Chapter 200 BMW Enters China
In the prime minister's mind, the preferred joint venture partner for a large enterprise like BMW to enter China should be a state-owned automobile group such as the three major and three small. Pen & Fun & Pavilion www.biquge.info
Although the Chinese government has stipulated that a foreign-owned auto company cannot have two joint venture partners, it does not prohibit Chinese companies from marrying more foreign brides. As long as both parties are like-minded, Chinese enterprises can in principle establish joint ventures with multiple foreign brands.
Because the domestic car catalogue is basically owned by state-owned enterprises, even if a foreign brand enters China, it cannot bypass this policy obstacle.
When he heard the words "China Group" from BMW Chairman Pang Ke, the prime minister could not turn the corner for a while. During a previous visit to China, BMW hoped to find a strong partner in China, and the prime minister recommended three major and three small representative enterprises to it.
Unexpectedly, after a big turn, BMW finally chose Zhonghua Group, a private enterprise.
"This was an unexpected surprise for me tonight, can I ask why?"
As long as BMW is willing to land in China, it is a good thing for the prime minister, and he wants to know what led BMW to make such a choice.
"Chung Hwa Group has the dynamism that allows us to reach an agreement, and although other Chinese companies are also excellent, such as Brilliance Group, we have chosen the partner we think is the most suitable for BMW for BMW's long-term strategy!"
When Punk cast the crucial vote, he knew that if he only focused on the present, then Brilliance was a very good choice. But if you take a long-term view, Chung Hwa Group is the most suitable partner for BMW, because it is acting more like a pure car company with an eye to the future.
The ambition of Zhonghua Group can be seen from the first large-scale construction of an automotive research institute in China and its efforts to be in line with international standards. As a luxury car brand, the Zhonghua brand sedan will not threaten BMW's position, and there will be no danger of direct competition between the two sides.
"I am very happy that BMW has settled in China, this is one of the right decisions made by your company! The Chinese welcome excellent cars from Germany as a new member of the family. ”
Raising his glass, the Prime Minister said after a happy touch with Punk.
"If possible, we will formally set up a joint project team with the Chinese side to prepare for the various procedures for the landing of the BMW, and we hope that the Chinese government will pay more attention to this at that time." BMW will treat everyone equally, bring the best products to China, abide by Chinese laws and regulations, and become a bridge of friendship between China and Germany!"
Cyberpunk is most concerned about the Chinese government's approval process for BMW's landing project, and whether it will be given the green light all the way, especially now that the partner Zhonghua Group has not officially obtained the sedan catalog.
"The specific problems have to be solved by the relevant domestic authorities, but I guarantee that the Chinese government will improve the investment environment, policies and regulations will be in line with international standards, and BMW investment will enjoy fair and equitable treatment." ”
The prime minister of a country, of course, has a macro perspective, and will not interfere too much in specific affairs. But he will still pay attention to the landing of BMW.
On the other hand, the feedback that Punk received from the prime minister was not bad, so BMW could officially inform its Chinese partners.
Han Hao received a call from BMW early in the morning during working hours the next day, and BMW would choose Zhonghua Group as its joint venture partner in China!
After waiting for a long time to hear this result, Han Hao's heart was empty, chasing what he had only gotten for a long time, but he was a little stunned when he got it.
However, being able to win from the competition with Brilliance at least shows that Zhonghua Group has enough strength to be valued by international auto giants.
When the Chinese "Qin" is already speeding on the road, Zhengdao Sedan is still trapped in the factory area, which indicates that the two companies are beginning to widen the gap, and BMW has chosen the better side of the two.
According to the practice of joint venture project approval, it takes at least one year for a joint venture project between China and BMW to go through the approval process. However, it only took 9 months for Guangben to land the Accord, and now whether China BMW can create a new speed is quite exciting.
"Alas, time doesn't wait for me, it's a pity, it's a pity......"
After Jin Yangyong received the result of BMW's notification, his original mood full of anticipation turned into extremely depressed, no matter how he looked at Brilliance, he was better than China, but he was finally out.
Fortunately, he still has a hand, and after hooking up with GM's production SUV, he has now reached a cooperative relationship with MGR Rover, and Brilliance's future is still promising.
Now that BMW is yellow, Jin Yangyong's next step is to wholeheartedly promote the implementation of the Rover project. Perhaps it won't be long before Brilliance has the opportunity to establish a joint venture with BMW to focus on the production of SUVs such as the X5.
Volkswagen from the north and the south, one south and one north, go hand in hand, giving good inspiration to many multinational giants.
Chinese companies don't want to put their eggs in the same basket, and foreign giants are not stupid and know how to use two Chinese partners to balance the constraints and strive for more benefits.
BMW is very happy that Brilliance can cooperate with Rover, after all, if Rover has a good prospect, BMW can also recover the huge interest-free loan it lent out at the beginning.
When the news of BMW's official joint venture with China was announced in China, many people did not believe that it was true, and the dignified BMW company actually chose the private enterprise Zhonghua Group as a partner.
"There are so many good partners to work with, BMW just doesn't take the usual path, and finding a large enterprise is the right choice! ”
"Although the development of Zhonghua Group is very fast, but now the accumulation of technology is not enough, BMW is looking for them to jointly produce, so can BMW cars still maintain the excellent quality that has always been?"
"If you can climb the high branch of BMW, I am afraid that China Car will take off in the future!"
......
Among the different opinions, the most affected is the domestic auto peers, the joint venture between China and BMW, and there will be another menacing competitor in China in the future. In particular, FAW Audi, although it is unrivaled in the bus market at present, BMW is BMW after all, even if it is dressed in the coat of China, BMW is still its strongest competitor.
"We at Audi are not afraid of other competitors, because Audi has always provided the best products to consumers, and Audi has become a market leader in China. ”
In response to BMW's entry into China, Audi executives responded.
"BMW's entry into the Chinese market does not affect Mercedes-Benz's strategy, and we are progressing our goals in an orderly manner around the world. As neighbors, we wish BMW all the best in China. ”
BMW has made moves, and people pay the most attention to Mercedes-Benz, which is also a luxury twin star, and it seems that the Mercedes-Benz brand is no longer a fantasy in China. But Mercedes-Benz's official spokesman did not answer the question directly, because integrating Chrysler is now Mercedes-Benz's top strategy.
The United States is the world's largest automobile market, Mercedes-Benz has always been eager to make a difference here, Chrysler, known as the third brand in the United States, is the best helper for Mercedes-Benz to realize its dreams. Despite claims that the integration between the two sides went smoothly, only Mercedes-Benz and Chrysler executives know how many heated arguments broke out between the two sides.
The joint venture between BMW and Zhonghua will be established on a 50:50 basis, with an investment of RMB 2 billion in the first phase, and will introduce the production of BMW 3 Series and 5 Series sedans using the CKD model. Annual sales started from 8,000 units and increased year by year to 30,000 units in 2005.
At the end of 2005, the second phase of the investment of 3 billion yuan was completed, and a 150,000-unit engine plant was built, as well as a variety of supporting parts supply system, and the domestic production rate reached 50%. The company aims to achieve sales of 100,000 units in China by 2010.
As for the X5 and the X3 series BMW SUV under development, BMW has no plans to localize it for the time being. After all, the sedan is now the mainstream of the market, and BMW plans to see the performance of the 3 Series and 5 Series in China before making the next strategic layout.
As for the 7 Series, as BMW's flagship model, of course, it will only be produced at the headquarters in Germany, and it will not be produced in China.
In the negotiations, BMW gave a strong sincerity. In the case of the engine plant project, BMW did not insist on it as a sole proprietorship, and agreed to build a joint venture with China. In terms of the establishment of the sales company, it was also agreed that the two parties would jointly invest in the joint venture. The Chinese side proposed to learn from the successful experience of the Audi A6, and the extended wheelbase of the 3 Series and 5 Series launched in China, and also expressed its understanding of the extended wheelbase, and will develop an extended version specifically for the Chinese market.
"China BMW Automotive Co., Ltd." is the name of the joint venture between the two parties in the future, which means that on the domestic BMW, the "China BMW" tail mark will be hung.
It can be said that after the defeat of Rover, BMW has become more modest and treats its joint venture partners as equals compared to their disproportionate strength.
"Audi's success in China shows that there is a huge market potential here. BMW will not only look at the immediate benefits, but also look to the future and deepen its cultivation in China. With the help of a company like Chunghwa Group, which is familiar with the local situation, I believe that Chunghwa BMW will definitely occupy a mainstream position in the luxury car market!"
Mr. Paisen, the German representative who is the deputy head of the BMW project team in China, is very clear about conveying the intention of BMW headquarters to the Chinese media.
In terms of channel integration, the sales system of imported BMW will be fully integrated into the sales system of the joint venture. One BMW, one network, imported BMW products, including Mini, will be available for purchase in the future Zhonghua BMW 4S store, and domestic and imported products will be sold on the same sales network.
"Localization is a stage that must be passed in order for BMW to be successful, and Audi has set an example for you! We Chinese like to plan ahead, so it is a good thing for the joint venture company to solve some problems that are easy to cause contradictions between the two sides in the bud in advance. ”
BMW originally wanted to keep its import network separate from its domestic network in terms of sales, so as to control the profits of the import network. But Han Hao still persuaded BMW that the differential treatment would confuse Chinese consumers, and that a BMW and a joint venture company were the best choices.
In order to compensate for BMW's losses in the import network, BMW has a large share of the company's shares, taking 60%, while China only accounts for 40%.
It was precisely because of Han Hao's concession that BMW finally agreed to integrate the two networks and thoroughly implement the principle of one BMW.
The key positions of the joint venture company will implement a dual-post responsibility system, one for each Chinese and foreign parties, and major decisions can only be implemented with the unanimous consent of the managers of both parties. This management method has achieved very good results in SAIC Volkswagen and Guangqi Honda, and is considered to be a powerful tool for the management of joint ventures.
China BMW will have Han Hao directly as the president, and BMW will entrust Paison as the vice president, and the two sides will form a Sino-German management team to jointly manage the joint venture.
A joint venture project from scratch needs a strong man like Han Hao to vigorously promote it, and Paisen, as a China expert, can effectively assist the Chinese side in advancing the project.
"The interests of the joint venture company come first!"
With the experience of GAC Peugeot and Shouqi Jeep, which have caused serious internal friction to lead to the failure or difficulty of joint venture projects, the harmonious management of the joint venture has become a decisive factor in the success of the enterprise.
"The BMW brand is BMW, and the Chinese brand is China, and we will not confuse that. To a certain extent, BMW will provide some technical assistance, but the most important thing is to rely on ourselves to develop our own independent brand.
Although a joint venture has been established, Zhonghua Group will still insist on independently operating the two independent brands of 'Zhonghua' and 'Huaxia', and will not give up the national automobile brand. It is necessary not only to play the international card, learn the world's advanced technology, but also to play the independent card, and the latter will prevail, forming a new pattern of walking on two legs. ”
The joint venture with BMW is only a more important step in development, and the strategic focus of Zhonghua Group will still be on the two independent car brands, because only when they are strong will they not pin their hopes on others.
In the existing state-owned enterprises, once the joint venture, they will cut or suspend their own car brands, reduce investment in their own brands, and basically put all resources in the joint venture company.
Therefore, Zhonghua Group, which has always been known as a pioneer in the development of China's own brands, has also entered the joint venture camp, which has attracted the attention of many media.
In the face of the reporter's interview, Han Hao clearly expressed that Zhonghua Group will continue to hold high the banner of national car manufacturing.
China Automobile and Jiangnan Motor's application for asset restructuring has long been submitted to the State Council, but there has been no follow-up. Jiangnan Automobile is now insolvent and has difficulty in operation, and China Automobile has filed a restructuring application, which is a win-win strategy.
However, due to the involvement of the national 7-prefix car catalog, it was directly submitted to the highest level of the State Council.
When the premier returned from his visit to Europe, he took advantage of the opportunity of the joint venture between China and BMW to examine and approve the process at the same time.
"The BMW project has a great international impact, and now Jiangnan Automobile is reorganized, and it is just taking this opportunity to solve it together. Under the premise of not violating the national automobile policy, Comrade XX will take the lead in coordinating and dealing with it. ”
The Prime Minister's instructions were forwarded directly to the Deputy Prime Minister in charge of industry, who will coordinate with the various departments to make proper arrangements. With the approval of the Prime Minister, then the China BMW project will naturally be a green light.
The total number of car catalogs has long been determined, and now BMW wants to enter China, and has chosen the joint venture of Zhonghua Group, and the shell of Jiangnan Automobile is the most suitable resource.
The State Development Planning Commission soon approved the reorganization plan of Zhonghua Automobile and Jiangnan Motor, and Zhonghua Automobile will replace Jiangnan Motor's automobile catalog resources.
Subsequently, BMW entered into a joint venture with China Motor, which obtained the catalog, to perfectly solve the current policy problems.
It has not touched the current automobile management policy, but also successfully solved the production qualification obtained by BMW in China, and the biggest beneficiary is Zhonghua Group.
First borrowed the second automobile Dongfeng, and now uses the resources of BMW, Zhonghua Automobile finally obtained the long-awaited car license in name only.
Reflected in the stock market, the major good news drove the stock price up, and Han Hao's net worth began to expand again.