Chapter 62: The Beginning of the Melee

Since the formulation of the "Industrial Policy for the Automobile Industry" in 1994, it has gone through nearly 10 years of ups and downs, guiding and witnessing the rapid development of China's automobile industry. However, with the take-off of China's economy and the accession to TO, the 94th version of the automobile industry policy no longer meets the needs of the development of the times, and needs to be revised and changed urgently.

As of 2003, there were 123 vehicle manufacturers in China, covering 27 provinces, autonomous regions and municipalities directly under the central government. Among the more than 120 vehicle manufacturers, only 2 have an output of more than 500,000 units, only 8 have an output of more than 100,000 units, 95 have an output of less than 10,000 units, and 70 have an output of less than 1,000 units. In addition to the vehicle factory, there are more than 500 modification companies that still have product qualifications. Among the more than 600 automobile companies, about 200 have produced little or even "zero production" for many years.

What happened in the motorcycle market is now repeated in the automobile market, 600 companies have become "shell resources", and many companies have begun to quietly sell "catalog" resources to make money.

SUV is a brand new model in China, and the most exciting thing is that it only needs a 6-prefix catalog, instead of squeezing into a 7-prefix sedan catalog.

With the two successful products of Great Wall Saifu and Zhonghua "Tang" in front of Zhuyu, a large number of companies eager to enter the automotive field have pressed the treasure on the SUV.

In Zhejiang Province, in addition to Oaks Home Appliances shouting to enter the automotive industry, there is another enterprise that has completed the original accumulation in the field of auto parts and intends to quietly enter the vehicle manufacturing industry.

Tieniu Group, located in Jinkang City, is a manufacturer of automotive sheet metal parts, automotive electrical accessories and parts molds, and it is also one of the auto parts suppliers under Zhonghua Group.

Wherever there are industrial clusters, there will always be parts companies that want to develop upward and become vehicle manufacturers. Motorcycles are like this, and now it is the turn of the automobile field, relying on the rich auto parts resources of Zhejiang Province, vehicle manufacturing does not seem to be so difficult to do.

The whole country has set off a wave of entering the automobile industry, and Ying Jieren, the boss of Tieniu, is also quietly laying out.

Tieniu Group now has its own body mold factory, and many auto parts can be easily purchased in Zhehai, as long as you buy the engine, transmission and chassis, you can assemble a driving SUV.

At present, the domestic market has a chassis imitated from an Isuzu pickup truck, as well as a sturdy and durable 491 engine, plus a 5MT manual transmission sold by Tangshan Aisin Gear Factory, and all kinds of key parts required for an SUV can be bought in the market.

To produce complete vehicles, Tieniu Group is not qualified, this problem is easy to do, there are so many shell resources in China, you can find a qualified automobile company to cooperate.

So after looking for a circle, Ying Jieren, the boss of Tieniu, fell in love with a partner located in Shuchuan Province called Xindadi Automobile, which has a 6-digit car catalog and can be affiliated with production.

"Now the automobile industry is so hot, I heard that Zhonghua Group earned 1 billion yuan last year with just one car. At present, in addition to real estate, the automobile industry is the most profitable. ”

Ying Jieren said this to his subordinates, and he also put it into action, in addition to entering the automobile industry, he also expanded the local real estate industry.

There are two big bosses in Zhehai, namely Han Hao and Li Shufu, so many people follow their successful path.

Xu Hua, the CEO of Bird Mobile Phone, has been very depressed recently, although Bird has occupied the market with the name of price butcher in the mobile phone market, but the company's pace of entering the automobile industry is not smooth.

The production line of used engines purchased from the UK had been packed and shipped to Dinghai Port by cargo ship, but it was detained by customs and refused entry on the grounds that Bird did not have the approval of the National Development and Reform Commission.

The national automobile industry policy stipulates that all imported vehicles, engines, transmissions and other core auto parts and corresponding production lines must be approved by the National Development and Reform Commission before the customs will release them.

Xu Hua originally planned to take the mobile phone route, but he didn't expect the state to control the automobile industry so strictly, and the customs inspection was very strict.

If you produce cars in China, the state may turn a blind eye, but when it comes to imported production lines, it must be subject to strict investigation and approval.

The new industrial policy has not yet come out, and of course customs enforcement must be in accordance with existing laws and regulations.

At the beginning, Chery Automobile had the Anhuai Provincial Government behind it and the approval of the National Development and Reform Commission. Now you are a mobile phone company, you want to import automobile engine production lines, there is no formal approval from the state, and the customs still think that you are preparing to smuggle into the country.

The production line that he had worked so hard to buy from the UK was detained in the customs warehouse, and Xu Hua was so anxious that he hurriedly sought help from the Dinghai Municipal Government, where the company was located.

The Dinghai Municipal Government has no choice, which can only be released with the approval of the National Development and Reform Commission, and the customs are also acting in accordance with the law, so they can only coordinate with the customs to keep this batch of goods as well as possible.

At this time, Xu Hua, who was conquering the city in the mobile phone market, felt the state's invisible monopoly on the automobile industry.

What to do?

I can only honestly apply to the National Development and Reform Commission for approval, report it level by level in accordance with legal procedures, and ask the state to open up and let this engine production line in.

At this time, Nanqi Yatu Automobile Factory, which cooperated with Bird, took this opportunity to renegotiate with Bird. At the beginning, he was eager for funds and agreed to occupy the position of major shareholder with 100 million yuan of shares, but now he found that the 7-figure car production catalog in his hand was quite valuable, and he would suffer too much if he implemented the old agreement.

To apply for approval from the National Development and Reform Commission, it is necessary to come forward in the name of Nanqi Yatu Factory. Since Yatu Factory has a 7-digit car catalog, many companies that are interested in entering the automotive field have come to the door, which gives them some confidence.

I can't imagine that the water in the car line is so deep, and the waveguide has smashed 100 million into it, but now I can't even hear the sound of water.

Xu Hua himself was also very depressed, he had dinner with BYD Wang Chuanfu and agreed to enter the automobile industry together, originally Bird and BYD said that they would buy the Qinchuan factory together, but they did not expect to be swallowed up by Wang Chuanfu alone halfway.

Now I started a new stove, thinking that it was a good match to find the Yatu Automobile Factory with a 7-word catalog under Nanqi, but I didn't expect to face a lot of bad things.

Nanqi gave the condition, that is, the share ratio of the two sides will be restored to 50:50, and then the leading model will be decided by NAIC, and Bird will only exercise the responsibility of the capital shareholder.

Originally, we wanted to enter the automotive field with the help of a qualified company, and Bird wanted control and dominance. But now Nanqi does not want to give up control of the Yatu Automobile Factory, and only wants Bird's money but does not let it take care of things, which makes the two sides have a fundamental difference.

People have to bow their heads under the eaves, and now the engine production line is detained at the customs, if it breaks with Nanqi Yatu, it will still be a loss.

However, Xu Hua still won some compensation, that is, the new production line will not be included in the joint venture company as an asset of Bird, and the joint venture company will purchase engines separately from Bird in the future.

Nanqi Yatu has obtained more equity in the joint venture, and they need Bird's funds to restart the obsolete Inger car production line as soon as possible. Xu Hua can solve the current engine deduction dilemma, and in the future, after the engine production line under the name of Bird is put into production, he will be able to advance and retreat freely. If it falls out with Nanqi, with the engine in hand, Bird can find a new partner at any time.

The encounter with the waveguide made Oakes' road to the automobile turn a corner. Originally, they also planned to cooperate with a state-owned automobile company, but Bird suffered a dark loss, and they were worried that there would be all kinds of troubles after cooperating with a state-owned enterprise. So I planned to buy a clean shell, which I could say for myself.

After the introduction of the intermediary, Shuangma Automobile Factory, a subsidiary of Shenjing Agricultural Machinery Group, entered the sight of Oaks. Shuangma Motor started by producing tractors, and later started a modified car business, and now has a 6-prefix catalog that can produce pickup trucks and SUVs.

Shenjing City is where Brilliance Group is located, and with Brilliance, other automobile-related companies in the city are basically in a state of self-destruction. The Shuangma Automobile Factory, a subsidiary of the Agricultural Machinery Group, has long been unable to pay wages and is waiting for bankruptcy at any time. At this time, Oaks Group appeared and promised to acquire 95% of the shares of Shuangma Automobile for 50 million yuan and solve the employment problem of workers.

Seeing that someone was willing to take over the hot potato, the local government immediately agreed to Oaks' bid, so another company in Zhehai Province officially stepped into the automotive field.

The first car that Oaks decided to launch was still an SUV, and the sedan could not enter, and an SUV born out of a pickup truck was the best choice.

A month after entering the Shuangma Automobile Factory, Oaks used the resources of the factory to come up with the first SUV prototype - Oaks Prime Force.

Oaks is ready to invest 3 billion yuan to build a set of automobile manufacturing center, management center, automobile research and development center, automobile mold center, automotive talent training center, automobile exhibition center in one, covering an area of 2.08 square kilometers of Oaks intelligent industrial city, and in 2004 completed the first phase of the project and put into use. In the future, Oaks car will benefit consumers like air conditioning. ”

The CEO of Oaks swore to the media that he believed that in the future, Oaks would disrupt the entire automotive industry like an air conditioner.

In less than half a year, there are three more automobile manufacturers in Zhehai Province, all of whom hope to become the next Zhonghua Group.

At the beginning, Han Hao's entry into the automotive industry was not favored, but he succeeded in the end.

Since Han Hao can, why can't others?

The spirit of "princes and princes will have a kind of peace" buried in the cultural genes of Chinese people has promoted the continuous progress of Chinese society to a certain extent.

Watching Great Wall Motors rise to prominence with pickup trucks and cypher CUVs, Li Tianping, the boss of the old neighbor Tianye Automobile, couldn't sit still.

At the beginning, he was put together by Jin Yangyong and Han Hao, but now seeing the changes in the automotive field, he is ready to go out again.

Zhonghua Group and Tianye Automobile have cooperated in the pickup truck market, using Tianye Automobile Factory to produce Huaxia pickup trucks for sale, so in the past two years, it has brought a lot of dividends to Tianye Automobile, which accounts for 40% of the shares, so that Li Tianping has a certain amount of capital.

The ZTE brand, which Kim Yangyong promised to build with Tianye Motors, has been sealed in Brilliance Group, and the brand has been unpopular since Kim Yangyong's departure.

Li Tianping planned to re-emerge with the ZTE brand, so he found Su Xiaoqiang of Brilliance Auto and wanted to return this trademark.

ZTE is Kim Yangyong's legacy, and Su Xiaoqiang is now focused on Brilliance Sedan and is not interested in the ZTE brand. In the end, Li Tianping brought the ZTE brand home at a symbolic price of 180,000 yuan.

Since then, Tianye Automobile has changed its name to Zhongxing Automobile, and Li Tianping hopes that he will be able to realize the rule of Zhongxing of Tianye Automobile Factory, which has a history of more than 10 years.

The new ZTE car, Li Tianping intends to enter the SUV segment, because the segment is now very hot. Saifu's monthly sales exceeded 3,000 units, and the Chinese "Tang" was suddenly hot in the domestic market, and many people would rather buy tall SUVs without sedans.

If you produce pickup trucks, it is easy to conflict with Huaxia pickups, Li Tianping does not want to offend Han Hao for the time being, and now the joint venture factory is a stable source of income for the new ZTE Automobile.

In the case of SUVs, only a slight improvement on the pickup truck is needed to bring the new model off the assembly line. Pickup trucks can't get into town in many places, but SUVs don't have such restrictions.

The price of the Zhonghua "Tang" starts at 110,000 yuan, and the ZTE SUV will be positioned below 80,000 yuan, staggering the competition with the "Tang".

Li Tianping called the first SUV "Zhongxing Chiye", which used the 491 series 2.4L engine, Tangshan Aisin's 5MT, the SUV body produced by Fudy Automobile in Nanyue Province, and ZTE's own chassis based on the Isuzu pickup.

Zhongxing Chiye's main competitor is aiming at the Great Wall Saifu, and Li Tianping has been competing with the Great Wall's Wei army from pickup trucks to SUVs.

In terms of pricing, the pricing of Zhongxing Chiye is 1,000 yuan cheaper than that of Saifu, and Li Tianping hopes that Chiye can replicate the market magic of Saifu.