Chapter Seventy-Five: Learning from History
"Director Xiaohan, I would like to ask you how to summarize the harvest of this trip to Japan A in one sentence?"
On the plane, the reporter who followed the shooting turned on the camera and asked Han Hao such a sentence as the end of this trip to Japan. Pen Fun Pavilion wWw. biquge。 info
"If you fall behind, you will be beaten, and I hope that you will be ashamed and brave in the future. ”
What you can't get on the battlefield can't be imagined at the negotiating table, and this well-known military discourse also applies to the market. Although Han Hao argued with Mitsubishi when negotiating, he could not change the reality that the Huaxia factory had to ask for the other party. Mitsubishi dared to shout a bid of up to 300 million yuan, which was to determine that the Huaxia factory had no other way to replace its position, and there was a kind of attitude that it loved to buy but not to buy. Although the Japanese personnel were impeccable in their etiquette, the arrogance in their words and gestures was unconsciously revealed. The attitude of being superior to others and being a good teacher made Han Hao not very comfortable.
At the beginning of the reform and opening up of China's automobile industry, we once sent a heroic post to invite world-renowned automobile companies to build joint ventures in China, intending to establish a car production plant in Hujiang City, which was the predecessor of SAIC.
Since China had just reformed and opened up, it was poor and white, and its foreign exchange reserves in 1978 were only $167 million, so engaging in foreign exchange became an important goal of the state's work. If you want to introduce advanced technology, equipment, and talents, you need foreign exchange to settle accounts with foreign countries, and without money, the whole of China can only be reduced to empty talk if it opens up to the outside world. Therefore, by setting up an automobile factory to produce cars and sell them abroad, it can create a large amount of foreign exchange reserves, which was the idea of the leaders at that time. With this goal in mind, China's auto industry began to embark on the road of joint ventures. Although by 1995, only a very small number of cars produced in China were exported abroad, on the contrary, domestic sales were in short supply, which can be regarded as the result of unintentional insertion of willows.
At the beginning of the reform and opening up, due to the improvement of Sino-Japanese relations and the fact that they both belong to the East Asian cultural circle, Toyota and Honda of Japan have become the first negotiation objects we are looking for. I didn't expect to go around a big circle in Japan, and the Japanese side felt that it would be good to import directly from us at such a close distance, so why build any factory. Proposed to only sell products, not technology, so the Chinese government delegation had to go to the United States, after all, the United States is the world's largest automobile country.
When I went to the United States, I found General Motors, Ford, and Chrysler, and when I saw poor China, Americans felt that there would be no market for cars. In particular, the Chinese insist on providing the latest models, and provide the latest production technology and scientific management mode, and also require the localization of parts and components in China, with the ultimate goal of exporting cars to earn foreign exchange. Such a request seems a bit whimsical to the Americans, and no matter how it is counted, it is a loss-making business, who wants to go!
But after all, China is the most populous country in the world, and General Motors still planned to give it a try, and they planned to import parts from the United States in the form of CKD complete parts to import parts from American factories and assemble them in China, which is equivalent to producing in China and selling cars to Asian countries. Unfortunately, this model is not what our country wants, so the negotiations with GM have not been happy.
It took nearly two years, and I was deflated in Japan and the United States, so I had to go to Europe. As a result, Apple, a large market in China, was lucky enough to hit the German Volkswagen. At that time, our Minister of Machinery Industry actually went directly to the door, and he went directly to the door of Volkswagen without making an appointment, saying that I am the Minister of Machinery of the People's Republic of China, and I want to talk to your person in charge about cooperation. Because, I was looking for Mercedes-Benz cooperation, but I didn't expect Volkswagen cars to run everywhere on the streets of Germany, which attracted the attention of the minister who had just gone abroad. In the absence of an agreement with Mercedes-Benz, the Chinese went directly to the Volkswagen headquarters.
If the doorman had ignored the minister, who claimed to be from China and wore a tunic suit, he might not have had the glory of Volkswagen in the Chinese market. There is a proverb in the West that a single screw can lead to the defeat of a war. The doorman quickly reported the guests from the East to the boss, so Volkswagen began to officially establish a relationship with China, starting China's hegemony dynasty, and establishing a joint venture factory in Hujiang City, SAIC Volkswagen.
The grievances that Han Hao suffered at the negotiation table have even been encountered by China's prime minister, which is also a major event that has affected the course of China's automobile industry.
At that time, the state had limited funds and set SAIC as a car production base, which made FAW and FAW red. There has always been a saying in the domestic automobile industry: Trucks are only at the level of primary school students, and cars are at the level of college students! In this context, who does not want to go to the car project in several major automobile factories!
But the automobile industry has always been a key area of national regulation, you FAW, FAW and FAW honestly produce trucks and buses first, and cars have to be handed over to SAIC for production. The state pays attention to the industrial layout, and SAIC produces cars mainly for the purpose of earning foreign exchange through exports.
There are policies at the top, and there are countermeasures at the bottom, and the temptation of the cake of the car is too tempting! If the state doesn't give it, then let's do it secretly first. It is said that in the early 80s, the state held a special meeting to ask the directors of several major automobile factories to express their support for the state's decision and not allow private car projects. The directors of the FAW and the Second Automobile patted their chests at the meeting and said that they would guarantee their support for the national policy, and after the meeting, they turned around and went to the United States to secretly buy Chrysler's 2.2-liter 300,000 488 engine production line, while the Second Automobile secretly went back to set up its own car production team and made a prototype car. It can be seen that China's automobile industry has always had a glorious tradition of competing with the central government.
It was FAW's secret purchase of the engine project that triggered the situation that the prime minister was deflated.
Under the continuous lobbying of FAW, FAW and other automobile companies, the central government finally could not resist the pressure and decided to relax the restrictions on the production of cars of the three major and three small ones. In fact, before 1985, a large number of imported cars entered China, which consumed a large amount of foreign exchange reserves, resulting in enough foreign exchange spent to re-establish China's automobile industry, and the country began to change its policy direction and allowed the development of cars in China.
FAW purchased Chrysler's 488 engine production line, and of course the preferred joint venture partner was Chrysler. Especially in the 80s, Chrysler President Iacocca single-handedly pulled Chrysler back from the brink of bankruptcy and revitalized it to become the third largest automobile company in the United States. His biography is widely circulated in China and is known as one of the greatest entrepreneurs of America's time. At that time, the Chinese could not know GM and Ford, but they must have known Chrysler.
SAIC already has Volkswagen, then FAW is better to cooperate with other auto giants, after all, the Chinese are not stupid, know that they can't put all their eggs in one basket, it is best to let foreign giants compete with each other, so that Chinese can get models, technology and management methods, and learn the latest automotive knowledge in the world.
While FAW was negotiating with Chrysler, a major domestic newspaper reported that China's main leaders had affirmed their intention to cooperate with Chrysler. Knowing that the Chinese are good at taking the upper route, as long as the upper hair is said to be carried out by the people below, and FAW also purchased Chrysler's engine production line, Yacocca believes that the Chinese have been trapped and can only cooperate with Chrysler.
Therefore, when negotiating with FAW, the two sides had already negotiated to introduce Chrysler's Dodge 600 model to China, and FAW wanted to use the Dodge 600 to restart the Hongqi car. The production line of the Dodge 600 was originally negotiated to be about $1 million, but after learning that the Chinese leader affirmed the intention to cooperate with Chrysler, Arcocca turned on his arrogance, raising the price of the production line from less than $1 million to $17.6 million at a price, and at the same time ordered his subordinates to deal with the Chinese with a love to buy or not to buy.
Originally, they were ready to sign and announce to the media, and the cooperation between FAW and Chrysler was almost a worship ceremony, but he didn't expect Yacocca to be praised by the media, and became arrogant and couldn't listen to different opinions, and made the biggest mistake in his life. He does not have enough respect for the Chinese in his heart, and he may not see the development of a car industry in the east, a large country that is poor and white. In short, China's foreign exchange reserves, which were originally a sensitive issue, have now increased their costs by 18 times, and the credibility of the United States has also made Chinese begin to wonder if this time they will come back when Americans are in a good mood in the future.
In order to take into account the international influence, we Chinese still gave enough face to the Americans, and FAW's senior management came to Chrysler three times to negotiate, but Yacocca did not show up, and only asked his subordinates to send the Chinese. FAW gave the Americans enough sincerity and agreed to raise the price from less than $1 million to $4 million, which is almost the biggest hole card that FAW can come up with by smashing pots and selling iron, but the US side is not willing to reduce the price at all, and it has taken the attitude of the Chinese.
At this time, Volkswagen learned that there was a problem in the negotiations between FAW and Chrysler, and they immediately joined in and proposed to cooperate with FAW. To this end, the company agreed to introduce the Audi 100 model to China, and also promised to be responsible for the installation of Chrysler's 488 engine in the Audi 100 model. As long as FAW is willing to cooperate with Volkswagen, Volkswagen will show its greatest sincerity.
Originally, strategically speaking, it was best for the two domestic enterprises to cooperate with foreign giants separately, so that there would be motivation only when there was competition, and although the public was good, it should not be allowed to monopolize it! Therefore, the deadlock in negotiations with the Chrysler Company was reported to the central authorities, and our prime minister was only vice chairman of the State Economic Commission at that time, but he had a certain degree of decision-making power over national economic matters. He happened to be visiting the United States, so the FAW reacted to the difficulties and asked him to do the work.
As a result, the deputy director of China's Economic Commission, who later became the prime minister, came to Chrysler to seek a dialogue with Yacocca. Unexpectedly, Yacocca still did not show up, and he was also keen to attend interview shows of large and small American media, and only arranged for the company's second-in-command to meet with guests from China, and very impolitely only gave 30 minutes of meeting time.
The deputy director of China's Economic Commission, a person with great influence on China's industrial layout, is a distinguished guest who is many higher than the director of the FAW plant, but Yacocca treats him like this, showing his extreme arrogance.
30 minutes decided the fate of the two world auto giants, and Chrysler still insisted on its $17.6 million offer, disapproving the Chinese's pressure.
If we are backward, we will be beaten, and we will be looked down upon, but at least we Chinese still have our own self-respect! First salute and then soldier, benevolence and righteousness, out of the Chrysler company, our prime minister asked FAW and Volkswagen to sign a cooperation agreement, the Americans do not come, the Germans are asking for it!
When he learned that the Germans had robbed him of his business, Yacocca panicked, and he quickly found the Chinese delegation and proposed that he could sign the contract immediately, and reduce the previous cost of $17.6 million to $1! As long as the Chinese are willing, they can negotiate more favorable terms.
"I'm sorry, we've already signed an agreement with Volkswagen, it's too late!"
When the person in charge of FAW replied to the Americans, presumably Yacocca's expression must have been wonderful at that time, but unfortunately there was no audio-visual data to record it.
In this way, Chrysler missed the most important strategy in the company's development, lost the huge market in China, and gradually declined.
Luck was on the side of the Germans, and Volkswagen won two of the strongest partners in China, one in the south and one in the north. even coveted cooperation with the second automobile, and really put forward a lot of preferential conditions to monopolize the Chinese market. This time it really didn't work, and the Chinese decision-makers categorically rejected this request, and later the second automobile found a joint venture with the French Peugeot Citroen.
Mitsubishi Motors and Chrysler Motors are very similar, and their arrogance to the Chinese market makes them also get up early in the morning and catch up late!