Chapter 233: The Alliance Under the City

"I retract my previous preconceptions, and the ABS results of Huaqing University are indeed much beyond my expectations. Although the academic ingenuity is a bit stronger, this is actually a very good solution, and with only a few changes or two, you can start to enter the product trial production stage.

In the past, when I was studying in China, I received training in basic subjects, and there was a big gap between me and other countries in terms of practical research. I didn't expect that Chinese laboratories can now tackle such a difficult topic, and the plan is very feasible. ”

Looking at the ABS scheme brought back from Huaqing University, an engineer from the China Automotive Research Institute said.

Although compared with Bosch's ABS products, it seems to be primitive and rough, and it seems to be a generation behind the technology, but there should be no big problem in normal use, otherwise it will not pass the country's "Ninth Five-Year Plan" scientific and technological research acceptance.

"Xiao Wu, tell me about the idea of this ABS solution, after all, you participated in the research and development process of the project. ”

Zhao Quanfu asked a young man with glasses and a childish body to speak.

Wu Haobo, one of the newcomers who just graduated from Huaqing University and came to work in the China Research Institute, followed his mentor to participate in the research and development of domestic ABS projects. Knowing that Zhonghua Group had purchased ABS results, he voluntarily gave up the opportunity to go abroad and came to Jiangzhou to continue the unfinished ABS mass production work.

"We refer to the principle of all ABS products in the world, and select the ideas that meet China's national conditions based on the principle of cost performance......"

With Wu Haobo's guide, the engineers of the research institute can be familiar with the ABS project of Huaqing University as soon as possible, so as to quickly improve and organize trial production.

Knowing that Chunghwa Group was preparing to launch the ABS project, Bosch was trapped by the contract and would continue to supply to Chunghwa Group until the end of the year. However, in the procurement of ABS parts next year, Bosch directly asked for a 25% price increase.

Although Bosch is a world parts giant, it has to be wary of Shenzhou Seiko, a subsidiary of Zhonghua Group. Because Shenzhou Precision has purchased China's independent ABS patent, it is likely to become a direct competitor of Bosch in the future.

Before the domestic ABS grows up, Bosch and other foreign giants must encircle and suppress it to die, which is a very normal market competition strategy.

"China's automobile industry is still in a very backward stage, is it necessary for us to be so nervous? Even if they make ABS products, it is estimated that no OEMs will buy products that are obviously backward generation? Creating them does not mean that they can survive, after all, the fierce market competition is not their turn to grab food, and the final outcome can only be starvation. ”

Within Bosch, some people feel that there is no need to pay too much attention to the ABS project of Shenzhou Seiko.

"The Chinese market has quietly become one of our important sources of revenue overseas, and ABS has always been a big profit for us, and we must always maintain a competitive edge. The Chung Hwa Group is the focus of our hypothetical enemies in China, and they have a strong ability to learn. Do not forget how the Koreans rose rapidly back then, and if they ignore the Chinese, they may well form new competitors. ”

However, the head of Bosch's strategy department disagrees with this view, and from the analysis of data, the Chunghwa Group is very aggressive, and his job is to nip all hidden dangers that threaten Bosch in the bud.

Han Hao didn't expect that the encirclement and interception from Bosch would be so fast, and Shenzhou Seiko was only initially involved in ABS, which made this international giant so nervous.

"Manager Duan, the price of mature products has been declining for a long time, but the price of your Bosch has begun to rise, which is too interesting. Our Zhonghua Group can be said to be your top major customer in terms of procurement volume, and now you treat us like this, which is really chilling!"

As soon as the news of the price increase of ABS parts came, Han Hao urgently summoned the Chinese manager of Bosch.

Since ABS has always been an imported product, the German side has to extend to the terminal price due to the rising cost of financial accounting. The quotation was sent directly from the headquarters in Germany, which was actually very difficult on our side. ”

As the Chinese manager of Bosch China, Manager Duan was actually just a miscellaneous person, and he had no ability to resist the instructions of the headquarters. However, Zhonghua Group has developed rapidly in recent years, and has purchased a large number of electronic components and equipment from Bosch, in addition to ABS, as well as engine ECU and body sensors, and many other products, which is one of the largest customers among China's independent enterprises.

Although he knew why the German headquarters asked for a price increase, he still had to appease the big customer of Zhonghua Group, and as the Chinese representative of the sandwich biscuit type, Manager Duan was also very difficult.

"The price has risen so much all of a sudden, and we can't stand the cost, which is equivalent to us selling cars to count the money for you Bosch. I know about your new offer, but we still have to compare the offers of other companies before we can make a decision. ”

Of course, Han Hao will not immediately agree to Bosch's request for a price increase, so as not to let the other party gain an inch. At this time, he regretted that he had put all the eggs on Bosch at the beginning, and he should have made a backup in advance to choose a replacement.

To be honest, Zhonghua Group is still inseparable from Bosch's support, and frankly speaking, if it were not for its own development of independent ABS, the cooperation with Bosch would still be very pleasant. But now Bosch wants to strategically contain Shenzhou Seiko, and the two sides will never be able to return to the beautiful first love relationship.

Shenzhou Seiko is a strategic enterprise that Han Hao will definitely develop, although foreign auto giants such as General Motors and Ford have begun to cut off their original subordinate parts companies and let them independently carry out third-party business. But that's on the basis that they've grown to a very large scale that is enough to negotiate with other independent third-party parts companies at will. And the parts companies that have been separated, such as Delphi and Visteon, are actually still under the orders of GM and Ford.

The international giants have already crossed the river, dismantled the bridge and put the planks aside, while the Zhonghua Group is preparing to cross the river and must find the planks to build the bridge by themselves. The current business model of foreign countries cannot be simply applied to Chinese enterprises, and Han Hao has always understood that China has its own national characteristics.

"Independent ABS can break the monopoly and technical blockade of foreign markets, and we must seize the opportunity to make a breakthrough in this project. Not just for ourselves, but for all other Chinese auto companies, this is a strategic nuclear weapon.

If we can produce it ourselves, foreign auto parts giants will have some scruples and will not monopolize pricing in price. It may be a loss of 1 million yuan for our Zhonghua Group, but if you look at the national automobile industry, you can reduce the cost of 10 million yuan, and this kind of business is cost-effective. ”

Domestic goods can continue to force the price of imported goods and joint venture products to continue to reduce prices, and it is ordinary Chinese consumers who ultimately make profits. The emergence of Zhonghua and Chery sedans has started the journey of price reduction for the old three models of the joint venture.

Han Hao will not succumb to threats from the outside, and he will not be able to get what he can't get on the battlefield at the negotiating table. As long as Zhonghua Group's ABS products are put into trial production, they are not afraid of the blockade from Bosch.

Shenzhou Seiko's actions not only aroused Bosch's fear, but also caused Getrag to make some moves.

As a joint venture partner of GETRAG in China, Chunghwa Group has jointly built a large-scale transmission plant with the company to produce manual transmission manual transmissions, of which nearly 75% of the production is absorbed by Chunghwa Group.

Han Hao has always hoped to cooperate with GETRAG to develop a new generation of DCT dual-clutch automatic transmission, which is the future strategic development direction of GETRAG.

But Getrag, also from Germany, has always kept his advanced technology very secretive and is unwilling to share it with the Chung Hwa Group. After uniting with Dana Corporation of the United States, they decided to jointly develop a new generation of DCT technology with the Americans.

Previously, the transfer of 4MT technology to Chung Hwa Group was carried out at a high price, and GETRAG received a large amount of remuneration. Unexpectedly, the Chinese used 4MT technology and began to independently develop 5MT technology.

Seeing that Shenzhou Seiko was preparing to start producing ABS, the Germans internally deduced that sooner or later the Chinese would also make a big deal on the transmission.

At this time, Getrag's original desire to break up with the China Group and fly solo was even stronger.

Now that GETRAG has made a name for itself in the Chinese market, many Chinese automakers have begun to buy their MT transmission products, and no longer rely on the Chunghwa Group.

In turn, 75% of the transmissions of the Chunghwa Group now need to be supplied by Getrag, so the German side is in an advantageous position. Once the Chinese master the 5MT mass production technology, then it is highly likely that Getrag will be kicked out.

Although there is some competition with parts companies such as Bosch and ZF, Getrag is still a member of the German Business Alliance, and they often exchange information and jointly protect the interests of Germany as a whole.

With such comprehensive considerations, Getrag asked Han Hao to break up, and they hoped to establish a sole proprietorship in China. Just like the German hometown ZF and Volkswagen transmission factories, enjoy the full share of profits.

Under the condition that he could control the situation independently, Getrag abandoned the China Group and joined the silent encirclement and suppression of the German business alliance.

Getrag relied on the Chunghwa Group to gain a firm foothold in China, while the Chunghwa Group also relied on German technology to be able to rise rapidly in the power system, and the previous cooperation can be described as a win-win strategy.

However, with the changes in the respective strengths of the two sides, especially the rapid development of the China Group, it has begun to gradually threaten the interests of foreign parties. For the sake of their future interests, Getrag made what they thought was the most appropriate choice - to break up.

"The joint-stock system is one of the greatest inventions of human business activities. It can turn enemies into friends, and enjoy mutual benefits and dividends. We are still willing to work with you to take a joint stake in the transmission project and share the risk for the next generation of transmissions. At the same time, the current joint venture project remains unchanged and continues our wonderful journey. ”

Of course, Han Hao proposed to keep the German side's request to break up, and Getrag has accumulated technology in the future DCT automatic transmission, and Volkswagen has already come up with samples, so DCT is a major choice direction in the future.

As a strategic consideration, Han Hao had to find an alternative solution for the CVT research and development, and Getrag's DCT was a very suitable choice.

In terms of transmission factory, Han Hao did not think about breaking up with Getrag, MT transmission will have a long-term demand, and can also be expected in the DCT project. Even if the Automotive Research Institute tackles the CVT project in the future, Han Hao plans to continue to cooperate with the Germans in the MT project, which can provide more DCT options behind the scenes.

"Our shareholders believe that with the addition of China to TO, it will be more in line with the globalization strategy for GETRAG to become a sole proprietorship. Han, although we have a good time working together, sometimes business is business, and it doesn't depend on people's preferences.

What's more, we will continue to fulfill the contract after we are wholly owned, and we will also open the door to supply to Zhonghua Group, and we will still be friends with happy cooperation. ”

As the head of Getrag in China, Mr. Marcus said with a look of regret.

The Germans suggested that they take the lead in acquiring a 45 percent stake in the joint venture, with the remainder offset by a future MT transmission produced at a wholly-owned plant, in addition to paying a sum of cash.

After nearly 4 years in China, GETRAG has recouped the original investment from the joint venture factory, allowing them to see the development potential of the Chinese market.

The use of future transmission products to deduct the share discount can reduce the pressure on cash expenditure, and secondly, it can continue to tie the large customer of Zhonghua Group to Getrag to ensure stable sales for a certain period of time in the future. The Germans are very smart in business, and if you sell them secretly, you have to count the money for them.

In 2001, Han Hao set the goal of a sound operation for the company, and it is expected that this year will be more difficult than last year, because new products have not been launched in time. But I never expected that the foreign enemy did not kill him, but the inside caught fire first, almost scorching half of the sky.

Both Bosch and Getrag took advantage of Han Hao's inability to bargain and forced him to sign the alliance under the city.

Now if you want to fall out with Bosch and Getrag, then it must be the Zhonghua Group that suffers, because there is no suitable replacement.

It's going to rain, my mother is going to get married, and the China Group can't come up with too many countermeasures, so Han Hao can only agree to the other party's request in order to take care of the overall situation.

However, Han Hao still kept this account in mind, which made him more aware of the importance of independent research and development of core intellectual property parts.

"You guys have missed out on a very good partner, and together we could have reached a win-win situation. ”

In the face of Getrag's threats of divestment and technology, Han Hao quickly agreed to the other party's request to break up in order to take into account the government's investment situation, especially now that China is about to join the TO, and it will be troublesome if there is an international turmoil.

"It's normal for lovers to be noisy and get together, and if you develop into a charisma that we value in the future, it's very likely that you will work together again. ”

Marcus is very happy to have fulfilled his mission and completed Getrag's sole proprietorship in China. He didn't agree with Han Hao's statement, but for the sake of a good scene, he still said words with comforting meanings.

The news of the breakup of the Chunghwa Group and the German GETRAG company detonated the Chinese automobile industry, but I did not expect that the Zhonghua Group, which seemed to be thriving, would catch fire in the backyard.

"What does the turning point of prosperity and decline - what does the abandonment of the Chunghwa Group by the German giants portend?"

The "China Economic Daily", which has always been in favor of the decline of the China Group, published such a view. [.]