Chapter 786: Pros and Cons of Localization

"President Kenny, as far as I know, although Audi has made a lot of money after making domestic production, Mercedes-Benz BMW has also suffered losses in the localization of the Celestial Empire before, and the sales volume is not as good as imports, is it necessary for us to be so anxious to localize Jaguar Land Rover?", a director who seems to know more about the Celestial Empire market first spoke.

BMW was domestically produced in 2003, and the domestic car was in BMW's original imported car network at the beginning, with only a slight integration of institutions and personnel, responsibility and rights, and the aspect gave up the battle for the right to speak, only seeking profits, and the BMW Celestial Dynasty was strongly dominant, and the internal friction was not large.

However, it is planted on the pricing of the domestic 3 Series and 5 Series, and it is said that the previous domestic Audi A4 was listed at a starting price of 370,000 yuan, forcing the later domestic BMW 3 Series to a position of more than 390,000 yuan - it is not in a cold position.

Soon after, the Audi A4 began to be promoted again, making BMW desperate, and the domestic cars were forced to be all series, deducing an Audi "resistance war" against BMW.

After Mercedes-Benz made domestic production at the end of 2005, the two institutions and two channels of domestic cars and imported cars did their own work, but they were all in the same network.

However, Lei Shing Hong used its dominant position in the network and its status as a shareholder of Mercedes-Benz Celestial Empire to eat partial food in distribution, which led to the difficulty of improving domestic cars.

In addition, due to the failure of CKD at the beginning, the E-class car, which was the first domestically produced Mercedes-Benz, lacked competitiveness, and the joint venture lost money at the beginning.

"I've also learned about the situation you're talking about. Mercedes-Benz BMW failed to make domestic production at the beginning, mainly for two reasons", Kenny has made full preparations for today's theme, and naturally will not be easily asked.

"The first reason is that the original imported car network suddenly joined the domestic car, the organization was reorganized, the Chinese side sent executives, and also brought its own system, who has the final say in the company, how to divide the money, the priority of domestic and imported car sales, and the conflict between different value orientations and corporate culture."

"The new institution's own operating mechanism and the management of both sides are difficult to manage these conflicts and internal frictions, and the results can be imagined. But our joint venture between Jaguar Land Rover and Korn Ferry is different, it is originally a shareholder's thing, and there is no conflict of interest."

"The second reason is that after the original imported cars are made in China, the halo range of the origin of imported cars has dropped by one level, and consumers who can reach this level are more concerned about price and more picky than imported car consumers.

In this case, if the price is overpriced, it will be miserable. And our parent company has a full understanding of the Celestial Empire market and has countless successful experiences, and I am not worried about setting an unreliable price."

"Mercedes-Benz and BMW will fail at the beginning, mainly for the above two reasons, and we are not destined to step on these two mines", Kenny said, and even the name of the future joint venture of Radiant Jaguar Land Rover was said.

In fact, the director's worries are normal. In the previous life, Land Rover's domestic production hit a wall, and its sales were not as good as before the domestic production.

At that time, the domestic aurora was criticized from the beginning. The starting price of the competing Audi Q5 is 358,500 yuan, the starting price of the Mercedes-Benz GLK is 378,000 yuan, and the starting price of the Aurora is 448,000 yuan, which is about 80,000 yuan higher than the competition.

It is said that this is also the result of multiple PKs between the two joint venture parties, but the market proves everything.

In addition, the lack of strength of the joint venture party is also a drag on Land Rover.

The domestic aurora tail mark has the word "Qi Rui" on it.

For the Chinese side, these two words are a symbol of political correctness and are crucial.

But the market does not consider politics, and the Aurora with the word "Chery" on the tail mark has created the worst halo effect of imported cars in history.

This feeling is like the difference between Louis Vedon in France and Louis Veden in Yiwu.

Let those who have the money to buy not want to buy, and those who want to buy still can't afford it.

Later, the media said: Qirui Jaguar Land Rover senior management did not mention the word "Qirui" in various important press conferences, but repeatedly mentioned the quality of domestic models Land Rover......

Land Rover's idea that it didn't want its domestic models to have any connection with Qirui was obviously too late.

"I think we should be thinking more about whether to make a joint venture or whether to localize it in the Celestial Empire, but rather about which model to localize first and where to build a joint venture plant," Kenny said.

"President Kenny, Jaguar Land Rover doesn't have much cash on its books at the moment, even if shareholders inject $500 million, it will be used to develop new models, and we need at least an additional $500 million to build a car factory, and we simply don't have the strength to do that," said the director in charge of finance.

The construction cost of an automobile factory involves various factors, in addition to being closely related to the planned production capacity, various production equipment is also a big spender.

For example, in a stamping workshop, a 2,000-ton imported stamping machine costs almost 50 million yuan, while a stamping workshop must have at least two or three stamping production lines, and a production line has four or five stamping machines.

The procurement cost of the stamping machine alone needs hundreds of millions, plus other auxiliary uncoiling and blanking machines, etc., a stamping workshop is enough to spend hundreds of millions.

In addition to stamping equipment, all kinds of welding robots in the welding workshop are also very expensive, and the good ones of this thing are basically imported, and you are not negotiable.

In the early years, the welding workshops of many automobile companies used a lot of manual welding, and there were relatively few robots, even in the factories of independent brands such as Qirui, and now there are basically few automatic welding robots.

Of course, in a decade, the situation will be completely different.

In the years after 2008, the labor cost of the Celestial Empire rose the fastest, and many factories began the process of automation transformation, and the robot industry ushered in spring.

In addition, the painting workshop, the final assembly workshop, etc., all have to spend a lot of money, 500 million US dollars, which is not necessarily enough.

In particular, according to Jiang Hui's opinions, Jaguar Land Rover's localized factory production capacity construction is at least 200,000 starts, and Jiang Hui will not learn from Kojima's Honda to take the road of rolling development.

In the next few years, when the automotive industry is the hottest, when the production capacity of other automobile factories is insufficient, it will seize the market fiercely, so that Jaguar Land Rover can completely gain a firm foothold.

"You don't need to worry about funding, Guanghui Automobile will provide ample construction funds to the joint venture company, you should know that although Guanghui Automobile is a company with a name in the automotive industry, Guanghui Group has a large profit company such as Guanghui Mobile and Guanghui Games, and funding is not a problem at all," Kenny said.

Money is not the problem, the problem is that there is no money.

Well, of course, this is not the dilemma faced by Guanghui Auto!

Today, the little lover was born.,I really wanted to add more.,Look at the inventory of less than four chapters......

(End of chapter)