"Lee Iacocca agreed to cooperate with us," Rosemary said to Chen Geng on the phone, "but they agreed to use our engine and transmission, Chrysler said that our engine and transmission have not been tested for reliability and durability, and the risk of rash loading is relatively high, and they only accept to use their own 2.2-liter inline four-cylinder gasoline engine and a 3.6-liter V6 gasoline engine." ”

Chrysler's own 2.2-liter inline-four gasoline engine? What else could it be other than the Chrysler 488 inline-four engine that was sold to FAW a few years later?

Although a 2.2-liter displacement engine, the maximum power of only 95 horsepower is indeed a bit weak, but it is similar to the prototype of the car I gave to Chrysler: the 2.0 engine on the fourth-generation Accord from 1989 to 1993, the only problem is that the fuel consumption may be slightly higher, but the average fuel consumption can also be controlled at about 13, which is already very fuel-efficient for Americans who are used to twenty or thirty fuels at every turn.

Chen Geng could also understand Lee Iacoca's approach, he nodded and said: "Compared with the powertrain that has been tested and tested by time, the risk of rashly using a completely new powertrain is indeed relatively high, yes, no problem, as long as they Chrysler has the right engine and gearbox, use theirs." ”

"OK, the second problem is that Chrysler doesn't agree with our stake in this project, and they propose a new cooperation plan: they Chrysler pays us a percentage of the technology royalties for every car you design. ”

"It's not bad to pay for the use of technology according to the quantity produced," Chen Geng nodded: "As long as you can make money, any kind of cooperation plan can be ...... What is the technology transfer fee they give for each car?"

"$100 for a car. Ruthmary's tone sounded proud: "I struggled to get this price." ”

"Give us $100 for a car?" Chen Geng smiled: "This guy Iacocca is really stingy enough......

But it's normal, just start talking, you can't expect people to bleed heavily, otherwise how should we talk about it next? After a little thought, I understand that this price is actually a tentative price given by Chrysler.

Rosemary was stunned for a moment, and quickly asked, "Boss, is this price very low?"

Rosemary knows very well that she is a blood layman about cars, originally she was quite satisfied with the price, she has seen the complete design drawings, renderings and even 1:10 clay models, she is very optimistic about this car, and even in the exchange with Lee Iacocca admitted that the annual sales of this car may reach or even exceed 50,000 units.

Annual sales of 50,000 units,

She thought very simply, 50,000 vehicles a year, the company can make a net profit of 5 million without worrying about anything, with the life cycle of a model for 10 years, ten years is 500,000 vehicles, and the cumulative net profit is 50 million, that is, half a billion, Rosemary feels too satisfied - she clearly remembers what Lee Iacocca said to herself at the time: "If it weren't for the fact that the life of Chrysler cars is too sad now, you need to tighten your belt and save every penny, do you think you will have such an opportunity to make a lot of money?" Miss Rosemary, I can tell you unequivocally that except for the current Chrysler cars, any car manufacturer in the world will not adopt this kind of cooperation, you see so many car design companies in the world, including the famous Pininfarina, they can't get this kind of cooperation plan from the OEM. ”

"There is a problem with your way of understanding, or to put it simply, you have been fooled by that old fox of Iacoca!" In the face of Rosemary's explanation, Chen Geng went straight to the core of the problem: "First of all, not all car designers dare to guarantee that they can design a model that sells well enough, but I can, I can guarantee that as long as Chrysler's production capacity and marketing keep up, this car can create a sales miracle!"

Rosemary cautiously asked, "......What do you mean by sales miracles?"

"At least 150,000 units will be sold every year!" Chen Geng said categorically.

At least 150,000 units sold a year?!

Rosemary's head was dizzy and almost fainted: 150,000 units a year, even if a car costs $100 for use, that's $15 million, even if in the later stage, the market has aesthetic fatigue, it can sell at least one million units in 10 years, which means ...... In the next ten years, the company will be able to make a net profit of hundreds of millions of dollars with such a car?!

Rosemary had a parched mouth.

But Chen Geng's next words brought Rosemary back to reality: "Do you think we can make a lot of 100 million in 10 years, so do you know how much Chrysler can make with this car?"

"How much?" asked Rosemary subconsciously.

"In the automotive industry, the gross profit of non-luxury brands for the public is between 9.5% and 15%, and our car is positioned as a model for mid-range family rugged business use, and the average price of this type of car on the market is now between $8,500 and $12,000, and the average profit margin is about 12%, which means that the manufacturer can make about $1,000 gross profit for every car sold......"

Knowing that Rosemary didn't understand this, Chen Geng consciously instilled some knowledge in her about this, and also made her understand how unkind the old guy Lee Iacoka was.

Before Chen Geng's words were finished, Rosemary said: "You said that you suggested that Chrysler price this car with a starting price of no more than $7,500 and a maximum price of no more than $9,900, that is, Chrysler's gross profit is between $900 and $1,200...... Fack!"

The management level of each enterprise is high and low, and some senseless waste cannot be uniformly measured, so the significance of calculating net profit is not very large, but with Rosemary's experience working in the financial industry for many years, a company with excellent management and good operation status, when they have 12% gross profit, the net profit is at least 7% to 8%, that is, for every car sold, Chrysler can theoretically make a net profit of 600 to 800 US dollars, 150,000 cars a year, and hundreds of millions of profits!

Earn so much, and only give yourself such a little?

Rosemary was glad that she hadn't agreed to Lee Iacoca's terms, otherwise the loss would have been a big one.

"It's not all," Chen Geng shook his head: "Usually OEMs develop a new model from scratch, from concept design to trial production to mass production, all of which cost more than 1.2 billion US dollars, of which the most expensive section from design to manufacturing prototype car, about 600 million to 700 million US dollars, and then the engineering commissioning of the whole vehicle and including performance, safety, reliability and other aspects of testing, our work is equivalent to helping Chrysler save at least four or five billion US dollars, or even more."

Excluding this part of the cost, their gross profit will now be more than 20%, you say, we only need $100 per car to lose?"

Lose!

It's a big loss!

Chen Geng didn't settle this detailed account with her, and as soon as this detailed account came out, Rosemary gritted her teeth with hatred: "Boss, I swear, I will definitely get you back at least $200 for a car." ”

"Then come on," Chen Geng encouraged: "Start with $100, and I'll give you a 1% bonus if you get more." ”

If I can get $200 a car for the use of technology, doesn't that mean that Chrysler can make $1 for every car I sell? If Chrysler can sell 150,000 cars a year, as the boss said, wouldn't my wife be able to make $150,000 a year while lying at home?

Rosemary felt like she was going crazy, she only felt that she was now full of fighting spirit: "Boss, just wait!"

"Don't worry," Chen Geng said: "Technology royalties are on the one hand, and on the other hand, you must give me a card on the issue of patents." ”

Patent?

That's when Rosemary reacted: yes, there's the issue of patents for this car. She hurriedly said, "You say." ”

"The patent for this car. Except for Chrysler's 2.2-liter and 3.6-liter engines, the others are jointly owned by the two companies, and the bottom line is to give Chrysler the European and American markets, but we must have the right to produce, sell and transfer technology in other overseas markets other than the European and American markets, and Chrysler must not block it," Chen Geng thought about it and added: " If necessary, some concessions can be made in terms of technology royalties, and even the Central American and South American markets can be ceded, but the Asian market must be handed over, understand?

If you can't talk about it, just wait until I go back to the United States, and I can go back in half a month at most. ”

"Understood," Rosemary paused and asked, "Boss, are you planning to introduce this car to Huaxia?"

Chen Geng did not deny it: "If the time is right...... Yes. ”

"OK, by the way, boss, what's the name of our car?"

"The name of the word...... What do you think of the 'family'?"

"Family?family?, is it because it's a car that's intended for family use?" asked Rosemary, puzzled.

"Not exactly, my definition of a car, this car is a hardworking family member who takes you to work, picks you home, and picks you up and drops off your children every day...... Being by your side and your family, like being part of your family, it may not be as dazzling as a big star, and it can't be spoken, but it's loyal, reliable, and won't lose its temper with you at every turn, and it will always be worthy of your trust and trust like a brother, well, how about using this as the core idea of promotional copywriting?"

"Of course it's good, but ...... Boss, can this car really be so reliable?" Rosemary was a little skeptical: Boss's words, I am a little excited, and I plan to buy one.

"My design is fine, it depends on how good Chrysler's quality control can be. Speaking of this, Chen Geng's thinking couldn't help but start to deviate: I don't know how the recruitment work is going?