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As the economic and political center of the country, in order to improve the air pollution conditions, the local regulation "Emission Standards for Exhaust Pollutants of Light Vehicles" was promulgated, and it was announced that it would be officially implemented on January 1, 1999. As soon as this policy was introduced, the limit value was about 80% higher than the current standard, which is equivalent to the European standard in the early 90s, making it the city with the strictest emission standards in the country. Under such strict regulations, all carburetor engine cars on the market are basically unable to enter the capital for sale, and the EFI engine has become the only option to buy a car in the future.

At the same time, the capital has also issued supporting traffic regulations, from January 1, 1999 to prohibit cars with a displacement of 1.0L or less from entering Chang'an Avenue, which is known as China's first street, and at the same time, they are not allowed to enter the innermost lane of the main road when driving in the second and third ring roads.

The capital has set an example, and it is said that large and medium-sized cities on the eastern coast are ready to follow suit, and the national automobile industry will usher in a wave of reshuffle. Enterprises that still use carburetor engines will face the dilemma of not being able to enter large and medium-sized cities, and enterprises equipped with new EFI technology will usher in a wave of development.

This means that Mercedes-Benz's small displacement red and yellow army in the streets and alleys of the capital - Red Xiali and Huang Dafa will be officially phased out. In this great change in the automotive industry, the first to bear the brunt is the Tianjin Automobile Group, Xiali, Daihatsu are below 1.0L displacement, in the future it will face the main model in the capital without a car to sell.

Since the mid-80s, Tianjin Automobile Group and Daihatsu Automobile joint venture, in the field of micro cars belong to the domestic hegemony, Red Xiali, Huang Dafa has become the taxi representatives in many places. Cheap, durable, and fuel-efficient, Tianjin Automobile has swept almost the entire Chinese taxi market. As of 1998, the number of taxis in the country was 730,000 units, of which Xiali and Daihatsu under Tianjin Automobile Group accounted for more than 75%, and Xiali became the representative name of taxis. Except for in the southwest region, Alto can barely fight with Xiali by virtue of its base camp advantage, Xiali has no direct competitors in the country.

Now the situation has changed, under the demonstration effect of the capital, the taxi market in large and medium-sized cities will raise the threshold, and more favor the three joint ventures of Santana, Jetta and Fukang. The originally smooth sailing Tianjin Automobile Group was suddenly pushed to the cusp, and if no changes were made, it would be eliminated by the historical trend. As a countermeasure, Tianjin Automobile has decisively turned to Toyota for help, and the two sides have signed a joint venture agreement, pending the approval of the Chinese government. If a partner is in trouble, Toyota will of course lend a helping hand and export its 1.3L engine with small displacement 8A technology to Tianjin Automobile. At the same time, the company plans to establish an engine plant in China as the first 8A engine for use by Tianjin Motor.

The 8A engine is known as "1.0L fuel consumption and 1.5L power", and of course it is the star product that Tianjin Automobile Group dreams of. Unfortunately, the number of imported engines is limited, the price is too high, and the cost of Xiali vehicles has risen sharply all of a sudden, which can only be a temporary countermeasure. In any case, the "Golden Xiali" model, which is equipped with a new 1.3L imported Toyota 8A electric injection engine, will be used as a new generation of fist products to enter the capital market, and the price has also soared to more than 100,000 yuan. As for Huang Dafa, Tianjin Automobile Group had no choice but to give up the capital market and began to move to small and medium-sized cities and rural areas.

Giving up micro-surface products is a strategic choice made by Tianjin Automobile, and they are ready to focus on the field of cars, for which the group has not made further investment in micro-noodles, and Huang Dafa began to enter the end stage of his career.

Although the capital began to restrict micro-cars, Jinqi still did not realize that the crisis was coming, first, their joint venture with Toyota was just around the corner for state approval, and second, the state approved their listing application, and it is not surprising that the company will be able to go public next year. Come to think of it, now Xiali's annual sales have exceeded 100,000 units, second only to Santana, and it is next to the Toyota Group, and the company will soon go public, and the future is bright. It is a pity that the era of only one or two outdated products to win the world has passed, and China's automobile market will usher in a fierce battle between the heroes, and enterprises without core competitiveness will soon be eliminated in the tide of the times.

The new policy introduced by the capital, it is not surprising that other large and medium-sized cities will follow up, so the market blank of Tianjin Automobile's withdrawal has given Huaxia Factory a great opportunity. Consumers will definitely buy mainstream products when buying a car, and in the context of other manufacturers' products in the micro-surface field are basically carburetor engines, the second generation of Huaxia Light has become a new product benchmark.

The 1.2-liter engine imported from AVL adopts EFI technology, and both emissions and emissions are perfectly in line with the newly introduced local policies and regulations. Huang Dafa can't go to Chang'an Street, but the second generation of Huaxia Light can, and he is completely unaffected by the traffic restrictions in big cities. At the same time, the Q1 sedan project is also equipped with a 1.2L engine, which can also enjoy policy dividends when it is put on the market in the future, so as to replace the market position of Xiali micro car.

Inadvertently, Huaxia Plant has become the number one beneficiary of the change in the national emission policy. At the same time, the advertisements of the second generation of Huaxia Light on TV also emphasize EFI technology, which is not affected by the city's traffic restriction order and belongs to the products for the new century. In the advertising slogan, the new concept is highlighted, the second generation of Huaxia Light is isolated from the traditional micro-faces, and a new car-making concept is disseminated to consumers.

Under this influence, Huaxia Automobile's dealers in the capital started the scene of selling cars in the downtown area, and a large group of people chased after the sales to ask for cars. Tens of thousands of Huang Dafa noodles were required by the government to eliminate the furnaces put into Shougang, and a new shortage of taxis came into being. In principle, the micro-face is no longer approved as a taxi, but the market demand is still there, and people need vehicles that can carry people and bulky goods. Therefore, the first choice for private cargo vehicles is the second generation of Huaxia Light, and the sales of this product in the capital have skyrocketed by 8 times in a while.

Because of the demonstration effect of the capital, many industrial and commercial owners in large cities choose to buy micro-noodle products, but also consider new products that will not be restricted in the future, and the second generation of Huaxia Light has suddenly become a star product in the market. The orders in hand alone have exceeded 5,000 units, which Han Hao did not expect, and the annual output of Huaxia Automobile's production line is 30,000 units, which is really unable to provide sufficient production capacity. In addition to planning to build a new production line of 60,000 units, Han Hao also ordered to temporarily stop receiving new orders from customers.

The sudden market demand almost disrupted Han Hao's strategic layout. In his prediction, the second generation of Huaxia Light should not reach the scale of 30,000 units until next year, and as for the Q1 micro car ready to be launched, he estimated that the sales volume in the first year will be more than 10,000 units. Therefore, the production line construction is not well prepared, and the production line that has been prepared for the Q1 micro car in the construction will be expanded, from 15,000 to 30,000 units per year, plus the new 60,000 units can be produced in parallel with the production line of two models, Huaxia Automobile will have a production capacity of 120,000 cars by the end of 1999.

It is not enough to upgrade the main engine factory, and the supporting engines and transmissions must be uniformly expanded, not to mention the advance payment to the majority of suppliers, which is a big gambling investment for Huaxia Automobile.

Such a large-scale project will cause a heavy financial burden, and if the production line is not saturated, it may drag down the entire OEM. For example, the joint venture project of the Second Automobile and Citroen has a design program of 300,000 cars and 400,000 engines, with a total investment of 13.158 billion yuan. In fact, the registered capital of the joint venture company is only 2.589 billion yuan, and the scale of 1 to 5 leverages the leverage, and the joint venture Shenlong company has borne a heavy debt burden since the date of its establishment, and has to pay bank interest of more than one billion yuan every year. In 1996, the first Fukang car officially rolled off the assembly line, when the sales volume of DPCA was less than 7,000 units, with a loss of 2.85 billion, and the profit from the sale of the car was not enough to pay interest. For this reason, the Chinese general manager of DPCA made a jaw-dropping scene in the history of domestic modern automobiles, and he left a desperate letter and disappeared without saying goodbye.

It is said that he has always opposed such a large-scale launch, advocating the requirement of implementing the project in stages, which was not recognized by the parent company at the higher level, and could not negotiate with foreign parties, let alone report to the relevant state departments.

The dignified CEO of a state-owned enterprise suddenly disappeared, and the public security bureau could not find anyone after reporting the case, and a month later the second automobile had to parachute a new boss to continue to support this mess.

Where did the missing boss go, some people said that he was seen in the Taoist priest of Wudang Mountain, and some people said that he was seen fiddling with his career at the foot of the capital Tianzi, anyway, at the end of 1998, he was still in a state of evaporation.

The CEO of the joint venture seems to be beautiful, but he also has his own bitter water, sandwiched between the parent company and the foreign party, between the superior leader and the ordinary employee, and is often the role of the gas-stricken scapegoat.

As the most successful joint venture in China, SAIC Volkswagen has always been a model of successful Sino-foreign joint ventures, but who knew that in 1993, the Chinese general manager jumped to his death, allegedly due to excessive work pressure that caused depression.

Tianjing was the first to ban motorcycles on the road, and then other large and medium-sized cities in China followed up one by one, resulting in motorcycle companies turning to small and medium-sized cities and even rural areas to expand the market. Now that the capital has promulgated a new policy for micro-cars, it should copy the routine of banning motorcycles, and other large and medium-sized cities have followed suit. In this way, there will be a huge market vacuum, and if Huaxia Factory can take the opportunity to occupy it, it will be able to gain a firm foothold in the automotive field.

After discussion and discussion with the management of Huaxia Automobile, everyone agreed that now is a once-in-a-lifetime opportunity to achieve rapid layout while competitors are half a step behind. Therefore, the second phase of the Huaxia Automobile project began to be launched, with 60,000 vehicles including corresponding engines and transmissions, with an initial investment of 400 million yuan, which is an absolute large-scale investment in private enterprises.

In line with the idea of preparing for the future China Car C1 project, the second phase of the project uses a lot of machinery and equipment from Germany in addition to saving as much as possible. Under the leadership of GETRAG, Huaxia Automobile has purchased Schuler's large-scale stamping machines, KUKA welding robots, Dürr automatic spraying, etc., and has established a world-class production line that is almost the same as the joint venture brand in terms of hardware. In the funds raised in the upcoming listing, 300 million will continue to be invested in it to create a new high-tech production line with a high starting point.

When Han Hao was busy expanding the armament war, Guangqi Honda, which was far away in the south, quietly began to transform the old production line, and they made full use of the production line left by Peugeot Motors, and invested 500 million yuan in the first phase to form a production line of 30,000 intermediate cars.

Honda plans to introduce 98 U.S. Accord sedans for production in China, because according to their analysis, there is a gap in the domestic mid-to-high-end car market. Among the cars made in China today, the Santana engine displacement is 1.6-1.8L, FAW Jetta 1.6L, Shenlong Fukang 1.4-1.6L, Audi Hongqi is 2.2-2.5L, GM Buick is 2.5-3.0L, just lack of about 2.0L models, which is the strength of the Accord 2.0-2.4L.

However, Honda still showed a cautious stance in the Chinese market, and in 1997, the sales of mid-to-high-end domestic sedans were only more than 3,000 units, which were basically monopolized by Hongqi and Audi. If the Accord comes in, according to the reference of imported cars, the monthly sales of 2,000 units are considered to be overjoyed. They have set a long-term goal of selling 50,000 units by 2005. Although it was difficult to enter the Chinese market and obtain a car production license, Honda still crossed the river by feeling the stones and refused to invest on a large scale.

Compared with Honda, GM is much more arrogant, they have wanted to enter the Chinese market for a long time, 1.5 billion US dollars equivalent to 12 billion yuan of large investment, a high starting point and high investment including engines and automatic transmissions, a total of 100,000 vehicles. The joint venture was required to launch the car at the end of 1998 and officially put into production in April 1999.

GM also produces a mid-to-high-end sedan, Buick New Century, with a displacement in the range of 2.5-3.0L, and the target market is still official cars.

Although Santana is in full swing, SAIC Volkswagen is still anxious, because the elderly 80s model Santana alone will be eaten by competitors sooner or later, so they have been trying to introduce the Volkswagen Passat B5 model. As a mid-to-high-end sedan, the Passat is an evolution of the Santana, and if the Santana is divided by blood, it belongs to the B2, while the Passat is the 5th generation model. Launched in 1996, the Passat was an incomparable Santana, using the same platform as Audi, and many of the parts were the same as the Audi A4.

Originally, the Passat would meet Chinese consumers in 1998, but the central government has not approved SAIC Volkswagen's new model project, because it thinks it is good to replace new models such as Santana 2000 and Santana 3000. Seeing that GM put into production the latest model Buick New Century and Honda also introduced the Accord, SAIC Volkswagen finally couldn't sit still, and finally introduced the Passat in the name of technological transformation and upgrading. From the B2 to the B5, it is true that it is an upgraded model, but in fact the two are almost very different. Santana is at least 400,000 at the 200,000 standard, while Passat is at least 400,000.

After the compact class of 15-200,000 units formed the three major competitors of Santana, Jetta and Fukang, China's mid-to-high-end sedan 30-500,000 will usher in the three major immortal fighting methods, Honda Accord, Buick New Century, Volkswagen Passat, they will join hands to redefine the standard of mid-to-high-end sedans for the Chinese people. With the launch of these three new cars, China's auto market began to directly connect with the world, and suddenly evolved from models in the 80s to keep up with the trend of the times, forming a new pattern of simultaneous listing of global models.

This also reflects from one side that there is not much time left for us to make domestic independent brand cars, and international giants have introduced the most advanced model technology, which is easy to stifle independent car brands that are still in their infancy.

When Han Hao was preparing to go to Germany for inspection, another piece of news touched the nerves of the people across the country.