With Han Hao's domineering remarks made public, the international auto giants, which had not looked at each other before, began to face up to this Chinese independent enterprise that had grown up savagely in the backward automobile market.

The market does not believe in the slogan of breaking the sky, and only agrees with the real results of fighting.

China's auto market is the second in terms of sales, and it is very likely that it will overtake and jump to the first place in 2005, no matter how low-key the Zhonghua Group is, it will be studied by multinational giants as a major competitor.

"I think our marketing strategy should be adjusted, and we have to add Zhonghua Group, a local alternative company, from the joint venture brand as the main competitor. Their rise is so rapid that if we don't contain them, we may well see a formidable competitor emerge!"

This is what Volkswagen's head of strategic analysis for the China market reported. It is his job to give early warning to the top management and put forward corresponding analysis data.

"We have to push the market down further to suppress the ceiling of China's local independent companies and continue to maintain our leadership position in China.

Therefore, I suggest that we launch more cost-effective products as soon as possible, compete with Chinese independent companies at the same price, and leave no room for them to grow. This is the best way to go in the long run. The downside is that considerable profit margins are sacrificed.

The central strategy is to support the development of China's joint venture partners, and use China to control China, and they can act as snipers. At the same time as the transfer of technology, we can make a stake request to achieve a benefit-sharing strategy. The downside is that when we stifle other local Chinese competitors, we inadvertently create new ones, even though we also have a stake in them.

The best strategy is to increase R&D investment in China and launch localized products for the Chinese market, and the automotive research institute in China can be used as the launching point for our new models. The disadvantage of such a strategy is that it gives Chinese independent enterprises more time to develop, and the advantage is that it can guarantee our profits and win in competition with other joint venture brands. ”

In view of the situation in the Chinese market, the person in charge gave three major coping strategies.

"We have to be accountable to our shareholders first, and last year's profit drop in the Chinese market by more than half has caused the company's shares to fall. The Chinese market is too important for its profits to dominate the group. If you and I don't want to get out, it's better to find a way to increase profits in the Chinese market.

You are right, Chung Hwa Group does show long-term potential, but we must also see that it is estimated that they are still at least 10 to 20 years behind us in terms of technology. Koreans used to develop very quickly, but now they are still left behind by us. Therefore, even if the Chinese become the second Korean, then they must first consider how to surpass the Koreans before they come to cheer with us.

Even if our primary goal in China is to make money, we can't think too long-term!"

As a global company, Volkswagen's management does not only look at China. They politely rejected the proposal of the head of strategic analysis for the Chinese market. However, the third article to increase R&D investment in China is agreed.

With GM's success in localizing the Chinese market, the Excelle has become the new best-selling model, while the Brazilian imported product Gower, which Volkswagen has high hopes for, has collapsed, and Volkswagen's proudest Golf has not been as popular with Chinese consumers as expected, making them realize the difference in the Chinese car market.

The joint R&D plan, which had been stuck, was approved, and Volkswagen's headquarters agreed to take the relatively updated PQ34 old platform to China for training, and local engineers to transform and develop new models. This old platform, which originated in 1998, was replaced and eliminated after Volkswagen launched the PQ35 in 2003, just in time to continue to exert its residual heat in the Chinese market.

The originally negotiated PQ32 and PQ42 platforms from the 70s and 80s were too old to compete with other competitors in the highly competitive Chinese market, and Volkswagen had a rare conscience to introduce the PQ34 to China.

In order not to favor one over the other, the PQ34 was given to FAW-Volkswagen and SAIC Volkswagen at the same time, with internal numbers "X" and "Y" respectively, and they independently developed a new A-class model suitable for the Chinese market, which is expected to be launched in 2008.

"Do you know that there is an ancient way of fishing in China? Fishermen use cormorants to catch fish for themselves, wrapping most of their necks around their necks, so that the big fish can't swallow only the small fish, and the big fish caught can only be handed over to the fishermen in exchange for a small fish to eat.

Now China's joint venture partners are our cormorants, who are hungry but have to fish desperately for us. Disobedient or unable to catch a fish, the cormorant is punished for starving all day. Therefore, they give it their all every time they enter the water. Eventually, we took the boatload full of big fish, and they could only enjoy the leftover small fish.

However, no matter how disobedient the cormorant is, we must first chase away the other fishermen who compete with us on the same river.

Rational allocation of resources is not only a technology, but also a wisdom!"

After determining the new round of China strategy, Volkswagen's senior management said to the strategic analyst who suggested it.

In the Chinese market, Volkswagen's primary target is still the American and Japanese car brands, and the importance of the Chunghwa Group has to be ranked second to that of the Koreans.

However, Volkswagen's German hometown Bosch Group did not see it that way, and when the joint R&D team of Zhonghua Group and Huaqing University conquered the ESP module and showed that it had the strength to develop finished products, they immediately responded quickly.

Since 1995, when the Mercedes-Benz S-Class was officially equipped with Bosch's ESP system, Bosch ESP has become a benchmark in this field of safety. In 2003, Bosch officially launched the 8th generation of ESP stabilization products, which have been used on a large scale in mid-to-high-end models.

As a system that can greatly improve the vehicle's extreme handling ability, ESP helps the vehicle maintain dynamic balance by analyzing the vehicle's driving status information from each sensor, and then sending deviation correction instructions to ABS and other modules.

According to preliminary statistics, vehicles equipped with ESP systems can greatly avoid the occurrence of driving out of control, especially in the elk test with excellent high-speed dodge performance, and more importantly, the SUV model with too high center of gravity can greatly reduce the risk of overturning and rollover.

There is competition in the cooperation.

This is Bosch's attitude towards the Zhonghua Group, which has developed rapidly and has become a new heavyweight partner of Bosch in China. However, unlike other companies, Zhonghua Group has always been committed to the research and development of competing products, such as the ABS system that was built independently, which made Bosch feel the existence of competitors.

When Chunghwa Group's ABS project had just begun to be commercialized on a large scale, a major breakthrough was also made in the self-developed ESP project. The R&D team has accumulated enough experience in the ABS project, and it is easy to enter the field of ESP, and soon understand the technical principle of ESP and come up with the corresponding samples.

Corresponding sensors are installed on the steering wheel, wheels, brake accelerator pedal, chassis, etc., and then the signal is processed by the central processing unit, and then the preset program is called to control each tire of ABS. A simple ESP system was born, but the difference is that there is still a long way to go in terms of data acquisition and road commissioning.

As with CVT, the hardware is done, and the key is the debugging of the software.

Bosch's ESP has evolved into the 8th generation, and they have a huge amount of data in practice, which is the most valuable core technology. Hardware can be purchased in global resource allocation, but money can't buy data.

There is a saying about the late-mover advantage in technology, if Bosch's current technology is scored as 8, then the ESP sample of Zhonghua Group should be 0.5. With the cracking of mainstream technology, 0.5 may soon become 6, or even 7, which directly threatens the existence of 8.

Therefore, this time Bosch changed its strategy, and the previous price increase in ABS led to the desperate research and development of its own products. Now Bosch has cut the price of ESP significantly, and intends to supply it to the Zhonghua Group only at a higher cost price, so as to extinguish the Chinese's efforts to mass produce ESP.

14,000 yuan was directly reduced to 6,000 yuan, and Bosch opened a bargaining chip that people could not refuse.

According to the preliminary estimate of Zhonghua Group, the mass production cost of independent ESP is at least 8,000 yuan, and the performance is at least one generation behind Bosch products.

Why Han Hao dared to promise that the newly launched "Song" will be equipped with ESP as standard, because he saw the dawn of independent ESP research and development.

Now Bosch is negotiating with Chunghwa Group and is willing to significantly reduce the price of the ESP system, on the condition that Chunghwa Group will not use its own products for three years.

In order to maintain its monopoly position and eliminate potential competitors in the future, Bosch resorted to a killer move.

From an economic point of view, Bosch ESP is the best choice because it is cheaper and more performant than in-house. After all, many parts of a car need to be purchased externally, which reduces the cost and improves the performance.

Once the Chung Hwa Group continues to purchase Bosch ESP on a large scale, with the price advantage of its own cabbage, they believe that even after three years, the Chinese will not be willing to mass-produce their own products, because the gains outweigh the losses.

This is a poisonous apple, and if swallowed, it may become dependent, and Han Hao knows the Germans' calculations.

However, he accepted Bosch's proposal, but changed the three-year period to two years.

Bosch's low-cost supply just gives Chunghwa Group a buffer period, and before its own technology is mature, it can use low-cost and cost-effective products. Two years later, its own technology reached the mass production standard and began large-scale commercial use.

In fact, this is also a two-year gamble, Bosch bets that its cost technology can make Zhonghua Group give up, while Zhonghua Group bets that even if it has Bosch products, it will still develop and mass produce after expiration, and the cost can be comparable to Bosch.

This is a conspiracy, and at the same time a conspiracy!

Now, Han Hao has decided to take a gamble with the Germans because he believes in the strength of China's R&D and manufacturing.