From knock-off old-man's electric vehicles to industrial giant

Chapter 151 Don't do it again!
"Mr. Sun, let's just talk about the factory's production line situation normally..."

Seeing the other party's restrained and obsequious attitude, Xu Yi was slightly amused and exasperated.

He recalled that when he was building Xingchen 01, he was also with Yu Nian and the market procurement team.

They went from factory to factory, negotiating with suppliers about production capacity and component prices one by one, sometimes making phone calls late into the night.

I immediately felt a pang of emotion.

but.

Xingchen Automotive currently places more emphasis on the value of the supply chain itself.

As long as it aligns with their development interests, there's no need for flattery; too much bureaucracy will only reduce communication efficiency.

“Okay, Mr. Xu, the factory is currently in this situation. The maximum production capacity can be expanded to 90,000 sets of seats per year, and our molds can be adjusted. As long as Xingchen has any requirements, we will definitely improve the production line as quickly as possible…”

Sun Shuhua personally opened the car door for Xu Yi and sat in the back seat, his heart filled with warmth.

Currently, the Star Mini is the best-selling pure electric microcar on the market. As a substitute supplier, if Star Auto is willing to place several large orders in the next two quarters, the factory's performance this year will be maximized.

"I heard that you guys even developed your own seat ventilation technology before?" Xu Yi asked again.

"Yes, we tried to enter the mainstream passenger car market for a while... but it was all a waste of time. In the end, the client didn't want the prototypes we produced, and we lost a lot of money on R&D." Sun Shuhua said somewhat embarrassedly.

Xu Yi: "Why didn't you take it?"

“The cost of mass production of this thing is too high. After the development is completed and the mass-produced product is released, there is no profit. As a result, people say that it is not as good as that of joint venture factories. In addition, the production capacity cannot be flexibly supplied, so we can only sell it to the modification market at a low price.” Sun Shuhua also frankly said.

That's the awkward thing about small factories.

Not only do they lack the funds to invest in research and development, but sometimes even after putting in the effort to develop a product, it still doesn't perform as well as mainstream joint venture suppliers, and the costs remain high.

Moreover, the profit margins in the low-to-mid-range seating industry are already quite thin.

During the drive, the two chatted casually and got a general understanding of the situation.

soon.

We arrived at Changrong Seat Manufacturing Plant in Weifang.

Amidst a lavish reception, Xu Yi and his entourage toured the factory production line.

He inspected everything from the seat frame to the foam assembly, including the sample of the seat ventilation system, and the overall design met his expectations.

The sample of the seat ventilation function produced by Changrong is a bit rough.

Poor suction power or excessive noise!

In every aspect, it is far inferior to the level of joint venture suppliers.

Some samples were even made into "blowing" versions.

It is specifically designed to blow air onto the passenger's lower back.

This is a complete lack of "user experience".

If this sample were to be mass-produced and launched on the market, it would definitely cause car owners to have diarrhea from all the hype!
but.

Changrong, this seat manufacturer, has an advantage: it has even done reverse engineering of centrifugal fans.

Currently, domestically produced low-cost ventilated seats, including those retrofitted for secondary ventilation, mostly use axial flow fans.

This thing is cheap, but the air pressure is very poor and it's very noisy. The final result might be that you can hear the fan but feel no airflow, and it can't even pick up a piece of toilet paper.

The joint venture's centrifugal fan has high static pressure and low noise, meaning it can provide a large amount of ventilation while being very quiet.

In addition, the nylon and fiber materials of the air guide layer also have a significant impact.

Creating a seat frame and foam layer, then covering it with leather, is certainly not a difficult task.

However, if the fans and air-guiding materials don't keep up, then domestically produced seats will never be able to compete with joint ventures in the high-end market.

……

the whole process.

Sun Shuhua and several other factory executives stared intently.

They were afraid of missing even the slightest micro-expression on Xu Yi's face.

This person is a "big shot" who can determine their factory's production capacity for the next year!

Although Xingchen Automotive only missed out on an order for 50,000 sets, it was still a huge order for Changrong Manufacturing Plant, accounting for more than half of its annual production.

Most importantly, the profit margin for contract manufacturing for Xingchen Motors is high, and their payment terms are only sixty days! Just sixty days!!
Sometimes, it doesn't even take sixty days!

He watched the press conference, but he didn't know whether the audience was moved or not.

These small factories in the supply chain that still rely on Xingchen Auto for their livelihood are truly touching!

If it weren't for connections in the city, we wouldn't have been able to get on board Xingchen Motors.

but.

It is precisely because small factories like theirs lack core competitiveness that they are too easily replaced.

……

"Mr. Sun..."

At this moment, Xu Yi spoke up.

“Hey! Mr. Xu, I’m here…” Sun Shuhua quickly came over to follow instructions.

Seeing that the other person was clearly extremely nervous, yet still tried to maintain a composed and normal demeanor,
Xu Yi smiled and said, "Mr. Sun, relax. What I'm about to say will benefit both of us..."

"benefit?!"

"Yes, our next car from Xingchen is going to target the high-end market, so we intend to heavily integrate our seat manufacturing production lines, including developing our own high-end comfort seats. This requires deep cooperation from our supply chain manufacturers. I've looked at your production lines, and they generally meet our requirements. Changrong's geographical location will also save us a significant amount on shipping costs..."

Xu Yi said lightly.

These words struck the ears of Changrong's senior executives like a thunderbolt!

Sun Shuhua was instantly stunned!
An extremely shocking and mouth-drying feeling!
"Mr. Xu, you, you mean..."

...

“Our Xingchen needs its own seat manufacturing plant. Domestic manufacturers also need to produce high-end seats to reduce costs. I am interested in acquiring Changrong's shares…”

Xu Yi spoke frankly.

Building its own production lines and seat factory is not a difficult task for Xingchen Automotive at present.

However, on the supply chain side, the production lines, technical teams, and workers can be used directly after the acquisition.

For Xingchen Automotive at present, the most efficient and time-saving method is of course to be chosen.

Car manufacturing is a large-scale manufacturing industry.

The entire vehicle consists of thousands of parts, requiring the cooperation of the upstream and downstream supply chains.

Research and development also need to be accelerated. If we build our own factories for every part of the car, we won't be able to produce a single car even after five years.

not to mention.

After the acquisition, this also belongs to their Xingchen production line and R&D team, and they can start integration and R&D immediately.

A high-end ventilated and massage chair that is entirely domestically developed and manufactured.

If it can catch up with the joint venture level in all aspects of performance and comfort.

Even if we reduce costs by 30%, major brands will be vying to supply us.

What a wonderful surprise!
It's just pie in the sky.

It knocked everyone in Changrong unconscious!

hiss--

Equity acquisition...

Should we support their Changrong Manufacturing Plant in developing high-end chairs?

What's the difference between this and a big shot suddenly going down to the grassroots and saying, "I'm going to support you to be the 'crown prince'"?
before coming.

They never even considered this possibility.

Seat manufacturing isn't a high-end industry; Xingchen can build its own production line if it wants.

Both parties entered the conference room for detailed discussions, and their respective financial executives conducted a valuation.

The final agreement stipulated that Xingchen Technology would invest 70 million yuan to acquire 80% of the equity, thereby gaining an absolute dominant position, and would also invest 30 million yuan in research and development and production line upgrades.

Xingchen Automotive's prices are very reasonable, and as Xingchen Automotive's core supply chain, Changrong Manufacturing Plant has also secured a large order contract from Xingchen Automotive for the following year.

To maintain the original team's drive, Xu Yi added performance incentives for the remaining equity to the contract terms.

After all, once the original team cashes out, they completely lose control and can easily give up and leave the game.

Xingchen Automotive also needs a supply chain team to work day and night for production and R&D. They need to be the core driving force for at least a few years before Xingchen Automotive can firmly establish itself in the high-end market!
Xu Yi's approach of bundling orders with remaining equity incentives demonstrates a high level of respect and security.

"Mr. Xu, you can just call me Xiao Sun from now on..."

Sun Shuhua, with a serious expression, gripped Xu Yi's hand tightly and quickly adjusted his position.

Despite looking like someone in their forties or fifties, he insists on calling himself "Little Sun".

Xu Yizhen was both amused and exasperated: "Let's talk about the production line upgrade and wind turbine development first."

……

……

That night.

Sun Shuhua and Chang Rong's team hosted a rather grand business banquet for the two sides.

The fish head was firmly aimed at the most prestigious seat in the entire venue.

After the meal and drinks, we were full.

then.

It’s hard to refuse such kindness.

A high-end private club.

"Go, call out all the appointments!"

A dozen or so young technicians, all of whom were top-notch in terms of both quality and appearance, lined up and entered a private VIP room to be selected.

“Mr. Xu, we came in a hurry this time and didn’t have time to prepare… Please don’t mind. If I had known in advance, I would have definitely booked everything…” Sun Shuhua said very carefully.

"Mr. Sun... that's enough, why make it so extravagant?"

Helpless, Xu Yi randomly pointed to two young technicians who matched his aesthetic preferences, then closed his eyes.

The recent hectic pace has indeed made me feel a bit tired.

With the soothing massage from two soft hands, my nerves quickly relaxed.

Soft music began to play.

As the screen depicting the artificial mountain and flowing water was opened, two people dressed in ancient costumes, exuding a classic and elegant style, danced with supple and boneless movements to the music.

In terms of looks alone, she's on par with top young models, not to mention her talents.

Her figure is captivating.

Um--

There is an internal taste.

……

After the massage, it was almost midnight.

I still couldn't refuse their kind invitation.

There are still two rounds left!
Xu Yi was truly convinced now.

They firmly expressed their refusal.

joke!

If this keeps up, it'll be dawn by then!
Are you going to sleep or not?!

Everyone has to go back to the company tomorrow!
Back in his executive suite at the international chain hotel, Xu Yi, having drunk some wine, was feeling a bit tipsy and was about to lie down to rest.

Doorbell rang.

Xu Yi opened the door.

He frowned slightly as he stared at the two beautiful women outside the door, dressed in antique style and flawless from every angle.

She has a beautiful figure and natural charm.

Her big, watery eyes were filled with pity.

...

"Mr. Sun, as I've already said, don't go overboard..."

"Oh, Mr. Xu, it's all my fault... I didn't know you were already resting! I'm so sorry! I just saw you enjoying the talent shows during your massage, so I had them perform for you. The work report and medical examination report are all ready. If you're not happy, just let them leave. It was really my fault for disturbing your rest..."

Sun Shuhua bowed deeply into the phone, repeatedly apologizing in a state of "extreme fear."

After a while.

The call ended.

Sun Shuhua finally breathed a sigh of relief.

next to.

The executive sitting in the passenger seat was very nervous:

"Mr. Sun, isn't what we're doing a bit too vulgar... Does Mr. Xu not like it? Why does his tone sound a little unpleasant?"

"Oh—you don't understand again. Someone of President Xu's level is beyond our comprehension."

But remember this: Mr. Xu may not like it.

But if we don't do it, then we're in the wrong; we'll be letting in the bad trends of society... Give the leaders the right to choose!

Understand? "

"Understood! Understood!!!"

……

(End of this chapter)