Chapter 24 Southbound Investment
For Zhonghua Group, the spiritual significance of the chief's inspection is greater than the practical value, and it represents the recognition of the country's largest private enterprise at the relevant levels of the state.
The Xinhua News Agency published an editorial commenting on the root cause of the Zhonghua Group's great achievements.
"At a time when many domestic car companies are still superstitious about 'market for technology', Zhonghua Group has already crossed this level and upgraded to a new pattern of 'spending money to buy technology abroad' and 'using money to recruit people to develop technology independently'!"
With such an incisive summary, Han Hao also sighed that the pen in the center was really powerful, and he grasped the key in one sentence.
However, it is easier said than done, Zhonghua Group has completed the original accumulation and jumped to the leader of the domestic automobile industry, and is not afraid of later learners.
Soon after the chief's inspection, Han Hao was invited by plane to go around Nanyue Province.
According to the different contact of domestic groups with automobile culture, consumers in the north prefer German and American car brands, while Nanyue Province, an economic powerhouse in the south, is known as the base camp of Japanese cars. In the 80s, the tide of smuggled cars, coupled with the influence of Hong Kong and Macao culture, made Japanese cars have a good reputation in southern Guangdong Province.
It is precisely for this reason that after GAC broke up with Peugeot, it wisely chose Honda as its new partner. Under the successful demonstration of Guangqi Honda, Nissan Motor and Toyota Motor came one after another, and truly established Nanyue Province as the base camp of Japanese cars in China.
The economic boom brought about by the concentration of Japanese auto giants has also strengthened the determination of Guangfu City, the capital of southern Guangdong Province, to further develop the automobile industry. In 2005, Guangqi Honda became the first in Guangfu City with a tax amount of 4.3 billion, surpassing the original provincial tobacco company in one fell swoop. Looking ahead, in the future, automobiles will become the absolute pillar industry in Nanyue Province.
When the layout of Japanese car companies was completed, Guangfu City set its sights on the Zhonghua Group, which had just reached the top among domestic car companies. At the beginning, Jing'an Clouded Leopard Company disposed of it, so that Zhonghua Group obtained a birth permit to enter the field of cars in Guangfu City.
With the development of the current situation, Han Hao parted ways with the second automobile, and Han Hao put the focus of investment in the area of Zhejiang and Haihai, leaving only one production base in Guangfu City. The production base originally focused on vans and pickup trucks, but due to the fierce competition in the van market, this base mainly produced pickup trucks, and its position in the entire Zhonghua Group gradually declined.
The performance of the Jing'an Clouded Leopard Base did not match Zhonghua Group's market position in China, which made Guangfu City willing to invite Han Hao to further expand its investment. From a strategic point of view, foreign brands have entered China one after another, but there is still a lot of potential for independent brands. Although GAC has shouted the slogan of creating its own brand, it has not taken actual action. Comparatively speaking, Zhonghua Group, which has a production base in Guangfu City, is a suitable target for a new round of local investment.
In fact, there are deeper factors to consider in Guangfu City, that is, it is hoped that after the expansion of production of Zhonghua Group, it can bring more domestic parts supporting system to land, and GAC can borrow a wind to develop its own brand in the future. You must know that Japanese suppliers are very closed, and it is basically difficult for foreign brands to supply them, so they will form a small circle collaboratively to control the Japanese technology from leaking. Even GAC, which has a pleasant cooperation in China, does not dare to say that it can easily obtain the support of Japanese suppliers who have established factories everywhere in the country.
The current leader of Nanyue Province is Xia Zhengde, the former secretary of Zhehai Province, and at his personal invitation, Han Hao had to agree to go to the south.
Zhonghua Group's sales revenue of 152 billion yuan last year surprised officials in Nanyue Province, knowing that Guangqi Honda's best result in selling 260,000 vehicles in history brought revenue of just over 40 billion yuan, which is more than three times the volume of Guangqi Honda.
In the past, some officials in Nanyue Province did not agree with the entry of Zhonghua Group, feeling that it would affect the development of GAC's own brand in the future. But a recent episode made them realize the importance of bringing in the Chung Hwa Group to restrain Japanese brands.
Toyota has found two major partners in China, and in order to show its sincerity, it promised to give the crown technology to FAW for the Hongqi car, and the work has been progressing in an orderly manner. Seeing that FAW got the crown technology, GAC also proposed to hope that the other party would transfer the model technology of the fifth-generation Camry of the previous generation of the middle-class sedan to GAC when talking about cooperation with Toyota, and obtained a verbal agreement from the Japanese side.
Unexpectedly, when GAC Toyota was about to start production of the Camry (that is, the new name of the sixth-generation Camry in China), Toyota refused to provide the fifth-generation Camry model technology on the grounds of personnel changes and insufficient energy to cooperate with GAC's platform development.
This made GAC suffer a dumb loss, and it was only a verbal gentleman's agreement, not written in black and white, but now the bamboo basket is empty, and the independent brand with Toyota's genes is expected to be soaked.
In the face of such a situation, you can't turn your face with Toyota on this matter, after all, GAC Toyota's production is equivalent to rebuilding a Guangqi Honda scale, and the benefits to the local economy are far greater than the introduction of a certain model technology.
"We are still too concerned about face, we have not really understood the true meaning of international economic and trade cooperation, and we have suffered the loss of lack of experience. Toyota crossed out the technology transfer from the contract on the grounds that it was sensitive and not easy for the Japanese government to accept, and only agreed to a verbal agreement, and we carelessly nodded and agreed, which eventually led to today's situation. ”
When a city official who had been involved in negotiations with Toyota reported to the province, he explained with regret and regret.
Toyota's reversal made Nanyue Province, which has always been a strong supporter of the landing of Japanese cars, realize that it must bring in another force to enter the country, so that it can strategically balance Japanese brands.
Another reason is that although Guangqi Honda has a strong development momentum, due to the existence of Dongfeng Honda, the models introduced by Guangqi Honda are basically complete, and there is no new increment to continue to improve. The three major models of Accord, Fit and Odyssey will always be the main focus of Guangqi Honda in the future, and there are no other new brands to continue to invest in. As for the CRV and Civic, the two Honda aces, they will be produced by Dongfeng Honda and have nothing to do with GAC.
In such a context, Han Hao's southward journey was received by Guangfu City and even Nanyue Province with high standards.
Xia Zhengde, the top leader of Nanyue Province, personally met with Han Hao, expressed his hope that he could expand his investment in Guangfu City, and promised that the local government would give the same preferential conditions as the Japanese giants to attract investment.
As the Pearl River Delta economic circle on a par with the Yangtze River Delta, the automobile market in Nanyue Province accounts for nearly a quarter of China's overall sales. Although the influence of the Chunghwa Group has been growing here, the growth rate is relatively weak compared to that of Japanese brands.
Wherever there are OEMs, there will be an intangible home field advantage, and consumers are more willing to buy locally produced car products. For example, Hujiang City is Volkswagen, Jiangzhou is China, and the capital is all Hyundai Motors.
Even if Nanyue Province is the base camp of Japanese manufacturers, there is still a strong demand for low-end cars, and Zhonghua Group can form a dislocation competition with Japanese brands here, after all, 100,000 yuan can buy a decent sedan, which can make many domestic consumers who buy a car for the first time satisfied.
Zhonghua Group has entered the market of Nanyue Province and expanded its share, while the local government has obtained another new force in automobiles to increase tax revenue and employment, and can also strategically balance Japanese brands and GAC's own brands to pave the way. It can be said that this negotiation and cooperation is actually a win-win situation that hits it off.
Guangfu City, acting as a trader in the specific introduction of Zhonghua Group's reinvestment, avoided the "barter" stipulation of the national automobile industry policy in the name of expanding the Jing'an Clouded Leopard Base. In order to control the disorderly expansion of the automobile industry and accelerate the restructuring and merger of hundreds of domestic car companies, the state stipulates that if an enterprise wants to build a new factory in another place, it must replace it with the share of the local car company's birth permit, so as to achieve the goal of keeping the overall number of car companies unchanged or even decreasing.
After the original Jing'an Clouded Leopard plant was split into two with the Second Automobile, it was not suitable for the planning of hundreds of thousands of automobile production capacity, because the surrounding areas were occupied by the Dongfeng Nissan project. Guangfu City recommended another good place to Han Hao, which is Nansha Island, also known as Nansha New Area, which they vigorously developed.
Nansha is known as the new economic engine of Guangfu City, with a deep-water port and a large area of land, and is located in the geometric center of the Pearl River Delta, with a superior geographical location. The original fish ponds and rice fields have been replaced by patches of flat land, and road traffic extends in all directions.
GAC Toyota's factory is set up here, in order to fulfill its promise with Toyota, Guangfu City has desperately completed the transformation of the local three links and one level, and after the bus, it has also built a city expressway to go directly, and will also be connected to the subway in the future.
Canton city officials led Han Hao to visit the GAC Toyota plant that was about to be put into production, and showed the results of their service to Toyota.
From the advanced and beautiful Toyota factory in front of him, Han Hao can feel the oppression of Toyota's grinding knives.
Local officials also promised on the spot that the land could be freely selected by Han Hao within the scope of operation, and priority would be given to the landing of the new factory of Zhonghua Group.
As a new development zone, Nansha is still a tabula rasa except for blockbuster projects such as GAC Toyota. In order to attract Han Hao's investment, they gave a land gift close to the price of cabbage. If the Chunghwa Group base develops smoothly, the money will be earned back in taxes in the future.
The other party also promised that as long as it is a supplier of Zhonghua Group, it will enjoy the same preferential measures when it comes to Nansha, because Toyota Motor is required to do so.
It can be said that Toyota has played the front station, which has indeed saved Han Hao a lot of effort, and Nansha New Area is a very good investment location.
To go global, you must first gain a firm foothold in China.
The Chunghwa Group must expand its armaments and continue to expand its production capacity in order to share the costs and cope with the huge demand in the domestic market in the future. In the past two years, China has added an increase of one million cars every year, and this speed is still accelerating towards two million vehicles, and it is expected that China will surpass the United States to become the world's largest automobile market in a few years.
Whoever prepares for a rainy day will have a head start in the future.
After a preliminary investigation, Han Hao signed an investment agreement with Guangfu City, intending to invest in a factory of 300,000 vehicles in Nansha New Area, and will not rule out expanding to a production capacity of one million vehicles in the future.
However, after signing the agreement, Han Hao did not leave Nanyue Province, but continued to investigate in the south.