Chapter 43: The Intermediate Car Curse
In the automobile industry, the main engine factory says that it has worked hard for the whole year and finally works for the spare parts factory, but the spare parts factory says that the main engine factory relies on squeezing them to obtain profits! In the end, who is right and who is wrong, this is the Rashomon incident that is staged every year in the automobile industry, and there has never been a clear statement.
China "Tang" is going to bid for spare parts manufacturers, and as a result, many spare parts companies have come up, both at home and abroad, and some international giants who have not disdained to cooperate with Zhonghua Group have also come.
Why?
Just because the Chinese "Tang" is too dazzling, everyone is optimistic that this model will sell well.
Manufacturers who make parts and components know that if the supply volume cannot go up, then it is a loss-making business to work hard to open molds and build production lines.
Everyone bets that the Chinese "Tang" can sell well, especially the Zhonghua Group, although it is deeply involved in the plagiarism incident, it has obviously begun to make efforts in its own original models, and it will be the most promising star among domestic independent brand manufacturers.
Now it is only a Chinese "Tang", and there will be more excellent models similar to the Chinese "Tang" in the future.
Therefore, there were many new faces in the bidding meeting, and they were eager to break into the ranks of suppliers of Zhonghua Group.
"Brother, you are here too, it seems that everyone is optimistic about the Chinese 'Tang' car! Now the scale of the number of people in the venue is twice as lively as that of the Chinese 'Qin'. ”
A supplier representative greeted a peer when he saw it.
"We are more optimistic about the future development prospects, now the business is not good, joint venture brands have brought supporting suppliers from abroad. Let's just say that Shouqi Hyundai, which has just landed, has introduced more than 30 suppliers from South Korea for long-term supporting cooperation, and we can't get into it at all. Koreans huddle, Japanese cars also huddle, we Chinese have to hope that Chinese brands can give power, pull their own brothers. ”
Another fellow supplier wearing sunglasses said helplessly.
Now behind every auto giant is followed by a large group of domestic core suppliers, where the car factory lands, the supplier will follow where to build a factory, and third-party companies simply cannot enter their supporting system.
"It is said that this time, China Automobile has issued an annual price reduction of 8-15% of the supply requirements, but the first batch of supply promises 30,000 pieces, and no less than 100,000 pieces within 2 years!"
Seeing that there was no one around, the supplier quietly whispered the gossip he heard with his peers.
"Wow, there are so many, that's a big deal among domestic brands! Are they confident that they will be able to achieve sales of 100,000 units within two years? And they are so hard to oppress us that if they drop by 8% every year, they will make all the profits! Everyone will not agree to such conditions, and 3% still has to be discussed!"
Hearing the news, the supplier wearing sunglasses next to him looked disbelieving.
It is said that several foreign core suppliers have signed contracts, and their request is to enter the ranks of long-term suppliers of Zhonghua Group in the future. If you don't do it, others will do it, and the OEM won't be in a hurry anyway! If you look at how many suppliers have come to the scene, you will know who has the initiative!"
The current Zhonghua Group is like Jiang Taigong who sits firmly in the Diaoyutai, and those who wish to take the bait.
Sure enough, at the bidding conference, Zhonghua announced the bidding requirements, which were exactly the same as the grapevine, showing its great self-confidence.
"What should I do? It's a contradiction to keep prices so low and high standards required. We kept saying that we would send someone to work with us to develop together, but the result was not to throw the responsibility on us. Sure enough, it is an OEM that is black-hearted and exploitative, and it doesn't even want to leave the soup to us when it eats meat by itself! It's hard to do, it's hard not to do it, and if you're not careful, you'll lose money. ”
Suppliers are ventilating to each other to see if they want to bite the hook.
"If we can really reach the scale of 50,000 vehicles per year, this business can still be done. I'm afraid that the yield they promised will not be met, and then we will have to swallow the bitter fruit. To be honest, I am confident in 30,000 units, but I am not confident in 50,000 units. I'm going to quote at a cost of 20,000 units to give myself room to maneuver. ”
The main engine factory requires the spare parts company to quote, but this quotation is negotiable.
For example, Zhonghua Group requires a quotation for 30,000 parts, but when calculating its own costs, spare parts companies may only quote at the cost of 20,000 pieces, of which 10,000 pieces of profit are reserved. The cost of mass production of 30,000 yuan is 10 yuan/piece, but the spare parts factory will calculate conservatively, and the quotation of 15 yuan/piece according to the cost of mass production of 20,000 yuan is counted as the real cost. In the future, if the supply volume increases, the cost will be further amortized, and the supplier will get more profit from mass production.
The wool is out of the sheep, and the supplier's quotation must contain the profit they deserve, even if the price is reduced every year, it can still ensure enough profit.
The relationship between OEMs and suppliers is so delicate.
"It was a victorious bidding meeting!"
These are Han Hao's original words.
As international auto parts companies have set up factories in China, they have begun to set their sights on China's independent auto brands and want to open up new market customers.
The bidding of Zhonghua "Tang" has enabled Zhonghua Group to cooperate with many internationally renowned spare parts suppliers, which also reflects the continuous improvement of China's auto parts system from one side, and will one day be able to achieve all-round supporting coverage in China. Any part of the car can be found in China with qualified suppliers.
However, Zhonghua Group still intends to support the development of domestic suppliers, especially under the same conditions, it will choose domestic suppliers. In the future, if Zhonghua Group wants to go to the world, it must also be supported by strong domestic parts enterprises.
In the China Automotive Research Institute, there is an open-air café located in the atrium on the second floor, providing services such as desserts or afternoon tea for internal employees.
But it has now become a stronghold for foreign friends, who work in Chung Hwa Group and like to come here to relax.
At present, there are three major project support teams stationed in the Institute: Ricardo is responsible for CVT transmissions, AVL is responsible for Pangu engines, and Magna is responsible for C3 sedans.
Together with the foreign engineers recruited from Detroit and the foreign employees of the Chung Hwa BMW Joint Venture, there are now more than 200 foreigners stationed within the Chung Hwa Group.
As foreign aid, they enjoy relative freedom to organize their own lives.
"Life in China is much more interesting than in Europe, where the streets are bustling at 9 p.m., and the shops in Europe are closed. There is no entertainment to be found except for bars, but there are many interesting places waiting to be discovered in Jiangzhou. ”
A Magna employee said to a new friend with a cup of coffee.
"The Chinese are like an alarm clock that doesn't rest, and the downstairs grocery store where I live is open every day, and there is never a concept of a Sunday. I once asked him why he didn't relax, and the grocery store owner said that every day is about relaxing, and I really couldn't understand their thinking. ”
The engineer next to him, who was sent by AVL to the China Research Institute, replied that he had been in Jiangzhou for almost a year.
"Not to mention, the Chinese employees in my project team, I suspect that they are made of iron, working crazy overtime every day, and never know what it is to enjoy life. They asked me to accompany me to taste afternoon tea, but they were ruthlessly refused. I said that this kind of work is against the labor law, but they say that voluntary overtime is not illegal. ”
Magna employees have never seen such behavior as a Chinese employee.
"I'm used to it. I also have a group of such maniacs in the project team, they eat, drink and sleep in the company, and there are basically no personal entertainment activities. Having lost all their fun for work, I asked them why they worked so hard and didn't get a lot of money.
They replied that China's auto industry is too backward and cannot catch up with the international level if it does not study hard. If they don't work hard, Chinese cars will never be able to surpass international brands.
Frankly, I admire their actions, but it's impossible for me to do that. Because work is work, and life is life. ”
AVL's engineer said with empathy.
"To tell you the truth, I was worried that there were a bunch of fools here, and this damn project wouldn't be able to go ahead. Unexpectedly, after I came, I found out that they are all smart people, and they can understand your thoughts with just a simple talk. And they were very diligent, and the project was progressing much faster than I expected. ”
"You're right, this group of Chinese is so hardworking, I now understand why China's GDP growth has always ranked first in the world!"
......
When they came to China, especially at the China Automotive Research Institute, the old ideas of these foreign friends were completely changed. China, which was once plagued by negative news in the Western media, is in fact a thriving scene, where the people are taking concrete actions to achieve their catch-up plans.
"I think in the future there may be a car giant from China here, don't ask me why, my intuition is telling me very clearly! First the Japanese themselves, then the Koreans, and now it's the turn of the Chinese, these damn Asians are simply a posture to unify the global car market." ”
After a long day of discussion, the foreign friends finally came to a terrible point of view.
Chery's "Son of the East" still failed to escape the curse of the domestic brand car priced at more than 150,000 yuan, because it pursued speed too much, and as a result, there were many problems in the quality of spare parts and assembly process.
The reversing radar occasionally fails, the right window lift motor is easily burned, the left and right seats are not aligned, the chassis always comes from an unknown abnormal sound, and the clutch pedal is loose for unknown reasons......
Despite the small problems, the straw that directly overwhelmed the "son of the East" was the visor of the non-core components.
Many owners of the "Son of the East" who drove for a month found that the vehicle could not start normally, and pulled it to the 4S store to investigate the reason for a long time before finding that the battery was empty.
It turned out that there was a problem with the cover of the vanity mirror, and when it was closed, the contact switch of the internal light could not be effectively disconnected, so that once the customer had used the vanity mirror, the light would always be on even if it was turned off immediately.
No one pays special attention to the sun visor that is usually covered, especially the makeup mirror cover on which is still firmly buckled, but the lights that continue to light on are constantly on inside, which causes overheating and causes the sun visor to deform, and over time it also causes the car battery to be over-discharged so that the vehicle cannot have enough power to start.
The more than 4,000 "Sons of the East" that have been sold on the market and are in the warehouse have not been spared, all of which have used substandard sun visors and must be recalled.
"What do the purchasing department and the quality inspection department do? Why can such obviously unqualified parts flow into our Chery factory! At the beginning, I repeatedly stressed that we should devote 100 percent of our energy to building high-quality mid-level cars, but I didn't expect that something went wrong, and someone must be responsible for this!"
Chery boss Zhan Xiaqiu scolded loudly.
Chery grasped the core components very strictly, but unexpectedly, it capsized on the sunshade of ordinary parts.
The success of the Fengyun sedan made Chery proud, thinking that the "Son of the East" would copy the road of Fengyun, but he did not expect to lose Jingzhou carelessly.
Chery Automobile now recruits a large number of employees every day, and many new employees go directly to work without training, and the internal management mode of the entire factory is very extensive.
In pursuit of time-to-market, it is impossible to achieve 100% quality inspection of core components, let alone non-components such as sun visors.
Moreover, the road test of the whole vehicle did not run for long, and many situations were rushed to the market before they were discovered.
"Problems are inevitable, and problems are accidental!"
Some Chery employees privately commented on this.
In this incident, the person in charge of Chery's purchasing department and quality inspection department was deducted from wages and bonuses, and all those directly responsible were dismissed.
Brilliance Sedan has done a fire door, Chery Sedan is now here again, the road of domestic intermediate cars has a long way to go, which greatly overdraws consumers' trust in domestic cars.
I wanted to replicate the hot sales of Chery Fengyun, but I didn't expect a good deck of cards to be broken, which seriously affected the overall reputation of Chery Automobile.
"Chery Chery, queue up for car repair!"
Due to the failure of the "Son of the East", there was such a smooth evaluation of Chery in China.
Unexpectedly, Chery lost so quickly in the field of middle-class cars, which made Han Hao more cautious about the Chinese "Tang", and postponed various tests on the model for a month on the original basis, in order to avoid repeating the mistakes of the "Son of the East".