Chapter 205: The Haughty Henry Ford
The deviation from Chen Geng's expectation is too great!
He thought that Ford needed a car similar to the Chrysler family, but who would have thought that Ford would play a new trick and directly disdain Chrysler's set.
With such a big deviation, Chen Geng had to communicate with Ford's decision-makers to clarify what kind of car they wantedβalthough there was also a faxed introduction, it was not as accurate as this direct communication.
But what Chen Geng didn't expect was that it was not a certain executive at the decision-making level of Ford Motor who decided to develop this model, but Henry Ford, the person in charge and the speaker of Ford Motor.
Faced with Chen Geng's doubts, Henry Ford on the phone said to Chen Geng: "No, our target customers are not those low- and middle-income groups who have to buy cheap cars because of economic conditions, and we are not ready to design a car like the Chrysler family, our target customers are those rich and wealthy Americans who are over forty-five years old and have a strong sense of identity with American culture." β
He made no secret of his contempt for the Chrysler family β and perhaps with envy, of course.
Chen Geng nodded: I understand, the target group set by Ford for this car is the middle-income group above the middle class in the United States.
The whole world knows that the United States has the largest middle-class group, but many people may not understand that in the definition of middle-class income in the United States, the concept of "middle class" is actually very broad, if measured by the family income of Americans in this era, it is probably this group with an annual income of between $25,000 and $300,000, from blue-collar workers and white-collar workers who can get a slightly higher income than the per capita income of the United States to the bosses of small and medium-sized enterprises and professional managers of large enterprises and conglomerates.
How, isn't the span very large?
According to Henry Ford, their car is aimed at the higher income and higher income of this huge group, probably the American middle class with an annual income of more than $40,000.
Chen Geng, who roughly understood what Henry Ford meant, asked him tentatively: "I understand what you mean, what you want is a car that is more suitable for American consumption habits than the Chrysler family and can show the luxury and style of an American car, rather than a cheap car that gives up a lot of things in order to save fuel, right?"
"That's right!"
Henry Ford was so satisfied with Chen Geng's ability to accurately understand his intentions that his voice was much higher than just now: "To be precise, what Ford wants is a car that inherits the advantages of American cars in the past and has the characteristics of the new era, is a car that can lead the development trend of American cars, just like the 'beast' you designed to lead the development trend of American pickups." β
Unlike crowded Europe, Americans, and American society as a whole, believe that only full-size cars can fully embody the free-spirited American lifestyle.
When did this idea begin?
Since the end of the Second World War.
After the end of the Second World War, when the whole of Europe was in ruins, when the family of the "Iron Lady" Thatcher was willing to open a can of Spam luncheon meat only when a very distinguished guest came to the house, and regarded it as the highest courtesy to the honored guests, the Americans, with the pride of a savior, showed a modern, noble but noble European people who were trying to rebuild their homeland, restore the economy, and heal the wounds of war. The affluent lifestyle they crave and out of reach and the direction and trend of sedan development that Americans understand: full-size sedans.
For example, Chen Geng's rare four-seater Lincoln Continental Mark 2.
In the eyes of Americans before the 80s, a European thin iron car like the Volkswagen Beetle could only be regarded as a toy that could be driven, not a regular sedan at all, and as for small cars such as the Honda Civic and Toyota Corolla, even those harsh critics in the United States believed that this thing could not be considered a car at all, and driving such a thing on the street was the greatest insult to the driver's personality.
Even with the current oil crisis, more than 90 percent of Americans believe that only full-size cars represent the United States, and Japanese cars like the Honda Civic and Toyota Corolla are only bought by poor and economically disadvantaged Americans β and indeed they are.
Chen Geng understood very well the psychological arrogance of the Americans, and he understood why Henry Ford ordered the development of such a full-size sedan, nodded and asked again: "Okay, what else?"
"This car has to be beautiful, it has to be able to lead the trend of the times," said Henry Ford, who was robbed of the limelight by the Chrysler family as "the most beautiful American sedan", which made him extremely resentful: "The car must meet the needs of the official cars of the U.S. government, the police and other departments, as well as the taxi market, and it must be strong enough, reliable, durable, and at the same time the cost of use must be low enough." Most importantly, the car must be comfortable enough. β
"Okay, I don't have any doubts," after listening to Henry Ford, Chen Geng already knew what kind of car he wanted: "I already have an understanding of your needs, Mr. Ford, if you have no other questions, now we can talk about the design fee." β
But Henry Ford really had a problem: "There's another problem. β
You say. β
"This car has to be a new platform model for Ford. β
Chen Geng understood what Henry Ford meant: "So you mean, Ford was going to be involved from the beginning? Of course there is no problem. β
For this point, Chen Geng is not excluded, nor can it be excluded, the main engine factory will outsource the design work to the design company at the same time, but also according to their own needs to choose all outsourcing, their own no matter or from the beginning to participate in the design, for example, a few years later, our own brand "independent research and development" of a certain model, is all outsourced, their own nothing, at most is to send a working group to communicate, and the design company said which I am not very satisfied, here the boss feels that it can be changed again...... This is also the lowest form of outsourcing.
As one of the world's most technologically powerful automotive companies, Ford will definitely not choose such a LO design outsourcing method, and if Ford wants to be platformized and let its multiple brands share the same platform to reduce costs, it must be involved from the beginning of the design of this model.
Ford Motor wants to participate, Chen Geng even has a little joy: how much can learn a little bit is not ?ββ of course, Ford Motor also plans to do so, if you can participate from the beginning, from Chen Geng to steal a little design concepts and ideas, Ford will also make a lot of money.
But there is one point, the design fee charged by this "apprentice" type of cooperation is not the same as the design fee of all outsourcing, and Henry Ford also knows this, so he is very sincere to offer a design fee of 30 million.
"$30 million?" Chen Geng was a little surprised.
It's not too little, but too much, even the world's top industrial design company like Pininfarina is difficult to get a design fee of 30 million, or that sentence, this is 30 million US dollars in 1979.
The next moment, Chen Geng understood why the hearts of capitalists were all black, and why Henry Ford was willing to offer himself a sky-high price of $30 million: definitely not because he was handsome, but because: "Mr. Fernandez, I must remind you that $30 million is an exclusive agreement price." β
"Exclusive?" Chen Geng's brows furrowed: "What do you mean? I can't help other companies design similar models for a period of time in the future?"
If that's all there is, $30 million isn't unacceptable β of course, it's definitely going to take this opportunity to ask for more from Ford β but if it's some other exclusivity deal, then you'll have to weigh it up.
"No, Mr. Fernandez, you are not allowed to cooperate with other OEMs for the next five years," Henry Ford even emphasized, "not only in the United States, but also in any other country in the world." β
Chen Geng immediately laughed: You Henry Ford is really a good calculation, and taking your 30 million with me is equivalent to signing a five-year deed of sale?
Dream on!
"This can't be!" Chen Geng refused without hesitation: "Mr. Ford, let me be more direct: even if I don't cooperate with you, in the next five years, I will make more than $30 million in profits from the Chrysler family alone." β
The implication is that Lao Tzu is short of money, so why should he accept this overlord clause of yours? Even if you Ford cars are cow beeps, it's a big deal that Lao Tzu doesn't cooperate with you, and Lao Tzu is not short of money to spend anyway.
β......β
Henry Ford on the other end of the line was silent.
I have to say that Chen Geng's threat is very realistic, he Fernandez is not in a serious financial crisis, and needs to rely on cooperation with Ford to save his life, as long as he can breathe a sigh of relief, no matter how harsh the conditions will be agreed, the current Fernandez company, not only the company's financial health and good condition, with the Chrysler family is now selling well in the market, in the next five years, the annual "design fee share" It's more than $10 million, and if Chen Geng continues to work with Chrysler and other automakers, it won't be a problem to make an extra $10 million a year.
In five years, it is at least 60 or 70 million US dollars, and Chen Geng's brain was definitely kicked by a donkey for the sake of the 30 million US dollars that he had in hand in front of him, and he gave up the expected income of at least 60 or 70 million US dollars in the next five years.
Again, it's a big deal not to cooperate.
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PS: I'm sorry, I'm ten minutes late, and I ask for your forgiveness, brothers.