Chapter Seventy-Five: Brand Anxiety
As China's largest economic city, Hujiang does have the capital to reject Zhonghua Group's factories, and they welcome the company's headquarters and R&D center.
Many multinational companies have relocated their Asia-Pacific headquarters from Hong Kong and Singapore to Hujiang, and many mainland companies have also relocated their headquarters and R&D centers, making it a truly international metropolis.
In addition to the influence of SAIC Group, the Hujiang Municipal Government organized a team of experts to scientifically evaluate the Jaguar Land Rover brand, believing that they will only be a symbol of Zhonghua Group's promotion of the company's image in the future, and the development prospects of the two brands are not as bright as Han Hao described.
It can be said that Jaguar Land Rover cannot even handle the internationally renowned automobile company Ford Motor, and the Chinese with little international experience are likely to face the challenges of cultural conflict and soil adaptation after taking over, and the industry is actually looking down on the prospects of Jaguar Land Rover in the future.
Without the endorsement of multinational auto giants, can Jaguar and Land Rover still be called luxury brands?
If the brand image collapses in the hearts of ordinary consumers, naturally no one wants to buy it, and it can only be reduced to the bottom brand.
Based on this consideration, Hujiang City made the decision to accept only the Asia-Pacific headquarters and R&D center, hoping to assume limited liability, and closed the door to Jaguar Land Rover's factory.
Such a move, to be honest, was very unexpected to Han Hao.
Taking a step back, it is not unacceptable for Han Hao to place Jaguar Land Rover's China headquarters and R&D center in Hujiang and the factory in Jiangzhou. After all, there is a direct highway between the two, which can be driven in less than two hours, and there will be a rapid rail connection in the future.
However, Hujiang City did not negotiate in advance and directly informed Han Hao of the final result, which made Han Hao very unhappy.
There is no place to stay here, Jaguar Land Rover does not have to rely on Hujiang, Jiangzhou has long been waiting with open arms.
Jiangzhou has a complete spare parts system of Zhonghua Group, and in the future, the introduction of Jaguar and Land Rover suppliers can adapt faster, and the R&D center can also form a linkage effect with the China Automotive Research Institute.
Cars and the Internet are the two pillars of Jiangzhou's economy, before because of Zhao Guoping, Jaguar Land Rover and Hujiang signed an agreement of intent to land, but now the country's personnel changes, but let Jiangzhou pick up a big bargain.
Jiangzhou is willing to marry Jaguar and Land Rover in accordance with the plan previously negotiated by Hujiang City, and in addition to providing a large area of land, it has also guaranteed an interest-free loan of 3 billion yuan in the name of the government in Zhehai Bank for the project to land.
Zhonghua Group pays more than 10 billion yuan in taxes to Jiangzhou every year, so it is in the form of a large tax refund reward from the government, even if the 3 billion is wasted, the Jiangzhou government can accept it. What's more, Zhonghua Group has been surprising under the leadership of Han Hao, the Hujiang Municipal Government does not believe that Jaguar Land Rover can do a good job, but the Jiangzhou Municipal Government believes in Han Hao's ability.
Under the disadvantages of the other, Zhonghua Group and the Hujiang Municipal Government broke up amicably on the Jaguar Land Rover project and switched to the embrace of Jiangzhou City.
"Pinning the future of a company on certain officials or local governments, consciously or unconsciously, is actually a gambling speculation that is not worth encouraging.
When making business decisions in the future, we should try to consider market factors as much as possible, so as to be invincible!"
It can be said that Han Hao is a person who is very good at summarizing experience, and this ticket bounce incident made him reflect in his heart.
The fact that Zhonghua Group did not agree to Hujiang's conditions does not mean that others will do the same.
Chery Automobile has always regarded itself as the second largest domestic independent brand, and they have relied on the sudden emergence of Fengyun cars and have always taken the revitalization of the national automobile industry as their own responsibility.
Chery abandoned the previous practice of borrowing from plagiarism and planned to develop a new car with its own intellectual property rights, and they invited the Italian company Pininfarina to design the body shape and create a young and fashionable new sedan - A3.
After the announcement of the A3, it has been recognized by the industry and praised by consumers. At least Chery is no longer a representative of the old-fashioned, but has a subversive product on the market.
However, compared with a boss like Zhonghua Group, the gap between the two is getting wider and wider, and Chery's sales have just exceeded 300,000 units, which is equivalent to one-seventh of the other party.
After market research, Chery found that its brand image was low-end, cheap and non-durable domestic goods, which seemed not so popular.
A local car company that has just been established for 10 years, Chery's results can be said to be able to score a good level. The longitudinal comparison is good, they have their own engine and transmission technology, but the horizontal comparison results are not ideal, and the mountain of Zhonghua Group makes Chery breathless, and they have to force themselves to work harder.
Therefore, Chery boss Yin Yuefei has another big plan, ready to rebuild a high-end independent brand, to be able to benchmark the joint venture brand and not fall behind.
Since Zhonghua Group can pool global resources to fight for the boss position of its own brand, then Chery can do the same.
Yin Yuefei plans to invite the world's top talents, select the best suppliers, recruit the most outstanding engineers, and create a new Chinese car brand that surpasses Chery and has international genes at all costs.
This concept coincides with the Quantum Fund from Israel, where Chery set up a low-key joint venture and began a six-year plan to create a new model that will shock the world.
Since it is going to take the international route, the positioning of the headquarters must of course be high.
Hujiang is recognized as an international metropolis in China, so Chery Quantum Joint Venture has its headquarters here.
Originally, they planned to land the factory together, but they did not expect to be rejected by the Hujiang municipal government, for reasons similar to Zhonghua Group. As a last resort, Chery had no choice but to put the factory in Changsu City, which is 100 kilometers away from Hujiang City, and it is still in the big city circle of Hujiang City.
Brand upgrading is a normal behavior, and Chery plans to launch its own new brand in six years to compete with Zhonghua Group and joint venture brands.
The products that have been sharpened for 6 years will also be further studied in Germany, the birthplace of automobiles, which can be described as Chery's future hope.
"From the beginning of its birth, it has international genes, so the competitor is the joint venture brand! Because after 6 years, I estimate that the joint venture brand will occupy most of China's automobile country, and Chery must come up with the finale of the bottom of the box to compete with the other party!"
This is the original words of Yin Yuefei, the boss of Chery, which expresses the anxiety of its own brand.
If the technical design of domestic cars is still outdated as it is now, then after the layout of the joint venture brand is completed, it will be the catastrophe of the independent brand.
Because consumers will not eat patriotic feelings, they will vote with their feet, and whoever has the stronger product will have the last laugh.
Of course, in Yin Yuefei's mind, Zhonghua Group has now broken away from the category of its own brand and has begun to rank among the joint venture brands, so their enemies also include strong enemies from Jiangzhou.
Han Hao also has the anxiety of brand upgrading, but because at the beginning, the two major brands of Huaxia and China were a low and a high match. Now that the acquisition of Jaguar Land Rover is imminent, Volvo is also beckoning from afar, so the brand upgrade of Zhonghua Group seems to be a matter of course.
Chery is recreating a new brand from scratch, while Han Hao directly acquires luxury brands abroad, both have their own advantages and disadvantages, and they can only be said to be the most suitable for themselves.
"Chery Quantum's joint venture project is not sure to be successful, but at least it is less risky than Jaguar Land Rover, because it is a new brand based on China's national conditions and using international standards. Jaguar Land Rover has always been in the British style, and it will continue to invest in losses for at least 3 years, and it is difficult to say whether it will survive after 6 years. ”
The expert group hired by the Hujiang municipal government gave preliminary conclusions on the two major projects, and the risks of Jaguar Land Rover are too great in comparison.
"What is the most valuable, superstition is the most valuable! What is the most, the expert is the most!"
Wei Dajun, the boss of Great Wall Motors, was angry at the executive meeting.
At present, it is popular for independent brands to hire designers abroad, and many experts and scholars are also invited to give suggestions to enterprises, and strive to copy a set of experience of multinational companies to local enterprises.
Great Wall Motors is inevitably affected by this, a foreign atmosphere began to infect, in response to the executives unanimously asked to spend a huge amount of money to hire international experts to help Great Wall build a new model, Wei Dajun disagreed!
Previously, experts unanimously said that Great Wall Motors should step into the field of sedans, otherwise it would not survive for long. Under the pressure of his executives unanimously supporting this view, Wei Dajun started the road of sedan conquest and came up with his own sedan model, the Elf.
As a result, the sales volume of the elf market, which has invested a lot of money, is very unsatisfactory, which continues to drag down the performance of Great Wall Motors.
Wei Dajun is a pragmatist, he trusts his own eyes and experience more.
The advantage of Great Wall Motors lies in off-road vehicles, and there is no background in sedans to compete with opponents, especially in the context of such a strong China Group, leaving little market space for Great Wall Motors.
On the contrary, the hot sales of domestic SUVs have given Wei Dajun strong support, and the Chinese "Tang" and "Song" continue to sell well, and the joint venture brand Honda CRV has opened a price increase mode as soon as it is listed! SUV has less competition than sedans, and many joint venture brands have not launched their own SUV products. The most typical example is Volkswagen, as a joint venture brand giant, the North and South Volkswagen joint venture company does not have a single domestic SUV product.
Therefore, Wei Dajun is ready to take back limited resources from the field of cars and continue to work on the field he is good at - SUVs.
In the field of sedans, which has high hopes, Great Wall Motors is ready to invest 10 billion, of which 3 billion has been spent to establish a car production line and produce elf cars off the assembly line.
Now Wei Dajun suddenly turned the gun and stopped engaging in cars, which means that the 3 billion investment is likely to be wasted, which makes the executives a little at a loss.
"The experts moved their mouths, we ran and broke our legs, they took the money and slapped their butts and ran, and we were left to clean up the mess and bear the consequences!
Turning around and concentrating on SUVs, this time I will no longer give in! The sedan side can make limited investment, and the projects that have been started will continue, but the follow-up will not be invested, and the company must return to SUVs.
Our target product is very simple, it is CRV!
Whether it's an imitation or a complete copy, in three years we have to come up with a new product that is similar to the CRV. ”
Wei Dajun began to exercise his right to decide, and the vacillating policy would definitely not survive, and he had to make a choice.
"We don't think about hiring foreign designers for the time being, so we contact Tongji Tongjie Design Company and ask them to send someone to assist us.
In the land of China, sometimes local methods are more effective than foreign sect leaders! We are not big rich people like the Zhonghua Group, and we must spend our money on the edge of the knife and stagger competition in order to survive. ”
In the face of the Zhonghua Group's pressing step by step, Great Wall Motors must come up with its own fist products to fight. Wei Dajun also felt that time was pressing, and he, like Chery, had to plan ahead and devote himself to it.
Han Hao has the capital to bid for a luxury brand like Jaguar Land Rover, which makes Wei Dajun very envious. But he must face reality and make a choice to keep Great Wall Motors alive, or he will have to get out of this race.
Therefore, he would rather swallow the risk of 3 billion yuan, but also reinvest the remaining 7 billion capital into SUVs, focusing on the H6 project with CRV as the benchmark.
In China, the world's most potential automobile track, whether it is an independent brand or a joint venture brand, they can't help but be swept into the whirlpool and run desperately, just to not be eliminated.