On February 1, a week before the Spring Festival, AMC Vice President Gu Dehua came to Hong Kong.
"Sheng Chen, the mainland contacted me through a friend of mine more than a month ago. I also had several conversations with their people. Currently, they are very interested in introducing AMC models." Arriving at Galaxy Tower After Chen Zhiwen's office, Gu Dehua reported.
"That's good. Let's continue talking. Your professional team will be responsible for technology, cost, patents, and quality. We will strive for maximum benefits, but there is no need to go too extreme. At least we must ensure that it will not happen in the mainland. Losses, especially losses in foreign exchange." Chen Zhiwen said after listening.
In fact, this is not a surprise. It is expected. China is currently very interested in cooperating with overseas industrial giants. In fact, the current domestic industrial level is too far behind that of foreign countries. It is too difficult to catch up. Even if the mainland government provides money, We can only participate in investment in some of the most basic heavy industry infrastructure projects, such as steel, basic chemicals, petroleum refining, fertilizers, etc. There are thousands of other projects of various types, so we can only rely on the market.
Cars are not only the crown jewel of the industry, they can also drive the development of hundreds of industries and create employment for countless people. At the same time, because of domestic demand, if cars can be built domestically, a lot of foreign exchange will be saved. If they can also be exported, , that’s even more profitable.
It’s just that the current automobile giants, except Volkswagen, are disdainful of the mainland market. This gives AMC an opportunity. Although AMC is not as good as those giant companies, it has survived in the US market for decades, at least with technology. And the quality has also been recognized by the American market.
In shopping mall negotiations, we naturally have to strive for the profits and benefits we should strive for. However, the best way to cooperate is always a win-win situation. Only when both parties can make long-term profits is the basis for long-term cooperation. In this way, everyone's efficiency will be higher. On this basis, try to get more benefits for yourself.
The automobile giants in the 1980s, except Volkswagen, were all too greedy. They wanted to make all the domestic foreign exchange by relying on their own technology. In the end, none of the negotiations were successful. The success of Volkswagen later proved that as long as you take care of your partners , then you can get huge profits.
Of course, the current internal fighting within Volkswagen is also very fierce, and it is also swinging left and right whether to cooperate with the country or not.
"Okay, that's no problem. In fact, AMC has overcapacity. If we cooperate with domestic companies, some old production lines can also be sent to domestic production. It will be profitable to gain access to the mainland market." Gu Dehua said.
"Then you have negotiated and decided on which models to introduce?" Chen Zhiwen asked.
Gu Dehua replied: "The mainland team wants to introduce the Jeep CJ series, which is our current main model. This car has very good off-road capabilities and is the favorite of many off-road people. I probably know the domestic road conditions. Some are quite suitable.
However, they have a condition. Yanjing Automobile Factory also has a jeep called BJ212. They hope that we can provide technical help to improve the technology of this car. But this will usher in a problem. If we use it As the technology improves, the CJ series may not be sold well in China. "
"Can the whole company be merged and the BJ212 be included in the joint venture?" Chen Zhiwen asked.
"We have also discussed it, but they have not responded yet." Gu Dehua said.
"Well, I will go to Yanjing after the year. I will go to the relevant departments of Yanjing City to discuss these matters involving large investments." Chen Zhiwen nodded and said.
He didn't know much about technology, but he still had to take charge of investment matters. Tens of millions of dollars was nothing to him, but for AMC, it was a lot of money.
"One more thing. The mainland team has proposed to cooperate with our R&D department to develop new models in China. AMC has strong internal opposition to this matter. What do you think, boss?" Gu Dehua asked again.
From the perspective of my own company, I definitely cannot agree to this, but it’s hard to say what my boss’s attitude is.
"If they are developed together, will the patents for the developed models belong to the joint venture company?" Chen Zhiwen asked.
"Yes, that's the logic, so even the Americans at AMC don't agree." Gu Dehua said.
"You're right to disagree. There is basically no domestic R&D capability at present. In fact, in this cooperation, we must contribute mainly. Sharing patents would be a huge loss. Moreover, according to the mainland's joint venture method, they still hold the majority share." Chen Zhiwen nodded. Said: "Cooperation still requires cooperation, not another way. Let me think about it."
When foreign car companies are introduced into the country, in addition to increasing domestic industrial capabilities, what they want most is naturally various technologies and R&D capabilities. This is a norm and is normal for any country that wants to develop its industry.
There are also a lot of talents in the mainland, but many of them lack worldly knowledge. There is no problem in helping the country increase its research and development capabilities. It will also benefit itself in the process. However, the patent rights for the models it develops belong to the joint venture, and the mainland party holds the share. Taking the lead, that definitely won’t work.
Unless one day, the country has enough capabilities that we have to rely on, then we can talk about such cooperation.
"There are some other disputes, but they are not big. It will take some time to negotiate. I have recorded them all in this book. Boss, you can read it when you have time." After Gu Dehua finished speaking, he handed over a book. notebook.
"Okay, thank you for your hard work. Please pay more attention to this matter." Chen Zhiwen took the notebook and flipped through it. They were indeed minor problems, involving not much money, or some technical cooperation issues. , but as professional managers, they need to deal with these things, because they need to obtain the maximum benefit for their company. Chen Zhiwen, the boss, only needs to know these things and know the final results.
Moreover, it is only an intention to cooperate at present. A large number of real conflicts may only appear after the two parties decide to cooperate. You know, Volkswagen has been negotiating with the mainland for nearly 6 years. Even if the boss Chen Zhiwen promotes it, many issues still need to be solved. Negotiate well before cooperation, otherwise problems may arise after cooperation and the consequences will be endless.
"This is what I should do." Gu Dehua nodded and said.
"Have you bought the technology you want from Chrysler?" Chen Zhiwen closed his notebook and asked again. Things in the mainland are very important, but Gu Dehua's visit to Hong Kong this time is not just to report on mainland cooperation. What about AMC in the United States? He needs to know something about the situation around him.
He knew AMC's car sales and financial data for each quarter early on, and some internal matters were reported via fax. However, before the advent of Internet mailbox technology, the efficiency of these tasks was very low. Therefore it is best to have someone report specifically.
"We submitted a purchase application for 5,000 different patents to Chrysler, but they only agreed to 2,800. Most of them are general patents. A few are useful and can be of some help to us, especially the chassis." Gu Dehua said.
"That's okay. When it comes to engine and gearboxes, even if they sell them, they are unlikely to be very important. This is normal. If Chrysler hadn't been short of funds now, it would have been impossible to buy 50 patents." Chen Zhiwen said with a smile.
"This is true, if we want to develop, we still have to rely on ourselves." Gu Dehua said: "We have interviewed many teams in Europe involved in turbocharging technology, and some have agreed to work in the United States and join AMC. I want to continue In a few months, we can officially start research and development.”
"Okay, you will ensure the technical aspects, and I will handle the market." Chen Zhiwen nodded and said: "When you and Chrysler are almost done talking, I will take over Chrysler's 330 car sales stores in the Middle East and Southeast Asia. , I have also started to make plans in Malaysia, but it will take at least a few years to be effective."
"It's an unexpected surprise to be able to open up overseas markets. We have actually started cooperating with Costco. Our cars are on display at the door of 73 Costco stores. Just last month, we also sold through this channel. More than 2,000 vehicles, the data is quite surprising." Gu Dehua said with a smile. AMC's monthly sales are about 30,000 to 50,000, which is 5-8% more. It is already a very amazing improvement. This is still not enough for Costco. Without increasing publicity, AMC's sales will increase significantly if it acquires 330 sales stores and some overseas markets in the future.
As for cars, it's all about sales. The higher the sales volume, the more low costs can be spread, and then prices can be reduced and promoted to gain a larger market. The strong get stronger, this is the principle of this market.
"Let me tell you another good news. Costco will have large-scale expansion plans in the next few years, and it is possible to double the number of stores." Chen Zhiwen said with a smile. It’s so cool to master terminal sales channels and use them to promote your own products. In fact, this logic is a bit like the Internet and supermarkets, which is actually the flow of people. Unfortunately, Costco’s business model is a membership system. If it is like Wal-Mart, then The driving effect will be even more amazing.
"That couldn't be better." Gu Dehua said with a smile. When the boss of his company has a lot of resources in other areas and is not short of funds, the life of professional managers like them is very comfortable, but the disadvantage is I can no longer express my abilities.
"That's it for now. Lao Gu, you can spend a few days in Hong Kong and stay at the Hilton Hotel. That's my hotel. You can go back before the Chinese New Year and book your air tickets first." Chen Zhiwen said with a smile.
"Okay, thank you boss." Gu Dehua said politely.
(End of chapter)
