuan.

However, this is only from a financial perspective. In reality, Xinlifan has been losing money this year. It will take at least two years or even longer to complete the process of decoupling from fuel and de-Lifan.

This is reflected in revenue figures. Compared to 2019, Lifan's revenue in 2020 was almost halved, and this year's revenue is not expected to grow much.

"We have an idea right now: to sell our motorcycle and engine business and get some cash to focus on our new energy business. What do you think, boss?"

Without much small talk, Zeng Jixiang knew that his boss was pressed for time and wouldn't be staying in the mountain city for very long.

"Oh? Sell it? Your revenue mainly comes from the motorcycle and engine business segment, right?"

Tan Jincheng took over Lifan, a bankrupt company, but he wasn't going to be a fool. He wanted the Yin family to leave unscathed without any benefits. He had to make them bleed a little. Therefore, he instructed Zeng Jixiang to try his best to gain benefits during the negotiations.

Last year, Lifan's revenue was 36.37 billion yuan, but the revenue from the new energy vehicle business was only a small fraction. This year, it will increase a bit, but it will not exceed 5 million yuan. However, thanks to the rise in exports of two-wheeled electric vehicles and motorcycles, Lifan's motorcycle export business has performed well in the past two years.

Lifan's expected motorcycle sales for the whole year are around 60 units, mainly targeting overseas markets such as Southeast Asia and Africa. Without a motorcycle business, Lifan's revenue last year was negligible and simply insufficient to support a listed company.

Zeng Jixiang nodded: "Yes, the revenue mainly comes from the motorcycle business, and we can indeed make some money every year, but it's too much of a distraction for us to run it, so my idea is to sell this business."

Besides diverting attention, Zeng Jixiang believes that due to the current special circumstances, the motorcycle export business is at a temporary high point, and selling it now would be beneficial for the company if they no longer want to continue.

Based on last year's revenue, the reasonable valuation of Lifan Motorcycle and Engine business is between 15 billion and 25 billion yuan. If overseas exports decline, the valuation needs to be lowered by about 20%.

Rather than betting on the future, it would be better to sell the motorcycle business at a high valuation. In Zeng Jixiang's view, this marginalized business, lacking technological barriers, is easily squeezed out by companies such as Loncin, Zongshen, and Dachangjiang.

"Alright, if you want to sell, then sell. It's up to you. Just make sure you communicate with Liangjiang New Area."

After reviewing the specific financial data, Tan Jincheng agreed to the idea of ​​selling. Lifan Motorcycle, which mainly produces low-end commuter vehicles, actually only has impressive revenue figures, but its net profit is pitifully small.

Not only does it earn little money, it also wastes a lot of energy. There is really no need for Wei Lai to continue engaging in this kind of low-end manufacturing.

"But who do you plan to sell it to? Let me make this clear first, Flash Technology will not be taking it over."

(End of this chapter)