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

Chapter 210 If users don't come to us, we'll force them to join us (5k)

End of July.

The high-speed navigation and intelligent driving system inside Xingchen has, through data accumulation, opened up six or seven more core national-level main roads.

Xu Yi and Wu Xinzhou then personally conducted another "test" and offered many suggestions for the internal testing.

It performs well on open highways, with smooth and linear acceleration and deceleration, regular lane changes, and a gradually smoother overall experience, unlike the initial "reckless" driving. It can basically distribute 85% of the driving effort and save 60% of driving fatigue.

It's worth mentioning that the Starry Sky uses a capacitive steering wheel.

Currently, most intelligent driving systems in the industry use torque-type steering wheels.

Torque-sensing steering wheels require periodic application of force to slightly rotate after the driver assistance function is activated, in order to detect whether the driver is distracted.

This is rather inhumane.

The reason is that the sensors used for sensing cannot achieve the corresponding accuracy.

If the applied force is too weak, the sensor will not detect it.

Excessive force can cause the intelligent driving system to think it has encountered an emergency and forcibly shut down the entire intelligent driving system, making it difficult to use and cumbersome.

Capacitive sensing, on the other hand, only requires the driver to touch the surface, and the system determines whether the driver is holding the steering wheel by detecting changes in capacitance. In terms of user experience, the latter is more advanced.

The intelligent driving department is making steady progress, as is the new version of the vehicle's infotainment system.

Zhao Yang is currently working on the first version of the Starry Sky L7's in-vehicle infotainment system.

The entire system kernel is almost identical to their current Stellar 1.2 version.

However, the overall interface on the Starry Sky L7 is more refined and has more functional areas.

For example, features include air suspension height control, seat ventilation, massage and heating control, refrigerator temperature control, HUD control, tire pressure monitoring, parking summon, and automatic parking...

These added advanced features make the system in the new car feel more like a complete system.

They recently released a traffic light timing feature, which was naturally integrated into it.

Because of the improved screen and processor performance, the overall smoothness of the page has been taken to another level.

Vehicle infotainment system department.

"Brother Zhao, there's something I don't understand. We already have such a big screen in the front row, and the system is so smooth. Why do we need to integrate Apple CarPlay and CarLife separately?"

During her lunch break, Wang Yuchun couldn't help but ask this question.

He had some "disagreements" in his heart.

Their in-vehicle infotainment system is now nearing completion.

Based on his long-term experience as an internal developer, he has found that he almost never needs to use his phone when he gets on a bus.

This is the biggest difference between intelligent vehicle infotainment systems and those in gasoline-powered vehicles.

He usually needs a phone holder when driving a gasoline car, but driving a Star C90 gives him the feeling that "a phone is unnecessary when driving".

This is also the result of their hard work.

I feel quite proud of this.

Needless to say, the new version of the car's infotainment system is incredibly smooth, almost heavenly.

It truly created a smart ecosystem with a starry sky theme.

At this very moment, President Xu issued an instruction.

Let them integrate CarPlay and CarLife while they're at it.

Wang Yuchun was truly baffled by this.

of course.

He absolutely did not doubt whether President Xu was confused.

I just feel that this might be superfluous.

Since they've already upgraded their car infotainment systems to this level, why bother paying an extra fee and incurring costs to integrate with the CarPlay and CarLife ecosystems?

Wouldn't that be paying other companies to promote their products/services?

Is this really necessary?
"You think doing this is just adding unnecessary costs, right?"

Zhao Yang smiled and immediately saw through his colleague's thoughts.

"Yes, that's what I think," Wang Yuchun said frankly to him.

From both a technical and experiential perspective, there are no other excuses.

Zhao Yang chuckled and said, "Then you don't understand President Xu. Although President Xu is willing to invest in research and development, he is more accurate than anyone else in calculating unnecessary directions. That's beyond doubt."

"What do you mean by that?" Wang Yuchun frowned, puzzled.

Zhao Yang: "A few days ago, I felt the same way as you, that this request was superfluous!"

He recalled his experience developing these two features, and a look of admiration appeared on his face.

"Yes, I had the same experience as you. Even if I forced myself to turn on CarPlay, it still felt very unnecessary."

Because our car's navigation, music, and various functions are already quite comprehensive and intelligent, and there are even more advanced control features, sometimes using CarPlay can even be an obstacle..."

Wang Yuchun: Yeah, then why did you join?

Zhao Yang said firmly, "You're wrong. This is precisely where President Xu's brilliance lies. It's precisely because it's unnecessary that it's necessary!!"

"Huh?!" Wang Yuchun was taken aback by his novel sentence structure.

"Think about it, besides our own car infotainment system, isn't CarPlay still considered the preferred feature for high-end smart car infotainment systems in the industry?"

"Yes."

"Actually, our Star System is already quite good, but its reach online and to the general public is still insufficient, right?"

"Correct."

"So let's take a different approach. If our own car infotainment system is sufficient, we can still integrate CarPlay, spend a little bit of cost, give consumers more choices, let them compare for themselves, and after using it, they will naturally know which one is better."

Moreover, many Apple users are already using CarPlay. Mr. Xu's move was not just to add a useless extra feature, but to attract the attention of another high-net-worth group through the connection of the car's infotainment system. It was like running an advertisement at low cost!
Isn't that worth it?

...

Wang Yuchun frowned in thought.

shocked.

"Damn, this line of thinking is really..."

Other companies will only complain that the "Apple tax" is too expensive.

However, Mr. Xu used the "Apple tax" as a way to advertise and attract the attention of Apple's high-net-worth users.

This strategy is just too unconventional!

Thinking about it carefully, Mr. Xu laid this line perfectly!
Zhao Yang chuckled and said, "Of course, this isn't just my personal guess. I also spoke with President Xu privately later and explained some issues. Guess what President Xu said?"

Wang Yuchun asked, "What did you say?"

Zhao Yang said, "President Xu first affirmed my idea, and then said that our current ecosystem is relatively closed, and we need to find ways to expand the influence of our ecosystem."

Then he said something that I will never forget.

He said—

If users from other ecosystems don't come to us, then we'll proactively go to them and force them to join us.

Once compatibility is forcibly achieved, users will naturally be able to determine which option is better through actual use.

--hiss!

If users don't come to us, then we'll proactively go to them and take them over.

? ?
Wang Yuchun gasped.

I was so shocked by those words that I felt completely numb.

An abstract feeling washed over me.

But without a doubt, he was convinced from the bottom of his heart!
A single word silently formed in my mind:

"6!"

……

……

It's practically public knowledge that Xingchen Automobile's second factory will be located in Luzhou.

Although the online uproar hasn't fully subsided, the news has already caused quite a stir in the industry.

It was early August.

Luzhou Binhu New Area.

The Xingchen Automotive Supply Chain Matching Conference was officially announced, with representatives from over 100 key automotive parts companies and financial institutions from both inside and outside the province, as well as the head of Xingchen Group, and officials from the Luzhou Municipal Government, the Provincial Department of Industry and Information Technology, the Provincial Department of Commerce, and other relevant government departments at all levels attending the conference.

The news came as a bombshell!
Xingchen and Luzhou hit it off immediately. The first phase of the project took only 19 days from negotiation to signing and only 36 days from signing to commencement of construction, breaking previous records.

This has amazed many businesses and also demonstrated Luzhou's commitment to comprehensively optimizing its business environment.

At the conference, leaders at all levels took the stage to deliver opening speeches, demonstrating their support for Xingchen Motors' establishment in the area.

The content of the speech was actually quite similar to the Mountain Summit that Xu Yi had attended.

Such as providing comprehensive, full-process, and round-the-clock personalized services in areas such as product research and development, production and operation, supporting services, and talent recruitment.

In addition, there are also increased frequency of rail-sea intermodal transport and China-Europe freight trains, which will help Xingchen Automotive better expand its domestic and international markets in the future.

Besides supply chain companies of all sizes, there were also many other companies present at the event.

Leading local car manufacturers, such as JAC, Chery, and Ankai Bus, as well as core suppliers like Guoxuan High-Tech, Zhongchuang Innovation Aviation, and Juyi Technology, were all present at the event.

After the opening remarks by the leader, Xingchen's senior executives took turns to speak on stage, and the audience had mixed feelings.

The suppliers who were able to connect with Xingchen Automotive and form a cooperative relationship were extremely eager.

However, the brands on the vehicle manufacturing side inevitably have some "ambiguous thoughts" when faced with Xingchen Motors' success in the new energy vehicle sector.

An Jinhui, the current chairman of JAC Motors, stared at the stage with a very complicated expression.

Xingchen Motors originated in Luzhou, rose from humble beginnings with its old-man-car rides, achieved great success after leaving Shandong, and is now returning to its "hometown".

They shook hands again with Luzhou and reconciled.

It has become a well-known story. It is a story that has attracted much discussion.

-

For this matter.

JAC Motors shares similar sentiments.

"President An, I heard that Xingchen Motors failed to lease its car manufacturing qualifications and was rejected internally, so it went through a transformation despite the risk of bankruptcy. Is this true?"

Sitting to the side, Chery Chairman Yin Yuetong finally couldn't contain his curiosity and asked another question.

Upon hearing this.

An Jinhui was speechless inside, but he couldn't show it.

present.

He could only force a calm and composed attitude and said, "Yes, we did contact Xingchen in 15, but we didn't expect them to develop so quickly, nor did we expect the wave of new energy vehicles to come so fiercely."

"It's actually true, what a pity."

Yin Yuetong was slightly surprised, confirming the rumors were true, and felt both amused and touched.

Today's Xingchen Motors is not the Xingchen Motors of the past.

If it had actually happened back then, and Xingchen Motors had successfully leased JAC Motors' car manufacturing qualifications, then JAC Motors would probably have a share in today's success.

Luzhou wouldn't go to such lengths to "win them over" in order to show its sincerity.

The benefits offered by Xingchen Motors upon its establishment are making traditional car manufacturers feel a bit envious.

"The industry is evolving, and things can't always go as planned."

An Jinhui replied with a smile, but there was a hint of bitterness in his smile.

Watching the Star Cars take off, I finally understood what it felt like to "crack my thigh in frustration".

The situation in the Jianghuai region is not very good this year.

The traditional fuel vehicle business, which accounts for 70% of total revenue, suffered a major setback. Sales of its main models, the Refine series, the Refine S3 and Refine M3, plummeted. The group encountered numerous problems due to issues with product competitiveness and production quality.

It's worth noting that since 2017, there have been over 200 SUV models that have been the subject of complaints on the CarQuality.com website, with domestic brand SUVs accounting for over 70% of the complaints, far exceeding those of joint venture brands.

Among these domestically produced SUV models that received complaints, the JAC Refine S3 topped the list of domestic SUV model complaints in 2017 with an average monthly sales volume of 4460 units.

This is shocking!!

After all, the Refine S3 had the worst sales among the top five complaint lists.

However, it was precisely because of problems such as rust on the body, uneven tire wear, and deviation from its designated path that it was voted to the top by car owners.

Just looking at the data makes one think how poor the quality is.

On the other hand, JAC's attempt to enter the new energy vehicle market with its iEV6E has suffered another heavy blow due to the continued reduction in new energy vehicle subsidies this year.

The government will now eliminate subsidies for new energy vehicles with a range of less than 150 kilometers.

For vehicles with a range of 150-300 kilometers, subsidies will decrease by 20%-30%.

This is a heavy blow to any new energy vehicle company that relies on subsidies for profit.

Coincidentally, JAC Motors is the one that profits from subsidies.

When the tide is high, everyone can jump in and make a quick buck. Now that the tide is out, it's clear who's been swimming naked.

An Jinhui stared at the stage, feeling a mix of emotions.

-

The event's proceedings were not complicated.

After everyone finished speaking, the media took photos and such.

Executives from Xingchen Automotive chatted with heads of various companies, creating a harmonious atmosphere.

An Jinhui found an opportunity to approach.

"President Xu, we met last time. I don't know if you remember me. After President Zuo retires, I will take over the management of Jianghuai."

Xu Yi turned around and gave a polite smile: "So it's President An. Our Xingchen factory in this area is just starting out. We hope you will all take good care of us in the future."

"Mr. Xu, you're too kind. The matter of leasing the qualification two years ago was handled by the former general manager, Yan Gang. At that time, we were facing a development bottleneck, and the internal decision-making was too arbitrary. Now our senior management team has been reshuffled. I hope you won't hold the past against us."

An Jinhui said very sincerely.

"Not at all. It's not easy for anyone to develop and run a business. It's only natural to weigh the risks when making business decisions."

Xu Yi laughed heartily.

He naturally had no opinion about this matter.

It's like leaving the mountain to build a factory.

It's simply a matter of making a better choice based on the situation and circumstances; returning to Luzhou for development now is the same principle.

It's worth noting that the first car they built using the leased qualifications was a gasoline-powered vehicle designed to compete with Qoros.

If JAC hadn't breached the contract and the two parties had continued their cooperation, then Xingchen would probably have really exploded after its listing!
The probability of a small factory successfully transitioning to car manufacturing is too low.

It is far removed from the traditional joint venture model and the emerging internet financing model.

Take, for example, their old friend – Reading Motors.

There has been no news of them lately.

Since the official announcement of their collaboration with Sichuan Automobile, there has been no further news.

With the reduction of new energy vehicle subsidies, Xu Yi was unable to find any information about the other party's new car launch.

It must have cracked secretly.

...

An Jinhui didn't know if Xu Yi was genuinely indifferent or just pretending.

You can't really tell anything just by looking at their faces.

He could only adopt a conservative approach and continue to show his goodwill:
"I'm relieved to hear that. Xingchen's success in the new energy vehicle sector is truly enviable. Nowadays, everyone is seeking transformation. To be honest, JAC is also vigorously developing new energy vehicles, but we are still quite unfamiliar with this area and lack the technology. If there is an opportunity, we can continue to exchange ideas and improve together."

In June, JAC Motors and Volkswagen officially established JAC Volkswagen Automotive Co., Ltd., with each party holding 50% of the shares. The purpose is to jointly develop the new energy vehicle market.

The current growth rate of the new energy market is clearly a blue ocean for anyone to see.

JAC's new energy technologies, whether in terms of the three core components (battery, motor, and electronic control system) or other areas, lag behind the market, and it needs to leverage Volkswagen's MEB pure electric platform to make a breakthrough.

By leveraging Volkswagen's "German quality" label, JAC aims to enhance market trust in its new energy vehicles and offset the quality reputation issues that have plagued it in recent years.

Although they each hold 50% of the shares, they are essentially just acting as OEM manufacturers.

Jianghuai doesn't have much real initiative.

"Yes, that's what everyone thinks. New energy is a whole new world, and it can bypass foreign patents on engines and transmissions."

The electric motor completely replaces the engine, achieving a thermal efficiency of over 93%. Even with a single-layer gearbox, it can rival the power response and smoothness of top-tier imported gearboxes.

China also possesses considerable technological expertise in batteries, and focusing efforts in this area often yields unexpected results.

"If it weren't for these two unique advantages, even if Xingchen had developed for another ten years, we probably wouldn't have achieved such good sales today."

Xu Yi smiled and said.

Without a doubt, engines and transmissions are now a thing of the past.

New power leaders like Li Bin and He Xiaopeng would surely nod in approval upon hearing Xu Yi's words, marveling at the arrival of a new era, and then elaborating on their own understanding.

However, An Jinhui couldn't help feeling ashamed.

It's a little numb.

JAC Motors, as a traditional automaker, has been immersed in the low-end market for many years. It has no accumulation of technology in internal combustion engines, transmissions, and clutches. Now that it has switched to the new energy track, it is completely clueless about things like batteries and motors.

Now, when I try to communicate "sincerely," I suddenly realize that I have nothing to offer.

"Yes, we are also working hard to catch up in research and development, importing more technology from Europe and Volkswagen to improve ourselves, and striving to create a high-quality blockbuster product as soon as possible."

After thinking for a while, An Jinhui could only bring up the fact that he was cooperating with the public to save face.

Based on the experience of the past ten years or so, the domestic market still responds well to joint ventures.

The collaboration with Volkswagen was facilitated not only by local efforts but also by the fact that the company itself considered it a prudent move.

Xu Yi smiled, his eyes now exceptionally sincere:

"Mr. An, I think the strength of European automakers lies in their accumulated patents in fuel-powered vehicles such as engines and transmissions, and they may not be able to take the lead in the field of new energy vehicles."

Take batteries, a core component of new energy vehicles, for example; they still use domestically produced batteries.

The only improvements brought by the joint venture are chassis tuning and brand and design enhancements.

The extra detour significantly increased costs, but the improvement was minimal.

Since it's all about OEM manufacturing and procurement anyway, why not just skip this process and directly partner with domestic companies?

An Jinhui was suddenly stunned...

I couldn't help but ponder the right and wrong, the gains and losses of these words.

Upon closer reflection, this is indeed the case.

but.

Manufacturing cars is no easy task.

"Mr. Xu, what you say is very sincere, but we have indeed encountered a bottleneck in our development and need new forces to break through it..."

An Jinhui sighed repeatedly, a cloud of worry creeping over his face.

Xu Yi smiled faintly: "Our subsidiary, Weineng Battery, also plans to supply batteries to external customers. If President An has time, he can come to our battery factory for inspection in person."

Actually, I've had a personal idea recently: since domestic car companies can form joint ventures with foreign car companies to form a technology-sharing relationship...

Why can't domestic car manufacturers form such close connections with each other?

For example, Xingchen provides electric drive technology and intelligent guidance, while another car company is responsible for product development, manufacturing, and brand operation... We cooperate in a brand-new model that empowers through technology.

I call this mode "Xingchen Inside," or simply "Xingchen XI Mode."

Starry Sky XI?
An Jinhui was shocked!!
(End of this chapter)