2003: Starting with Foreign Trade

Chapter 849 The Reversal and Booming Car Market
"Of course I have to go."

Li Bing definitely had to join in the fun; he even wanted to build connections and secure some investment.

"Generally speaking, the second edition of such a large-scale event is more lively than the first, and this year it will most likely be even more lively than last year. You can definitely make some connections there."

"However, your most important task right now is to resolve the production qualification issue."

You can get the team together first, but for a new car company, the most important thing is always to get the car production license. Without it, you can't move an inch.

The best approach would definitely be to acquire a struggling traditional automaker. Alternatively, like Xiaopeng did, one could simply use another automaker's name to manufacture parts.

Weilai could actually take on OEM business, but given its current production capacity, it's impossible for them to do so.

Those that can accept contract manufacturing with automotive qualifications must have serious overcapacity.

"Actually, there are a few good options. One is Lifan, and another is Xiaokang. With Lifan, we can acquire their automobile business in its entirety, while with Xiaokang, it's more about cooperation."

"Regarding talent, you could try contacting Tesla's founder, Martin. Although he was ousted from Tesla by Musk, it doesn't mean he's incompetent. He's still very useful for a startup like yours."

After stepping down as Tesla's CEO in 2008, former CEO Martin Eberhard started his own green technology company, essentially leaving the company unemployed. If he wants to continue working in the new energy vehicle industry, Zhongguo District is the best option.

More and more outstanding talents from the foreign automotive industry are coming to work for our local car companies.

There are quite a few foreigners working at the research institute alone.

"I've said this to He Xiaopeng as well. There are some differences between physical businesses and internet companies. To do it well, it's best to be personally involved in the management. You can do it like him during the initial preparation period, but once the cars are produced, you'll have to manage them yourself."

"You can ask Kyoko about this; he has a pretty deep understanding of the automotive industry now."

Li Xiang is now doing very well in the automotive industry. Tan Jincheng values ​​him highly. He was invited to open the first official Lotus launch event in China, which cost tens of millions of yuan. Even people outside the automotive industry can tell that he is the candidate for the next CEO of Lotus.

In late November and early December, Li Bing stayed in Ningbo after securing investment from Tan Jincheng.

They call it learning.

Even the company registration was left to his assistant. Just like in his previous life, Li Bing still placed the company's registered address in Shanghai. Shanghai has not yet made any major breakthroughs in the new energy industry, so choosing to register the company in Shanghai is still a good choice.

Just as he said, Li Bing seriously began to learn at Weilai. In addition to asking Tan Jincheng for advice on managing car companies, he also frequently went down to the workshop to observe a series of processes in the whole vehicle production process.

Among traditional car companies, Weilai has the shortest history, and its management philosophy and equipment are much more advanced than those of car companies that have been established for many years.

This is a good reference for emerging electric vehicle companies.

On December 5th, the China Passenger Car Association (CPCA) released its November rankings, and the Yuechi A1 continued to break various records.

"Wow, that's amazing! A single month's sales of over 40,000 units for a single model is a feat that even joint venture brands would find difficult to achieve."

The sales volume of 40517 vehicles in a single month shocked the entire automotive industry. Even the Haval H6 sold more than 3 vehicles in a single month. In November, a total of 715083 SUVs were sold, representing a year-on-year increase of nearly 11%.

The Yuechi A1 and Haval H6 alone accounted for 10% of the total sales in November, drawing attention from the market.

"Wow, 40,000 cars sold in just one month, that's an incredible achievement. It truly deserves to be called a legendary car."

With monthly sales exceeding 40,000 units, Mr. Tan certainly had to show his appreciation. On the day the China Passenger Car Association announced the results, he visited the production workshop of Yuechi A1 and brought a large amount of snacks to reward the employees.

Li Bing was also in the workshop at that moment, his eyes filled with envy.

Li Bing has been in Weilai for a week now. What are your feelings after a week?
To be honest, he was deeply moved. Before this, he only saw Wei Lai's strength from the data and sensed the changes in Tan Jincheng from his wealth. But it was only through real contact with everyone from the top management to the grassroots employees that he understood what made this company special.

On a day like today, when the news was announced, Tan Jincheng would bring a bunch of snacks and drinks to the workshop to share with the employees, and celebrate with them while holding up the beverage bottles.

The employees also feel genuine pride in the company's achievements.

"Actually, it's quite simple to achieve this. First, make them feel that their work is worthwhile by providing them with good compensation."

"Secondly, just treat them sincerely, just like you would your own clients."

"When both money and emotional value are in place, employees will naturally treat the company like their own home, just as capitalists often say."

There are differences between different homes.

"These are all details. The quality of the cars you sell is controlled by the frontline employees. There is a difference between tightening a screw a little and loosening it a little. Dizi's cars are often exposed for quality problems. In addition to the materials used, a large part of the reason is related to the treatment of the employees."

Li Bing pondered for a moment: "So, you want your employees to feel respected, right?"

"That's roughly the idea. There are quarterly awards, quality awards, and other smaller awards, and these awards are determined based on market feedback."

Depending on the positioning of different car models and changes in market sales, the most significant impact of quality issues reported by consumers will affect the income of frontline employees, especially the quality bonus.

For example, if a consumer reports a quality problem that occurs in a certain workshop or on a certain production line, if it is a design defect, then it is not their problem. However, if it is a mistake made by them in their work, then the entire production line will not receive the seasonal bonus.

Similarly, if the problem arises from the parts supplier, the supplier will be rewarded or punished according to the severity of the issue.

Throughout the entire vehicle production process, everyone can feel the changes in their own interests. If everyone does a good job, they can earn more, so naturally everyone will work harder.

"Sharing a portion of the profits with the employees may seem like we're earning less, but in reality, we're earning more."

"This is actually the same principle as giving equity or stock options to internet companies."

With tens of thousands of employees, it's impossible for them all to become shareholders and receive stock, but they can be bound together by shared interests.

"That's true. People travel thousands of miles just for money, and once they've made enough, they become honest."

The total sales of Yuechi A1 this year have approached 340,000 units. If just over 10,000 units are sold in December, the monthly sales figure for the whole year will reach 30,000 units. For the currently extremely popular Yuechi A1, over 10,000 units is a piece of cake.

In addition to the continued rapid growth of the Yuechi A1, the other models also saw considerable growth. The A3 continued to maintain monthly sales of more than 10,000 units, while the sales of new energy vehicles increased by 20% year-on-year.

"It looks like the sales target for new energy vehicles this year can be achieved. This year is really good. Nobody expected the car market to have a V-shaped turnaround in the second half of the year."

All of this seems to be closely related to the stock market. The stock market surged in the first half of the year, and hot money rushed into the stock market, leading to a slump in large consumer goods. Starting in September, the stock market returned to calm, and the car market also reversed its trend.

Like SUVs, new energy vehicles also experienced explosive growth in November, especially in the A00 segment. Zhongtai's Zhidou D2 became the monthly sales champion in November, and other A00-class new energy vehicles such as Kandi Panda also sold out.

Zhongtai claims that it can sell more than 20,000 Zhidou series vehicles this year. Whether it is true or not, Tan Jincheng is too lazy to care. Anyway, the ternary lithium batteries they purchased were provided by Wei, and Tan Jincheng knows exactly how many they purchased.

However, with increased subsidies, A00-class new energy vehicles have indeed been welcomed by many consumers, especially female consumers. Most female consumers are not as knowledgeable about vehicles or as skilled at driving as men.

These A00-class cars are small and cute, easy to handle, and have a price of 50,000 to 60,000 yuan after subsidies. If you take out a car loan, it's perfectly affordable with installment payments.

"We don't have any plans to launch an A00-class sedan for the time being. We are currently developing three new models at the same time, and for the time being, our development capabilities are still somewhat insufficient."

On December 16, Tan Jincheng and his entourage departed from Ningbo and were immediately surrounded by a large number of reporters upon arriving in Wuzhen.

If 2014 was the first year of new energy vehicles, then 2015, with its increased subsidies and fierce competition, was the year of explosive growth for new energy vehicles, with a large influx of capital and a continuous rise in market sales.

The hottest car in the market in November was still the Weilai. Thanks to the surge in sales of the Yuechi series and new energy vehicles, Weilai's overall sales reached 61,700 units in November.

From January to November, Weilai's total sales reached 57.21 vehicles!

Surpassing FAW Toyota to rank 12th in total sales among train manufacturers is nothing short of a miracle for a company with a limited number of models.

The Dongfeng Yueda ahead of it only has a few thousand more vehicles. If it makes a push in December, Weilai has a very good chance of improving its overall sales ranking by another place.

"Currently, the overall sales of the Lavida and the Yuechi A1 are very close. Mr. Tan, do you think the Yuechi A1 has a chance to become the best-selling car this year?"

"Oh? It would be great to win the single-bike sales championship, but it's okay if we don't. The Yuechi A1 has already set too many records this year. We need to save some motivation to move forward."

The champion in SUV sales remains largely undisputed, but the champion in overall market sales is much more interesting. The Volkswagen Lavida currently leads the Yuechi A1 by less than 2000 units, taking first place.

Given the current popularity of SUVs, the Yuechi A1 has a chance in December.

After so many years of development, domestic car manufacturers finally have a chance to beat joint venture brands. Reporters naturally don't want to miss this opportunity to stir things up. However, Tan Jincheng wasn't very interested in the so-called single-vehicle sales champion.

SUVs are growing rapidly, but the Lavida's strength is unmatched by most other models. Even though Volkswagen has encountered various troubles this year, and its overall market share has been significantly taken away by SUVs, the Lavida is truly a remarkable car. Within the Volkswagen family, its design isn't particularly outstanding, the interior is average, it makes a rattling noise when driving, and its reputation isn't especially good. Yet, it stands out and sells exceptionally well.

Even in an era dominated by new energy vehicles, it can still sell very well.

The other one is the Nissan Sylphy. These two cars are really quite unique.

"Mr. Tan, you came to Wuzhen with two Mr. Lis this time. Mr. Li from Yiche has already registered Wenjie Auto in Shanghai and spent half a month studying in Weilai for this purpose. Does this mean that Weilai has also invested in Mr. Li's car company, Wenjie Auto?"

"Yes, Wei Lai has invested in Mr. Li's car company. If you are interested, you can ask Mr. Li for an interview and let him talk about his entrepreneurial plans."

"So far, Mr. Tan has invested in Xiaopeng Motors and Wenjie Motors. I wonder if he has any plans to invest in other emerging companies in the future?"

"And another question is whether President Tan intends to invest heavily in emerging electric vehicle companies, so that Wei can maintain its dominant market position?"

"As this reporter friend said, we have invested in two emerging companies. In fact, most of these investments are between friends. Mr. He, Mr. Li, and I are all very good friends."

"As for the market dominance you mentioned, that doesn't exist. Wei Lai's actual shareholding in the new forces' investment is not high. You can think of it as cooperation rather than anything else."

"It's better for a hundred flowers to bloom than for one to dominate."

"Furthermore, our ByteDance engine also holds shares in Great Wall Motors, BYD, and even some upstream and downstream supply chain companies of SAIC Motor. They also hold shares in us. This is just normal cross-shareholding in cooperation."

"Our goal is to advance the domestic automobile industry, to build more and better cars, and to improve the consumer experience."

He was surrounded by a large number of reporters at the entrance, but not a single one of them asked him anything about the internet industry. This was truly a spectacle at the Internet Conference.

"Look at this kid, he's a complete novice in the internet industry, yet he's doing better than us. Damn it, I'm the lead investor in Wenjie."

"That kid has really shown off. He's going to steal Old Ma's thunder again this year. Old Ma is going to hold a grudge against him again."

Last year, Lao Ma was at the height of his power, firmly holding the position of industry leader, and he was outspoken and aggressive, but he still suffered a setback at the hands of Tan Jincheng.

Last year, Ali created the world's largest IPO, and it is thriving. It looks like a rising new technology company, and Ali's stock was highly sought after on Wall Street in the early stages of its listing.

This year, Ali is equally powerful. Although its market value has dropped by more than 20% since the beginning of the year, it is still over 2000 billion US dollars, ranking sixth in the world and first in China.

However, judging from Ali's investment direction this year, they have clearly deviated from the direction everyone imagined.

Throughout 2015, Alibaba invested over $180 billion. In addition to its core business, its largest investments were in the entertainment and finance sectors.

In particular, the financial sector has invested heavily in multiple areas, including payment, collection, lending, wealth management, insurance, banking, crowdfunding, and securities, in addition to the massive 451 billion yuan investment in Postal Savings Bank of China earlier this month.

Even years later, in the infamous Qufenqi, they invested $2 million in August.

Goodness, this thing has such a terrible reputation that almost every college student knows it; to be honest, without Ahri's $2 million investment backing him, he wouldn't have had the opportunity to do such widespread evil.

Back in 2015, Lao Ma was still referred to as "Dad" by netizens.

It can be said that since 2015, Ali has changed its nature, and they have been transforming from a technology company into a financial investment group.

"Stop bragging. You two aren't much better. You've invested in a lot of financial companies and micro-loan companies too. You two are cut from the same cloth, aren't you?"

When Xiao Ma Ge complained about Ah Li, Tan Jincheng overheard him and also launched a scathing attack.

Pony Ma was quite indignant: "Brother, that's a harsh way to put it. Our number one investment this year is in the automotive industry. Can't you look at the data yourself?"

"Actually, the whole industry has changed this year. You guys are just being reckless. Sooner or later you'll suffer the consequences, and so will the rest of you."

Tan Jincheng rolled his eyes at him, ignoring Little Ma's sophistry, and spat at Lei Busi and the others.

Lei Jun and others smiled wryly. Most of the small loan companies, big and small, have some background with well-known internet companies. Investment is not just about giving money; it is more about endorsement.

Especially in the financial sector, it's absolutely impossible to have direct contact with money without trust.

Aside from Orange Technology, which is quite an anomaly in the industry, they also make some investments, but only in strategic areas related to their main business.

"Forget about it. You can argue with others when they criticize you, but you really can't argue with this kid when he criticizes you."

"On the other hand, what you're doing makes you seem very unconventional, which puts us in a difficult position."

"If it's too difficult, then we won't do it. I don't care about you guys, haha. Anyway, I can only be considered an outsider in the internet industry."

"Then why did you come to attend this internet conference?"

"Can't I do it if I want to?"

In private, these big shots are actually quite foul-mouthed, no different from ordinary people. After getting to know them for a while, Tan Jincheng no longer has any halo or filter on them. Besides, he himself is a big shot now.

"But to be fair, Brother Ma, you're more honest than the other two. Your investments are mostly co-investments, unlike the other two who like to hog the profits."

Ali invests in companies that are doing well and then wants to acquire them outright. This year alone, they have acquired as many as eight companies. In December, they also invested $12.5 billion in Ele.me. Such a large investment is aimed at acquisition.

Tencent, on the other hand, is more open, investing with multiple partner institutions. Although there are certain requirements for shareholding, it has little desire for control of the company.

As for Baidu, their behavior is somewhat perplexing.

You might say he's a prolific player, but after a while he either stops playing or goes solo.

"It's rare to hear a compliment from you, kid. I really thank you."

Last year at the World Internet Conference, Ding Sanshi's dinner party became a sensation online. This year, Ding Sanshi is hosting another event, with numerous dinner parties of varying sizes taking place over the three days.

Tan Jincheng attended a gathering organized by Pony Ma (Ma Huateng, founder of Tencent), which was small and mainly consisted of friends and strategic partners from Tencent's investment circle.

When discussing industry leaders and events in private, Tan Jincheng is completely unreserved.

"Speaking of this year's internet chaos, your sneaky behavior of picking up equipment from behind is really shameless, and you're criticizing others."

"What are you saying? Your family is so big and powerful. If we were to compete with you like this, we would have been finished long ago. We wouldn't even be able to get a scrap of soup by following behind you."

The internet in 2015 was as exciting as ever. Last month, during Singles' Day, Dongzi, Ali, and Suning publicly criticized each other, which was quite an eye-opener for onlookers. Suning, in particular, directly brought up Dongzi's new wife, a clear slap in the face.

However, Dongzi didn't tolerate Suning's behavior, and the advertising slogan implied that Suning was Ali's "son".

It's hilarious.

"You're ranked fourth on the rich list, with a net worth of hundreds of billions. Do you really think we don't know about your cash flow? You're always pretending to be weak and stealing chickens. Where did you learn this style?"

"That's right. The stock market crashed in the second half of the year, and Chinese concept stocks suffered heavy losses, but apart from Orange Technology's decline, you didn't suffer any other losses."

"Exactly, Ali's stock price fell below its IPO price in the middle of the year, and the IPO was also suspended. If we're talking about losses, we've suffered much more than you. What are you pretending for?"

"Haha, I could sympathize with you guys if you talked about other things, but you deserved it for buying Ali's stock. Their decision to delist from the Hong Kong stock market at the original price was heavily criticized. You should have used that money to buy Wei instead. I would never do such a thing."

Little Ma had drunk some wine, his face flushed, and he stared at Tan Jincheng, whose face was also flushed.

Their faces looked much younger than theirs.

"Speaking of which, your age is a real advantage. We really can't sneak around and pick up equipment like you do."

Although Tan Jincheng has not invested in as many projects as the giants this year, he has still invested in quite a few. Not to mention Horizon Robotics' Series A funding, he has also made his mark in the internet sector, whether it is ride-hailing or local services such as food delivery.

In addition, thanks to his good cooperative relationship with Luzhou and with universities such as the University of Science and Technology of China, Anhui University, and Anhui University of Technology, he has invested in almost all the newly emerging technology startups in Luzhou this year.

For example, iFlytek and ByteDance's advertising platform participated in the private placement in the second half of this year. ByteDance's advertising platform, which is currently under construction, also participated in the private placement of Changxin Storage.

While internet companies are making large-scale forays into the financial sector, Tan Jincheng's companies, while focusing on their core businesses, continue to develop along a high-tech path.

"Men should keep their word. If you promised to build a high-tech company, then you should build a high-tech company. You've changed your original intentions and been blinded by money."

(End of this chapter)