Chapter 197: A New Force for Car Manufacturing

After the financial crisis of '08, China seemed to have suddenly opened its mind, taking the lead in the world to get out of the predicament, and its economy was developing rapidly.

The U.S. bailed out the market with monetary quantitative easing, which led to China, which was anchored by foreign exchange, having to follow suit, and the newly printed renminbi continued to pour in like a surging river, but the domestic economy was like bottomless flour absorbing excess water one by one, forming a super-large dough that gradually expanded.

Money doesn't seem to be worth much, but life is getting better day by day. Eating meat freely, fruits freely, the Chinese people began to truly enjoy the benefits of economic globalization, while exporting high value-added industrial products on the other hand turned to import primitive agricultural products, and the national living standards gradually aligned with developed countries, of course, this is the reward we deserve after years of hard work.

While the economic situation is very good, the automobile market has also ushered in a boom.

Rubbing his forehead, Han Hao had just finalized the date to meet with the old shareholders of SMIC to discuss the equity exchange, and spread out the latest weekly auto industry trends sorted out by his subordinates.

By keeping an eye on the actions of existing and potential competitors, Han Hao can lead Zhonghua Group forward from a macro level.

"Unexpectedly, the number of players entering the arena has increased again!"

Looking at the new names in the briefing, such as "Future", "Tianpeng", "Singularity", etc., Han Hao couldn't help but sigh.

He finally launched a clearance operation, led the strong offensive of Zhonghua Group in the domestic automobile field in the past two years, forced back pioneers like BYD, and beat Chery, Great Wall and other independent brand opponents to the deathbed, but I did not expect that there were many testers in the automotive industry.

"Future", "Tianpeng", "Singularity" and other new automobile companies, aiming at the new energy vehicle market, have claimed to build China's Tesla, using Internet thinking to subvert the traditional automotive industry, so as to open up a new market.

Tesla's stock price has continued to rise after its successful listing in the United States, achieving a model of Internet car manufacturing, and opening the clarion call for new energy vehicles to attack traditional fuel vehicles, which has made many domestic Internet elites see a new door to success beckoning to them.

Although I don't want to admit it, the success path of the domestic Internet giants is basically to copy the successful cases of American Internet pioneers, and take them back to China for localization after a meal of copy and paste, thus giving birth to a new Chinese Internet benchmark.

Tesla's success means that it is very likely that there will be localized "Tesla" stars in China.

Many people are eager to move on this star position, after all, the Chinese are the great inheritors of the prince's general Xiangning's faith.

Entrepreneurship is inseparable from the three elements of time, place and people.

Fortunately, in 2013, all of these factors were present in China at the same time.

The Chinese government is determined to vigorously develop new energy vehicles and use financial subsidies to support the development of the domestic automobile industry. At the same time, the entry threshold for the automotive industry has also been relaxed, and industry licenses can be issued as long as they meet the technical standards of capital, allowing a large number of new players to enter the market.

Back then, Han Hao begged his grandfather to tell his grandmother for the car access permit, and now the difficulty has dropped directly from the college entrance examination to the primary school examination level.

The location is advantageous, that is, after years of layout of the automobile industry, the country has formed a fairly complete auto parts system, the parts required to constitute a car can be purchased in China, and the difficulty of building a car is generally similar to that of assembling a mobile phone.

And the most important point is that under the strong offensive of Zhonghua Group, car companies such as Chery, Great Wall, and JAC are dying, but they have qualified OEM manufacturing capabilities, which gives new car-making forces the opportunity to stand on the shoulders of giants to develop.

With the refinement of the division of labor in the industry, who said that enterprises must have their own production plants, they can learn from Apple, Nike and other business owners to focus on invention, design and marketing, and outsource the manufacturing process, so that the asset-light operation can quickly achieve product landing.

For example, the newly established "Future" car brand announced that it will reach a strategic cooperation agreement with JAC Motors, and the other party will carry out vehicle production OEM for itself. The company only needs to focus all its energy on the invention and design of new models, as well as the field of marketing, so as to form a win-win situation.

He is the Internet industry through high income and salary has gathered many elites, they are rich and full of self-confidence, but also familiar with the rules of capital operation have deep contacts, it is easy to set up a reliable entrepreneurial team.

In the traditional automotive industry, benefiting from the localization of joint ventures and the vigorous development of independent brands represented by Zhonghua Group, a new generation of young automotive technology backbones has been cultivated, and they can bring much-needed technical experts to the new car-making forces.

Therefore, it is no exaggeration to say that the emergence of new forces in car manufacturing is the inevitable development of the times.

"It is inevitable to appear, but how long you can live can only depend on the sky!"

For Han Hao, the emergence of new car-making forces has not received much attention from him, after all, automobiles are still an asset-heavy industry, and the price of a single product of more than 100,000 yuan is not as easy to deal with consumers as a thousand-yuan mobile phone. And if you want to invest in an automobile company, one billion yuan is just an invitation to the ball, and tens of billions is the real invisible threshold. Without tens of billions of investment, it is absolutely impossible for a car to land and meet consumers.

In other words, if the new car-making forces want to put the drawings and concept cars into practice and really sell them to ordinary consumers, even if they do not build their own car factories, they will definitely not be able to do it without an investment of 10 billion yuan.

It is foreseeable that the new forces of car manufacturing will set off a wave of entrepreneurship, and it is inevitable to pay tuition fees by burning money to get started.

For these new car-making forces, Han Hao plans to stand on the sidelines and wait for them to develop.

First, because the main competitors of Zhonghua Group are global giants such as Toyota and Volkswagen, and the new forces are not yet qualified to come to the table; second, they hope to introduce a competitive environment, so that these small catfish can make a fire in the field of new energy and jointly expand China's new energy vehicle industry; third, there are some selfish intentions, new energy vehicles are a new field, and large-scale R&D investment and talent training reserves are needed in many aspects. The new forces of car manufacturing are rushing to the top and burning money for research and development, which will definitely cultivate a lot of truly capable talents. At that time, if the project is yellow, then Zhonghua Group will take action to recruit talents, and it can objectively share the R&D costs. In case the new forces do find some shortcuts that are enough to subvert the existing new energy vehicle map, then Zhonghua Group can also respond quickly and rely on the big fish to eat the small fish to regain its leading edge.

After reading the briefing of the new car-making forces, another report also aroused Han Hao's attention.

Volkswagen, which has always been known as the hegemon of China's joint venture cars (because the rise of the Zhonghua Group has really entrenched itself in the position of the leader in sales in the domestic market, Volkswagen can only retreat to the banner of joint venture brand hegemon), finally got into trouble for their arrogance.

The DSG dual-clutch transmission, which is widely criticized by consumers, was publicly exposed by CCTV 315 party to have serious quality problems.

The fault involves Volkswagen's Sutar, Magotan Golf, Sciroc, CC, Skoda and other models, which are equipped with DQ200 (seven-speed) and DQ250 (six-speed) dual-clutch transmissions, which can cause the car to suddenly stall or accelerate during driving, which has extremely serious safety hazards.

This made the Volkswagen "German brand", which had been maintained among the Chinese people since the early 80s, begin to step down from the altar and fade away from the original high-tech mythological coat.

Originally, Volkswagen was still secretive about the problems with the DSG transmission, but the CCTV exposure forced them to respond enough to calm the anger of consumers, announcing the recall of the first batch of 380,000 sold vehicles in the Chinese market and upgrading its DSG transmission.

In terms of production serial numbers, millions of vehicles have been affected by DSG failures in the Chinese market, and Volkswagen has also launched the largest recall in the history of the Chinese auto market.

In order to get rid of the external dependence on AT and CVT technology, Volkswagen resolutely started the road of independent research and development of DSG transmissions. This large-scale outbreak of failures is understandably the tuition due for DSG's independent strategy. The only problem is that Volkswagen treats domestic consumers as guinea pigs, continuing to mass-produce and install products in China that it knows are flawed.

In fact, the DSG failure has long been exposed abroad and triggered a corresponding recall of Volkswagen, but in the Chinese market, the Germans have adopted double standards and believe that there will be no major problems and continue to mass-produce and supply to ordinary consumers.

If it weren't for CCTV 315, Volkswagen's DSG failure would still not be put on the table, and a large-scale recall would not have happened immediately.

Volkswagen, spoiled by the supra-national treatment in China (joint ventures – government care; Volkswagen brand – popular favor), is finally in big trouble with its arrogance.

You must know that the car is the second largest expenditure product of consumers in addition to the house, and the quality problem affects the whole body, and it is difficult to repair the brand image once it is damaged.

While Volkswagen was in a quagmire in the Chinese market, Chunghwa Group's monthly sales continued to grow at a rate visible to the naked eye. Volkswagen's lost market share was eaten by Zhonghua Group, after all, Toyota and Volkswagen have capsized in the past two years, which is simply an assist with tears in their lives.

Thinking of this, Han Hao couldn't help but rejoice, he was the first to advocate CVT, and then specialized in AT, as the group's main transmission, that is, they have been proven reliable by time. If DSG is used as a trump card like Volkswagen, it is estimated that it will also fall into a big hole of quality problems, which is a catastrophe for Zhonghua Group.

DSG as a new thing will definitely have an unexpected recurrence, and Volkswagen, which has a lot of money, has been injured this time, but it is estimated that it will still be able to survive.

The last briefing that caught Han Hao's attention was that the BMW X3 localization production line was commissioned, and a trial production car will soon be launched, which will add another fierce member to the BMW joint venture in China.

The SUV market continues to grow at a rapid pace globally, especially as Chinese consumers are more willing to pay a 25% premium to purchase related models than foreign markets.

Today's global luxury SUV market, the hottest selling is the new XC60, this star model not only topped the list in Europe, but also quickly entered the American auto market to become an upstart, of course, the most dazzling is the Chinese market in one fell swoop beat the Q5 and GLK combined, with a monthly sales of more than 12,000 units.

It is estimated that this year, the XC60 alone can achieve global sales of more than 300,000 units, increasing Han Hao's previous target of 200,000 units by 50%, and supporting the entire Volvo car with its own profitability.

In the domestic market, the XC60 aims at the market range of 35-400,000 yuan, while the BMW X3 is positioned above 400,000 yuan, which is in the same camp as Mercedes-Benz GLK and Audi Q5.

This time, the German side is conservative and has set an annual sales target of 30,000 for the domestic X3. However, the excellent performance of the XC60 makes them expect more from the results of the domestic X3, after all, the joint venture partner Zhonghua Group is a good marketer.

There are a lot of things in the main business of automobiles alone, not to mention that Han Hao has also started diversification, whether it is the newly invested BOE LCD panel, or the newly integrated Kunlun Semiconductor, and the Hongmeng system that has high hopes, he needs to go all out to strategize.

Just before going out this morning, his wife Chen Lingxi found that several white hairs appeared on Han Hao's head again, indicating that the pressure on Han's richest man at the moment is not small.

After all, in the adult world, it is not easy for anyone......