Chapter 20: Undercurrents

Joining TO has also accompanied the eventful entry of China's automotive landscape.

"Your Highness Zhang Nan, can our plan succeed? Will FAW really act as we expected?"

FAW invested 200 million yuan in cash to acquire Sichuan Automobile Group at lightning speed, and since then it has another sub-base in Bashu. Nominally, they had the opportunity to talk directly with Toyota, but the cooperation between FAW and Toyota, two large auto companies, had to wait for the approval of the State Council.

After FAW made a move, Toyota pushed it behind the back and sent the big fat of Jinqi to FAW's mouth.

As an assistant, Gu Mei was skeptical that FAW would be able to annex Jinqi, because when he came to China, he found that the local government was very protective of local enterprises, and such a large-scale cross-regional car merger was easily opposed and resisted by the local government.

"Tianjin Automobile has been out of service for the past two years, their warehouses have a backlog of vehicles that cannot be sold, workers are waiting for wages, the government cannot collect taxes, and they urgently need a savior from the sky to save. ”

In response to the fact that Tianjin Automobile has sent people to ask Toyota to launch the latest economic family car, Akio Toyoda has been holding it down, and he needs to put more pressure on Tianjin Automobile to succumb.

Toyota has taken a stake in Daihatsu and actually controls the company, and due to the lack of independent research and development capabilities, the economic lifeline of Tianjin Automobile has been firmly controlled by Toyota. On the day when Akio Toyoda made up his mind to abandon Jinqi and find another partner, the decline of Jinqi was inevitable.

With the rise and squeeze of domestic cars such as China and Chery, and without strong assistance from Toyota, Tianjin Automobile, which has dominated the business of micro-cars for more than ten years, has fallen into a sinking stage. This is a typical example of the lack of independent research and development capabilities, which leads to insufficient blood supply capacity and declines.

"If I were Zhu Tianfeng, then I would definitely not miss this good opportunity!"

Tianjin Automobile is not a small local auto state-owned enterprise like Sichuan Motor, but a big-name state-owned enterprise in China that once followed the three major automobile factories, and the restructuring of these two companies is sure to alarm the highest levels of the Chinese government.

Tianjin Automobile has been positioning itself in the domestic automobile territory to produce economic cars, while FAW has made many achievements in trucks and medium and high-end cars, but there is a blank in economic cars. If it can win Tianjin Automobile, FAW will not only be able to obtain the largest automobile production base in North China, but also be able to fill the shortcomings of its own automobile territory.

After the annexation of Sichuan Automobile, FAW involuntarily continued to follow Toyota's baton, because even if it was a trap, it was a gentle trap that people could not refuse.

Akio Toyoda is convinced of this, and the most brilliant chess players always deceive their opponents in full view.

"I have reported to the relevant leaders of the State Council, and they support our FAW to merge and reorganize local enterprises, so as to form a real giant in China's automobile industry!"

As soon as he got off the plane, Zhu Tianfeng, who rushed back to the office, called a meeting with his subordinates.

"When he learned that we were interested in joining forces with Jinqi, the chief was very happy and said that it was a match made in heaven. However, we still have to do the specific work, after all, Tianjin Automobile is not so willing to join us. ”

The opportunity to promote the merger of FAW and Tianjin Automobile is a major event that can be recorded in the history of Chinese automobiles, and Zhu Tianfeng is extremely excited.

"According to incomplete information, Xiali has lost more than 300 million this year, and according to this trend, a large loss next year is also a foregone conclusion. If it loses money for three consecutive years, Xiali will have to be delisted from the stock market, which is a situation that the Jinmen city government does not want to see. Therefore, I deduce that as long as we promise that the new Tianjin Automobile Factory, workers, and taxes will remain unchanged, Jinmen City will largely accept our acquisition!"

Another FAW Group leader analyzed.

"Toyota has promised us that it will cautiously introduce new models to FAW until it is reorganized. ”

Zhu Tianfeng's sentence is very clear, that is, Toyota has already abandoned Jinqi, and under strong pressure, Jinqi actually has no choice.

"Mr. Zhu, you really have a strategic vision, if you win Jinqi, our FAW is a well-deserved eldest son of the republic, with a full range of automotive product lines, and the domestic overlord is better than me!"

FAW has developed rapidly in the past two years, and Zhu Tianfeng has also shown strong leadership ability, and a group of people at the bottom have supported him.

"In fact, Toyota is more influential in the world than Volkswagen, and in the future, Toyota's domestic launch of Corolla, Camry, Crown, Domineering and other models will immediately change the market pattern. In particular, Toyota agreed to send engineers to assist us in the development of the Hongqi car, which is a key battle for us to revive the Hongqi brand!"

For Toyota, Zhu Tianfeng is very eager for it, and after the Japanese side comes in, it will not only enhance the strength of FAW, but also further contain the Germans.

As Toyota's only partner in China, the Japanese side can only rely on the strength of FAW to conquer the Chinese market.

After winning Sichuan Automobile and annexing Tianjin Automobile, Toyota's partner in China will only be FAW, and the strong alliance will not be able to develop at that time.

"At present, we only hope to cooperate with FAW in China, and doing a good job in FAW Toyota joint venture is the focus of all our work!"

Toyota's statement reassured Zhu Tianfeng.

The idea of the FAW side is that Toyota can only rely on one partner of FAW in the future, and Toyota is preparing to quietly vacate the second joint venture place under the deployment of Akio Toyoda. The two sides kept a hand when they talked about the joint venture, but both sides agreed on the move to reorganize Jinqi.

The employees on the front line of Tianjin Automobile are not aware of the undercurrent surging around them, and they have inadvertently become the prey of others.

At the same time, in the far south, the Dongfeng Group of the Second Automobile is ready to move. At a time when other domestic auto manufacturers have taken action, as the second largest auto group, it is certainly not willing to be left behind.

From Peugeot to Honda, GAC has fought a happy turnaround, from 10,000, 30,000 to 50,000, GAC Honda's annual sales have reached a new level. In 2001, with 51,000 sales, sales revenue exceeded 12.2 billion, profits and taxes reached 4.5 billion, and net profit set a record of 1.6 billion.

However, Dongfeng Motor is behind Guangqi Honda's project, because the engine is provided by Dongfeng Honda's engine joint venture.

At the beginning of the failure of GAC Peugeot, the central ministries and commissions were very dissatisfied with Guangfu City, the capital of Nanyue Province, and other joint ventures were doing well, but you Guangfu City messed up. What's even more depressing is that a large-scale petrochemical project that Guangfu City has fought for from the state has not done well, and as a result, the two major holes of GAC Peugeot and Guangfu Petrochemical have become a well-known laughing stock throughout the country.

"You Nanyue people have a set of business skills, but you have no talent for industry. If you really want to continue to engage in automobiles, you must introduce the endorsement of large domestic automobile groups. ”

When GAC declared a joint venture with Honda to produce vehicles, the central ministries and commissions were suspicious of whether the people of Nanyue could still make good cars, so they let the second automobile Dongfeng Motor join it. With the endorsement of Dongfeng Motor, it is a little more sure to get a car.

As a result, the "one project, two companies, three partners" model with Chinese characteristics was born, and for the Honda joint venture project, Dongfeng and Honda jointly established an engine plant, while GAC and Honda jointly established a vehicle plant.

"We didn't want Dongfeng to come in and participate, but in order to keep the license plate of one of the 'three small' cars in Guangfu City, we made a compromise and agreed to Dongfeng to join it. ”

These were the exact words of the representative of Guangfu City, who was in charge of the joint venture negotiations at the time.

Seeing Guangqi Honda mixed with the wind and water, this made Dongfeng Group, which can only share porridge from the engine, the engine factory is not comparable with the automaker, Guangqi Honda's annual net profit of 1.6 billion yuan is not comparable to how many engines are sold.

Therefore, in addition to cooperating with Honda in the field of engines, Dongfeng CEO Miao Yuwei privately proposed the willingness to cooperate with Honda in depth, that is, to establish a second joint venture vehicle company - Dongfeng Honda.

Miao Yuwei, who can be called a young marshal with Zhu Tianfeng, is also eloquent, he sees the opportunity after joining TO, and strives to expand the territory of Second Automobile Dongfeng.

Honda's first thought was of course a warm welcome, and now that the Accord can sweep the Chinese mid-to-high-end car market with the highest profit margins in the world, they certainly want to invest more in China.

"We are open to a joint venture with Dongfeng, but we also have to take into account the opinions of GAC, after all, they have done a lot of fruitful work for Honda to enter China!"

Honda President Hiroyuki Yoshino replied to Dongfeng.

During the negotiations with Guangqi Honda, the two sides made a gentleman's agreement, and Honda's development could only be in Guangfu City, and Guangfu City did not choose other partners.

Lang has the intention of having a concubine, but it depends on the attitude of the third party, GAC, more specifically, the attitude of Guangfu City.

Therefore, Honda President Hiroyuki Yoshino came to Guangfu City to meet with local city leaders and disclose the news that he wanted to make a joint venture with Dongfeng. He has been mentally prepared for this, and it is estimated that he will have to engage in long-term negotiations and tug-of-war with Guangfu City.

"Yes, but you'll have to allow us to find another one. ”

Unexpectedly, the main leaders of Guangfu City readily agreed to Honda's application, because GAC was not satisfied with only finding Honda's partner. For example, SAIC, which has developed most smoothly in China, has two major partners, Volkswagen and General Motors, and now FAW has made many moves, and it also has two major helpers, Volkswagen and Toyota.

To develop GAC into a first-class large-scale enterprise in China, Honda alone is not enough.

"Alright then, you can find anyone, but we don't want it to be Toyota!"

President Yoshino is well aware of the power of Toyota, and Honda and Toyota are competing against each other like old enemies. In the North American market, Honda and Toyota are in a good fight. Accord vs. Camry, Civic vs. Corolla, CRV vs. RAV4, love and kill each other and grow each other.

"The specific partners have not yet been discussed, but we will choose the most suitable partner for GAC's development. ”

In fact, Guangfu City didn't think too much about it, mainly taking this opportunity to set aside a place for the joint venture.

With the nod of Guangfu City, Dongfeng quickly finalized the establishment of a vehicle joint venture with Honda, and submitted it to the state for approval, and the new company will be located in Wujiang City, where Dongfeng's base camp is located, and plans to put into production the first joint venture SUV in China, that is, the CRV, which is selling well in the United States.

The basic completion of the joint venture between Dongfeng and Honda made Miao Yuwei breathe a sigh of relief, but the heavy burden of the second automobile has not been resolved.

The annual sales volume of the Blue Bird car produced by Fengshen Automobile exceeded 28,000 units, and the profit exceeded 800 million, accounting for one-third of the profit of the entire Dongfeng Group.

At the beginning, a project that was unintentionally inserted into the willow has now produced such a great curative effect, allowing Dongfeng to move forward with blood transfusion.

The success of Fengshen Automobile has also attracted the attention of Nissan, because the continuous transportation of engines and transmissions from Nissan's headquarters to China does not deceive, and Nissan has also benefited from the hot sales of the Blue Bird sedan.

Fengshen Automobile is the product of a joint venture between Dongfeng and Taiwan's Yulon Motors, and Nissan Motor holds 25% of the shares of Yulon Motors, which gives Nissan a certain say in Fengshen Motors.

The great success of old rival Honda in the Chinese market with the Accord has aroused strong interest in Nissan, which has just emerged from the quagmire, to enter the Chinese joint venture.

With the cooperation in Fengshen Automobile, the first choice for Nissan Motor to enter the joint venture in China is Dongfeng Motor, so the two sides hit it off and planned to pull Nissan in on the basis of Fengshen Automobile and introduce the production of the economic sedan "Nissan Sunshine".

From Dongfeng Peugeot Citroen to Dongfeng Yueda Kia, and then from Dongfeng Fengshen to Dongfeng Honda, now Dongfeng Nissan is also about to have eyebrows, Dongfeng Group has frequently landed in the car joint venture, Miao Yuwei has made great contributions.

However, the project of Dongfeng and Nissan Motor to expand cooperation in Fengshen Company was beaten back in the central government, which surprised Miao Yuwei, who claimed to understand the economy.

"Can relying on a few joint venture car manufacturers solve Dongfeng's current predicament? Dongfeng's production bases all over the country, more than 100,000 employees, and huge commercial vehicle assets in addition to passenger cars, these problems must be considered as a whole!"

The vice premier in charge of the economy specially called Miao Yuwei to the office and said seriously.

"The CEO of Renault Nissan is not named Ghosn, he brought Nissan back to life in just two years. I suggest that you Dongfeng should make a big move this time, and take out the two major resources of passenger cars and commercial vehicles to make joint ventures, so as to completely solve the long-standing historical problem of the second automobile.

Now many foreign giants want to enter the Chinese market for development, yes, but they have to come up with 'tickets'!

For example, not long ago, Kodak spent $1.2 billion to acquire 10 film factories in China and was responsible for the placement of all employees, and the Chinese government agreed not to approve new investors to enter the domestic market for three years.

If Nissan wants to enter China, it must show sincerity and be able to bring new life to Dongfeng Group!"

Compared with FAW and SAIC, FAW Dongfeng is much less competitive, and the joint venture brand does not have a car product that can get its hands on, and it has to rely on state relief to tide over the bankruptcy difficulties in the first two years. Otherwise, he would not have been forced by Han Hao to sign the alliance under the city, raising the Zhonghua Group, which is currently in the market. At present, more than 100,000 workers are nested in the big ravine, and how to deal with this old problem is a headache for the top level of the state.

Since the miraculous Ghosn can save Nissan, can he rejuvenate the east wind with a clever hand?

"Your proposal is ahead of its time, far beyond our expectations, and must be discussed in the boardroom. ”

Even Nissan President Ghosn, who is known as a car maniac, can't make up his mind for a while, so he can only think about procrastination.

The Chinese market has shown infinite vitality under the light of Guangqi Honda and SAIC-GM, and the main battlefield of global automobile competition in the future is undoubtedly in China.

"Whoever wins China will win the next century!"

From passenger cars to commercial vehicles, it is easy to integrate with China's second-largest automobile company, and the scale of investment will create the history of China's automotive industry.

Ghosn knew in his heart that Nissan had to enter China to make a difference, but was the expensive ticket worth it?