Chapter Forty-Nine: Politely declined

Although he never forgot Jaguar and Land Rover, Han Hao understood the truth that he couldn't eat hot porridge in a hurry, so he set his sights on returning to China.

It has been four years since the establishment of the BMW joint venture, and the BMW 3 Series and 5 Series have been produced in China, becoming the second largest luxury brand after Audi.

However, in order to shake the status of Audi's official car and challenge Audi as a leader, the 3 Series and 5 Series models alone are not enough.

The domestic demand for SUVs is growing, especially the imported luxury medium and large SUVs, which are favored by the Chinese people who have become wealthy first.

Therefore, Han Hao, on behalf of the China BMW Joint Venture, officially requested the BMW headquarters to introduce more models, focusing on the BMW X3 and X5.

Such negotiations were originally scheduled to take place three months ago, but just in time for the change of management of BMW, the former CEO Punk retired and was replaced by a new leader of the Young Zhuang faction, that is, Resself, who had just turned 50.

Resself was known for his good management of production, and his greatest achievement was to build BMW's factory in the United States into a model factory, which made great contributions to BMW's entry into the North American market.

For this reason, Resself was nominated by the Board of Directors to become the new CEO of BMW.

Han Hao's negotiations with Resself were scheduled for the other party's visit to China, which has become the world's fastest-growing market for BMW and may account for one-third of the BMW brand's global share in the future, so China is also the last stop on his overseas tour.

For an international giant such as BMW, Resef's visit was received by the Vice Premier in charge of industry, which shows the Chinese government's positive attitude towards attracting foreign investment.

After walking around the capital and experiencing traditional Chinese culture, Resself came to Jiangzhou to visit the China BMW Joint Venture.

Thanks to the rapid development of China's economy and the optimism about future expectations, the sales of luxury brands like BMW have increased significantly against the backdrop of rising stock markets. It is expected that this year's sales will increase by nearly 60% compared to last year, and it is expected to reach the 69,000 mark, narrowing the gap with Audi to less than 15,000 units, becoming the best result for BMW to enter China.

Han Hao can proudly show Resef that the Chinese factory is not inferior to the North American factory. Whether it is equipment, worker quality, or even factory management, Jiangzhou BMW plant has reached the world-class level.

Unfortunately, due to the limited number of models, the 120,000 production lines that were put into operation were not fully produced, and nearly 50,000 units of production capacity were idle.

Resef had visited the joint venture factory in Jiangzhou three years ago, and this time he was surprised by the fact that the area of the Zhonghua Group factory next door was constantly expanding, and it was more than twice as large as the last time he came. This reflects the growing growth of BMW's joint venture partners in China, with sales exceeding 1.4 million units last year.

You must know that BMW won the best in history with 1.32 million last year, surpassing the Mercedes-Benz single brand and becoming the world's first in the luxury car market.

Resef did not expect that this Chinese independent brand, which was not favored by himself and his colleagues at that time, would develop so rapidly and become a major force in the Chinese auto market.

At that time, the reason why BMW did not choose state-owned enterprises to cooperate with other multinational brands was because of the flexible operating mechanism of private enterprises. Unexpectedly, the unintentional act of inserting willows turned into a willow tree, and by mistake, it united with the future star of Chinese automobiles.

Resef admitted that the results in the Chinese market were ideal, but politely rejected Han Hao's request to introduce X3 and X5 to the Chinese team.

"HAN, our factory in Thailand is already producing X3 and X5 for the Asian region, and their capacity is fully sufficient to meet the demand in China.

If the X3 and X5 are put in China, it will be a duplication of resources, which is not in line with BMW's strategy for global layout.

As far as I know, Chinese consumers have a natural preference for luxury brand imports, and with the current import sales figures, we think it is more appropriate to maintain the X3 and X5 import strategy.

However, I promise that we will reconsider this issue when the sales of BMW in China reach 120,000 units. Now, I think we should find a way to sell more 3 Series and 5 Series sedans in China!"

In 2000, BMW established a plant in Thailand for Asia, and if the X3 and X5 were to be produced in China, the production capacity of the Thai plant would be greatly wasted.

It seems that even people like Resef know that Chinese consumers prefer imported products, but in Han Hao's opinion, his Jiangzhou BMW factory is much more reliable than the Thai factory, and the quality of the cars produced must be better than the other party.

"We are in a fierce battle with Audi in the Chinese market, and if BMW does not have enough ammunition at its headquarters, we will lose out against Audi.

The 3 Series and 5 Series share the same chassis as the X3 and X5, and if introduced to the Chinese market, it will reduce costs as a whole, thus making domestic models more competitive.

On the eve of the explosion of China's SUV market, taking advantage of Audi's lack of corresponding SUV products, the introduction of X3 and X5 is now the most opportune time, and we can achieve an easy overtake of Audi. ”

Han Hao is on the front line of the Chinese market, and he knows what China BMW is most lacking now! Audi has just delivered its first SUV, the Audi Q7, to consumers in Europe, and has no time to take care of the Chinese market. If BMW preemptively enters the domestic luxury SUV field, it will form a leading advantage similar to Audi's sedan.

"Han, I have to correct your point of view, that is, our BMW competitor, whether in China or in the world, there is only one, and that is Mercedes-Benz!

Audi has a preconceived advantage in China, but I believe that as Chinese consumers popularize car culture, they will switch to BMW.

As the CEO of BMW, I have to consider BMW's global strategy, and I cannot give special treatment to the Chinese market. China has a lot of potential, but now is not the time to realize it, because economy cars have not yet become popular, and the spring of luxury brands has not yet arrived. ”

No matter how Han Hao persuaded him, the stubborn Resef thought that it was not the right time to introduce BMW SUV models, and that it would cost a lot of money to put a production line into production.

The negotiations between the two sides broke up somewhat unhappily, and the Chinese BMW did not receive the much-needed model supplement. Retheve's promise to "reach 120,000 sales before considering the introduction of new models" was actually just a stopgap move.

"Germans underestimate the spending power of Chinese, and the consumption of 1% of the rich alone is a terrifying number!

If we can lay out in advance, we can make X3 small-scale domestic production in the middle of next year, I believe it will be a big sales explosion.

Europeans are superstitious about the experience of sedans in the European car market and are not optimistic about the wave of SUVs. In the future, Resef will regret his decision to give up a vibrant luxury car market to his rivals.

If I could have my own luxury SUV brand, then China's luxury car market would be lively. ”

BMW has always been controlled by the Quandt family, and it is difficult for outsiders to buy its shares even if they have money. According to the calculation that BMW's total market value reached 33 billion US dollars at the end of 2005, Han Hao is likely to spend money to buy the position of major shareholder if he has the opportunity to become the owner.

Unfortunately, this is just wishful thinking, and the control of BMW has always been in the hands of the Quandt family.

From this, it can be seen from one side that Han Hao is eager to acquire luxury brands such as Jaguar, Land Rover and Volvo, because he sees that China is about to usher in the spring of the luxury car market.

As a meritorious veteran of Zhonghua Group, Yu Hang has never left his post to retire and enjoy happiness. According to the value of the shares he owns, at least 6 million is guaranteed, and the annual salary adds up to 300,000, but the old expert is still buried in the further improvement of motorcycle engines.

He had just returned from stealing from the automotive engine R&D department, and was ready to transfer the newly conquered direct injection technology from the automobile engine to the motorcycle. If successful, the existing motorcycle engine will provide at least 15% of the output power under the premise of the same displacement, which is a very big breakthrough.

Only two or three motorcycle companies in the world have mastered the modern application of in-cylinder direct injection technology, such as BMW, Suzuki, Honda, which focus on the quality of racing cars, and list it as their core technology.

Their in-cylinder direct injection technology is maintained at more than 250cc racing engines, and what Yu Hang wants to do is to apply this technology to the Chinese's favorite 125cc engine, once successful, it will have a subversive effect on the civilian motorcycle industry.

Yu Hang even applied for a project, which is to try the research of motorcycle hybrid systems. He plans to combine batteries and gasoline engines like cars to create a future-oriented new energy motorcycle.

Chinese have a lot of experience in high-end technology in entry-level products, and the endless electronic products in Huaqiang North are clear examples, especially the mobile phone dual SIM dual standby technology is perfectly in line with China's national conditions.

The reason why Yu Hang is reluctant to leave the laboratory and retire is because there are still many interesting things here. He is not old-hearted, and he intends to deal with engines for the rest of his life.

Today, Yu Hang was in his laboratory, testing the possibility of miniaturization of direct injection technology with his assistants, but was interrupted by an uninvited guest.

The person who came was Han Hao, to be honest, he is now focusing on cars, and he naturally neglects motorcycles.

His appearance made many of Yu Hang's young assistants watch, but Yu Hang saw Han Hao's impatient look, and it seemed that he had interrupted his experiment.

"Elder Yu, I came to invite you to come with me to the capital. ”

The reaction to Yu Hang was commonplace, and Han Hao smiled and said what he meant.

"There's nothing interesting in the capital, I visited it all when I was younger. If you want to go alone, don't bother me here for technical verification experiments. ”

Waving his hand impatiently, Yu Hang replied with a look of disgust.

In his opinion, any non-essential activity is a waste of time, and only staying in the laboratory can truly satisfy the soul.

"I'll take you to meet an old friend, and I'm sure you'll feel like you're making the trip!"

Han Hao sold a pass, and with a determined look on his face, Yu Hang must go to the capital with him after hearing the name.

As soon as these words came out, the young assistants who were watching immediately straightened their ears and waited for good news. You must know that the people who can make Yu Hang voluntarily walk out of the laboratory, except for his family, basically do not exist.

I don't know who gave Han Hao the courage to challenge the rules of Yu Hang!