Chapter 236: Before the Storm
The news that Mazda sent a delegation to Jiangzhou for inspection soon spread to FAW, although Zhu Tianfeng privately reached a cooperation intention with Toyota, but he did not want to give up Mazda, a new force.
FAW and Mazda have been negotiating many times, and in order to show its sincerity and dispel FAW's scruples, Mazda has also opened the unlisted Mazda6 to Chinese customers.
When Zhu Tianfeng saw the all-new Mazda6, he felt that this was a very competitive sedan, both in handling and appearance, it belonged to the best in the new era.
In particular, there is another point that Zhu Tianfeng values the most, that is, Mazda is relatively weak, and FAW has taken the initiative in negotiating with it. In the future, the two companies will form a joint venture, and FAW will have more say and autonomy. After many years of joint venture with Volkswagen, FAW is like an angry little daughter-in-law, who is pressed by Volkswagen in the joint venture company and cannot breathe. Although he has always shown affection to the outside world, only FAW executives know how much they have been wronged in the joint venture with Volkswagen.
Now, Mazda, a Japanese girl to be married, has suddenly appeared in China with another snatcher, which has made the FAW Group, which was originally a sure winner, very nervous.
"FAW is the most powerful car group in China and has extensive experience in joint ventures, and if Mazda and FAW cooperate, you will definitely become one of the mainstream car brands in China in the future.
Our country's "Tenth Five-Year Plan" for the development of the automobile industry has just been announced, and the automobile industry will become a pillar industry of the national economy in 2010. The short-term goal is that by 2005, the country will form 2-3 automobile groups with certain international competitiveness, and the domestic market share of products will exceed 70%. Among the 2-3 candidates announced, FAW Group ranked first!
In China's auto joint venture cases, most of them are successful, and there are also failures. You must have heard of the case of the French Peugeot losing GAC, and they chose the wrong joint venture partner at the beginning, which led to a series of defeats. β
Urgently flew to the Mazda headquarters, and Zhu Tianfeng began emergency public relations to avoid the threat of being pried into the corner by the Zhonghua Group.
China can win the authentic German BMW, and it is also possible to swallow Mazda, which is known as the "Dongying BMW".
"We know FAW's strength in China, but sometimes cooperation is not based on strength, but on suitability. Frankly speaking, we have seen different Chinese auto companies in Jiangzhou, and Zhonghua Group can develop so rapidly, and it does have unique competitiveness.
Zhonghua Group is a potential good partner, and FAW's advantages are based on it. However, I have heard some rumors recently that FAW seems to have been in contact with other Japanese brands, which violates the original cooperation agreement between our two sides. β
Although the contact between FAW and Toyota was kept secret, there was no impermeable wall, and Takashi Yamauchi learned the news through covert channels.
FAW and Mazda, who originally intended to get married, now have other plans in private, and the little abacus of both parties is shrewd.
"It is our discretion to whom FAW will make a joint venture, and we only promised you not to contact companies that are in direct competition with you. It's normal for companies to talk about cooperation with multiple partners, and even if we form a new joint venture with a third party, there is still room for Mazda to enter. β
If you really want to choose between Mazda and Toyota, I believe that fools will choose Toyota, the boss of the Japanese brand.
Although Zhu Tianfeng is eager for Mazda to join, he will not give up Toyota, a foreign aid that is enough to calm the country. Mazda is naturally not a direct opponent of Toyota, and he used a verbal trap to solve the siege when he answered.
Takashi Yamauchi knew that he could not stop the marriage between FAW and Toyota, and Mazda used this excuse to wait and see how the Chinese auto market would change after joining the TO.
China's automobile pattern is like a chess game, major automobile companies have fallen, taking advantage of the current chess game is not clear, seize the time to grab the territory to occupy a favorable position.
BMW has suffered a big loss in Luovre, so BMW is cautious in its external expansion, and the right to speak in its joint ventures in China is basically controlled by the Chinese side.
Unlike Audi, which focuses on the bus market, BMW is targeting the new private sedan market and also piggybacking on commercial vehicles.
The joint venture BMW could not enter the government procurement catalog, so the mouth-watering government agencies were monopolized by Audi, and the Audi A6 gave away a trial before the launch of the 50th anniversary of the founding of the People's Republic of China.
The BMW 3 Series focuses on driving sports, while the 5 Series focuses on successful business people, which is the positioning of BMW sedans in China.
Since he can't grab the market for Audi buses, although 6 firmly controls the bus field, it also brings him limitations. Many consumers who are looking for a family car will not consider the A6 and will look to the younger and more fashionable BMW.
As a result, BMW's sales in the Chinese market grew by 110% in 2001, and the reasonable price made BMW a luxury sedan brand on a par with the Audi A6.
Seeing that the sales figures were good, the Germans breathed a sigh of relief and took a tacit attitude towards the toss of the Chinese side within the joint venture.
The domestic production rate of 40% is the threshold that cannot be bypassed, and now BMW imports too many parts resulting in high costs, if the domestic production rate is not increased, the future development of the joint venture BMW will be greatly limited.
Therefore, the Zhonghua BMW joint venture requires its Tier 1 suppliers to enter China in a big way, and must achieve the localization target within 18 months, otherwise the domestic BMW will change suppliers.
BMW has a global sourcing policy, and a BMW car is equipped with parts produced on all continents of the world, but the current joint venture in China is asking for more than half of the parts to be produced in China.
This has led to objections from BMW's Tier 1 suppliers, who believe that it will increase the cost and risk of their investment.
Rushing to localize will reduce the quality of BMW's parts and disrupt their global layout. After all, for example, there is already a factory in South Africa, and it will be a bit redundant to come to China to build a factory for the sake of China BMW. At present, the sales volume of domestic BMW is estimated to be only more than 10,000 units, and the import cost of this quantity of supply requirements is much lower than that of building a factory for production.
"The Chinese market is already the country with the largest amount of investment in the automotive industry in the world, and both OEMs and supporting manufacturers have entered China for development. This is a megatrend, and you are taking this opportunity to enter it together. In the future, when China's auto market develops, the first mover will always have more market opportunities than the latecomers.
I know you're worried that BMW's demand can't meet the capacity of your factory, and I have two good suggestions. First, BMW's production target is 20,000 units in three years and 30,000 units in four years, and the growing orders will offset your risks. Second, Zhonghua Group can share your production capacity, BMW requires high-end parts, and Zhonghua can add orders for low-end parts to you. β
BMW's first-tier suppliers are all carefully selected brands, so when Han Hao is dedicated to the joint venture BMW, he also seeks benefits for his own Chinese sedan.
"To show good faith, Chung Wah Group can share your risk and establish a joint venture with you to establish a parts company. β
Shenzhou Precision has just started, and it can take advantage of the good opportunity of BMW suppliers to enter China and establish a supporting system in the field of auto parts as soon as possible through joint ventures with foreign brands.
Although it was not so reluctant at first, the opening of Zhonghua Group's parts and components is also a good opportunity for these companies.
The first to respond was DrΓ€xmeer, a supplier to BMW, which manufactures automotive interiors and electrical wiring harnesses.
They took the lead in establishing a wholly-owned factory in Jiangzhou, and the local government gave quite preferential policies to facilitate its landing, so on the whole, the German side felt that the risk of sole proprietorship was not large, so it did not build a joint venture with Zhonghua Group.
De Kosmaier is mainly oriented to the high-end automobile market, and there is no intersection with the products of Zhonghua Group for the time being.
However, Lear Corporation of the United States, which later entered the company, chose to establish a joint venture with Chunghwa Group, and in addition to supplying BMW, it also provided support for Chunghwa Group's products.
Lear has made achievements in automotive seat systems, instrument panels, door panels, audio, etc., and belongs to the world's top 10 auto parts manufacturers.
This is the first time that Zhonghua Group has established a joint venture factory with a world-renowned parts company, and the status of Getrag of the transmission is still very different from Lear's before, so when it was learned that Lear issued a joint venture invitation, Shenzhou Precision quickly agreed.
Lear is targeting the seating systems of hundreds of thousands of cars in the Chunghwa Group, and winning this big order is enough for Lear to make a lot of money in China. If you pull it on the same ship with the Chinese joint venture, then the seat order will naturally not be a problem.
"It's over, I'm afraid I won't be able to keep the order for seats in the future. Zhonghua Group will definitely give priority to its own joint venture parts enterprises, and we are afraid that the third party will be swept away. β
After learning the news of the establishment of a joint venture factory between Shenzhou Precision and Lear, the seat manufacturer that originally supplied Zhonghua Group felt very bad.
However, Han Hao learned the consequences of the fact that GM and Ford were too close to suppliers, resulting in their lack of competitive motivation and inability to follow the pace of the market. Although Shenzhou Precision has a parts business, Han Hao still asked to compete with a third party and introduce a third-party independent parts company.
The reason why the cost of American cars is much higher than that of Japanese brands is because they cannot reduce the price of parts cost control, and their parts companies lack the motivation to reduce costs through technological innovation.
Taking history as a mirror, in order to put an end to this evil result, even if it is a seat system, Lear can only take half of the share after the joint venture, and the rest is still left to a third-party seat company.
"I didn't expect that Zhonghua Group was quite professional, did not blindly protect its shortcomings, and understood the benefits of competition. β
Knowing that Chunghwa Group did not clear the portal, the third-party seat supplier finally put his mind at ease.
On average, every week, a foreign-owned brand auto parts company has landed in Jiangzhou through sole proprietorship and joint venture, and the positive effect brought by the settlement of domestic BMW has finally appeared.
Looking at the reported economic data, Governor Zhou Nansheng was very happy that the pattern of large automobile industry in Zhehai Province was finally completed. Through the late start, Zhehai has now become a well-known automobile province in China.
But in addition to his happiness, he also has another concern, which is that the Brilliance Rover joint venture project is now progressing slowly. According to Jin Yangyong's prediction, the Rover vehicle project with a scale of 100,000 units will be put into production in Dinghai City, with an investment of more than 5 billion.
However, after the local government handed over the 2,000 acres of land to Brilliance Group, the other party leveled the land, but the speed of building the factory was extremely slow.
Brilliance is also a well-known enterprise in the domestic automotive industry, and the Brilliance Rover project will become another economic engine in Zhejiang Province after completion. Therefore, Governor Zhou is still very concerned about this project and wants to see it mature as soon as possible.
But Jin Yangyong seems to have disappeared during this time, Shenlong has not seen the beginning and the end, and he has not paid much attention to the Dinghai City cross-sea bridge project, which he is most keen on.
This is not unusual, Governor Zhou finally invited Jin Yangyong to Zhehai through a relationship to discuss his investment in Zhehai.
Jin Yangyong, who has not been seen for a long time, looks a little tired, and he is busy cutting with Liaoyang Province during this time, and privately transferring Brilliance's assets to a company controlled by Zhengdao Company, which is completely his own.
The talk collapsed!
He and Liaoyang Province could not discuss the issue of Brilliance Automobile, and there was an irreconcilable contradiction between the two sides.
Liaoyang Province does not recognize his controlling stake in Brilliance, but only recognizes that it has made certain contributions to the development of Brilliance. Kim Yangyong's MBO plan was ruthlessly rejected, and he was allowed to increase the price at every level. Kim Yangyong believes that Hua Chen is the child he raised, and he has de facto control over him. Now is a good opportunity to clarify property rights, just to completely solve the historical problem of Brilliance and give back what belongs to him. The success of Midea Group's MBO gave him a lot of hope, but now this hope has been ruthlessly stifled by the local government.
"The Rover joint venture project will definitely continue, and both we and the UK side have great confidence in this project. As for the sea-crossing bridge project, we are already in the preliminary demonstration, and after this period of time, there will be actual actions to land. β
Jin Yangyong did not want to make his secret war with the Liaoyang provincial government public, so he consulted a lawyer to solve his problems from a legal point of view. What he is doing now does not lend itself to any flaws in China's relatively imperfect legal system.
Zhehai was his next foothold, so when Governor Zhou sent an invitation, Jin Yangyong still took the time to come to the meeting.
"As long as you comply with the law, the Zhejiang Provincial Government will do its best to assist you in advancing your project. Investing in Zhehai will definitely achieve satisfactory returns, and our government protects the legitimate rights and interests of investors. β
Now that Kim has pledged to continue to invest in projects in Zhehai, Governor Zhou has once again shown special preferential treatment for him.
Seeing the posture of the Zhehai government and recalling the actions of the Liaoyang government, Jin Yangyong strengthened his determination to move from the northeast to the south of the Yangtze River.
In order to appease the Zhehai government, Kim Yangyong began to forcibly push forward the stalled Rover vehicle project, once again confirming the rumors of transferring the car from Liaoyang.
As everyone knows, such a move completely angered the Liaoyang provincial government, and Jin Yangyong has been considered a persona non grata in the local area.