Chapter 212: Twists and Turns
In addition to Chang'an Group, which specializes in the field of automobiles, Yuzhou Motorcycle Gang is also a force that cannot be ignored in China, such as Jialing, Jianjian, Lifan, etc.
Unfortunately, Yuzhou's pillar enterprises are all competitors of Zhonghua Group, and it can even be added that it is a defeat.
Changan was beaten by Huaxia Automobile in the mini car, waiting to rely on the Ford joint venture to save his life, not to mention the motorcycle industry has been in an absolute monopoly position of Huaxia Motorcycle, it is stepping on the Jialing, Jianshe and other Yuzhou brands to ascend to the throne.
It can be said that the feelings for Han Hao are very complicated for the officials of Yuzhou City.
Even so, the Yuzhou Municipal Government still received Han Hao's visit with a high standard, and the first and second leaders of the city took time to meet with them.
If nothing else, just because Han Hao is the most advantageous investor in China, Yuzhou's automobile and motorcycle industry planning is a perfect fit with Zhonghua Group.
Zhonghua Group has the Hongyan Plant to produce heavy trucks, and it is not excluded that it can settle the production lines of motorcycles and cars in the local area in the future.
Yuzhou has a comparative advantage in that it has cheap human resources compared to the coastal areas. The coastal wage is 1,000 yuan, and the workers here are willing to work if they are given 600 yuan. In addition, the car and motorcycle are fully coordinated, and the localized procurement can be completed smoothly if it lands.
"In addition to the investment advantages of Yuzhou that I just introduced, if Mr. Han is willing to invest, the city will give the most preferential policies to attract investment, and can also give compensation in the land. ”
When the mayor of Yuzhou was talking to Han Hao, he took the initiative to mention it.
The state has been shouting for several years about the large-scale development of the western region, but now it is about to turn into a large-scale excavation of the western region, and investors are still reluctant to invest in the western region. Poor transportation conditions, difficulties in keeping up with industrial support, and poor business environment have offset the policies and demographic dividends in the western region.
Yuzhou is a large province (municipality directly under the central government) that exports labor workers, and the annual employment pressure is high, and the local government is also heartbroken in order to set up jobs.
With the continuous loss of population, if we do not take precautions to make a difference, and retain talents for employment, Yuzhou may fall into a hollowing out situation in the future.
Therefore, the territorial development of economic real industry is a major measure that the Yuzhou Municipal Government is clearly aware of.
Knowing that Han Hao is also the major shareholder of Geely Real Estate, the mayor of Yuzhou also proposed to let Han Hao choose two pieces of residential land for development in addition to the regular preferential measures for investment promotion.
This is also a reluctant move by the government in the western region, and in many cases, in order to attract investors to settle down, they will give compensation to the other party in other aspects, such as road and bridge construction, mineral resources and land transfer.
Of course, the mayor also made another calculation, that is, he could introduce Geely Real Estate into Yuzhou City. Compared with other sister provinces, housing prices in Chongqing are at a low ebb, and urban demolition is still in its infancy.
If you invest in Yuzhou, motorcycles are a more suitable object at this stage, and as for cars, Han Hao has not yet thought about how to place them. After all, in Wujiang City, in the middle of the Yangtze River, Zhonghua Group already has a new production base plan.
The motorcycle market is becoming more and more competitive, and it is extremely sensitive to cost control. If a new production line is built in Yuzhou, it can make up for the increased cost of human resources, and there are perfect motorcycle facilities in the local area.
As for the land, it is better to call Li Shufu to see it, he has more experience than himself.
"As long as you Zhonghua Group are willing to come, all conditions are easy to negotiate!"
After learning that Han Hao intended to stay for two more days to inspect the conditions for the motorcycle settlement, the mayor of Yuzhou said happily.
It can be seen from this that the government in the western region is eager for large investors, and the landing of the Zhonghua Group will inevitably bring a large number of jobs and tax revenues.
When Han Hao became a guest of the Yuzhou Municipal Government, Zhu Tianfeng, who was far away from the FAW headquarters, encountered two major problems.
First, Xiali Automobile ushered in a loss again, since the loss of 160 million last year, the financial report in the first half of this year alone lost 180 million, and the annual loss may reach 300 million.
After the annexation of Tianjin Automobile, Xiali Automobile was positioned by FAW as a base for the production of economical entry cars. Xiali Automobile's two major brands, Xiali and Weizhi, respectively conquer different price markets.
The original national car brand Xiali focused on the 3-50,000 yuan market, while the Weizhi brand, which received Toyota's technical support, will fight in the 5-70,000 yuan.
After FAW focused its own resources on promising parent-child projects such as Hongqi and Besturn, Xiali Automobile, which was adopted, received only a handful of support.
What made Xiali Automobile even more depressed was that they encountered an extremely strong competitor in the 3-70,000 economic car market, Zhonghua Group, and killed fiercely.
3-50,000 market, the new model Xiali N3 encountered the strong sniping of Huaxia QQ, and the sales volume has not improved since its launch; the market of 5-70,000 has ushered in the second-generation classic Chinese "Qin" like a mountain, and the Weizhi brand is as vulnerable as a primary school student compared with the other party. Not to mention the attack of Huaxia Hongguang, which is still cruising in the periphery, and the newly listed small SUV "Song", which originally pinned the dream of FAW's entry-level economic sedan, to fall into a historical low.
When the joint venture brands FAW-Volkswagen, FAW Audi, FAW Toyota, and FAW Mazda started the triumphant quartet, FAW's independent sedan brand strategy suffered a major setback in Xiali Automobile.
Xiali Automobile was unable to support the annual sales of 300,000 units set at the time of the merger between the two parties, and last year's sales did not reach 50,000 units, opening a loss-making mode. According to this year's market situation, sales have declined further, and it is difficult to achieve the target of 30,000 units.
In the end, where to go for Xiali Automobile, which is in the loss, has become one of the urgent problems to be solved in front of Zhu Tianfeng.
The price reduction method has been used many times, and now it is to produce a car close to the cost price, and if there is a price war, Xiali Automobile will die due to excessive blood loss.
I thought that I could use the power of Toyota to help the revival of Xiali Automobile, but I did not expect that after Toyota launched its own joint venture economic sedan Vios, it politely rejected FAW's request for technical assistance with overlapping competition in market positioning. They prefer to regard Jinqi as their own production base, rather than seeing an additional competitor around them.
When the dust settled on the joint venture with FAW, Toyota no longer had to respond to FAW's needs.
FAW has no technology accumulation in economy cars, and it has not received support from Toyota, so it can only rely on Xiali Automobile's own weak force to support it.
"Damn, we did it ourselves, maybe it was better than following FAW!"
The continuous decline of Xiali made the employees of the original Tianjin Automobile unable to complain.
Lonely for 20 years, Zhu Tianfeng has always believed that the independent brand should be steadily promoted, and now the most important thing for the enterprise is to survive first, and then consider the development issue.
Therefore, based on this judgment, he intends to limit the production of Xiali Automobile and control the loss to a certain acceptable level. After the Besturn project, which has high hopes, is listed, it will be free to solve the problem of Xiali Automobile.
As for the second problem that made him frown, it was FAW's plan to acquire Chunlan Automobile when it was submitted to the State-owned Assets Supervision and Administration Commission for approval, but it was blocked because the conditions were not mature.
As the boss of the domestic automobile industry, FAW also has a mother-in-law in charge, which is the famous State-owned Assets Supervision and Administration Commission. In principle, FAW's mergers and acquisitions of more than 100 million yuan projects require the approval of the State-owned Assets Supervision and Administration Commission.
The opinion given by the State-owned Assets Supervision and Administration Commission is that GAC has reported a joint venture project with Hino, and the possibility of Chunlan and Hino joint venture no longer exists. As a private truck company, Chunlan Automobile and FAW do not have complementary industries, and forced mergers and acquisitions will be suspected of using state-owned funds to acquire low-quality assets, resulting in the loss of state-owned assets.
Finally repelled the Zhonghua Group and persuaded Chunlan Automobile to continue to cooperate with FAW, but he didn't expect to encounter Waterloo at the last level, which made Zhu Tianfeng very annoyed.
In this context, Zhu Tianfeng personally called the person in charge of the SASAC to explain the situation.
"The acquisition of Chunlan Automobile is to build a higher moat to prevent the entry of Zhonghua Group. This kind of measure cannot be calculated simply by the loss of state-owned assets, but to win more development time and strategic depth for FAW Jiefang!"
"Comrade Zhu Tianfeng, the acquisition of Chunlan Automobile is not a good choice, this is the view of the vast majority of our comrades. Even if you acquire Chunlan Automobile, it will not prevent Zhonghua Group from entering the medium-sized truck field. To actually spend 500 million yuan in cash plus equity to acquire Chunlan Automobile as a gamble, there is a major suspicion of the loss of state-owned capital, and our SASAC will not consider passing!"
The above still reserved the opinion that it would not be approved.
This is the biggest difference between Zhu Tianfeng and Han Hao, Zhu Tianfeng relies on state-owned capital to obtain policy and financial support, but he must sacrifice personal autonomy, and his will cannot be implemented to the end, reflecting the shortcomings of the management mechanism. And Han Hao's profits and losses are his own money, he can be the master of his own affairs, and he is flexible in mechanism, but he does not have many policies and capital tilts like FAW.
Originally, the automotive industry was still a blue ocean in China, and the competition was not fierce under the high level of national control and high thresholds. However, with the entry of foreign capital and private capital, the automobile industry has begun to become a highly competitive field, and the shortcomings of the inflexible mechanism of state-owned enterprises have begun to be exposed, and state-owned enterprises need to be given greater autonomy to deal with it.
Unfortunately, this was overshadowed by the prosperity of FAW and was not known in time.
Zhu Tianfeng did everything he could, but in the end he failed due to unpredictable factors.
"If Zhonghua Group wins Chunlan Automobile, it is tantamount to adding wings to a tiger, they can be integrated in a short time, so that they have the strength to compete with our FAW in the truck field.
Zhongka has always been our advantageous project, and if we let Zhonghua Group come in now, it will be really difficult in the future!"
In addition to being depressed, Zhu Tianfeng said when he was relaxing in the factory with his right-hand men.
It is a great pity that he strategically saw and tried to snipe the attack of the China Group, and in the end it was able to be stopped by inhuman forces.
"Within this wall, I am free and can control many things, but outside the wall, there are many things that I cannot do.
For a person to live freely, it may be difficult to achieve luxury in a lifetime!"
Zhu Tianfeng pointed to the wall of FAW and sighed meaningfully.