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

Chapter 51 is simple! I'll just invest!

From a historical perspective, it's somewhat dramatic.

It was clearly a hand that was almost a perfect start.

In the end, they actually went from being a second-tier strong company to becoming a third-tier supplier a few years later.

It's not even as good as later-emerging companies like Ruipu Lanjun and SVOLT Energy.

The company's leadership's short-sightedness is one aspect.

There is one more decisive factor—

In other words, there isn't actually a single new energy vehicle brand in Shandong that can truly stand out and become a phenomenon.

Without a large number of nationwide sales orders, it is naturally impossible to support a large supply chain order.

however.

In Xu Yi's eyes, all of this was just right!

As soon as the group got off the car, someone was already waiting for them.

Soon Xu Yi met Liu Chengyong, the CEO of Weineng Company. Liu was a middle-aged man who was nearly fifty years old and somewhat balding, but he was quite enthusiastic. The two got along very well.

"Hello, Mr. Xu. The senior management has already discussed the cooperation with me. Welcome to our headquarters factory for inspection. Let's go inside and discuss the details first." Liu Yongcheng, the CEO of Vaillant, warmly pulled Xu Yi along.

Battery manufacturers like them usually have established partners. However, despite their efforts to expand their factories and increase equipment investment, Vaillant's current order volume and profits are insufficient to support this expansion.

Upon hearing that Xingchen Company wanted to visit and cooperate, I immediately conducted an investigation.

The results of the investigation were immediately shocking.

With monthly sales of 30,000 to 40,000 units, it has almost monopolized the market for elderly electric vehicles both inside and outside the province, making it a newly established car manufacturing company.

Although it lacks formal vehicle manufacturing qualifications, an old man's car isn't exactly mainstream.

But these sales figures are enough to make supply chain manufacturers take notice.

The only point of contention is that the old man's car uses lead-acid battery packs, while their company, Weineng, has always focused on the research and development of lithium-ion batteries since its inception and has never been involved in the lead-acid battery business.

Therefore, Liu Chengyong still had some doubts and deduced that the other party might be launching other models.

"Mr. Liu, we have built a second factory in Zibo High-tech Zone and acquired a license to manufacture cars under our name. We are preparing to develop and launch an entry-level new energy vehicle."

Therefore, we need a supply of related power batteries.

Without any preamble, Xu Yi got straight to the point.

The cutthroat business tactics are for dealing with competitors. When dealing with manufacturers and supply chains with whom you need to cooperate deeply, the most efficient way is to be honest and open with each other, and to discuss all the needs and procurement details clearly.

Otherwise, even a slight delay in communication on the production side will result in a significant slowdown in the final time cost and production efficiency.

For both parties, low cooperation efficiency is a very unprofitable situation.

"Mr. Xu, how much production capacity do you need for your orders? Our current LFP lithium iron phosphate power batteries are used in commercial new energy buses and communication energy storage base stations."

Compared to domestic standards, the quality is excellent. If it meets the needs of conventional new energy vehicles on the market, we have ready-made BMS solutions. Of course, we can also accept customization for additional requirements..."

Upon hearing Xu Yi's request, the senior management of Weineng were immediately delighted.

In the past two years, the supply orders for new energy buses in the province have actually become saturated. As for large orders from outside the province, it is also difficult for them to obtain them. Otherwise, they would not have thought about developing in the area of ​​energy storage for communication base stations.

Judging from Xingchen's current performance, if its new car performs well, then...

There is a good chance that the two sides will become long-term partners.

"Mr. Liu, let's not rush into the details of battery supply. Besides discussing order cooperation, I actually have something more important to discuss here..." Xu Yi said with a smile.

These words startled Liu Chengyong.

Uh--

After all, they are battery manufacturers. When other companies come to discuss cooperation, they either talk about customized battery pack solutions or order prices and quantities.

What do you mean by something more important than this?
…“I want to invest!”

Xu Yi spoke directly.

This immediately startled everyone present!
"In the field of new energy vehicle manufacturing, we need to cultivate it deeply. The core of pure electric vehicles is the battery pack. Simply supplying and cooperating is not enough, so we need deeper cooperation."

Xu Yi's goal is to minimize the price and cost of the supply chain.

Because the microcar segment requires extreme cost reduction.

He also had to achieve a high level of quality while drastically reducing costs, and he also needed suppliers to cooperate with him to develop customized solutions.

It's clearly an "impossible triangle".

Unless he has the same dominant industry position and massive purchasing power as Apple.

Otherwise, it would be impossible for any supplier to cooperate with such an outrageous request!

Therefore, Xu Yi adopted the fastest and most effective method.

—The ability to utilize monetary resources.

The conventional business negotiation and order volume-based price negotiation method is ultimately too slow and makes it difficult to get suppliers to cooperate fully.

However, in the following years, someone figured out a highly effective solution that reduced costs, deeply integrated the supply chain, and was a win-win situation.

That means directly investing and becoming a major shareholder, jointly building a factory, and naturally being able to get battery pack orders at the lowest price through internal procurement.

Unable to negotiate a lower order price?

Is it difficult to coordinate customized production with the supply chain?

Is it impossible to fully control production capacity priorities and quality control?

It's simple... I'll just buy shares!
As the capital market turns cold, supply chain workers return to work...

(Ahem, I've gone off-topic)

……

"I heard that your company is planning to expand its factory capacity to 2GWh this year, which is 20 sets of power batteries per year, but there has been no plan to start construction. I suppose it is because of insufficient funds, and the order volume has not met the demand for building a new factory..."

I plan to invest 70 million yuan as equity, and then contribute a portion to jointly build a new battery factory with you. My requirements are that you provide the lowest-priced battery cells, and your company needs to cooperate with us in in-depth research and development of new battery solutions.

Xu Yi then stated his bargaining chips and demands.

This made Liu Chengyong, the CEO of Vaillant, and his entire senior management team uneasy, their faces showing surprise.

Hiss—!! (His mouth contorts wildly)

We thought a big client had arrived, but who could have imagined...

What the hell? A major shareholder has arrived?!

According to their financial report last year, their total revenue was less than 700 million yuan, with a net profit of only 7%. They also had the need to expand and build factories. The conditions offered by Xu Yi were already difficult for them to refuse.

No.

Who would be so kind as to offer 70 million as an investment without even discussing orders?
To be honest, I was a little stunned!

Is this the allure of money?

"Mr. Xu, are you... serious?!"

……

　Thank you to "翼羽飘仙" for the donation, and thank you to "淸颩お恋仴" for the donation.

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(End of this chapter)