Chapter 61: Learning from Europe

Suzuki has two ways to cooperate in China: one is to introduce the technology of a single model, provide the production line and technical drawings of the model, and produce it in the domestic market. For example www.biquge.info such as the Kaneshiro AX100 motorcycle, which is widely loved by the Chinese people, Suzuki only sells drawings and production lines, and does not involve in-depth cooperation. The second type is a joint venture, in which Suzuki and domestic manufacturers jointly establish a joint-stock company to cooperate in the form of a joint venture to share risks and benefits, which is a deep-level cooperation method. In 1994, Suzuki and Qingqi Group jointly established Qingqi Suzuki to jointly produce Suzuki King GS125 and other models, which is expected to be launched in China in February 1996.

Suzuki's partners in China, which are basically the military industrial enterprises of Yishui, are all in response to the trend of military to civilian conversion in the 80s, and the state took the lead in cooperating with Suzuki.

Now Suzuki has a strategic layout in the field of domestic motorcycles, in the southeast, northwest and middle, with Qingqi in the east, the Yangtze River in the south, the Wangjiang River in the west, Changling in the north, and Jincheng in the north.

In the field of automobiles, it is also in cooperation with military giants, and in 1993, Changan Suzuki was established as a joint venture with Changan Group to produce Alto and Antelope mini cars. In 1994, Changhe Suzuki established a joint venture with Changhe Group to focus on minivans, and plans to introduce Suzuki's Wagon-R model (also known as the Big Dipper model). The CH1010 that Changhe Automobile is selling well now is the Changhe micro-noodles purchased by Huaxia Factory, and the prototype is the introduction and transformation of Suzuki's ST90K.

In 1994, the seven major manufacturers that accounted for more than 90% of China's mini car share, in addition to Wuling's introduction of Mitsubishi L100 and Huali's introduction of Daihatsu 850 series, the remaining five Chang'an, Changhe, Songhuajiang, Feihu and Hanjiang were all upgraded from the introduction of Suzuki technology models. In addition, due to historical reasons, in 1992, China North Industries Group introduced Alto's production technology and equipment, and let its four enterprises: Chang'an, Jiangnan, Jiangbei and Qinchuan factories assemble and produce Alto models. Therefore, there are a total of 4 mothers in the common Alto car in the Chinese market, among which Chang'an does the best is the aunt.

The industrial layout in China fully reflects the strategic awareness of Suzuki Shu, as the earliest Japanese automobile company to enter China, Suzuki got up early in the morning to catch the market. In 1995, Japanese auto giants Toyota, Honda, Nissan, Mitsubishi and other companies were all looking outside China, and the Suzuki Group won the quota of two joint automobile production plants based on its friendly relations with the Chinese government. It cannot be said that there is no prescient name, and time will have to tell how the specific development will be.

Therefore, Han Hao, as the head of the Huaxia plant, did not put forward a naïve proposal for a joint venture with Suzuki, and Suzuki's two major joint ventures in China have been exhausted. However, the introduction of production lines should be discussed in accordance with Suzuki's development strategy in China. Huaxia Factory only introduced a certain model for digestion and established its own car puzzle.

In July 1994, the Chinese government officially promulgated the "Industrial Policy for the Automobile Industry", which proposed to encourage private purchase of cars, and at the same time clarified the policy that foreign-funded automobile enterprises are allowed to enter China with a maximum of two partners.

The introduction of this policy document has made many foreign auto giants ready to move, and they are preparing to enter China's vast market. In addition, seeing that Volkswagen has tasted the sweetness in China, GM, Ford, Toyota, Honda and others have sought opportunities to enter the Chinese sedan market. Now they are negotiating with governments across China to find the right partners.

The United States, Europe, and Japan have saturated the market, and the next untapped new continent of automobiles is in China, and whoever wins the first place in the Chinese market will be able to lead the next century, after all, there are less than five years before the arrival of the new century in 2000.

The promulgation of the "Industrial Policy for the Automobile Industry" has also blocked the way for private enterprises like Huaxia Factory to enter the automotive field in a strict sense. Like the implementation of catalog management for motorcycles, the automobile industry also implements catalog management, and enterprises that have not entered the catalog are not allowed to produce cars, nor can they be licensed on the road.

If Huaxia Factory wants to enter the automotive field, it must bypass the catalog, and it is very likely to merge the automobile companies on the catalog like a motorcycle, so Han Hao has to plan slowly.

Now, his focus has to be on the field of motorcycles, after all, in the field of motorcycles, Huaxia Factory also belongs to the latecomers, and the foundation is very shallow.

Although I didn't get the answer I wanted from Suzuki, at least I was able to communicate with Suzuki and lay the foundation for cooperation in the future.

Sitting on the plane and watching the urban agglomeration of Japan and Japan getting smaller and smaller, Han Hao felt that Japan could rebuild its homeland from the defeat of World War II and become the second largest country in the world economy, and there are many things worth Chinese learning from them.

The second stop of the Huaxia factory delegation will fly directly to Italy, where there are also many world-famous motorcycle brands, such as Ducati, Piaggio, etc. Among them, Piaggio's Vespa brand should be known by the most Chinese, because the beautiful heroine Hepburn in the classic romance film "Roman Holiday" that swept the world rode on the Vespa125 scooter when she visited in the film.

Compared with the four major brands of Japan and the world's motorcycle civilian market, European motorcycle manufacturers have retreated step by step and have no choice but to stick to the high-end market and abandon their armor in the low-end market. Because compared with cheap, beautiful and durable Japanese cars, motorcycles produced in Europe are not very competitive. Except for BMW and Ducati, which have a certain market share in the high-end market, other manufacturers are not having a good time.

In 1993, Piaggio set up a factory in Nanyue Province in cooperation with a Chinese manufacturer, Fosti, but the products produced did not have much influence due to the lack of adaptation. However, it at least has some understanding of the Chinese market, so it was happy to welcome it after receiving inquiries from the Huaxia plant and was very interested in cooperating in the development of models. This is also why Han Hao ate a closed door in Japan A, but he didn't care too much about it in his heart.

The enemy of the enemy is a friend, and the day A himself does not sell, but the Italians do, because their life is really not easy.

Compared with the modern metropolises of Japan, Italy retains many Renaissance buildings, many of which are hundreds of years old and significantly deindustrialized. Factories are moving to developing countries like China to compete around the world just to reduce costs.

The company is a family business, and the operation of the company has always been in the hands of the Piaggio family, and the current head is Piaggio IV. Under his leadership, Piaggio was in order, and in the face of the attack of Ri A himself, he couldn't come up with much to deal with.

Now the Chinese market has become the world's largest motorcycle market, with annual sales of more than 5 million units, far exceeding the European market. Italy accounts for more than half of Europe's motorcycle production, but the market is shrinking.

In the face of the visit of Huaxia Factory, Piaggio hopes to further cooperate with Huaxia Factory and make a difference in the Chinese market. European products are not suitable for the aesthetics of the Chinese, and the scooter looks petite and exquisite, which does not conform to the Chinese concept of atmosphere and spaciousness. Therefore, Han Hao did not want to establish a joint venture with Piaggio to produce its products, but only hoped to introduce equipment and processes for motorcycle design and development.

Piaggio invested heavily in factories in China, with 300,000 vehicles and 300,000 engines, but as soon as they were put into production, they fell into a loss, and the products did not sell well. The price is too expensive, the fuel consumption is too high, and the model is not grounded, which has become an important factor hindering its development in the Chinese market.

The losses of the Chinese factories have made it difficult for Piaggio IV to sleep, and investing in China is a big move. Unexpectedly, on the rapid development of China's big ship, Piaggio almost became the only loss-making foreign brand. Seeing that Japanese brands are making a lot of money in China, Piaggio IV's heart is bitter and indescribable. Now that the Huaxia factory has come to the door, even if he only seeks technical cooperation, he will try to agree, as long as the Chinese can give money, the technology can be sold. Just hoping to recover some investment in China, and at the end of the year, the board of directors can give an account, and there are already shareholders in the family who have asked to sell the company to cash out, because the company's profits have been declining sharply year by year.

"We want to start with a design and development collaboration to design a product specifically for the Chinese market. If you completely copy European products to China, it is easy to adapt to the soil. I understand that your company has already invested in building a factory in China, and if the product we develop is successful, it will also be a inspiration for your company in China. And the risk of research and development is basically all borne by us, you only need to provide technical consulting and guidance services, we will buy at the market price. If you don't agree, then we will look for other manufacturers in Italy, or even independent design studios to help. Presumably, with a business of tens of millions of yuan, we can find a suitable partner in Italy. ”

In formal negotiations, Han Hao rejected Piaggio's request for a joint venture, and he only wanted to introduce technology. But he didn't say anything, and later added that if the cooperation was pleasant, he would not send out the possibility of further cooperation in the future.

"Han, you are a very powerful businessman, and you are completely in control of the negotiation situation. I'll admit that we at Piaggio aren't doing very well in China, and we do need to look for some inspiration from you local talent. On behalf of the company, I will probably agree to your request for joint research and development. But on the price, we need to negotiate further. ”

Piaggio IV had no choice, and now he had the funds to ask for the Chinese merchants. What's more, if there is a successful case of Huaxia factory first, maybe other Chinese manufacturers will also come to the door.

Originally, Han Hao only agreed to pay for technical consulting and personnel training, but Biaggio insisted that they should provide hardware and software, and he would earn the cost of the whole process. In the end, Han Hao agreed to Piaggio's request. The two sides reached an agreement that Piaggio would assist Huaxia Factory in establishing a complete motorcycle development process system at a price of 25 million yuan. Including computer servers, CAD software, oil sludge engineering, CNC machine tools and other software and hardware facilities, but also to help Huaxia factory train a qualified design team, the entire cooperation period of 12 months. Wind tunnel laboratories and test sites are not counted, but mainly the design and development of the vehicle process.

So far, Han Hao has finally realized the front-end field from blind imitation to independent research and development, and has become the first manufacturer in the domestic motorcycle industry to step into the modern design and development process, and has taken the lead in terms of strategy.