On March 15, Peugeot in Huizhou held an unveiling ceremony on Huangpu Avenue East Road, Yuexiu District. The automobile joint venture is a joint venture between Huangzhou Automobile Manufacturing Plant, Peugeot Automobile Company, China International Trust and Investment Company, International Finance Company and National Bank of Paris, France. The total investment is 850 million francs (at that time it is almost equivalent to 1 billion yuan), and the registered capital is 325 million francs. They account for 46%, 20%, 22%, 8%, and 4% respectively.

Hui Auto has allocated more than 2,000 workers to this company and selected many experienced players on the Camry production line. Lin Johnson refused at the beginning. The reduction of skilled workers will definitely reduce the quality of the product, but Hui Auto does not care about so many. They think it is okay. Most of the employees are locals. Hui Auto uses them to distribute them, but they can't keep them.

GAC Peugeot is jointly managed by Huangzhou Automobile Manufacturing Factory and French Peugeot Automobile Company. According to the contract, the total investment supply of the French is divided into three phases. The ultimate goal is to create a manufacturer with an annual output of 150,000 cars.

But in fact, Lin Johnson knew that GAC Peugeot eventually went bankrupt in 1997 and produced a total of 100,000 cars. When Guangbiao became popular in the early 1990s, the annual output reached 20,000, and the French did not invest so much cash.

As far as Lin Johnson knows, they only invested production equipment equivalent to 100 million yuan in the first and second phases, and then they were unwilling to expand their cash investment, so the contract was also in a formal way.

In 1984, Gallevi, who was known for "managing with hatred", just became the president of Peugeot Citroen Group.

When he first took office, Galevi wanted to use a strong attack style to find a profitable project for PSA, who is still in financial difficulties.

At this time, a Hong Kong businessman, He Zidong, appeared. Perhaps his real identity was also a red descendant, and he helped PSA get a good match. So in this way, Galevi made PSA find a project in Guangzhou, China that could make a fortune.

Guangzhou is the earliest big city for the opening up of New China. After the founding of the People's Republic of China, it became China's only window to the world. Over the past few decades, the light industry here has developed rapidly. After the reform and opening up, private enterprises and foreign-funded joint ventures have grown up like mushrooms after a rain.

In the mid-1980s, Guangdong's economy was already far ahead of the country, but the economy here mainly relied on light industries such as light textiles, food, and small household appliances. Moreover, it is mainly based on Hong Kong capital, and small private enterprises cannot form a climate.

At this time, there were more than 200 automobile production and assembly plants in the province, but most of these factories were not large and had backward technical strength. They mainly produced buses, modified cars, light trucks and other models, with very low annual output. On average, each enterprise only had more than 100 production vehicles, and the benefits were quite low. The output value of the automobile industry only accounted for 1.2% of Guangdong's industrial output value!

At that time, a leader from the Ministry of Machinery came to Guangdong to inspect electromechanical machinery and electricity and said a meaningful saying: Guangzhou has stars in the sky, but there is no moon.

For Guangzhou, which has zero experience in manufacturing cars, it seems like an out of reach to truly begin to draw the blueprint of the car industry!

But in this context, Guangzhou's car dream became a reality in the first half of 1984, and a miracle happened!

Lin Johnson invested 100 million yuan in funds and production lines, and jointly established a car manufacturing factory with Guangzhou Automobile Manufacturing Plant with an annual output of 30,000 cars. He was the first to successfully create an automobile cooperation project in Guangzhou!

The municipal party committee and government of Guangzhou, including the province, were very happy and encouraged. Moreover, the completion of the car factory was also warmly supported by the citizens. The establishment of the automobile joint venture was a shot of a heart-warming shot for Guangzhou's industry, giving it the opportunity to no longer rely on the support of light industry!

Half a year later, after the car manufacturer was fully prepared, the Camry model was the first to be put into production and offline. It was warmly welcomed by all walks of life in Guangdong. After the first car was removed, this model almost immediately reached a shortage of supply, and due to insufficient production capacity, the order volume has been ranked one year later. If you want to buy a car, you have to go through the back door to find connections and hold the superior's note!

Then the sedan factory continued to work harder and Yalis went offline one after another. The former was also very popular in the market. Although it was a bit higher than the Camry, it did not block enthusiastic buyers. The Yalis van, with its cheap price, has a good market response, but overall, the latter two are no longer as dazzling as the Camry appeared on the market. Their light was almost blocked by the Camry models!

At this time, the automobile market also responded to some situations. People were looking forward to Camry's ability to increase production and quickly solve the problem of insufficient production capacity.

For this reason, some critics also wrote an article pointing out that GAC launched three models at the same time without making a good model. It was obvious that it had not yet mastered the assembly technology, and the workers had not yet grown up and started running without learning to walk. Don’t break the corn by blind people, and in the end nothing was kept!

GAC was also very wronged. They had no choice but to do it when faced with accusations. Due to lack of joint venture experience, the signed agreement stipulated that within the first 10 years, the company must be handed over to Dongxing Group for management. Lin Qiangsheng also sent a large number of Dongxing cadres to control the joint venture. The board of directors stipulated that three directors were quotas, and Lin Qiangsheng sent two people, and the remaining production department management department had more than 100 people. Dongxing really controlled the whole and the bottom of this joint venture automobile company!

In fact, Lin Qiangsheng had no choice. Huang Dong's manufacturing industry is weak, so he doesn't want to have a situation like Peugeot. The quality is not improved, which eventually leads to the failure of the joint venture car company!

In addition, he also had the idea of ​​using models for experiments to see how different models were accepted in the Pearl River Delta region. It turned out that his ideas did not have any impact on the company. Instead, they trained the production capacity of multiple vehicles in the factory.

Moreover, GAC has nothing to say about model production. In the past ten years, Dongxing has been responsible for managing the operation of the company, and GAC can only take the lead. So this situation has occurred, but with the cancellation of the model, Camry's production may be further improved.

It was also at this time that French Peugeot came to Huangzhou through the introduction of a Hong Kong businessman. At first, the municipal government and GAC invited Lin Qiang to participate in the shares. They hoped that the powerful Dongxing Group would also participate. The French praised Haikou as a bit big, and Guangzhou felt that it could not afford so much money with its own ability, but unexpectedly, Lin Qiangzhe simply refused!

He knew that the project would definitely fail in the end and would lose a lot of money, because the French were not serious about the project from beginning to end, and there was a problem with their attitude. Peugeot wanted to make a fortune, and had no long-term plans to help Guangdong establish an automobile production system, and he had never even thought about it.

According to the relevant regulations issued in 1994, the domestic production rate of parts of joint venture automobile companies must reach more than 40%. At that time, Guangzhou Peugeot was far from meeting this requirement. French Peugeot blindly exported auto parts to China, and simply ignored domestic requirements. As a result, it certainly enjoyed high tariffs, resulting in Peugeot's price remained high. The French were even stupid enough to not want to reduce prices even when there was so much inventory!

By the end of 1997, due to the old models, many problems and high prices, Guangzhou Peugeot was under pressure to stock more than 8,000 vehicles. The French were still ruthlessly importing 30,000 sets of auto parts into the country. The huge inventory pressure had to let the general manager of Guangbiao go to the nearby airport to rent a venue to park cars, because the parking lot on the east side of Huangpu Avenue could no longer be placed, and even the parked Peugeot 505 was filled on both sides of the road!

In 1997, Guangzhou Peugeot suffered a loss of 2.96 billion yuan and was forced to declare bankruptcy. French Peugeot temporarily withdrew from the domestic automobile market, and Guangbiao became the first joint venture automobile brand to go bankrupt in China!

If French romance is acceptable to people, then French arrogance will definitely not be able to try it!

Since the French are just playing tricks on this investment, Lin Johnson is certainly unwilling to accompany them to have fun, so why bother to ask for trouble?

However, the municipal government and GAC are very ambitious. Although Lin Johnson did not join, they found the Rong family's international trust company and another international financial company to help.

With the successful start of the Camry factory and the popularity of the automobile market, the ambitions of the municipal government and GAC have also expanded a lot. Perhaps they had been very ambitious before. Both sides hope to establish a complete automobile supporting production system in the region, as well as the processing and design capabilities of the entire vehicle, so that the automobile industry can become the leader to drive the development and progress of the industrial economy in the province!

But despite this, the establishment of the new automobile branch was still invited to attend the groundbreaking ceremony. Both aspects are important partners of GAC, and the municipal government hopes that the two sides will not have any conflicts in their future development.

The new factory is also set up on the east road of Huangpu Avenue. There are two automobile manufacturers here, and next to each other. This news immediately became a topic of discussion among citizens of Huizhou. With the publicity of domestic newspapers, the news was even no less popular than the central government's decision to open up coastal economic open zones in the Yangtze River Delta, Pearl River Delta and Xiamen-Zhangzhou-Quanzhou Delta!

This is also the first case in China. A car company has two joint ventures at the same time. This has also created a successful joint venture model for the country and surprised colleagues in the automotive industry. It turns out that a company can have joint ventures with two car dealers at the same time. This method is very good. GAC has eaten the soup! (To be continued.) Mobile phone users, please visit http://m.piaotian.net
Chapter completed!