The car giant started by marrying the daughter of the king

For several consecutive days, the news of the polar bear's disintegration dominated the headlines of various media.

Even the information that BMW Group's annual production and sales exceeded 1991 million vehicles in 180 has attracted fewer people's attention.

However, for most people, the news of the polar bear's disintegration is more attractive.

But for people in the automotive industry, last year’s sales data and changes in the global auto market are what they care most about.

"Mr. Jiang, our exports now account for more than 70% of our business. This is a huge risk."

"In the short term, I think it is enough for the company to maintain a production capacity of 200 million vehicles."

The more successful the moment was, the calmer Chen Chenxing seemed.

In recent years, BMW Group's sales have been increasing rapidly every year.

With this scale, the company is now ranked among the top 10 in the global automobile market.

Even giants like General Motors and Toyota dare not ignore the existence of BMW Group.

In particular, the BMW Group still has an investment background in Hong Kong and is currently still an affiliated company of England in the international arena.

This is still useful for developing the international market at this stage.

"After the polar bear dies, the international environment will indeed change."

"If we want to develop as quickly as before, there will be considerable resistance."

“But it is also difficult to rapidly increase the domestic market in the short term.”

"After all, the current size is there. Even if the annual growth rate is 30%, it can't accommodate our scale."

Jiang Hui was naturally aware of the problems that Chen Chenxing mentioned.

Currently, the majority of BMW Group's sales still rely on sales in the United States and Europe under the General Motors brand.

Less than 20% of the models are actually exported and sold by the company.

This is definitely more dangerous.

This means that international sales depend on the efforts of General Motors.

Once something goes wrong in the cooperative relationship between the two parties, the situation will be different.

"That's true. That's why I think we need to be cautious in building new factories in the future."

“It is better to expand existing production capacity through overtime or other means rather than build more new factories with caution.”

"And now prices are constantly rising, and our material and labor costs are also rising."

“This will affect our cost competitiveness and ultimately the company’s earnings.”

Chen Chenxing is also worried that if the company's capacity construction is too aggressive, it will put a lot of pressure on sales.

After all, according to the group's current experience, it only takes one year to build a new factory.

BMW Group could have easily increased its production capacity to 1992 million within 300.

As long as you are not afraid of spending more money to build a factory, it will be fine.

"You make sense. In the next few years, our sales volume will most likely hover around 200 million vehicles."

“It will take a few years of settling down before we can move further towards the new goal of 300 million vehicles.”

"During this process, our technical accumulation needs to be improved."

"In the future, even if our appearance is not very different, we must have new technological advantages."

One trick can be eaten all over the world.

Jiang Hui did not expect to achieve such an ideal goal.

The appearance is a very useful thing, and I am confident that the new models launched by the company will always maintain a high level.

But there is no way to control other car companies from designing their cars so ugly.

When everyone is beautiful, appearance doesn't matter that much.

"Yeah, that's what I thought."

"Of course, we are not just standing still and doing nothing."

"In overseas markets, especially the polar bear market, we will continue to work hard to expand new car sales."

"Under the current situation, the production of many products within Polar Bear has come to a standstill."

“But the demand for cars is still there.”

"Perhaps during this process, our group's sales there will reach new highs."

Chen Chenxing felt that the polar bear market had been operating for several years and could be further developed.

Only a diversified market can minimize risks.

Otherwise, if something unexpected happens, we will be in a passive position.

"The polar bear market is indeed promising, but we also need to continue to develop the African and Middle Eastern markets."

"In these markets where risks are relatively high, we can adopt some more radical incentive policies."

“Relevant sales personnel are encouraged to go to these places to develop markets.”

"As long as the business is good, we will give sales staff bonuses without a cap."

“Becoming a millionaire in one year is not a dream.”

Jiang Hui felt that when developing overseas markets, he could learn from some of Warwick's practices in later generations.

The work is very tiring, but as long as the pay is sufficient, employees can still accept it.

It is said that one year when the mobile phone business was being developed in the Polar Bear market, the team performed very well and the average bonus per person was US$50.

It is completely acceptable to learn from this approach.

If someone can sell tens of thousands of BMW Group products a year in a market in a certain African country, Jiang Hui thinks it is not impossible to give this team a bonus of one million yuan per person.

"I will go to Africa and the Middle East and formulate specific incentive plans based on the market conditions in each region."

"We encourage more people to actively sign up to participate in overseas market development in difficult areas."

After hearing what Jiang Hui said, Chen Chenxing became more confident.

There will always be brave men when there is a big reward.

This is a truth proven by history.

……

"Thanks to the rapid development of the automobile industry, Shanghai's GDP growth rate should have been very fast last year."

"The city has high expectations for our group and hopes that we can increase vehicle production."

As the mainstay of industrial development in the capital region, Capital Automotive Group is under considerable pressure today.

In the past, when Shenzhen was the only city that stood out, everyone faced similar situations and the leaders could understand it.

Now the economies of both Chuncheng and Shanghai are developing rapidly due to the rapid increase in automobile production.

On the contrary, the capital has unique policy advantages, but its development is not as good as others.

As a result, Chen Qi was naturally called in to be criticized.

"Mr. Chen, our factory currently mainly produces mid- and low-end models. Originally, this market was very broad."

"But after domestic automakers launched various models in the past two years, competition has become very fierce."

"Geely Auto and Ssangyong Motor have both launched entry-level sedans or SUVs."

"In fact, the products of Changan Automobile and Xiali Automobile are also developing very fast."

"So even if we launch new models, it is difficult to increase sales quickly."

“It’s more about making sure we don’t see a drop in sales.”

Lu Jianqiang has now become the deputy general manager of Capital Automotive Group and is expected to succeed Chen Qi as general manager in the future.

Naturally, he also cares a lot about the development of the group.

However, Shouqi doesn’t have much to offer.

"Of course I understand what you said, but the leader doesn't understand."

"Facing the fierce automotive market, why can other companies develop so fast, but we can't?"

"Not to mention the BMW Group, whose annual production has exceeded 180 million vehicles."

"Our superiors never expected us to be able to compare with the BMW Group."

"But what about FAW? Their production a few years ago was not much different from ours."

"Now their sales are much higher than ours, and they have made great progress in exporting and earning foreign exchange." "There are also newly established private auto companies such as Geely Automobile, whose sales last year already reached 3 vehicles."

"That's because their car model was only launched in the second half of last year."

"This year's sales volume will definitely exceed 5 units, or even higher."

"How do you explain this?"

"Are we going to tell our leaders that our new car models are not as competitive as a newly established private automobile company with a makeshift team?"

Chen Qi looked at Lu Jianqiang with displeasure.

in the country, he feels that BMW Group and FAW are stronger than himself, and he acknowledges this.

Capital Automotive Group is the third largest company.

But in the current situation, the third brother’s position is not stable at all.

"Leader, the fundamental reason why private car companies such as Geely and Great Wall Motors can develop rapidly is that their costs are lower."

"For the same size of car, their price is about 10,000 yuan lower than ours."

“This is very attractive to consumers.”

"Our labor costs are higher than theirs, and our development costs are also higher."

"Especially in terms of development costs, they are simply copying a popular model."

"Basically, so-called development means disassembling other people's parts, drawing blueprints and then producing them."

"In addition, many of the parts manufacturers they choose are private enterprises, and their parts costs are lower than ours."

"In this case, our car model will naturally have no advantage."

Lu Jianqiang conducted a special investigation and confirmation on the conditions of some car models on the market.

But the results are not so optimistic.

"Whatever the reason, the result is not ideal."

“I hope the company’s sales can achieve double-digit growth this year.”

Chen Qi no longer had the patience to listen to so much, he just wanted to see a good final result.

In this regard, Lu Jianqiang had no choice but to bite the bullet and implement it.

……

"Mr. Zeng, our group's sales last year totaled only 1 vehicles, which is not even ranked in the domestic market."

"The automobile production in the neighboring city of Shenzhen is already in the millions."

"The city is very unhappy with the situation, and we have to find a way to improve it as quickly as possible."

Fang Zhenzhong called Deputy General Manager Zeng Tianyong to his office with a sad face to discuss the group's future development strategy.

Compared with FAW, Second FAW, Capital Automotive Group and Shanghai Automotive Group, Yangcheng Automotive Group is much smaller in scale.

The key point is that the performance of the joint venture Yangcheng Peugeot is also not ideal.

Peugeot 505 has high fuel consumption, relies on imported parts, and has high maintenance costs.

The Peugeot 504 is an old model with no competitiveness at all and is about to be eliminated from the market.

At the current pace, it will be difficult to maintain last year's sales volume.

How can this be good?

Although they are in the same city, the development speed of the automobile industry in Guangzhou and Shenzhen is very different.

The key is that the foundation here in Yangcheng is much stronger.

"Mr. Fang, if we want to change this situation quickly, we have to find a partner as soon as possible."

"Whether it's BMW Group, General Motors, Toyota, Honda, or other auto giants, they can all be considered."

"The domestic auto market is developing very fast now, and various auto giants are very enthusiastic about entering China."

Zeng Tianyong is also very clear about the current situation of the group.

It's definitely not possible to rely on yourself.

We can only find partners to learn from first, and then slowly develop our own brand.

"You have a point. We have very few conditions to offer."

"We can make concessions on all the terms that need to be compromised. I will go to Japan in person to communicate with Toyota, Honda and Nissan in a while."

"See if they are willing to form a joint venture with us."

Compared with some of the losses at this stage, Fang Zhenzhong is more concerned about future development.

What’s the point of having good terms now if there’s no future?

Invisibly, the development rhythm of Yangcheng Automobile Group has also changed.

……

"President, our global sales last year just exceeded 170 million vehicles, achieving positive growth despite the overall market not being so prosperous."

"But our global ranking dropped from eighth to ninth."

Mizuno Munemori came to the office of President Kawamoto Nobuhiko with mixed feelings to report last year's sales data.

Although companies in Japan use the fiscal year from April of each year to March of the following year to compile various operating data.

However, statistics are basically calculated based on natural years in all parts of the world.

Therefore, Honda will certainly pay attention to the data of the calendar year to see if there are any changes in its global rankings.

“Which manufacturer is growing faster than us?”

Sales volume is increasing, but ranking is decreasing.

That must mean that there are other competitors with higher growth rates.

"General Motors is still No. 1, and Ford is still No. 2."

"The rankings from third to sixth have not changed, namely Toyota, Volkswagen, Nissan and Chrysler."

"But the seventh place became BMW Group and the eighth place was Fiat Auto."

"Of course, the statistical caliber of this sales volume is somewhat controversial."

"For example, the sales volume of BMW Group produced through OEM cooperation with General Motors, should it be counted as General Motors' or BMW Group's?"

"The algorithm is different, the results are different."

Mizuno Munemori explained the overall situation.

The current industry competition is obviously very fierce.

"The BMW Group is developing at such a fast pace that its production is even higher than ours."

Although sales volume will vary due to different statistical calibers.

But the output will definitely not be affected.

"Yes, many Chinese automobile manufacturers have been in communication with us before, wanting to invite us to establish a joint venture."

“I think the company could make some concessions in this regard.”

This should be the main purpose of Mizuno Munemori coming to see Kawamoto Nobuhiko today.

Toyota has already entered the Chinese market, as have General Motors and Volkswagen.

He thinks Honda cars could also be suitable.

"What you said makes sense, but the Chinese market is very special after all."

"We can let the two-wheeler division test the waters first, and if the cooperation goes well, we can expand to four-wheelers."

Nobuhiko Kawamoto made a decision quickly.

For Honda, motorcycles and automobiles are both important sectors.

Among them, the motorcycle business is its advantageous business.

Relatively speaking, the investment in a motorcycle is not that large, so it is more suitable for testing the waters.

"No problem. I will communicate with the cooperating manufacturers first and finalize the cooperation plan as soon as possible."

Although there is still a little gap from what he wanted, Mizuno Munemori is satisfied.

You have to eat your meal one bite at a time. (End of this chapter)