Xu Zhi said: "Go to Shanghai!"

"Why did you choose to go to Shanghai?" Rao Bing asked with a smile, his negotiations with Volkswagen had entered the substantive stage, and the location had been decided, also in Shanghai.

"At present, the three cities with the most complete automobile facilities in the whole mainland are Wuhan, Changchun and Shanghu, which is close to the sea and has convenient transportation, which is naturally the best choice. Xu Zhi replied.

But the core reason is not easy to say, that is, before the establishment of SAIC Volkswagen in the future, he is ready to establish his own automobile industry in Shanghai, although many parts of the truck and the car are different, but when the time has a large number of imported foreign precision machining equipment can only be their own side, the Shanghai municipal government in the city already has these equipment, it is unlikely to use a huge amount of foreign exchange to buy again, after all, the foreign exchange of this era is extremely precious, although Shanghai is the core of the entire national economy, but the amount of foreign exchange is not much, because most of it is handed over to the central government。

In this way, it has the opportunity to become the largest supplier of SAIC Volkswagen in China, and in the future, with the development of domestic automobiles, it may also become the leader of the entire mainland auto parts industry.

After World War II, the car companies that were able to rise were born in developing countries, because of the local policy protection, which slowly cultivated the local auto industry, and then entered the international market, South Korea's Hyundai Motor is a successful example.

The rest will have to go around in their own country.

In developed countries that have matured, the only one who breaks the convention is Tesla, which has sprung up with electric vehicles.

However, Xu Zhi's home base is Xiangjiang, a city that cannot provide the market and technology needed by the automobile industry, and it is impossible to build his own automobile company.

Another way is to acquire, but there is too much money involved, even a small car company, it will cost hundreds of millions or even billions of dollars, and the funds used will also affect the development plans of other companies under it, and local policies and cultural conflicts in various countries are problems.

For example, a bunch of car brands in the United Kingdom, in the original history, many of the world's top car companies after the acquisition, with technology and capital to feed, but the same are serious losses, to the 21st century, the survival and relatively famous Jaguar and Land Rover, but also rely on the mainland market to regain vitality, and now in the 80s, no one can save them.

As for luxury brands such as Rolls-Royce, Bentley and other sports cars, these companies are just the pioneers of the big car companies that spend money on technology, and even in the 21st century, none of these companies can make a profit on their own.

Unless the surname is Quandt after the crossing, it is better not to touch the cars in the UK.

Therefore, taking advantage of the opportunity of trucks to enter the mainland market and intervene in Volkswagen's local supply is the best way to enter the automotive industry.

Among the world's top 500, the automotive industry is very much, but there are also a lot of auto parts companies, some powerful parts companies such as Bosch, Aisin, Magna, the comprehensive strength is not much worse than some second-tier car companies, and the technical reserves are extremely high, BBA often also seeks their help, belongs to the kind of low-key money-making enterprises.

"Xu Sheng, there is one more thing, in my country, if it is a domestic enterprise, it must ensure a foreign exchange balance, which is the most important indicator of the joint venture, once it cannot be reached, it cannot be established. Rao Bing said cautiously.

Foreign exchange balance is an enterprise law set up by the state in the 80s in order to protect its own foreign exchange, which stipulates that all joint ventures that sell products domestically must achieve foreign exchange balance, that is, if you sell a dollar of products in China, you must also export a dollar of products, or more.

All joint ventures established in China are protected by law, which means that if they earn RMB, according to the regulations, they have the right to exchange foreign exchange dollars from the central bank.

Now that it is the initial period of reform and opening up, all the world's attention is here, so in order to protect its own small foreign exchange reserves, any foreign investment enterprise in China must negotiate how to maintain the foreign exchange balance before signing an agreement at the beginning.

In this era, it is very difficult to earn foreign exchange from the mainland government and then remit it abroad! A small amount is okay, but a large amount is basically impossible, for example, the Coca-Cola Company, although it entered the mainland in 78 years, it is not allowed to sell to Chinese people at all, and can only sell to foreign businessmen or tourists who come to China.

Unless it is a cooperation project in strategic materials that some countries urgently need, or a special project approved by the top leadership, it is possible to succeed, but the life of these projects is basically not long, as long as the long-term consumption of the country's foreign exchange, this is absolutely not allowed in the 80s.

"I know that. Xu Zhi said with a smile: "In addition to the investment plan of the Mark Company, another electronics company under my umbrella will invest in a large factory in the mainland, mainly producing color televisions, radios and other electronic products, and all of them are used for export, which will form a large amount of foreign exchange earnings, which should be able to balance the domestic sales of the truck company."

In addition to investing in assembly lines, we will also bring in a large number of processing equipment, in the future, many parts and components in the United States will also be produced by domestic enterprises, and my Hutchison company, which involves countless Asian countries in terms of trade, will also develop and sell various types of trucks or parts channels in the future, hoping to reduce the foreign exchange balance of domestic sales. ”

Later, after the new CEO of the German side came to power, he re-examined the entire project and finally agreed to build a production line with an annual output of 150,000 automobile engines in Shanghai, all of which were used for export, so as to solve the last problem that trapped the Volkswagen joint venture project.

If the Mark company only relies on a little processing parts and foreign trade, it is difficult to offset the trade balance of domestic sales of trucks, after all, the cost of shipping trucks by sea is too high, and there is basically no price advantage when shipping overseas, not to mention the establishment of sales channels is not overnight.

At present, a small truck in the mainland is tens of thousands of yuan, and they are all best-selling things, and there is a shortage of trucks in China, and it is not a problem to really open up production and sell tens of thousands of vehicles a year, but if you can't use the huge export of RCA's factories as a trade balance, I am afraid that the trucks will not be allowed to sell if they are produced.

Now all the plans are for the factory to run smoothly, as long as in the 90s, the country has no shortage of foreign exchange, this problem does not exist.

"Processing equipment, Mr. Xu is ready to make parts in China?" Rao Bing's eyes lit up, you know, even if it is a joint venture project with Volkswagen, it is also the SKD model that is used at the beginning, known as semi-bulk parts, which is a large number of parts shipped from abroad, assembled by China, and then slowly localized parts after the technology matures.

"Yes, Mark has acquired some suppliers of core components, and as long as the project is established, then we will bring more than 100 sets of precision industrial processing equipment. Xu Zhi smiled and added: "Equipment within the scope of Batumi. ”

Batumi's influence on the interior is everywhere, because of the establishment of diplomatic relations between China and the United States, Batumi's restrictions have been loosened a lot, except for the most cutting-edge, many precision equipment can be shipped to the country, but there is a lack of domestic foreign exchange, many places want to buy a $10,000 processing equipment have to be discussed by the city government, Xu Zhike is not short of dollars, this is not a problem at all.

"What kind of equipment?" asked Rao Bing anxiously.

Xu Zhi shrugged and said: "It's not clear yet, this needs to be decided depending on the future situation, there should be some machining centers, lathes, gantry milling and the like!"

"I'm sorry, I'm in a bit of a hurry. Rao Bing said apologetically, the reason why he is so excited is because after these equipment enter the country, it is not only for the future truck factory service, as long as it is the product demand of the machinery industry, it can be used for processing, especially the local parts of the future car production line, which can also save a lot of foreign exchange.

"I have also heard about Mr. Xu's electronic investment plan, but at present, these are two investment projects, and whether they can be used to offset each other's foreign exchange balance depends on the central government's intentions. Rao Bing pointed out the biggest problem, thought for a while and then asked: "Then I wonder if these equipment can process other products, such as some needs in our mainland?"

"Of course, this is no problem, but if other domestic products are processed, it doesn't matter if there is less, if there are too many, it will form a large amount of foreign exchange imbalance, how to solve this?" Xu Zhi smiled and said the key point, external processing is a must, but how many orders can the truck factory have, but external processing is facing the problem of foreign exchange imbalance.

"I hadn't thought about it. Rao Bing replied with a frown.

Xu Zhi smiled and said: "Director Rao, you and I can decide on this kind of large-scale project today, and let these details be discussed by the professional team in the future, and they will consider it more perfectly, but it is really not possible, and then we will decide." ”

Rao Bing nodded and smiled: "Then Mr. Xu, I don't know when your team will be able to come?"

"After I stay in Beijing for a few days, I will go to Shanghai, and some employees of Mark Company in the United States are ready to apply for domestic visas, but they need a reason, so they can only go to Shanghai as soon as possible after the government confirms the project. ”

"No problem, then I will go back and report to the central government immediately, as long as the above agrees, I will immediately urge the Ministry of Foreign Affairs to issue visas to Mr. Xu's colleagues in the United States. After Rao Bing finished speaking, he stood up and prepared to leave, the negotiation with the foreign auto giant was too painful, and now that there is a Chinese who is so easy to talk to, of course the speed must be faster.

Xu Zhi also stood up, shook hands and smiled: "Thank you Director Rao!"