Independent brand car companies are the focus of Nanshan Group's domestic strategy.
But this does not mean that Nanshan Group does not pay attention to international automobile giants.
In fact, Nanshan Group's current largest customers are Ford Motor and General Motors, and they are the main contributors to Nanshan's profits.
Although Volkswagen's contribution still lags behind Ford and GM, its sales are actually higher than most domestic independent brands.
After all, they supply products globally, and they can easily contribute a gearbox worth hundreds of thousands of units.
Besides, in addition to the gearbox, there are also other parts such as wheel bearings and nut plates.
Therefore, Nanshan Group attaches great importance to the trends of Volkswagen.
After Zeng Tingting hung up Xu Liang's call, she immediately went to report to Cao Yang.
"According to your statement, Volkswagen hates us?"
Cao Yang was not particularly surprised.
Although this ending was not what he wanted to see, it was not that he was not mentally prepared at all.
The most important thing is that although Volkswagen has made this move, it is hard to say how it will be implemented in the end.
Just like nut plates, after leaving Nanshan Group, can they find cheaper manufacturers?
At least you can't find it in Germany.
Domestically, Nanshan Group currently has no rivals.
Similar situations exist for other wheel hub bearings and the like.
Therefore, although this action will definitely lead to a decline in Nanshan Group's turnover at Volkswagen, the decline is not necessarily large.
"In addition to Spring City Public, I also inquired with Magic City Public, and a similar situation happened."
"This shows that Volkswagen is taking action, not Spring City Automobile Group or Modu Automobile Group."
"Mr. Cao, I don't think we can just sit back and wait for death on this matter. We have to think of some way."
Zeng Tingting is not someone who compromises easily.
If there are difficulties, we must face them head on.
"Let's see their actions first."
"If they want to switch our parts to other manufacturers for mass-produced models, then we have to think about whether there are any checks and balances."
"You should keep a close eye on the orders in each month to see if there is any sudden drop."
"If there is no movement on the mass-produced models, it means they will make moves on the new models."
"When the time comes to quote, we can appropriately lower the price based on the previous price."
“As long as there is still money to be made, these projects can be grabbed.”
"When the time comes, other manufacturers won't be able to do it even if they use our prices to review."
"In this way, there will probably be different voices within Modu Volkswagen and Chuncheng Volkswagen regarding the de-Nanshanization approach."
Cao Yang quickly gave some directional suggestions.
Auto parts are different from general material purchases. You can't cut off a certain supplier today and it will be realized tomorrow.
Not to mention that changes in parts manufacturers involve some technical verification and internal company processes. Whether such an extreme change will cause supply issues is worthy of careful consideration by the OEM.
"Well, I will also keep in touch with the purchasing department of North and South Volkswagen to see if there is any new news from them."
Zeng Tingting saw that Cao Yang was not panicked at all, and she felt a little more confident.
Don't put this matter in her hands, just follow it up in time.
…
"President, Volkswagen's purchasing department took the initiative to contact us and asked us to re-quote the price of the 6AT automatic transmission. It seems that they will give us another chance."
Aisin Seiki, Sales Department Manager Okumura went to report the latest news to President Yoshikawa Hisato in a very excited mood.
In the past two years, due to the emergence of Nanshan gearboxes, Aisin's gearboxes have lost a large number of orders from various automobile giants around the world.
Today, except for several Japanese car companies such as Toyota, Subaru, Suzuki, and Isuzu, which are still using a large number of Aisin transmissions, only a few other OEMs still use Aisin products for some models.
This alone costs Aisin at least several hundred million in profits every year.
It can be said that when it comes to who hates Nanshan gearboxes the most in this world, Aisin dares to say the second, and absolutely no one dares to say the first.
Neither can ZF.
“Isn’t Volkswagen’s gearbox purchased partly from ZF, partly from Nanshan, and partly produced by itself?”
"They have almost kicked us out of their supply system in the past two years, right?"
Hisato Yoshikawa naturally knows the situation of his major customers quite well.
In particular, Volkswagen's development momentum in the past two years is also good.
"Yes, because of this, this inquiry is even more different."
"I specifically asked someone to inquire about it, and I heard that it was Nanshan Gearbox's own fault and it offended Volkswagen."
As the head of the sales department at Aisin's headquarters, Okumura is already considered a high-ranking executive in the company.
Naturally, things will not be so unstable.
So before reporting to Hisato Yoshikawa, he had actually inquired about the general situation.
"How could Nanshan Gearbox do anything to offend Volkswagen?"
"Isn't this a bit abnormal?"
No matter how powerful a supplier is, under normal circumstances, it will not easily offend customers.
Even the sales staff of international auto parts giants such as Bosch, Continental and Denso adhere to this spirit when dealing with various customers.
"It's not that the people at Nanshan Transmission want to offend Volkswagen, but that Nanshan Group now wants to produce both auto parts and cars."
"A company called Xingchen Automobile was established under its umbrella, and it is actually preparing to create a high-end brand belonging to China."
"The Olympics will be held in the imperial capital in a few years, and Xingchen Motors has set its sights on becoming a sponsor for the Olympics."
"Volkswagen is bound to win, and their partners in China are also very influential."
"But in the end, for some unknown reason, part of this sponsor's identity was taken away by Xingchen Automobile."
"As a result, Volkswagen is naturally very annoyed."
"They took the initiative to inquire about 6AT from us, and they were obviously considering letting us replace Nanshan's 6AT."
"So I plan to give Volkswagen our most competitive price this time."
"We can even remove some of the development fees and apportionment fees for factory equipment, and strive to reach the same level as Nanshan Transmission."
Okumura naturally knows that after Volkswagen does this, if Aisin's price is still much more expensive than Nanshan, he won't have much chance.
So he still attaches great importance to this offer.
He wanted to snatch back the order that once belonged to him from Nanshan.
"If we follow your approach, we won't actually make much money. At most, we won't lose any money."
Hisato Yoshikawa was a little confused.
As the president of Aisin, he needs to consider the company's profits.
Otherwise, there is no way to explain to shareholders.
"As long as we don't lose money and can get our production plants up and running, we are actually making money."
"The most important thing is that we have to make Volkswagen determined to replace the Nanshan gearbox, so that there will be more cooperation opportunities in the future."
After Okumura said this, Yoshikawa no longer struggled.
This is indeed the truth.
…
"Old Liu, I just got some news that I think may be of some use to you."
Zhang Sheng from Ji'er Machine Tool Factory and Liu Yanjie, the purchasing department director of Changan Automobile, are old acquaintances.
Yesterday, when Zhang Sheng went to Spring City Volkswagen to discuss bidding for the stamping production line of the new factory, he overheard a piece of news.
After asking around a bit, I found out that the news seemed to be true.
He immediately wondered if there was something he could do.
Although Nanshan Equipment and Ji'er Machine Tool Factory are competitors to a certain extent, they are more often partners.
Now that Nanshan Group is developing so well, Zhang Sheng also wants to have a good relationship with the other party.
"Old Zhang, have you heard anything good about this?"
Liu Yanjie replied weakly.
For Changan Automobile, life in 2005 was actually not that easy.
They are far less prestigious than Great Wall Motors, Geely, Chery, and BYD.
As the booth organizer of the purchasing department, Liu Yanjie can be considered a middle-level and senior manager of the company, so naturally he can feel a little pressure.
"When I had a drink with you last time, weren't you envious of the development speed of Great Wall and BYD?"
"At that time, you were still thinking about how to form a closer cooperative relationship with Nanshan Group and see if you could get some benefit."
"It would be best if Mr. Cao is willing to give you some suggestions."
"There is an opportunity in front of you now, it depends on whether you are interested or not."
Zhang Sheng understands Liu Yanjie's current situation very well.
So it’s not too roundabout.
"what chance?"
Liu Yanjie straightened his body and his interest suddenly arose, "I still have a bottle of 1982 Moutai at home. If what you said is useful, I will drink two handfuls of it next time."
"I don't know if it will be useful, but I think this is definitely an opportunity."
"I guess sooner or later you will hear some rumors about this matter, but expressing your position as early as possible can gain people's favor."
When Zhang Sheng said this, Liu Yanjie was a little confused.
He could guess that what Zhang Sheng was talking about must have something to do with Nanshan Group.
But Nanshan Group is living a prosperous life now, right?
Why does Zhang Sheng's tone sound like he has something hidden?
"Lao Zhang, what is our relationship?"
"You don't have to show off."
"Hurry up and tell me directly, I'm going to die of panic."
Liu Yanjie was really a little anxious.
"Well, Xingchen Motors and Volkswagen have become sponsors of the 2008 Olympic Games. You should know this, right?"
Zhang Sheng did not continue to sell things.
Liu Yanjie was obviously a little anxious.
"This news has been circulating on the Internet for several days, so of course I know about it."
"But what does this matter have to do with what you said?"
Liu Yanjie didn't think too much and didn't know what the story behind these two things was.
"Normally, there will only be one sponsor for each category for the Olympic Games."
"Like beverages, after there is Pepsi-Cola, there will be no Coca-Cola."
"Like clothing, with Adidas, there is nothing like Nike."
"Similarly, for cars, with Volkswagen, there is usually nothing to do with other brands of car companies."
"But this time Xingchen Motors took a piece of fat out of Volkswagen's mouth."
"This not only really harms Volkswagen's interests, but also makes the other party lose face."
"In this case, do you think Volkswagen will make no movement at all?"
When Zhang Sheng said this, Liu Yanjie understood.
But he still didn't understand what this matter had to do with the development of Changan Automobile.
"I heard that both Modu Volkswagen and Spring City Volkswagen have issued internal instructions to stop using parts from Nanshan Group as much as possible in the future."
"Not only Volkswagen's domestic joint ventures have taken this action, but it is said that Volkswagen's headquarters is also taking some targeted actions."
"This means that Nanshan Group is likely to lose such an important customer as Volkswagen."
"Although Volkswagen is not Nanshan Group's largest customer, it is still a very important customer."
"This change will definitely have some impact on the development of Nanshan Group."
"If Changan Automobile fully switches to Nanshan Group at this time and uses their parts on a large scale, it will definitely get strong support from Nanshan Group."
"As far as I know, Mr. Cao from Nanshan helped make many suggestions for the H6 of Great Wall Motors."
"Even some of Great Wall Motor's development strategies include Mr. Cao's suggestions."
"Similarly, it goes without saying that the situation of BYD Automobile is even worse. You must have heard some news."
"This is the car company that has the closest cooperation with Nanshan Group, and you can see the results."
"From what I know so far, domestic independent brand car companies, as long as they cooperate closely with Nanshan, will develop very well in the past two years."
"A few months ago, if Changan Automobile expressed its intention to fully cooperate with Nanshan Group, people's reaction would probably be like that."
"But now, the situation is different. The other party will definitely take a high look at you."
Zhang Sheng spoke so clearly that Liu Yanjie naturally understood.
"Before, we used parts from some within the system or related manufacturers, and we did not dare to use Nanshan parts to a large extent."
"However, judging from various parameters, the suppliers we use now are indeed not comparable to Nanshan in many places."
"I will report to the general manager in charge of purchasing right away, and then see if we can get the company's consent to cooperate with Nanshan Group in all aspects."
"Then we will also see if we can ask Mr. Cao to take a pulse on our Changan Automobile and help us make some suggestions."
There are so many successful role models out there, and Liu Yanjie is very motivated this time.
After talking to Zhang Sheng on the phone, he arranged for someone to quickly compile a report, and then went to report to the company leaders in person.
Seeing that their peers are living a happy life, the leaders of Changan Automobile naturally hope to keep up with the pace of development.
Otherwise, simply relying on Changan Ford to make money will definitely not be a long-term solution.
In this way, Liu Yanjie's proposal was naturally approved by the company's deputy general manager Zhang Lin and general manager Yi Jia.
Soon, a group of them flew directly to Yangcheng and had a direct meeting with Cao Yang.
"Mr. Yi, Changan Automobile is firmly the king of mini cars this year. The sales volume this year should be much higher than last year, right?"
Although more than ten years later, Changan Automobile's sedan and SUV businesses have developed very well, but in 2005, all Changan Automobile could offer were mini-cars such as vans.
Even in terms of sales, Changan Automobile's total sales are higher than those of Chery, Geely, Great Wall and BYD.
But as a mini car, its presence is still very weak.
When people talk about China's independent automobile brands, car companies such as Chery and Geely are definitely mentioned more often than Changan Automobile.
"Although the sales volume of mini-cars is good, they hardly make any money."
"It's embarrassing to say that the sales volume of the entire Changan Automobile Group has increased this year, but the revenue has dropped significantly."
"I am also very anxious about this situation."
Since Yi Jia is planning to come over to discuss cooperation with Nanshan Group, she will naturally not hide it.
Otherwise, you will definitely not get any good advice.
"I heard that Great Wall Motor's revenue this year is the best among domestic independent brand car companies. The main reason is that the sales of their H6 model are very hot."
"The sales volume of an H6 is three to four times that of one of our mini-cars, and the profit gap is even wider."
"Mr. Cao, I heard that Great Wall Motors is transforming into the SUV market. Was it you who suggested it?"
Deputy General Manager Zhang Lin also chimed in.
As an automobile group under the Bingzhuang Group, Changan Automobile was established with the purpose of making money.
Then there is the development and expansion of China's automobile industry.
Nowadays, car sales are rising, but profits are falling.
Even if Changan Ford and Changan Suzuki were not able to contribute some profits, mini-cars alone would not make any money at all.
This situation is definitely not what they want to see.
It’s no wonder that Liu Yanjie, the director of the Procurement Department, is under great pressure.
Sales are good, but no money is made.
Isn't this the fault of the purchasing department?
But in fact, this kind of thing cannot be viewed simply like this.
"I did have a chat with Mr. Wang about his views on the future development of the automobile industry, and also gave them some suggestions."
"But in the end, Great Wall Motor's development strategy is still their own internal decision."
At this time, Cao Yang naturally had to be humble.
Otherwise, if word gets out, people at Great Wall Motors will probably be unhappy.
"We at Changan Automobile now basically only have mini-car business, and there is almost no performance in other sedan and SUV businesses."
"In this case, does Mr. Cao have any suggestions?"
This time Yi Jia really wanted to learn from him.
So the posture is very low.
Since he had previously mentioned how to strengthen cooperation between the two parties in the parts business, Cao Yang was naturally very active and willing to give Changan Automobile some ideas.
After all, although Changan Automobile's current sales are not bad, they are almost all mini cars.
In this case, if they want to develop cars and SUVs, they will have many interactions with Nanshan Group.
Can the engine be sold?
Is the gearbox for sale?
Can the ESP, which is completely unused on minicars, also be sold?
Anyway, Nanshan Group has no plans to make cars with a price of more than 100,000 yuan, so it is very meaningful to support some OEMs that are willing to use Nanshan Group's parts in large quantities.
"Most of the current passenger car market, whether in China or around the world, is dominated by sedans."
"Even in many places in China, a car with a head and a butt is considered a real car."
"But I think the trend is actually changing."
Cao Yang has said similar things to people from Great Wall Motors and other car companies before.
Naturally, many reasons can be found casually during this exchange with Changan Automobile.
"There are several medium-sized SUVs that are hot-selling on the market now. I think they have great potential for development."
"Changan Automobile wants to shift from a situation of mainly mini-cars to a situation where multiple models go hand in hand."
"I think SUV is the best development direction."
"Of course, if you feel that the competition among medium-sized SUVs is already fierce, then you can start directly with medium- and large-sized SUVs."
"Build a 7-seater medium and large SUV. After success, we will launch medium-sized SUVs and small SUVs. There are three SUVs. It is estimated that they can contribute hundreds of thousands, or even 200,000 to 300,000 sales to Changan Automobile a year."
"Of course, it's not impossible to do the car business, but I don't think there will be too many car models."
"First, let's build a mid-level sedan, something the size of a Mondeo, but make the price less than 100,000, or even start at 60,000 to 70,000 for the entry version."
"Then the sedan might also become popular."
"As long as these models are successful, Changan Automobile will have many development paths in the future."
"Basically, this is enough to keep you busy for the next three years."
While Cao Yang was talking, Yi Jia was writing down notes in his notebook, obviously listening to them.
"Mr. Cao, is the market for SUVs really that big?"
Zhang Lin next to him did not mean to question Cao Yang, but his strategy of clearly focusing on SUVs was a bit strange in 2005.
"Mr. Yi, Mr. Zhang, SUVs have several advantages for consumers and OEMs that cars cannot match."
"First of all, SUVs have better visibility and are not easily blocked by vehicles in front."
"Then the road conditions in China are quite complicated. Even in big cities, there are some bumpy roads."
"In this case, SUVs have obvious advantages over cars."
"Furthermore, SUV models of the same level can be sold more expensive than cars, which is very important for domestic independent brand car companies."
"As we all know, independent brands now mainly rely on price advantages to win, otherwise consumers will all buy similar-sized products from joint venture car companies."
"But to win by price means that the cost of various parts must be very low, and the profit margins are very limited."
"Compared with a sedan, the cost increase for an SUV of the same level is very limited."
"But the price can be higher by ten thousand or twenty thousand, which leaves enough profit margin for car companies."
“Only when an enterprise can continue to make money will it have a future.”
When Cao Yang said this, Yi Jia and Zhang Lin couldn't help but nodded.
Changan Automobile's current dilemma is that it doesn't make much money.
Especially the self-owned brand business, which looks very glamorous, is actually only known to them.
"Mr. Cao, if these new models of ours use a large number of parts from Nanshan Group, can we give you a special discount?"
(End of chapter)
