Reborn in 1982: I Became the Richest Man by Repairing Cars

Chapter 155 Another New Field, Unknown Yet Important

"It's possible, but it should be done based on acquiring scrapped vehicles."

"At least on the surface, there's no problem. Otherwise, we might fall into a trap."

Although the current market environment is somewhat chaotic, Jiang Hui still has quite a few factories in operation.

It is still necessary to mitigate risks appropriately.

"That's one way, but it will have some impact on the quantity."

Fan Weimin said with considerable regret.

"If we have enough refurbished parts, we can consider selling them to other repair shops."

"We'll sell to even small, privately owned repair shops if they offer us money."

Spare parts business is a good business in itself.

Jiang Hui had no intention of giving up.

To some extent, this can be considered a derivative of the auto parts industry.

Various spare parts suppliers are inquiring about the number of spare parts that their own factories can refurbish or produce, and the number of spare parts they can produce is increasing.

This means that the strength of its own auto parts system is improving.

Jiang Hui even planned to provide appropriate support to other families in the alley who had entrepreneurial aspirations.

This allows them to become a link in the massive supply chain.

There are many people who are envious and jealous, but very few dare to directly jump into the business and open a factory.

Jiang Hui didn't insist on anything.

"Director Jiang, do you have time to chat?"

While Jiang Hui was busy with things at his factory, Liang Hongyu came to visit.

"Minister Liang, now that you're here, I'll make time for you, no matter how busy I am."

Jiang Hui was surprised that Liang Hongyu would suddenly come to find him.

Normally, you can just make a phone call if anything happens.

He didn't need to make a special trip at all.

"Today is the day our factory signed a joint venture agreement with AMC Corporation of America."

Liang Hongyu wasn't in a very high mood, but after sitting down, he revealed an important piece of information to Jiang Hui.

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"So you've finally decided to partner with AMC?"

Jiang Hui naturally knew about the past and present of BAIC Jeep, as well as its subsequent development.

Many people believe that Shanghai Volkswagen was the first joint venture automobile company in China.

Actually, no, BAIC Jeep was the first joint venture to manufacture complete automobiles.

Unfortunately, BAIC Jeep's development has not been very good.

The American company AMC, which they collaborated with, no longer exists in later generations.

"Yes, after the joint venture, the BJ212 will also be produced in the new company, and the Cherokee SUV model will be introduced from AMC."

"Initially, it will likely be produced in CKD (Completely Knocked Down) form."

"But in this way, our BAIC manufacturing plant will essentially cease to exist."

After Liang Hongyu said that, Jiang Hui roughly understood why the other party was in such a low mood.

In the current environment, joint ventures are a good thing.

However, after the joint venture, the original factory essentially disappeared.

This is unacceptable to many people.

Especially after BAIC launched the new BJ212, things have actually been going quite well for them lately.

"That's a bit of a shame."

"However, the ministries strongly support promoting joint ventures in the automotive industry."

"I heard that the Shanghai Automotive Industry Association is also in talks with Volkswagen, and they will probably establish a joint venture in the future."

"It seems that the Guangzhou Automobile Manufacturing Plant is also in contact with French automobile companies."

Jiang Hui poured tea for Liang Hongyu while chatting casually.

Do you think this is a good thing or a bad thing?

Liang Hongyu had always admired Jiang Hui's discerning eye.

Despite the age difference, everyone got along very well.

"Well, how should I put it? It definitely has both advantages and disadvantages."

"But for better or for worse, this trend is unstoppable."

"There will definitely be more foreign-invested enterprises or joint ventures in the future, and we have to get used to this change."

Jiang Hui didn't want to discuss such a sensitive topic with Liang Hongyu, so he made up a few things and then tried to change the subject.

"By the way, your early Cherokees were probably manufactured in CKD (Completely Knocked Down) form, right?"

"Yes, initially we'll definitely only be able to produce CKD kits, otherwise the preparation time for parts could take several years."

Liang Hongyu's answer was exactly what Jiang Hui expected.

When Chinese car companies went overseas in later generations, they often used CKD (Completely Knocked Down) production in the early stages.

This is the fastest way to drive mass production of a vehicle model.

After all, it's just a matter of transporting the parts in bulk and then assembling them.

"CKD will waste a lot of foreign exchange, and ultimately we will have to promote the localization of parts."

"What are BAIC's thoughts on this?"

Jiang Hui steered the conversation in the direction he wanted.

In the capital city, if you want to supply parts to OEMs, you basically can't avoid BAIC.

In the next few years, BAIC Jeep will be the primary target.

"Yes, our factory originally had a large number of parts factories, and these factories will try to produce Cherokee parts domestically."

"Would your factory like to give it a try too?"

Liang Hongyu wasn't stupid; he guessed what was going on as soon as Jiang Hui asked the question.

"We definitely have the idea, but we certainly won't get the good parts."

"The parts are complex, and we may not be able to handle them in the short term."

Jiang Hui did not hide his thoughts or his current predicament.

"If you really want to participate in the Cherokee localization project, I do have an idea."

Upon hearing Liang Hongyu's words, Jiang Hui immediately sat up straight.

"Are you interested in starting a mold factory? Producing stamping dies or injection molds?"

Mold factories are places that ordinary people can't come into contact with.

The products they produce are not directly supplied to ordinary people.

However, many things in daily life are actually made using molds.

Items like washbasins and quilts are made using mold stamping or injection molding.

Almost all molded parts are manufactured using molds.

The various parts in a car are no exception.

Unless it's a small-scale, handcrafted project, the various sheet metal parts on a car body...

All the interior and exterior decorative parts are produced using molds.

This is actually a pretty good track.

This is also a relatively weak area in China at present.

"Minister Liang, your suggestion is excellent."

"Molds, fixtures, and other tooling are indeed a very good entry point, and there is also overlap with our equipment factory's business."

Jiang Hui was knowledgeable and immediately realized the benefits of setting up a mold factory.

It's not just the automotive industry that needs molds; many other sectors also have a demand for them.

If the Cherokee is to be produced domestically, the easiest parts to produce are the body sheet metal parts and the plastic parts inside and outside the vehicle.

To achieve the localization of these parts, it is definitely necessary to use molds for processing.

This creates a wealth of opportunities.

"Yes, it takes at least four sets of stamping dies to process one A-pillar."

"It's unlikely that there will be enough mold factories to produce that many molds in a short period of time."

17

"Especially for Cherokee parts, domestic manufacturers are not familiar with them."

"I think you guys should have more opportunities."

Seeing that Jiang Hui had taken his advice to heart, Liang Hongyu's enthusiasm also increased considerably.

"Yes, some of the equipment in our factory can also be used to process molds."

"With the addition of some appropriate equipment, most of the mold processing production should be able to be met."

"However, the supply of mold materials is a problem, and it is also a weakness in China."

Jiang Hui knew that even twenty years from now, the level of high-end mold steel in China would still lag behind the international advanced level.

Materials like SKD11 were imported in large quantities in the early 2000s.

Ordinary steel costs a few dollars per kilogram, but this kind of mold steel costs forty or fifty dollars, or even seventy or eighty dollars per kilogram.

The profit margin here is very high.

"There's nothing we can do about mold steel. We'll have to see if any steel mills like Ansteel or Shougang are taking any special actions."

"What we can do is very small."

Liang Hongyu spoke the truth.

After all, this is a problem that he can't solve.

"That's true. We'll just have to figure out if we can reheat the mold steel we bought to improve its performance."

The materials industry is fundamental to many fields.

Jiang Hui has no way to address this issue for the time being.

The two then chatted about the situation in the domestic automobile industry, and Jiang Hui gave him some pointers on things to be aware of in the joint venture.

Liang Hongyu's trip was worthwhile.

"Brother Yuanwu, I'm planning to set up a mold factory to produce all kinds of molds."

"It just so happens that we also need to use molds for the production of some of our own spare parts."

"Some home appliance factories and other manufacturers also have a need for molds."

Jiang Hui plans to hand over the mold factory business to Lin Yuanwu.

Once you learn this business, it's easy to set up your own factory.

Jiang Hui certainly doesn't want the people he's trained to become competitors in a few years.

"A mold factory?"

Lin Yuanwu thought for a moment, "It's not impossible, but the mold factory needs a lot of machine tools."

"The investment in various equipment will probably be quite substantial by then."

The first thing Lin Yuanwu thought of was what preparations he would need to make to establish such a new factory.

Mold processing mainly involves various machining processes.

Machining always requires the use of various machine tools.

Even second-hand machine tools aren't cheap.

"Money sitting in an account will lose its value; it's better to invest in various equipment and factories."

"I've been working on laser cutting equipment and setting up so many new factories lately, all to spend the money I've earned."

"Otherwise, it's not good to leave it in the bank and have people eyeing it every day."

For Jiang Hui, enough money is enough.

What's needed at this stage is more influence from other sources.

What's needed even more is to lay the foundation for future development.

Therefore, the problem Lin Yuanwu mentioned is not a problem at all.

"If we don't consider equipment investment, then setting up our own mold factory would definitely be a good thing."

"Whether it's producing molds for others or for ourselves, there's definitely demand."

This time, Lin Yuanwu didn't hesitate.

He could still tell whether things were good or bad.