Chapter 81: A New Experience
The pheasant flew on the branch and became a phoenix, which was originally a peer who was not in the stream, and instantly became a world-renowned automobile giant.
In the past, Zhonghua Group was still the follower of the state-owned automobile giant, but it did not expect to evolve in just 15 years, first reaching the top of the domestic auto market, and then striding out of the country and squeezing into the upper class of the global automobile industry.
That's right, to qualify for the top 10 of the world's best-selling cars means to step into the power field of the automotive world.
Just from the world's major media reports on Chunghwa Group's successful acquisition of Jaguar Land Rover, and thus leading to the conclusion that Chinese capital has entered the world, we can understand how much positive impact this merger has brought to China's business image.
Over the years, the state has made every effort to give policies, talents, loans and even mandatory foreign investment to transfer technology, just to make the "three big and three small" state-owned enterprises grow rapidly and create a multinational super enterprise that represents the level of China's automobile industry. Every time the national automobile industry policy is revised, this article will be written to encourage the "three big and three small" restructuring and mergers and acquisitions to form an internationally competitive automobile powerhouse.
Take a change every ten years, in 2004 the latest formulation of the "Automobile Industry Development Policy", the state encourages the "three major and three small" to carry out cross-regional mergers and acquisitions, in order to create an aircraft carrier to sail to the sea.
And also gave the goal expected to be achieved in 2010: "Before 2010, China will become the world's major automobile manufacturing country, automobile products to meet the domestic market to meet most of the demand and enter the international market in batches; in 2010, automobile manufacturers to form a number of well-known automobile, motorcycle and parts product brands; through market competition to form several internationally competitive large-scale automobile enterprise groups, and strive to enter the world's top 500 enterprises by 2010!"
Considering the actual situation of China's automobile industry, the goal is set in a relatively general manner, but the core is that it hopes to enter the international automobile market and be qualified to participate in global competition.
For a long time, everyone, including experts, scholars and Chinese auto practitioners, believed that China's multinational auto giants would be born from the "three big and three small" because they reflected the national will behind them. Naturally, in order to achieve the desired goals of the automobile industry policy over the years, it is necessary to select the protagonist from the six state-owned giants of "three large and three small".
If 15 years ago it was said that the Zhonghua Group would be the leading candidate, then it would certainly be called a fantasy; if 10 years ago it was said that the Zhonghua Group was expected to catch up with the "three big and three small" state-owned automobile groups and become one of the protagonists, it would also be considered a pipe dream; if five years ago it was said that the Zhonghua Group would surpass the "big three" and become the number one protagonist in the domestic market, it would still be judged as a self-defeating move!
It wasn't until 3 years ago that people really realized that Zhonghua Group contained strong vitality, and no one dared to deny that this private enterprise from Zhejiang Sea had the strength to challenge all domestic car companies. But to say that she can achieve the expectations of the national auto industry policy, it is estimated that no one dares to guarantee the ticket, because it is so far away to go abroad and become an international auto giant.
Unexpectedly, at the end of 2007, Zhonghua Group not only successfully entered the top 10 list of global car sales, but also won global luxury brands such as Jaguar Land Rover, and truly became an international automobile giant.
It is not only to achieve small-scale automobile exports, nor to form a well-known brand, but also to enter the ranks of the world's top 500, but to directly raise the goal to the "top ten global automobiles" so that everyone dare not think of it.
With the rapid growth of car sales, no one denies that China is a big car country second only to the United States, but big does not mean strong, and fat pigs are also very big but have never been associated with the word strong. Today, the gorgeous transformation of Zhonghua Group marks China's progress from a major automobile country to an automobile power.
In 2001, there was a passionate collision between two young Zhuang factions in China's automobile industry. Han Hao, a newborn calf from the Zhonghua Group, who is not afraid of tigers, and Zhu Tianfeng, a young marshal of FAW who is full of ambition to become the CEO of the largest automobile group in China, had a face-to-face confrontation on the issue of how to develop China's automobile industry, and also made the famous "20-year covenant" bet.
Zhu Tianfeng's "endure loneliness for 20 years" is in stark contrast to Han Hao's belief that "internationalization will be achieved in 20 years", for which the supporters of the two factions have also launched large-scale debates online.
Unexpectedly, it took only seven years for this debate, which was expected to take 20 years, to have a final result.
Under the leadership of Han Hao, Zhonghua Group has completed the goal of internationalization, entered the top ten global automobiles, and also cut FAW in China, and it is clear who wins and who loses!
At a time when Han Hao is still firmly in command of the Zhonghua Group, Young Marshal Zhu Tianfeng has been transferred from FAW and has taken up a higher level of career as a local senior official.
Now that the "20-year covenant" has been turned out by netizens again, people understand that Han Hao's vision was far-sighted.
Similar to the "one superpower and many powers" pattern in the world dominated by the United States today, the Chinese auto market has now formed a "one superpower, many powers" structure in which the Zhonghua Group stands out from the crowd and other joint ventures and state-owned enterprises are desperately catching up behind the scenes.
Although it was publicly publicized that the merger and acquisition of the Chunghwa Group would not have an impact on the existing domestic automobile pattern, and many manufacturers also specially purchased the layout to cite the negative reports of overseas media on whether Jaguar Land Rover could survive, but at the internal meeting, the atmosphere was condensed, and the family knew that the gap with the Chung Hwa Group was getting wider and wider.
Last year, the sales volume of Zhonghua Group exceeded 2 million vehicles, and this year's sales momentum is still unabated, and it is inevitable to maintain a high performance of 2 million vehicles. Now that Jaguar Land Rover has been sold and the technology of luxury cars has been shared, the domestic car market will have a more difficult time in the future.
"Why do we enjoy a great advantage, but watch the good situation be eaten away little by little!"
"The people of the Zhonghua Group are all descendants of Yan and Huang like us, and they don't have three heads and six arms, why can they always overcome one task after another that is judged impossible by our internal analysis!"
"Why are good graduates reluctant to work in our group, and would rather go to Jiangzhou, thousands of miles away to find a job, why can't we retain talents with the same salary!"
......
Domestic giants such as FAW, FAW, and SAIC have held small-scale high-level closed-door meetings, and the alarm bell of the crisis has sounded, and if they do not do anything, they will be defeated by Zhonghua Group in the future. Because Zhonghua Group has started the siphon effect, it has continuously absorbed talents, funds, projects, etc., and moved towards the ranks of oligarchs.
Discussions came and went, and in the end, it was the mechanism that took the blame!
Compared with the private and flexible mechanism of the China Group, state-owned enterprises bear too many social responsibilities and are slow to respond to market changes. In particular, the incentive mechanism cannot keep up, and compared with Zhonghua Group, the return on working in state-owned enterprises is disproportionate, resulting in the outflow of outstanding talents.
But can the mechanics explain everything?
I'm afraid not, in the final analysis, it's still a human problem!
On the other hand, the top and bottom of the Zhonghua Group looked jubilant, and the waist was straighter when communicating with peers. Because everyone firmly believes that the acquisition of Jaguar Land Rover is a good move, and they will definitely complete the great cause of revival in the hands of the Chinese.
Many employees are ready to move to the newly established Jaguar Land Rover factory internally, after all, even if they do the same type of work, working in Jaguar and Land Rover sounds much better than in China and China, which is the advantage of having a luxury brand with historical accumulation.
After the signing ceremony, Han Hao flew to the British Isles and began to prepare for entering Jaguar Land Rover.
At the temporary meeting of the board of directors of Jaguar Land Rover, Han Hao's identity has been tacitly assumed to the position of chairman, and he will really start to take the helm of an international enterprise.
Han Hao did not rush to choose the composition of the board of directors, he temporarily retained all the members and held a retreat.
The meeting will discuss how to achieve a smooth handover and the company's key development directions in the past two years, and the future of Jaguar Land Rover is in the hands of the Chinese.
Fortunately, he paid attention to learning English in college, and he has always had the habit of watching and listening to English reports after work, so Han Hao sat at the main table of the board meeting and listened to the quarrels of tall foreigners, which did not seem very disagreeable.
Foreigners are also human beings, and dealing with people is not beyond Han Hao's ability, so after they quarreled with each other, he came out as the principal to clean up the mess.
Jaguar Land Rover has planned a lot of new model development, but Ford has actually suspended the research and development investment for nearly two years, resulting in most of the project being stranded.
The $2.36 billion is actually only a large part of the acquisition project, and there is a large amount of R&D and operating capital investment in the follow-up, which is one of the points of contention of the board of directors now.
Whether the company needs an injection of 600 million or 800 million US dollars has become a reason for everyone's discussion.
"I said that what Jaguar Land Rover lacks is only money, and once the tiger is released, it will be extraordinary, so I think I still have a certain say in this issue.
As long as the project falls within a reasonable and acceptable category, then a budget request can be submitted, and there is no limit to the amount for the time being.
By next week at the latest, $500 million should arrive, and another $500 million is guaranteed to be available over the next six months.
So, in order to achieve the return of the tiger, let your creativity run wild. ”
Han Hao's shot was $1 billion to make all the board members know each other and shut up, when the old British aristocracy was educated with money by the rising American nouveau riche, and now it is the turn of China's local tyrants to repeat the new drama.
Subsequently, Han Hao proposed to set up a joint venture factory in China, start global procurement, reduce the cost of parts, and share the framework plan with Zhonghua Group.
China is likely to become the world's largest automotive market, so it is acceptable and wise to set up a joint venture plant in China to capture the incremental market. The implementation of global procurement of parts, especially in China, will greatly reduce costs, which is already the common way for mainstream car companies, and there is no objection to this approval.
As for the third point, will the sharing technology cause Jaguar Land Rover's worries to hollow out and lower Jaguar Land Rover's image? There is a certain reasonableness to this worry, and Han Hao promised to maintain Jaguar Land Rover's independence. However, it is important to know that Jaguar Land Rover's heart problem has not been solved, and it is impossible to rely on Ford for supply all the time, and it is necessary to find independent products.
Chunghwa Group, on the other hand, has newly developed turbocharged engines and relatively mature CVT and AT solutions, which is enough to qualify for joint research and development with luxury brands such as Jaguar Land Rover.
On the premise of ensuring that Jaguar Land Rover will not have a negative impact, the board of directors has conditionally approved the agreement to share technology with Zhonghua Group. Of course, it is not free, but it is implemented according to the market price rules.
Although there are still doubts about the strength of the Chinese in the auto industry, the British have no other choice but to choose to cooperate with the Chinese because this is the most feasible path.
On the occasion of leaving the UK, Han Hao's private jet did not fly directly back to China, but changed its route and headed north.