Chapter 392 Coping
Lin Johnson knew that it was necessary to accelerate the layout of the domestic automobile industry. Next year, in 1984, many domestic manufacturers will introduce micro trucks such as Suzuki small vans and mini-bread from Japan, as well as compact cars such as Tianjin Xiali introduced from Japan's Dafa Automobile Company.
Faced with market competition from low-end cars and the large-scale entry of foreign capital, Lin Johnson's automobile industry system must occupy several major regions across the country as soon as possible, especially in a strategic position like North China that can radiate to Beijing, Tianjin and even the Central Plains, as well as in Jiangnan and South China, which are economically developed regions.
He knew that if he did not occupy these markets, the foreign car brands that came in would occupy these important areas. What's more, there were a large number of criminals who took risks for money in the coastal areas. These private cars entering the country through illegal channels have a huge scale, low price, and greatly impacted the domestic automobile market.
The newly emerging national automobile industry will soon become difficult under the joint suppression of domestic and foreign countries, under the central government's slogan of introducing technology and opening up the market.
But Johnson Lin had no intention of retreating. Only when the market is full of challenges can his company develop better. A unique position can make the company's turnover grow steadily, but it will also make the company lack competitiveness. Besides, Johnson Lin had no way out, and the country is his foundation!
Lin Johnson left the negotiator and flew to Italy. The new semester was about to start, and he had to report at least. His sister Lin Xiang and brother-in-law He Zhenguo also completed the procedures for going abroad together and arrived in Modena, Italy in early March. The two of them would go to the University of Modena to study economics, but they would first conduct an 8-month preparatory class to learn Italian and English. It just so happened that Lin Xiang was pregnant and she could give birth in Italy, without delaying her studies of foreign languages while taking maternity leave.
In order to take care of her sister's life, Lin Qiangsheng also found a way to hire an Israeli female bodyguard. Usually, this bodyguard follows Lin Xiang to protect her safety and take care of her life. The female bodyguard can also teach Lin Xiang to learn English. Of course, hiring this all-round bodyguard is not cheap.
Israeli bodyguards are the most famous in the world because this country has been in the shadow of terrorist attacks for many years. Therefore, such an environment has created many world-renowned security companies. Their bodyguards not only provide security protection for their country's politicians but also conduct business to the world. Israeli bodyguards are famous for their duty and responsible, and provide very professional security services.
The negotiators who stayed in Xing De completed the signing of the contract within a month and a half, and then they went to Yangcheng in South China for inspection.
I have to say that there is a foreign face that is indeed more valued. Lin Qiangsheng found that it is better not to come forward in person in this kind of negotiation and cooperation.
The Yangcheng government was overjoyed by the arrival of these foreign inspectors. The Yangcheng Automobile Manufacturing Plant was thinking of finding a world auto manufacturer to cooperate, but unexpectedly, these Americans came to their door.
After negotiations, Yangcheng Automobile Factory reached a cooperation agreement with the negotiators. The two parties each own 50% of the shares to form an automobile joint venture. Lin Johnson invested a production line with an annual output of 30,000 cars, mainly producing three cars, Camry, Reiz Markx and Yaris. The engine system and transmission assembly are provided by the power factory in Bincheng Industrial New District.
The factory buildings of Yangcheng Automobile Factory are enough to use, and there is no need to allocate additional land. A production line will be implemented within three months. The first batch of 1,000 ckd pieces stipulated in the contract will be in place. GAC's goal is to assemble and produce 30,000 cars and achieve a domestic production rate of more than 60%!
The reason why Lin Qiang-Chengsheng left was indeed to improve work efficiency. Otherwise, he would have been unable to bear the dinner for these local officials who were invited by two days, one small, one small, one small, one small, one large, one large, and one large. These people in China were just finding an excuse to eat and drink with public funds, but Lin Qiang-Cheng-Cheng had to accompany them to suffer, so he did not have the obligation to be their shield.
But these Americans are different. I’m sorry for the domestic rules. I don’t understand them!
Saturn Automobile Company in the United States is completely controlled by Lin Johnson and registered in Los Angeles, California. The agreements reached with Xing De and Yangcheng Automobile Factory are 50% of the shares and a 30-year cooperation contract.
The Xingde government allocated 16 square kilometers of land in Liu Village, southeast of the city to the Xingde Automobile Factory. The United States will invest US$30 million to build a manufacturer with an annual output of 30,000 cars. The powertrain is provided by Dongxing Company in Bincheng, and other parts are gradually being produced locally.
The joint venture adopts two globally registered trademarks, "Ya Auto" and "Dayu", to produce two models, Yueda Qianlima and Dayu Blue Sky.
In order to cope with the competitive situation of foreign automobile brands entering the country, Lin Johnson-John decided to launch two compact cars and implement domestic production of Camry, Reich and Yalis. He quickly enriched the automobile product line to realize the car sea strategy of extending the entire system of the group's model!
To this end, Bincheng's Dongxing Power Company has brought out a compact and small new engine to assist the two cars. The cylinder length of the new engine is 362mm, with the center of the crankshaft to the cylinder block.
This new engine is a representative product developed and researched by the designers of Dongxing Automobile Research Institute for a long time. It was developed by this research institution three years after its establishment!
It is much smaller in size compared to the same displacement engines produced by other companies in the world, and uses new high-strength cast iron materials to enhance performance and reduce volume weight. Its advantage is that it has a smaller size, so it is easy to arrange in the car engine compartment.
As a result, the weight of the whole vehicle is reduced, which greatly improves the acceleration and passing of the car. The maximum power of the engine is 75k. Due to the small size and light weight of the engine, the power emitted per unit weight is high. The degree of strengthening is high and the fuel consumption is low. Compared with other famous automobile manufacturers in the world, this engine has certain energy-saving and performance advantages.
The engines equipped with Qianlima and Lantian cars have two displacements: 16l and 20l, and even the model pricing has been formulated in advance.
The price of Jetta models in the domestic automobile market is between 90,000 and 120,000 yuan. Since this car was sold well after it was launched, its price has continued to rise, and it has been 18 times since the beginning of RMB 5,000!
Moreover, in recent years, domestic price levels have experienced a large-scale price increase. Although it is not as difficult to find a Jetta as two years ago, if you want to buy this car, you have to queue up at the factory gate.
The price of Accord sedan in the market has reached more than 180,000 yuan, and the luxury gear has even exceeded 210,000 yuan. This car has almost occupied the domestic mid-to-high-end automobile market.
The two compact sedans, Qianlima and Lantian, especially Qianlima, are priced at 350,000 yuan, which is very close to the current Changhe Suzuki on the market. This van began assembly and production in 1982. Because its low price of 280,000 yuan is very popular in the market, Qianlima models are to compete with it, and they will face Xiali, which will enter the domestic market next year with the Blue Sky models!
In early March, Binqi began to debug the production line and began to assemble ckd pieces from abroad and familiar with the manufacturing process of Passat B5. This model is also officially called Passat.
Because German Volkswagen did not register Chinese trademarks, Lin Johnson intends to register. Of course, the Germans have not yet begun to pay attention to the issue of Chinese trademarks. It is too late to find out!
FAW provided the structural diagram of the joint venture car factory to industrial planning engineers from the United States. Although the new company was part of the factory separated from the truck factory, the scale of the joint venture factory cannot be underestimated. After all, FAW is a super-large enterprise with 100,000 employees. Although the separation of some factory factories is nothing to FAW, the area of the new factory is actually huge beyond imagination!
The factories are all ready-made, and planners only need to purchase production lines according to the structure of the factory. The transportation production line will take one and a half months. The FAW joint venture requires the production line to be assembled within 2 months and the cars will be produced in the third month. It is expected that the first batch of 100 Audi cars will be assembled from June to July. It is best to reach mass production scale before October 1 to present a gift for the National Day!
Then they planned to assemble 12,000 ckd cars within two years, and gradually realize the localization of parts and the entire power system within 3 to 4 years.
FAW is ambitious. They set a long-term goal, intending to achieve the domesticization rate of vehicle production in the automotive industry by the end of 1987. The reason why FAW and Lin Johnson signed a contract so happily is that Lin Johnson expressed their support for their domesticization action. The conditions he gave were indeed much better than other foreign car companies, and he also supported the development of domestic automobile industry. The negotiations between the two sides were relatively pleasant, not as harsh as the Germans and did not blindly emphasize interests. This attitude is very welcome in China!
Of course, FAW is really anxious. Seeing that Binqi and Harbin Automobile have developed in the field of mid-to-high-end cars, FAW's Jiefang trucks have fallen into unsalable sales. With the mass production of Erqi Dongfeng trucks, FAW's Jiefang old trucks have become worse than before!
There are more than 10,000 trucks that cannot be sold are parked in the suburbs of Changchun, while Binqi and Harbin Auto, which are across the province, are produced and sold one by one, making a lot of profits. The factory leaders are not only commended one after another, but also have a prosperous life for the workers. Of course, FAW can see clearly that the two places are so close!
Although FAW's truck improvement and development are also in a difficult situation, the progress of new trucks is slow when the financial resources of unsold spot products are limited. FAW's factory leaders and middle-level cadres all think that the domestic car market is very lively now, and if FAW also produces cars, there will definitely be a big market. If the sales are good, the financial situation of the factory can be improved. If the company has money, it will also have financial resources to develop new trucks and make new equipment. FAW regards the production of cars as a shortcut to make money quickly! (To be continued.)
...
Chapter completed!