What's wrong with me being a rich man?

Chapter 460 Overall
With the May Day holiday approaching, many employees of the Silicon Carbon Group are preparing to take a good rest. As the electric vehicle project progresses, the company's workload has been increasing since the Spring Festival, which is really making people mentally stressed.

What's even more nerve-wracking is that, as the first model to test the waters of the silicon carbide market, no one knows how the feedback will be.

If it fails, the company's future is... unimaginable.

As a senior executive who joined the Silicon Carbon Group in the second quarter, and also as the deputy director of the Lingang plant, Song Gang faces particular pressure, having to deal with challenges in the supply chain as well as various issues in production and manufacturing.

Fortunately, true to his name, he is very resilient and enjoys taking on challenges; otherwise, he wouldn't have joined the Silicon Carbon Group.

Without challenges, there is no progress; without progress, there is no success.

Song Gang actually had some regrets. After finally arriving in Lingang and witnessing the prototype of the "Jiuzhou" vehicle, he regretted refusing the invitation when he first came into contact with silicon carbide. He should have participated in the development of the electric vehicle era earlier.

Compared to most people in the company who were still uncertain, he actually had a high level of confidence.

The finalized mass production performance of "Jiuzhou" is a maximum output power of 240kW and a maximum torque of 530N·m for its dual front and rear motors, which is equivalent to the power performance of a 3.0T 6-cylinder engine.

A 3.0T 6-cylinder engine...

This is the power performance that luxury cars like the BMW X5, Mercedes-Benz ML, Audi Q7, and Land Rover Range Rover can offer, and their on-road price range starts at least at 80 yuan.

So-called luxury cars with gasoline engines provide most of their core value. When consumers hear V6, V8, or V12, they immediately know that the car is not cheap. With such power and different driving styles, they can stabilize a certain price range.

Meanwhile, for luxury cars, quietness is another major selling point. In the 60s, Rolls-Royce had a classic advertising slogan: "At 60 miles per hour, the loudest noise in this latest Rolls-Royce comes from the electronic clock."

However, this applies to trams...

Song Gang knew that the company could continue to improve the performance of the motor, that is, further enhance the power performance of the prototype vehicle, but in order to pursue stability and mass production, this work was not continued for the time being.

Silicon Carbon Group believes that the power of a 6-cylinder engine comparable to a 3.0T is more than enough. Now, a higher priority is to optimize the noise when the range extender starts up.

This kind of power release from the electric motor... is a complete revolution in the power system of luxury gasoline cars.

V6, V8, and V12 are features that high-end gasoline cars are proud of, but in the field of carbon silicon, they were not pushed further forward due to unnecessary considerations...

Whenever Song Gang thinks about this, he always feels that the future market for gasoline cars will be fiercely competitive. Consumers will be very particular about this and that, and if a gasoline car is indeed fast and quiet, then there will be a strong desire to compare it.

On top of that, there's what Mr. Yu calls a refrigerator, a color TV, and a large sofa...

Of course, some people do prefer the roar of an engine, but they may not be in the target customer group of Silicon Carbon Group.

Song Gang felt that this was enough to attract some potential car buyers.

At 3 p.m., the deputy factory director, who had been notified, arrived at the conference room of the silicon carbon group to attend a high-level meeting before the holiday to discuss and exchange views on the various issues currently facing the company.

This is a type of meeting that Song Gang has frequently attended since joining the company. The topics are not always strictly defined, leaving room for everyone to fully express their opinions.

However, halfway through the meeting, an important topic was raised.

"What do you all think? Should we continue with range-extended electric vehicles for our next model, or should we try pure electric?" Vice President Hu Zhengnan asked.

When such a statement concerning the company's future direction was made, all the participants became unanimously cautious.

Seeing that no one spoke, Hu Zhengnan smiled and said, "President Yu brought this up yesterday, meaning he wanted everyone to discuss it. I also think it's necessary for us to look to the future internally."

Cui Zhiyu, also a vice president, frowned and said, "The current focus is on the success of 'Jiuzhou'. If this model is successful, the electrification and integration of batteries will inevitably need to be further promoted, and subsequent technologies will inevitably be reflected in a six-seater SUV. This so-called 'next model'... there's no rush."

"Don't be nervous, everyone." Hu Zhengnan noticed the obvious seriousness of his colleagues and smiled. "It's just a casual chat, brainstorming and soliciting opinions. President Yu himself has planned this project before and believes that we should focus on vertical segmentation competition, similar to our current model which emphasizes family needs. The next model could be a range-extended business MPV that is easier to transfer technology to."

“Personally, I think there is hope for vertical competition in this category. There aren’t that many models, and we will definitely be able to provide more advanced performance in terms of power and other configurations.”

He briefly introduced the background of this topic.

Upon hearing this, everyone's tension did indeed ease.

Yue Jing, the deputy director of the supply chain, then smiled and said, "Yes, that makes sense. If this is successful, we will need to develop a second model in the future. The commercial market is a viable option. So why does President Yu have other ideas?"

Hu Zhengnan shook his head. He hadn't discussed it in detail yesterday, but thinking about it again today, he realized it really was related to the future.

Participants expressed their opinions one after another, with the majority agreeing that, based on the success of the range-extended vehicle, a second range-extended vehicle should be developed to meet different needs.

Song Gang had been smoking, and when he finished his cigarette, he began by saying something he had recently heard: "I heard that President Yu held a scientific research conference in Lingang, and there was something he said that really resonated with me. He said that we should do the right thing and do things right."

He quoted his boss.

Cui Zhiyu, Hu Zhengnan, and the others all turned to look at them.

“I’ve been thinking that the comparison between electric cars and gasoline cars is like our car. Consumers don’t care how many cylinders the engine or what kind of motor it has. As long as the wheels run at that speed, that’s good power,” Song Gang said seriously. “Our 2.3-ton car can go 0 to 100 km/h in 6 seconds. The BMW X5, which weighs 2.1 tons, is only half a second faster than us, but it costs 1 million yuan.”

The starting price for the BMW X5 with a V6 engine is 90.1 yuan. With purchase tax and insurance, it easily exceeds 100 million yuan.

"However, the electric motor power of an electric vehicle is not as difficult to obtain as the engine power. At the current stage, in the initial stage of electric vehicle development, we can directly compare it with the power of a gasoline vehicle to highlight its relative cost-effectiveness."

"However, as more manufacturers enter the market, this competitive advantage in power will disappear, even though they are all making electric motors."

“Since we’re talking about the future, it’s not about the next two or three years. Mr. Yu might be looking at five or even ten years. So how do we maintain our competitiveness?”

Song Gang spoke eloquently: "There aren't that many charging stations, so there will inevitably be a huge demand for range-extended electric vehicles. As long as we make good cars and offer good value for money, the market performance won't be too bad. There's no reason why something that's fast, quiet, sturdy, has high configuration, and is relatively cheap shouldn't sell well."

"However, as electric vehicles become more widespread and infrastructure improves, the demand for pure electric vehicles will inevitably become stronger."

"As a new energy vehicle company, I believe that the development of pure electric vehicles is necessary for the accumulation of electrification and integration technologies." "If we don't accumulate these technologies in this stage, we will have to in the next stage, and if we don't accumulate them in the next stage, we may have to put in even more hard work."

Song Gang's minority viewpoint silenced the meeting room.

However, Hu Zhengnan quickly nodded, not annoyed by the conflicting viewpoints. Instead, he said, "Director Song's words are thought-provoking. We must let President Yu hear them as well. The timing of this research and development and accumulation should indeed be decided in conjunction with the operation of our company."

“That’s natural.” Song Gang nodded and then smiled. “I think what President Yu was talking about is that those who do not plan for the long term cannot plan for the short term, and those who do not plan for the whole cannot plan for a part. How to make electric vehicles correctly? Range-extended electric vehicles are indeed not that ‘electric’.”

Hu Zhengnan pondered the possibility, recalling President Yu's expression yesterday, and temporarily accepted this possibility in his mind.

Such meetings are naturally documented.

When Yu Xing saw the meeting minutes and noticed everyone's discussion and Song Gang's opinions, he read them over twice and then smiled and said, "Director Song has a very long-term vision."

Hu Zhengnan personally delivered the meeting minutes to his boss to find out his true thoughts, and asked, "So, Mr. Yu, what do you think?"

“I was just thinking that recently, when I take investors in our cars, we inevitably get asked about our future vehicle models,” Yu Xing said. “I think there is demand for commercial vehicles, but sedans naturally have a larger market.”

Hu Zhengnan's expression hardened: "The competitiveness of sedans is particularly strong."

“Yes, the competition in the sedan market is definitely fierce, and vertical segmentation is the key to success.” Yu Xing agreed with this point, then changed the subject, “But the fiercer the competition, the more market share you may gain after you emerge victorious. I was thinking that if we were to repackage the ‘Jiuzhou’ brand into sedans, it might not be a bad direction.”

"If we're going to do that, we can certainly consider the research and development of pure electric vehicles, as well as the electrification and integration of electric vehicles. Director Song has grasped the key points correctly."

Hu Zhengnan pondered the information contained in that sentence.

Seeing Hu Zhengnan's serious expression, Yu Xing didn't want to distract him at this moment, so he said, "Let's focus on making this car a success first. I'm under a lot of pressure. Every time the investors meet or call me, they always ask me about my confidence. I was very confident at first, but after being asked these questions, I started to feel a little... uncomfortable."

Hu Zhengnan smiled and said, "Sales volume is the foundation of confidence, but we haven't seen any sales volume yet."

His statement was a statement of agreement with the previous discussions: "Pure electric cars will definitely be difficult, as the requirements in all aspects are higher."

“Difficult is difficult, and easy is easy. You’re just making it sound very difficult, and you’re going to dampen my spirits again.” Yu Xing shook his head. “Let’s not think about it anymore. Let’s focus on the present. Let’s not bring this up in the meeting.”

Hu Zhengnan nodded, knowing that the boss was worried about distracting everyone.

He was just about to continue talking about what happened in the latest meeting when his phone rang.

Yu Xing glanced at it, picked up the phone, and a smile unconsciously appeared on his face.

After his boss hung up the phone, Hu Zhengnan asked, "President Yu, is there any good news?"

"It's nothing, it's just that the boss of Red Falcon is on his way to Lingang." Yu Xing smiled slightly. "I'm happy to hear that the big spender is coming."

Hu Zhengnan knew about the relationship between General Manager Liu of Red Falcon and the boss, so he smiled and chatted for a few words before ending the report.

Even after leaving the president's office, he was still unconsciously pondering the issue of the next car model. Grasping this important direction is still very necessary for both the company and the individual.

Hu Zhengnan planned to talk to Song Gang about this again.

About half an hour later, Yu Xing waited in his office for Liu Wanying, who looked travel-worn.

Liu Wanying has been very busy lately, flying to Japan, Hong Kong, and Singapore, constantly working on mobilizing funds for Guoshanfeng.

Her return also signifies the start of the mountain assault.

"Oh my, Mr. Yu, why did you come to the door to welcome me personally?" Liu Wanying was a little tired, but in good spirits. Seeing Yu Xing eagerly waiting at the entrance of the president's office, she teased, "Are you so eager to become the strictest father in the automotive industry?"

Yu Xing poured tea, massaged his shoulders, and laughed, "The strictest father? Did you come up with the headline for the media? It should be: The car industry welcomes the strictest parents."

“After we take action, there will definitely be this kind of talk, or some kind of automotive industry disciplinary committee. Anyway, there will definitely be a big commotion in the industry. You’re a newcomer to this silicon carbon group, well, you’re practically a grandson in the automotive industry.” Liu Wanying took a sip of tea. “You’re like a grandfather and grandson.”

Yu Xing thinks Xiao Ying might have been following the latest trending topics too much lately.

He got down to business: "How's the fund allocation going?"

“The timing of this move to cross the mountain peak is actually quite good.” Liu Wanying lowered her voice slightly. “By July, the EU’s stricter MAR will be gradually implemented with transitional provisions, so we need to be more careful in our subsequent operations in the European market.”

MAR is the EU's market manipulation regulation, which will come into full effect in 2016, but the transitional provisions will be implemented gradually in two months.

With $3 million in capital, Over Peak's pursuit of maximum profit involves numerous procedural maneuvers.

According to the EU's Regulation on Short Selling and CDS, which came into effect in 2012, the ban on naked short selling, which originated from the financial crisis, has been extended to all EU-listed stocks, requiring that shares be borrowed or an equivalent arrangement be reached before short selling.

At the same time, it also allows member states to temporarily ban short selling under certain circumstances.

For example, the stock price plummeted by 10% in a single day.

This adds uncertainty to the funding for crossing the mountain peak.

It is not illegal for Guoshanfeng to issue a short-selling report using publicly available information, and it is also permissible to use it to short Renault.

The problem is that short positions exceeding 0.5% must be publicly disclosed, and those exceeding 0.2% must be reported to regulators. This is not conducive to maximizing profits from peaks and peaks, and forces funds to be diversified among different EU member states. This diversification of positions involves the regulations on "structured manipulation".

Liu Wanying's efforts were aimed at making her manipulation less obvious, and at fully leveraging the three to five-day data exchange delay among EU member states to ultimately achieve risk isolation.

(End of this chapter)