Chapter 176: Class
"Cooperation?" Chen Geng raised his eyebrows, but there was no expression of surprise at all.
Ding Haijun knew why Chen Geng had such an expression, after all, he had communicated with him more than once in China before, and hoped that Chen Geng could help the country bluff the Germans when necessary, it is estimated that in Chen Geng's opinion, he came to him this time in the hope of starting this plan to bluff the Germans, right?
He waved his hand and said to Chen Geng: "It's not the cooperation we talked about before, it's another cooperation...... What the chiefs mean, is it possible for you to cooperate with SAIC?"
"If I understand correctly...... Chen Geng frowned: "You mean, if the Germans cancel their cooperation with you, you want me to be able to go up?"
To put it bluntly, I'm just a spare tire.
Ding Haijun felt embarrassed by these words, but if he was engaged in diplomatic work, this level of embarrassment was nothing at all, he nodded: "You can't say that......"
Actually, that's what it says.
Chen Geng: "I don't know too many twists and turns, just tell the truth, I have a general understanding of the framework of cooperation between Huaxia and Wolfsburg Group, in general, the two sides will build an annual production capacity of 150,000 vehicles in the magic capital, 80% of the production capacity of this production base is used for exports, earn foreign exchange.
That's 120,000 cars exported every year, and the sales of those 120,000 cars are going to be done by the Wolfsburg Group, right?"
Although he felt that it was not too small in his heart, Ding Haijun still had to bite the bullet and respond: "That's right." ”
"So, ......" Chen Geng spread his hands: "In the face of this oil crisis that has swept the world, even the Wolfsburg Group, which has decades of rich experience, can only be discouraged...... Brother Ding, I can only say that you really think too highly of me, but my small shoulders really can't carry such a big burden. ”
Chen Geng refused, which was not unexpected.
Thinking about it, even Wolfsburg Motors, which has a history of several decades, has flinched, let alone Fernandez Company, a company that has no experience in mass-producing a car, marketing and planning a car?
After all, Fernandez is more of an automotive design company than a car manufacturer.
Dante Haijun was unwilling, he couldn't help but ask: "Chen Dong, I know this makes you embarrassed, but please be sure to help, this project is too important to our Huaxia......
"I know the reason why the country is promoting this project, and I also understand very well the eagerness of the country to earn a lot of foreign exchange to develop the economy," Chen Geng sighed, and said to Ding Haijun helplessly: "From my personal point of view, I am willing to do my best to help you, but this matter is really beyond my ability." ”
Ding Haijun also knew that Chen Geng was telling the truth, and Chen Geng was really very sincere in helping the development of the republic, such as the cooperation project with Jialing Factory that Chen Geng did not say.
Chen Geng and Jialing factory cooperation of the motorcycle project he knows, although the cooperation between the two sides has not officially begun, but as far as he knows, the batch of motorcycles sent by Fernandez to China for testing has been highly praised by domestic experts in related fields, and more experts said that the technical level of Fernandez's motorcycle engine is at least forty or fifty years ahead of China - In fact, it is not wrong to say this, the most typical motorcycle in China: the technology of the motorcycle on the three wheels on the Yangtze River 750 is the motorcycle engine technology in Germany in the thirties, and it has been forty or fifty years so far.
Chen Geng is willing to cooperate with domestic enterprises with this project, and there is a considerable proportion of the export share, not to mention the second-hand car dismantling project they are promoting.
"Brother, for the sake of our friendship, can you give me a thorough understanding of what you think of this project?"
"What do you mean?" Chen Geng didn't react for a while.
"What do you think...... What are the chances that this project will eventually succeed?"
I see!
Speaking of which, Chen Geng immediately understood that in fact, Ding Haijun, who is engaged in diplomacy, is not very optimistic about this project, but he is good at diplomatic work, and he is not good at economics.
I wanted to excuse myself, but seeing the pleading in Ding Haijun's eyes, Chen Geng thought about it, and still said in a low voice: "Brother Ding, I'll just say that, and if you don't pay attention to it, you just listen to it, let's just drink tea and brag." ”
Ding Haijun nodded again and again: "That's right, we're just chatting and bragging." ”
"I have learned that the progress of the negotiations between you and the German side before: the entire base has an annual output of 150,000 cars, of which 50,000 are vans, which are not for export, that is, this base has an annual output of 100,000 cars, of which 60% are for export, am I right?"
"Yes, the Germans have agreed in principle. ”
Chen Geng immediately asked: "Then why did the Germans give up again?"
"Because ......"
"I don't know what the Germans think, but I'll tell you what I've seen and learned," Chen Geng interrupted Ding Haijun: "First of all, according to my understanding of the situation in China, your country simply can't get enough workers to meet the needs of such a huge automobile industry base. ”
Ding Haijun couldn't accept Chen Geng's words, and couldn't help but retort: "Mr. Chen, what you said is absolutely right? We have tens of millions of industrial workers in China. ”
"Yes, I admit it," Chen Geng did not refute Ding Haijun's rebuttal, but he just said a sentence that made Ding Haijun completely stunned on the spot: "But automobile production is an industrial production activity that requires a relatively high level of knowledge and culture of workers, can you draw tens of thousands of workers who meet the requirements from major domestic enterprises -- maybe many of them are still the technical elites and elites of their units -- to fill this project?
Ding Haijun: "......"
"This is the first point, as for the second point," Chen Geng continued, "what is the level of China's automobile industry supporting system? Can it produce spare parts that meet the requirements of this automobile base and at the same time control the cost within a certain range?"
I don't know much about the automobile industry in China, and I dare not say that it is almost equal to zero, but I think that your country's automobile parts industry can play a very little role in helping this project, which means that this industrial base with an annual output of 150,000 cars, almost more than 95% of the spare parts need to be imported from abroad.
In this way, I don't know if you have considered another question: what will be the cost of the whole vehicle if the parts are shipped in from abroad and then sold after being assembled in China?"
“......”
Does it cost?
Ding Haijun was stunned, accustomed to the planned economy, accustomed to the state to arrange everything from raw materials to production and sales, Ding Haijun really didn't think about this problem, but now it's different, since this car is to be sold in the international market, not according to the plan like the domestic planned economy, cost has become a problem that must be considered.
Although Ding Haijun does not know what the specific cost of such a car is, there is no doubt that it is definitely much higher than the cost of originating in Germany...... Produced in Germany, at least many parts don't have to be shipped all the way, right?
Chen Geng continued: "Without detailed accounting, I don't know exactly what the degree of cost increase will be, but I am sure that it must be much higher than producing abroad, such a high cost, almost no competitive advantage at all, how can the cars you produce be sold in the international market?"
"We ...... In fact, there are export subsidies ......"
Ding Haijun's tone was very weak.
"Subsidy?" Chen Geng "thought for a while" and said: "You mean export tax rebates, right? But in my opinion, the cost increase brought about by your production model has far exceeded the intensity of export tax rebates that can be subsidized, and the most important thing is that if your production capacity is not high, it is fine, but ...... At least 60,000 cars a year, no matter which country's market it is put into, it will have a big impact on the country's automobile market.
Once it's determined that you're selling below cost, you can be characterized as dumping – do you know what penalties you're facing if you're being characterized as dumping?"
Ding Haijun immediately asked, "What punishment?"
"The lightest penalty is also the imposition of punitive tariffs, such as the original 10% tariff, which may now be increased to 30%, 40% or even 50%, and the specific proportion will be based on the conclusion of the investigation in the country, and the most serious may directly prohibit the sale of this product in the market of this country......"
"How can they do this?!" Before Chen Geng's words were finished, Ding Haijun said angrily: "It is our own business that we use money to subsidize our own enterprises, why should they prohibit it?"
Chen Geng's reaction to Ding Haijun was not surprising at all; in the late 70s and early 80s, China's understanding of dumping and antidumping was infinitely equal to zero, and it was not until after the mid-to-late 90s that the state suffered enough in this regard and made up its mind to make efforts in these areas.
He explained to Ding Haijun: "This is the practice of each country to protect its own market and its own country's related industries, from the perspective of the Chinese side, of course you think their approach is unreasonable, but from the perspective of the government of the country where they are located, their approach is completely justified and reasonable, and will also be supported by their own people, if necessary, even if the products of other countries are not actually dumped, it does not prevent them from convicting you of 'dumping', and then imposing punitive tariffs- I believe that the same thing happened to Huaxia, and the Huaxia government reacted in the same way. ”