Korn Ferry does not have its own automotive technology accumulation, although Jiang Hui is ready to beat India's Tata and buy Jaguar Land Rover when the financial crisis comes. However, even if the acquisition is successful, it will take a lot of effort to truly take the company into its hands.

There is a stipulation in the "Automobile Industry Development Policy" that the proportion of Chinese shares in Sino-foreign joint venture production enterprises of complete vehicles, special purpose vehicles, agricultural transport vehicles and motorcycles shall not be less than 50%. When a joint-stock company listed on the stock market sells shares of a legal person, one of the Chinese legal persons must have a relatively controlling stake and be greater than the sum of the shares of the foreign legal person. The same foreign investor may establish two or less joint ventures in China that produce the same type of vehicle products (passenger cars, commercial vehicles, motorcycles), and the joint merger with a Chinese joint venture partner with other domestic automobile manufacturers may not be subject to the two restrictions.

At that time, after the acquisition of Jaguar Land Rover, Guanghui Group still needs to carry out joint ventures with domestic enterprises to build factories. Of course, this joint venture can be the sole proprietorship of the Korn Ferry Group, which can be regarded as a left-handed and right-handed cooperation to establish Korn Ferry Jaguar Land Rover Motors Co., Ltd.

Through this cooperation, Guanghui Group can circumvent various restrictions that may be proposed by the other party in the after-sales service and gradually transfer the technology to Guanghui Automobile. At the same time, Korn Ferry Group controls the automobile sales channels through Wangjiang Automobile and other automobile companies, and the automobile publicity channels through Autohome and other Internet companies.

In the automotive industry, production and sales are the two most important links. Through various operations, Korn Ferry Group can make Korn Wong Jaguar Land Rover just a production plant, slowly clean up the disobedient hills in the original Jaguar Land Rover, and completely turn Jaguar Land Rover into a subsidiary of Korn Ferry Group.

From this point of view, Autohome and Wangjiang Automobile are two important chess pieces of Guanghui Group in the development of the automotive industry, and they cannot be missed.

Of course, this is not enough, after all, the automotive industry is a long chain. Even if Korn Ferry Group acquires Jaguar Land Rover, it does not mean that Jiang Hui can launch a variety of models that he is optimistic about.

In addition, even if you can launch a model that you are optimistic about at will, how to increase profits is also a very important matter. The most important factor affecting profits is the level of the supply chain. The supply chain was not done well, and in the end, Radiant Jaguar Land Rover only made wedding clothes for them.

Generally, automobile manufacturers have four main workshops for stamping, welding, painting and final assembly. Stamping is mainly done with four doors (doors), two covers (engine cover and trunk cover) and some large stamping parts for floor lights, and the rest are purchased. Welding and painting is better understood, that is, it is to weld together the parts that you stamped and bought from outside, and then paint. After that, a wide variety of parts such as seats, line speeds, lights, instrument panels, engines, gearboxes, subframes, and a wide variety of trim and electronics are installed in the final assembly shop.

In other words, the Tejas Jaguar Land Rover factory is actually a large assembly hall that assembles the purchased parts.

So the question is, where do you buy these parts, and how much do you buy them?

Let's not talk about some relatively low-tech parts, let's talk about the most critical engine and gearbox.

For many years, Jaguar Land Rover has been using Ford engines and ZF transmissions, and the core lifeblood is in the hands of others, which is one of the important reasons why Ford can't sell it for a lot of money.

Later, after Tata acquired Jaguar Land Rover, Jaguar Land Rover continued to use Ford engines for more than ten years, and then had Jaguar Land Rover's own engine.

However, if the layout is done well in advance, maybe the situation will be better.

As for the gearbox, this is not only the problem of Jaguar Land Rover purchasing gearboxes, Mercedes-Benz BMW and other companies are the same, however, due to the long-term cooperative relationship and some share relationships in it, these car companies are not worried about the purchase of gearboxes will have any big problems.

However, Jiang Hui did not allow all the gearboxes of Guanghui Automobile to be purchased, especially in the rapidly developing Celestial Empire market, and the outsourcing of gearboxes was equivalent to completely handing over the changes in output to monopoly suppliers such as gearbox factories.

Then, in the future, Jaguar Land Rover will develop its own gearbox, or Guanghui Group will acquire some gearbox companies will become an inevitable choice.

In addition to the engine and gearbox, seats, headlights, air conditioning, gauges, wiring harnesses, and various sensors are also very important components in the car. Jiang Hui feels that if Guanghui Automobile wants to develop and grow, it still needs to master the relevant technology in his own hands as much as possible.

From a global perspective, there are two states in the relationship between automakers and suppliers. One is the competition-oriented, and the other is the cooperation model with property rights as the link.

For car manufacturers, there are only two options for getting the parts they need: in-house or outsourced, but the most important thing is to get the best spare parts at the lowest cost.

European and American companies represented by Volkswagen and GM generally adopt the competition model. Vehicle manufacturers and the vast majority of parts companies are independent in terms of assets, vehicle manufacturers generally do not invest directly in parts companies, and the interests are coordinated through market mechanisms such as contracts and contracts. In the face of market competition from the whole vehicle, European and American model vehicle manufacturers will try their best to pass on this pressure to parts suppliers. Under this model, the single purchase cost can be minimized, and through competitive bidding, other component suppliers can be encouraged to optimize the operation process, improve operational efficiency, and minimize production costs while ensuring quality, so as to continuously improve the production efficiency of the whole vehicle.

It can be said that this is a cooperation method that is very in line with the cultural atmosphere of Europe and the United States, and it is also the model chosen by various Internet car manufacturers in the later generations of the Celestial Empire.

Japanese and South Korean auto companies, represented by Toyota and Honda, have chosen a cooperation method linked by property rights. Vehicle manufacturers and parts companies often hold shares in each other, forming a relatively closed relationship, suppliers and automobile manufacturers are partnerships, a loss, a prosperity. OEMs will actively participate in the development of parts companies and provide strong support to face the competition together.

Obviously, this is a way of cooperation that is more in line with the social and cultural atmosphere of Japan and South Korea.

It's hard to say which of the two ways is better, and Volkswagen and Toyota have achieved the world's largest scale in their own way.

It can only be said that what suits you is the best.

So, what is the right way for Korn Radiant?

(End of chapter)