What's wrong with me being a rich man?

Chapter 564 Sobering Up (4k)

Silvia and Philip, from Munich, Germany, are the two people who take silicon carbon Kyushu most seriously.

Perhaps because they had been focused on overseas markets and businesses, they had not paid attention to the Chinese market or heard about the development of Dongfang New Energy. So when they saw such a mature product, they were astonished as if it had suddenly popped out of a stone.

The top-of-the-line Kyushu Max was not returned; instead, it was used for two more days of intensive testing, ultimately earning an 85-point rating from the two of them.

“I really think we should buy one and show Reithofer the challenges that a car like this Silicon Carbon can pose,” Sylvia said with certainty. “The Silicon Carbon Group can probably really steal the Highlander’s market share. When it launches the five-seat version, the advantage of this home-field advantage will also pose a challenge to us. I’m going to call Reithofer.”

Philip's voice sounded pessimistic: "The group has tremendous inertia in its direction of progress. Not to mention now, even if you get into the board of directors in the future, you will still have to succumb to all kinds of pressure."

After a brief silence, Sylvia simply repeated her words: "I'm going to call Reith."

Ren Mingyu really wanted to know what the outcome of Sylvia's call with Reithofer was, but he really couldn't ask.

After all, accidentally overhearing a discussion between two headquarters executives through Kyushu's dashcam is something else entirely...

I must say, this dashcam from Kyushu is really good.

Ren Mingyu only saw that Sylvia ended her trip to China early and hurriedly returned to Germany.

He figured the call between the two wouldn't make any significant progress, but he was deeply impressed by Sylvia and Philip's attentive and even observant attitude.

Looking back at the carbon silicon Kyushu that sparked their discussion, I felt a different kind of emotion.

He certainly knew that Kyushu's sales were good, but was it really worth the attention they were paying?

Based on this situation, Ren Mingyu even allowed his wife to test drive the Kyushu again, so that it could be considered as a potential purchase vehicle.

The headquarters executives had gone back, but he, as the deputy general manager of Brilliance Auto, still had the task of attending the auto show. He was hoping to meet Mr. Yu from the carbon silicon company again for a chat, but after waiting for two days, he still didn't see him appear.

On April 28, with only one day left before the end of the auto show, Ren Mingyu, who was strolling around, finally saw the appearance of the head of the silicon carbon company.

He deliberately walked in the middle of the road that President Yu was going to take.

Unexpectedly, President Yu acted as if he hadn't seen him at all, moving two spaces away to brush past him.

"Oh, it's President Yu," Ren Mingyu greeted him casually.

Yu Xing had been discussing the impact of the new subsidy policy and his own company's actions within the past few days, which is why he didn't come to the exhibition. Of course, there was also a small reason: even the leaders of Lingang had a stereotype of him, so he didn't want to participate in the exhibition.

Frankly speaking, it's perfectly normal for carbon silicon to encounter conflicts when it launches new energy sources and tries to grab market share. He felt that such a verbal exchange was nothing serious.

When it comes to ruthlessness, only someone as vicious as Guo Shanfeng can truly stand out.

Yu Xing didn't want to talk to Ren Mingyu, whom he had met before, but stopped when the other party took the initiative.

He glanced at the area, which was very close to the silicon carbon booth, and said indifferently, "Mr. Ren, you've reformed and want to join the queue? The line for paying fines isn't here. Go look somewhere else."

Ren Mingyu was speechless, but then he burst out laughing.

He said helplessly, "Mr. Yu, it's not that serious. That's BMW's business. What does it have to do with Brilliance Auto? Besides, this was chosen by Guo Shanfeng. What right do you have to act like a bully?"

Yu Xing thought it made sense and made a zipping motion over his mouth: "Let's not talk about this anymore, goodbye."

"Hey, wait a minute, hey..." Ren Mingyu saw the puzzled look in President Yu's eyes and didn't know what he wanted to talk to him about. He could only manage to say, "Business is business, and personal is personal. I'm planning to buy a Kyushu car for my family."

Yu Xing looked at the Brilliance Auto Deputy General Manager in front of him with some suspicion.

Ren Mingyu looked calm and composed.

Yu Xing shook his head slightly, then nodded and said, "As expected of Brilliance Auto's elite, they really know their stuff."

Ren Mingyu: "..."

He felt that President Yu was like a car made of silicon carbide – so full of energy and impact.

"If you want to take a test drive, you can register over there without queuing." Yu Xing pointed to the employee next to the booth. "If you add them on WeChat, someone will contact you later. You can come to the store or schedule a time for a home test drive."

Ren Mingyu exclaimed in surprise, "Your service is quite good."

“How can we not be more attentive if we're small car companies?” Yu Xing laughed. “President Ren, that’s settled then, I have other things to do.”

Ren Mingyu followed beside him, asking as they walked, "President Yu, why do you think Kyushu's silicon carbon products sell so well?"

Yu Xing asked in surprise, "President Ren, what exactly are you planning to do?"

“I just think that silicon carbide vehicles are really good, and their sales are surprising, so I also want to learn about new energy vehicles,” Ren Mingyu said earnestly. “The auto show is a good opportunity to hear your answer directly, Mr. Yu.”

He was initially unconvinced by the new car company, Silicon Carbon, and even after BMW executives privately acknowledged it, he was only partially convinced. But he was able to calm down and figure out this wave of attacks from Lingang.

"I've said this on many occasions: ultimately, it's because the car is good. It has safety, power, and quality. Brand strength is our weakness, but the domestic policies are quite favorable." Yu Xing is generous in sharing with those who are willing to delve into the subject. "In general, Carbon Silicon Kyushu has hit the mark with the needs of family users, and solving these needs can bring direct sales feedback."

Ren Mingyu said thoughtfully, "So, silicon carbon has really hit a good spot in terms of demand, and it can really continue to build a moat."

Yu Xing stopped in his tracks.

He patiently explained, “Mr. Ren, you have made a mistake that has also occurred within our silicon carbide division. This is not a moat, it is just a temporary lead. I have been discussing this issue in company meetings these past few days.”

Ren Mingyu's heart skipped a beat: "What do you mean?"

"What do you think of the technological hurdles for range-extended vehicles?" Yu Xing asked.

Ren Mingyu considered carefully and said, "It's not very high. It might be difficult to make it truly outstanding, but it's relatively easy to create something that meets the minimum requirements."

“That’s right, there’s nothing to worry about. The technical threshold isn’t high. The threshold for a truly competitive product is higher, but no matter how high the product threshold is, if you can’t make it yourself, can’t you just learn from others?” Yu Xing explained earnestly. “If you’re on the right track and sales pick up, there will definitely be competitors who are good at learning. The technical threshold for range extender systems isn’t high, and refrigerators, color TVs, and large sofas aren’t impossible to replicate. So, how can something that can be learned and replicated be a moat?”

Yu Xing has been holding company meetings over the past few days to discuss the new subsidy policy and noticed that everyone is quite optimistic, and their spirits are high due to the increase in sales in April.

He had to pour cold water on himself first.

There is a cycle in car manufacturing. From the market accepting range extenders to manufacturers realizing their power and then to manufacturers following up with competition, this cycle is not short. Just the verification and manufacturing of the models takes time, but eventually the gap will be narrowed as the supply chain matures.

Therefore, such precise targeting of user needs is not a moat, but only a temporary lead. Yu Xing has a deeper understanding of the mutual learning between products in the mobile internet industry because product development cycles are short and adjustments are rapid. Examples include WeChat and Wechat, Douyin, Leyin and Weishi. Even Li Song conducted real-world research to try and emulate Shanfeng.

There are too many smart people who are good at learning from successful products, so it's a natural path to follow.

Ren Mingyu immediately realized the logic in this discussion and became curious about the internal company discussions that President Yu had been having.

He asked, "President Yu, what would be your competitive advantage for Silicon Carbon Group?"

“A single product positioning is definitely not enough. We need to build a comprehensive approach and achieve scale. The larger the scale, the higher the marginal effect of our R&D investment, and the more confident we will be in competing in the market.” Yu Xing glanced at the Brilliance Auto Vice President who was asking probing questions and smiled. “But for silicon carbon, or for all new energy companies, there is one thing that comes first when we examine ourselves.”

Ren Mingyu listened attentively.

Yu Xing continued, "The question is whether we can continue to make a profit without government subsidies. Based on this goal, there are many things that must be done."

Ren Mingyu pondered the words from the head of the silicon carbon industry.

He genuinely admired him, not for his words, but for his self-reflective attitude.

Ren Mingyu found the recent comparisons quite interesting: the executives at the German headquarters were insightful and perceptive, while the boss of Lingang Carbon Silicon reflected on his own actions—what was there to worry about?

Why worry about not having a better career in the future?

If BMW does well, then stay with BMW. If there's a huge wave of new energy vehicles in China, then go for new energy vehicles.

Yu Xing took a few steps and, just as he reached his own booth, he saw a familiar face. This time, the man took the initiative to greet him: "Mr. Li, you've been busy lately, haven't you?"

Li Hui from GAC Toyota rolled his eyes and continued walking without saying a word.

However, he walked to the next booth and then came back.

Li Hui has been worried about this for a long time.

From the first day of the auto show until now, which is almost over, he has been pondering the information that Yu Xing had revealed.

This time, Li Hui went straight to the point and asked, "President Yu, you said last time that you got 4700 orders from us. Is that true or not?"

Yu Xing chuckled and said, "Oh? It's been quite a few days, and you still remember this."

Li Hui said, "Nonsense!"

"Oh dear, what 4700?" Yu Xing shook his head. "It's already over 5000."

Li Hui's expression, which had just begun to soften after hearing half of what he said, tightened up again.

He stared at Yu Xing in front of him: "Really?"

Yu Xing laughed and said, "You've been thinking about this for days, over and over again. Don't you already have the answer in your heart?"

Li Hui left again.

Ren Mingyu, who was standing next to him, felt that President Yu's words really hit home.

Yu Xing asked a few questions to the staff at the booth, but before they could talk much, he received a phone call. He hung up and a few seconds later, another call came in.

Seeing Ren Mingyu waving goodbye, he didn't forget to cover the microphone and add, "Mr. Ren, don't forget to buy a Kyushu, for the sake of my sincerity."

Ren Mingyu actually felt that President Yu was quite sincere in his communication, not as cunning as he had previously imagined.

Yu Xing added another message: "By the way, the president of BMW is changing. I wonder if it will affect you."

Ren Mingyu stopped in his tracks, taken aback: "Huh? President Yu... how did you know?"

"It will spread quickly; it's not a secret," Yu Xing replied.

Ren Mingyu felt something was off. Although there had been rumors about this since the mountain peak incident, he hadn't heard any concrete information. Yet President Yu's tone was so certain. Even if you were an expert, you wouldn't be so knowledgeable as to have known everything overseas.

However, thinking of Silvia's hasty return to Munich, he felt that it might be related to this news.

Yu Xing ignored Ren Mingyu's reaction and continued to communicate the latest situation with the other end of the phone.

The latest call was from Li Yifan, the president of Linggang Company, who brought bad news: his attempt to secure investment from Baidu had failed. The reason given by Baidu was not a product issue, but rather the close relationship between Linggang and Lingang Silicon Carbon.

Since Li Yifan returned from Silicon Valley and founded Linggang, the company has made good progress in the research and development of LiDAR. This year, it launched a 64-line product based on the 32-line product, which can stand shoulder to shoulder with the international market. Of course, its performance is still somewhat inferior.

However, this 64-line cable has already been included in Baidu's procurement list.

However, Linggang's LiDAR is designed for companies developing autonomous driving technologies. Although Baidu is the largest LiDAR customer in China, its annual procurement volume is only around 4000 million yuan.

If Linggang wants to survive independently, it needs to expand into the international market. Therefore, Li Yifan embarked on a fundraising journey, hoping to use the funds to continue investing in research and development and develop products with similar performance to Velodyne in the international market.

Baidu had previously expressed interest, but its attitude has changed significantly recently.

Yu Xing listened to Li Yifan's conversation on the phone and comforted him, "Mr. Li, if Baidu won't invest, then we'll look for other companies. There's no rush. If all else fails, I'll help you find overseas funding. But it's strange, the relationship between Lingang and Baidu... isn't that bad."

Li Yifan said quietly, "President Yu, it's like this, they've been saying, both openly and secretly, that your 'All-Knowing Scholar' is unwilling to help suppress the negative news about Baidu."

Yu Xing understood: "That makes sense."

Li Yifan remained silent, clearly indicating that President Yu would not compromise on this matter.

"How about this, I'll ask my friends abroad next week to see if they can come and check it out around the middle of next month. You guys can give them a good talking-to then," Yu Xing said seriously.

Li Yifan was surprised: "Next week? Mid-month? So soon?"

He thought President Yu was just making excuses for him, but how could he confirm the time so quickly without hanging up the phone?

Yu Xing hummed in agreement: "After careful consideration, we still need to work hard and quickly to turn our short-term lead into a long-term competitive advantage."

(End of this chapter)