2003: Starting with Foreign Trade

Chapter 1071: A Meeting Between Old and New Visitors at Headquarters

Lei Jun is very strong and very popular.

He was so popular that he attracted almost all the attention at the Guangzhou Auto Show. Even a simple gift-giving activity, something Wei Lai had been doing for over a decade, was blown out of proportion.

So strong that even Seres, with its new flagship model Hongtu X9 priced over 50 yuan, couldn't seize the top spot in terms of traffic. Keep in mind that this is the car company that caused market turmoil in September. The market position of the new Hongtu X7 is no less than that of Exeed Star Wish.

Other traditional automakers are completely powerless against his traffic-driven strategies.

"Let me make this clear first, this isn't directed at you guys, and I really didn't arrange for that person to ask the question. I'm not that bored."

Lei Jun's traffic-driving strategy proved utterly ineffective against Tan Jincheng, who was also a top influencer. He didn't even need to do it intentionally; this was the first direct confrontation between the two.

"Of course I know."

Big Mouth rolled his eyes. At the Guangzhou Auto Show, which was full of top celebrities, how could he be absent? The next day, he appeared at the Weilai booth to visit Weilai's first MPV, the Weilai EM9.

The EM9 is not a traditional MPV. Unlike the boxy van-like shape of traditional MPVs, it has a very large A-pillar angle, resulting in a smoother body posture and a lower drag coefficient.

With a drag coefficient of 0.227Cd, it is one of the lowest mass-produced MPVs in the world, effectively improving range and quietness. Equipped with rear-wheel active steering technology, the turning diameter is only 10.8 meters, which is for a large vehicle that is nearly 5.3 meters long.

The number of cars sold is not important; what matters is that Wei Lai is showcasing his skills in an unconventional way. After acquiring Lotus, Wei Lai made rapid progress in chassis tuning, aerodynamics, and other areas.

In the market, Weilai's electric vehicles have obvious advantages over other models in the same class in terms of lightweight design and chassis tuning. Consumer feedback generally says that Weilai's vehicles are easy to drive.

How much are you planning to sell this car for?

With just one question, he grabbed the top spot on the trending searches. Lei Jun's marketing strategy is to boast about how hard he works and how amazing he is, while Tan Jincheng's answer resonates with people.

Everyone knows about the pie-in-the-sky promises made by enterprises, but what if those promises come true? What if one day more and more people can afford to drive cars, and even nice cars? Wouldn't that be a wonderful dream?
Of course, Da Zui knew that Tan Jincheng wasn't targeting Hongtu X9; he was just asking a question. Wei Lai had his own strategy and there was no need to deliberately target any opponent.

If it were truly a targeted move, after the X7's pricing was announced, they could have taken advantage of the peak sales season of September and October to offer even more attractive discounts and completely crush the X7.

"It's a bit more expensive than what Mr. He has at home, but we don't plan to sell many anyway."

The absolute king of the MPV market is the GL8, which sells over 10 units a year. New players simply cannot challenge its position in the short term; at most, they can only divert some customers.

Weilai does not have high sales expectations for the EM9. Maintaining an average of 1000 to 2000 units per month is sufficient. This type of model is destined not to become a blockbuster, and Weilai will also control its production capacity to a certain extent.

In terms of vehicle configuration, the Weilai is as simple as ever, without too many frills. It includes advanced driver assistance, intelligent cockpit, refrigerator, TV and large sofa, etc.

"Confident enough, but there's nothing wrong with that."

The big mouth was speechless. This is the confidence of a leading enterprise. With the same configuration, it can be priced higher than other car companies when it is first launched. The L series is priced the same way. The L1 is more expensive than the X7, but it sells better.

What's even more infuriating is that, with an absolute cost advantage, when more and more competitors launch attacks, simply changing the model or lowering the price is enough to deal with the competition.

This is why Tan Jincheng's statement yesterday about enabling more and more people to afford cars, and even better cars, had such a powerful impact.

"By the way, our boss would like to invite you to our headquarters. Do you have time?"

Tan Jincheng narrowed his eyes slightly: "Hmm? Which boss?"

The new X7 has turned the tide, making the Smart Selection mode superior to the HI mode, and has also brought in new members, enjoying great success. However, within the internal hierarchy of Huawei, Big Mouth can probably only be ranked around sixth to eighth, and his direct leader is Xu Zhijun, who is known as Little Xu.

This year marks the 30th anniversary of Da Zui joining Chrysanthemum. He is now a senior executive on the board of directors. Chrysanthemum's board of directors is entirely composed of veterans, with no parachuted-in executives. The newest senior executive in their senior management ranks is someone who joined the company in 2000.

When judging the quality of a company's compensation, employee seniority is a very intuitive metric. Although Ren Zhengfei's tenure is controversial, it must be said that Mr. Ren's vision is truly remarkable. The fact that so many social elites are willing to work for him for decades speaks volumes.

Weilai is actually following the same path. The automotive industry is experiencing serious personnel turmoil, but Weilai is an exception. It has only been established for 18 years, but the average tenure of its employees has already reached 8 to 10 years.

They are definitely in the second tier. Their seniority is only in the second tier among car companies because Weilai has not been established for long. In the management team, they are basically all employees with more than ten years of seniority.

"It's not Mr. Xu, it's the one you're thinking of."

Da Zui's answer made Tan Jincheng raise an eyebrow. Da Zui, who had been paying close attention to Tan Jincheng's expression, couldn't help but grin.

Laymen watch the spectacle, experts see the strategy. Xiaomi has seized the peak of traffic, and the SU7 is impressive enough. It is likely that as long as the pricing strategy is correct, sales will not be low. However, Xiaomi, which currently only has one model, has not been taken seriously by traditional car companies or emerging forces, such as Apple and Huawei.

According to some critics, Lei Jun (Lei Jun) may make a lot of noise, but he's not qualified to sit at the table until he proves himself with sales figures.

From a chrysanthemum's perspective, their competitors in the automotive market have never been companies like Xiaomi, Wooye, and BYD that adopt a full-stack self-developed approach; those are their real competitors, especially Wooye.

The performance of the MINI EV and Galaxy E8 has put pressure on Chrysanthemum. Their HI mode is not progressing well, and if it weren't for the Smart Selection mode's turnaround, their automotive business might have faced a major setback.

“We plan to spin off our automotive business unit and open it up to equity.”

He leaned close to Tan Jincheng's ear and whispered something: the main reason he came to the Weilai booth this time was to invite Tan Jincheng on behalf of his boss.

Inviting Wei to their headquarters was also to discuss the spin-off of the Chrysanthemum Automotive BU business. Chrysanthemum wanted to see if there was any possibility of cooperation with Wei, as this was a restructuring of their internal automotive business strategy.

Tan Jincheng nodded: "Oh, I know about this; okay, I'll visit President Ren in the next couple of days, and we can discuss the specific time tonight."

He already knew about Chrysanthemum's plan to spin off its car business. Such matters involving capital operations couldn't be kept secret, and they weren't considered secrets by these people.

Besides being the president of Weilai Group, he is also a well-known investor in the industry, with a strong network of connections. No matter what happens, it will not escape his notice.

But what does this have to do with Wei Lai?
By spinning off and opening up its automotive business, Bosch is actually using a strategic retreat as a means of advancement, aiming to become the "Bosch" of the automotive industry. However, their involvement in car manufacturing has made many partners fear becoming mere "contract manufacturers."

The phobia of chrysanthemums is the root cause of their slow business development. In terms of cooperation, the chrysanthemum-themed proposal has indeed made some companies afraid of losing their soul wary, which is why GAC has repeatedly refused.

Independence, relinquishing exclusive control, may seem like a loss, but it also dispels industry doubts, similar to Weilai's current model.

Although Weilai did not split up any part of its business, in its cooperation with BMW MINI and Geely, it simply provided them with intelligent assisted driving and cockpit solutions in a modular way.

In terms of dominance, Weilai has never pursued it, and has played the role of a supplier very well. This is the basis for achieving cooperation. Neither Geely nor BMW can allow other companies to dominate their model strategy.

In the consumer market, Weilai Group is Weilai Auto. In the supply chain, Weilai Group appears more as a pure supplier. Taking Jinshidai as an example, if car companies want a complete battery solution, then Weilai Group will provide the complete solution.

If you feel that a complete solution lacks soul and you only want to buy battery cells, then we'll just sell battery cells. We never waste time talking. Some multinational companies in Europe and America are quietly using Jinxin's battery cells, claiming they are their own. Jinxin doesn't care, and everyone is quietly making money.

Is there a possibility that Weilai could cooperate with Chrysanthemum? Could Weilai acquire a stake in Chrysanthemum's spun-off automotive business?
I think it's impossible.

This matter came too suddenly, and Tan Jincheng couldn't make a good decision for a while. After returning to the hotel, he convened a video conference with senior executives, including Wei Lai and ByteDance.

The first person to object was Li Xiang.

"What do you two think, Lao Huang and Lao Cheng?"

ByteDance is an independent investment institution, and investing in so-called competitors is nothing new. For example, ByteDance's funds hold shares in Tesla, BYD, Geely, and other well-performing domestic and international new energy vehicle companies.

"From a purely investment perspective, this is indeed a good business, but it doesn't mean much to us. The probability of a company under Chrysanthemum going public is too small, so it's not very meaningful."

Huang Ming spoke up, saying that investments in the primary market, apart from strategic ones, are ultimately mainly for monetization. Investing in ByteDance's ByteDance engine is not strategic and, given its weak monetization capabilities, is a rather lackluster investment.

After all, given Chrysanthemum's background, if they want to transfer shares in the primary market, they have to consider Chrysanthemum's approval; it's not something they can just transfer casually.

Cheng Linfeng also followed suit and expressed his opinion. Compared with Huang Ming, Cheng Linfeng was more aggressive. He mainly focused on the secondary market and had no interest in investments that could not be liquidated and had no strategic significance.

"Mr. Li, please tell me your reasons."

Li Xiang was the first to object, and he must have had his reasons.

"Let's explain it from the perspective of technological roadmap and the soul of our company. Our technological roadmap is vertical integration of the entire industry chain. Chrysanthemum's technology may shake our technological roadmap." "Although we don't think so, it is very likely to convey such confidence to the outside world, which will hurt our soul."

"If we are just participating as a minority shareholder, we have no say in the technology roadmap and company decisions, and there is no need for us to do so. Even General Manager Huang and General Manager Cheng don't think it's worth it, so there is no need for us to invest."

Of course, there was one more thing Li Xiang didn't mention: he was afraid that one day Ju Hua would use Wei Lai's investment to make a fuss.

In fact, Chrysanthemum has already formed a direct competitive relationship with Weilai, in terms of range-extended electric vehicles and supply chains. Although the two sides have had successful cooperation experience in parts and marketing, they absolutely cannot get involved in deeper levels of cooperation.

Chrysanthemum's technological image is deeply ingrained in people's minds, a point that no other company can challenge. Weilai has been working to improve its technological image. If one day, during a competition between the two companies, Chrysanthemum uses equity as leverage, then the image that Weilai has worked so hard to build will be completely destroyed.

"Your concerns do have some merit. Okay, I understand."

Given Da Zui's style and the sheer number of Chrysanthemum's fans, Li Xiang's concerns are indeed valid. Anything can happen during corporate competition, and he cannot afford to take that risk.

"Okay then, that's settled."

Since there's no investment involved, going to the Chrysanthemum headquarters would be much easier; it would just be a simple visit. After discussions, both parties decided to schedule the meeting for the day after the auto show ended.

It was December 11th.

The day before Tan Jincheng's visit, and on the day the Guangzhou Auto Show ended, Chrysanthemum officially announced the divestiture of its automotive business, injecting its core technologies and resources for intelligent vehicle solutions into a new company.

At the same time, Chrysanthemum signed an investment cooperation memorandum with Changan Automobile, making Changan Automobile the first publicly announced strategic-level automaker shareholder.

"There must be quite a few potential shareholders, right?"

Tan Jincheng kept a low profile, only bringing three staff members with him. However, the fact that Xu Zhijun, along with Yu Dazui and a group of senior executives from the automotive business, accompanied the president of Weilai Group to visit the Chrysanthemum headquarters still caused a huge sensation on the Internet.

A photo of the group of bigwigs shaking hands at the entrance of Chrysanthemum's headquarters was uploaded to the internet in real time. This was Tan Jincheng's first visit to Chrysanthemum's new headquarters, and it was very significant at a special time.

At this crucial juncture, just after Chrysanthemum announced the divestiture of its automotive business, President Wei Lai's visit easily evokes other speculations, and Chrysanthemum's high-level reception seems to confirm these speculations.

Speculation is rampant in the internet and capital circles. People frequently ask Wei Lai and senior executives of ByteDance about whether there is any further cooperation between the two parties, but Wei Lai has remained silent on the matter.

"Yes, Seres, Chery, and JAC are all interested in joining, as is BAIC. We'll have to see how the negotiations go."

Xu Zhijun answered Tan Jincheng's question. It was actually his idea to invite Tan Jincheng to visit the Chrysanthemum headquarters. As the person in charge of the automotive business, he was still in charge of the newly spun-off company.

The purpose of inviting Tan Jincheng to visit was to discuss whether there were any opportunities for further cooperation between the two parties.

Weilai is a domestic leader in electric drive technology, chassis tuning, intelligent systems, design language, and other fields. With the backing of top-tier domestic investment institutions like ByteDance, Weilai seems to have no need for financial backing, whether in terms of technology or capital.

The HI model has not progressed smoothly, and the Smart Selection model almost failed. On the contrary, the Chrysanthemum business has been plagued with problems this year, and the separate spin-off of the business is a strategic shift under the circumstances of numerous problems.

However, while spinning off businesses and opening up equity can alleviate old problems, it also means new ones.

The research and development of intelligent vehicle solutions is an astronomical undertaking, requiring an investment of tens of billions of yuan every year. As the largest loss-making department in the company, the vehicle business unit has always been under financial pressure.

Although the spin-off brought in multiple shareholders and could share some of the R&D costs, none of these partners were the kind with deep pockets.

The funding from ByteDance's engine is what Xu Zhijun hopes to bring in. From the collaboration with Weilai when the new X7 was launched, Xu Zhijun keenly sensed the grand vision of Tan Jincheng. His seemingly aggressive moves this year have made domestic car companies unable to lift their heads.

However, Xu Zhijun believes that this is merely a market behavior, and Tan Jincheng's true intention has never been to directly compete with domestic companies. Instead, he looks to the world and believes that stabilizing the domestic market is essential under the premise of a grand strategy.

Xu Zhijun, who believed he had a clear understanding of Tan Jincheng's strategic intentions, felt that there was a possibility of cooperating with Weilai or ByteDance.

However, when he saw that Tan Jincheng had only brought two or three entourage members, he knew that this opportunity for cooperation was over. It seemed that the other party had no intention of further cooperation, which made him somewhat disappointed.

Like Xiaomi, the automotive business is the new growth driver for Huawei, and he is primarily responsible for the success or failure of the automotive business.

Even though he was somewhat disappointed, Xu Zhijun didn't show it. He still enthusiastically led Tan Jincheng on a tour of the various departments and took the initiative to explain things. He still had that kind of manners.

"Do you need an autograph? If so, hurry up, we're on our way to the next location."

After the first department visit, Xu Zhijun made a rare joke. The two companies are different in nature. Chrysanthemum is also known for its strong technology, but that doesn't mean that there are young people in their company who admire Tan Jincheng.

He built Weilai Group into a global leader in new energy in 20 years while still a high school student, and became the richest man in China before he was even 40 years old. He also leads a relatively low-key personal life.

In terms of personal charisma and achievements, Tan Jincheng has the qualifications to become a national idol.

"Is it really possible?"

As soon as Xu Zhijun finished speaking, a bold young programmer stood up in surprise. Xu Zhijun smiled and looked at Tan Jincheng: "President Tan, please leave something behind."

Tan Jincheng smiled and said, "Okay, but we need to hurry and not keep Elder Ren waiting too long."

This match was nothing new to him.

"Did you all hear that? Hurry up. Let's take a picture, but forget about the autograph."

In terms of interpersonal relationships, Xu Zhijun handled things quite well. Although he didn't seem to ask Tan Jincheng's opinion beforehand, he unintentionally gave him a boost while also maintaining a good sense of propriety.

Most of the senior executives in Chrysanthemum Company's automotive business are familiar with Tan Jincheng, and they have met at industry conferences.

The visit lasted about an hour. Although it was a whirlwind tour, Tan Jincheng was truly impressed by the power of chrysanthemums. Unlike some fake companies that claim to be technology companies, the employees in the company were all in high spirits.

If the pay is good enough, I don't mind being tired.

"Hello, Mr. Ren, thank you for your invitation."

After the tour, Xu Zhijun led Tan Jincheng to President Ren's office alone. After watching Tan Jincheng go in, he quietly closed the office door.

"President Tan is here. Please have a seat."

Mr. Ren, who is nearly 79 years old, is in good spirits. He smiled and nodded to Tan Jincheng. The two had met a few times before, but were not familiar with each other.

"Just call me Xiao Tan. I wouldn't dare call myself President Tan in front of you."

This was not just polite talk. Tan Jincheng maintained due respect in front of this old man. He was able to lead the company out of its predicament when it was facing numerous difficulties and could only focus on domestic business. This alone is enough for many people to boast about for a lifetime.

"Don't be so polite, we've met before, come and have some tea."

He rarely concern himself with the company's day-to-day operations anymore. The reason he agreed to Xu Zhijun's request this time was that he wanted to meet with Tan Jincheng and have a chat with this young man.

This year's Wei Lai has terrified many domestic car companies. BYD's valuation logic has been changed due to the blow, while Tesla has repeatedly lowered prices and launched new models to stabilize the market. Even Xiao Yu, who is usually arrogant in their company, is very wary of him.

He was also somewhat curious about Tan Jincheng.

"Then I won't stand on ceremony and will call you Xiao Tan."

"Xiao Tan, could you tell us what weaknesses our automotive business still has? Give us some feedback. I heard that you gave Geely a lot of advice on the Galaxy E8 and helped them solve the production capacity problem."

Tan Jincheng was taken aback: "Me?"

I had thought of many opening lines, but I never expected it to be like this.

"Yes, although our two companies are in some competition, we are both innovative companies in China. I hope you can give us some advice. I would also like to hear the thoughts of young people."

(End of this chapter)