Chapter 385: In the end, it's all about money
Lin Qiangsheng's lawyer team has officially entered the negotiation stage when the two parties have begun to formally enter the negotiation stage, and many joint ventures have been built in China in recent years, and there have been joint venture automobile companies such as Binqi and Harbin Automobile before, and SAIC and BAIC have been negotiating contracts with foreigners over the years.
The delegation is already very familiar with business negotiations, this time everyone is familiar with it, first of all, the introduction of Binqi's new model Passat B5, the Jetta model has been produced for 4 years, and Binqi has also made some small improvements to this model in recent years, but the basic appearance has not changed.
This B5 model just makes up for the lack of high-end models in Binqi, so that Binqi has become a company that can produce high-end cars, and it must adjust its production line, reasonably improve the process and upgrade the equipment.
The two parties signed an agreement to license the B5 model to Binqi, and made strict regulations on the production quantity, model size, subsequent modification and other details of the model. In this regard, Lin Qiangsheng has done the same strict control of authorized models as many famous automobile manufacturers, and manufacturers can only get Lin Qiangsheng's consent if they want to develop follow-up models.
Geng Shaojie on the Binqi side did not dwell too much on this issue, because in the past, the two sides cooperated closely and happily, and every time there was a small change, the two sides notified each other to go through a procedure, and they didn't think much about agreeing to these requirements.
The FAW side of the negotiation is much more cumbersome, the scale of this enterprise is relatively more rigid, and they are a large automobile manufacturer, in order to save foreign exchange funds and in order to revitalize their own production equipment, it must not be able to introduce a full set of production lines and not so much money. Such negotiations would be troublesome, and none of the new factories would be happy.
Fan Hengguang, Lu Fuyuan and others discussed with the lawyers one by one, which ones were owned by FAW and which ones could be manufactured or upgraded. In order to save foreign exchange as much as possible, several people even went so far as to investigate the defects!
In fact, this time the state only gave FAW 15 million US dollars in foreign exchange quota. Previously, before Fan Hengguang went abroad, Huang Zhaoluan, the director of the factory, also told him not to use all the foreign exchange, FAW finally won the foreign exchange, and asked him to leave a little foreign exchange balance for the company as much as possible, maybe it will be able to respond to emergencies in the future, Fan Hengguang of course also wants to save money, the price of each production line is a victory, and he is very happy to find a device that he can have!
"Johnson & Johnson. You said earlier that some of the car factories in Detroit have gone bankrupt, so do you know of any production lines and equipment that we can use? On this day, Fan Hengguang came to ask Lin Qiangsheng for news, in fact, they had already thought of it a few days ago and contacted GM, Ford, Chrysler, and three companies, and had already sent people to several companies to inquire about whether there were second-hand equipment.
Lin Qiangsheng was a little surprised, and he said to Fan Hengguang: "Director Fan, can't you see it?" The full set of production lines I provide you is already the cheapest, you can take it for $12 million, and I am the price on arrival! ”
Looking at Fan Hengguang, Lin Qiangsheng continued: "The $12 million includes a full set of production lines for the production of auto parts, uncoiling, blanking, palletizing, stamping, welding, painting, assembly, and testing. This is the capacity to produce 100,000 cars per year, and if you FAW carries out continuous production in three shifts, it can even increase the output to more than 200,000 units! What's more, it also includes an engine production line with an annual output of 70,000 units! What I've given you is a real price, and it couldn't be cheaper. Besides, it also includes technical licensing, do you just buy spraying equipment and not buy spraying technology? Where can you buy advanced automotive metal paint manufacturing process? ”
Fan Hengguang thought for a while and said with a smile: "This price is quite low, but you know that our country is still in difficulty!" Johnson & Johnson: You see we are also very familiar with each other, let me be honest with you, you have some equipment here, we have some equipment in FAW, and we can also build some machines. We have equipment such as uncoilers, blanking machines, and palletizers, and we have them ourselves, and can we remove that set of automotive testing equipment? Those instruments cost a lot of foreign exchange. You can also try to produce it in China! ”
Lin Qiangsheng said directly to Fan Hengguang: "Director Fan, if you FAW reduces the share capital of the joint venture company to 50%, then I will promise you a full set of production lines for free, and you don't need your money for car licensing and technology transfer!" What do you think? ”
Fan Hengguang was stunned for a while after hearing Lin Qiangsheng's words, but then he shook his head like a rattle, he refused and said: "This is not good, I don't have such a big right, and besides, didn't we have 60% of the shares of FAW as promised before?" ”
Fan Hengguang pointed at Lin Qiangsheng with a smile and said, "Boy, don't regret it!" ”
Lin Qiangsheng smiled and spread his hands and said, "Then there is no way." The equipment I provided was definitely cheaper than other homes, and $12 million couldn't be less! ”
After the FAW people contacted several giant automobile companies in Detroit, they were indeed led by people from several companies to see some production lines and equipment, but the industrial equipment provided to them by several giant companies was undoubtedly from the 70s.
It is true that companies such as General Motors have eliminated many old production lines, and most of these obsolete production lines are slowly turned into waste products in the open air. In fact, Lin Johnson's production line and equipment were also purchased from the bankrupt factory in Detroit, and were improved and installed with a new electronic control system by Ernst & Young Machinery Company.
"Chrysler can provide us with a production line with a capacity of 30,000 engines per year. But we saw that it was the level of craftsmanship in the early seventies, and the old equipment and backward technology could not be compared with the production line provided by Mr. Lin! Lu Fuyuan reported to Fan Hengguang that they had visited several auto giants in the past few days, but the results were not satisfactory.
"30,000 production lines? We have just started the production of cars, in fact, the output of 30,000 units is enough! Fan Hengguang pondered for a moment and said.
He then asked, "What price did the Chrysler people say about this line?" We don't have much foreign exchange, we can save a little, it's a little! ”
"$3 million!" Lu Fuyuan said softly.
"What? $3 million! Fan Hengguang looked at Lu Fuyuan in surprise, and then he shook his head again and again and said: "No, no, we can't accept this price, an engine production line costs 3 million US dollars, and the foreign exchange for other production lines is even more insufficient!" ”
Fan Hengguang shook his head, originally they FAW wanted to buy an engine production line after the introduction of models, and it was best to have another assembly line, and the other production lines and equipment were improved or manufactured by FAW itself, so that they could save a lot of foreign exchange.
But when they looked at the full set of production lines provided by Lin Qiangsheng, they unconsciously raised their requirements a lot. The key is that the equipment provided by Lin Qiangsheng is really good, the production process and technical standards are completely the most advanced in the world, and the robot welding line and spraying line have only been seen when visiting Binqi Haqi, and even more advanced than what they have seen.
Fan Hengguang feels that as long as FAW introduces a full set of production lines, their company will change guns from then on, and their production technology has reached the standard of modern enterprises. As the introducer of the project, in the future, the newly established car joint venture company, he Fan Hengguang may be able to become the factory director, maybe look at the domestic car market, this posture FAW car factory if the development is good, may be on an equal footing with the main factory!
"Smack!" Fan Hengguang hammered his hand vigorously, and he decided to buy a full set of modern equipment to achieve it in one step.
Fan Hengguang said to a few people in FAW: "Americans treat us as fat sheep, then only Lin Qiangsheng is left!" Let's look for him again and see if we can keep the price down again! ”
Lin Qiangsheng was not in the hotel at this time, he asked Bai Yunsheng to come to the Detroit River and chose a place with many tourists for fishing.
These days, Bai Yunsheng tried his best to talk to Lin Qiangsheng and asked him to consider investing in the construction of an automobile factory in Xingde.
"Mr. Lin, there are three companies in our city, Red Star Automobile Factory, Long March Automobile Factory, and Xingde Automobile Factory, and these three automobile manufacturers are very powerful! As long as Mr. Lin is willing to invest in Xingde, we promise to give you the most favorable conditions! Bai Yunsheng didn't have any intention of fishing at all, he sat next to Lin Qiangsheng and kept encouraging Lin Qiangsheng and Xing De to cooperate.
Lin Qiangsheng smiled and said: "Mayor Bai, if I am not interested in your city, I will not look for you at all, since I asked you out alone, it means that I want to cooperate with you Xingde to develop the automobile industry!" ”
Bai Yunsheng was overjoyed, he smiled happily: "I just said that Mr. Lin will not come to me for no reason, since you are interested in our city, if you have anything to ask, just ask, I must know everything, there is one to say and two to say!" ”
Lin Qiangsheng nodded and asked: "The construction of automobile enterprises requires a large number of skilled workers, how many workers do you have in each of your three automobile enterprises?" ”
Bai Yunsheng said confidently: "Mr. Lin, please rest assured, we in Xingde have a huge group of talents related to the automotive industry. There are 3 to 4,000 employees at the Long March Automobile Factory, more than 2,000 people at the Hongxing Factory, and 114 Xingde Automobile Factory with about 1,000 employees. The Long March Factory was originally relocated to Xingde by the Beijing Xindu Automobile Factory, and the production mode was a large and complete Soviet model, accounting for three-quarters of the number of employees in the factory, and the workers were processing parts and components, from the automobile chassis, engine assembly, to the final assembly of the whole vehicle, all of which were processed by the workers one link at a time. They have solid processing technology and exquisite spare parts processing technology. Moreover, there is a technical school in the Long March Automobile Factory, a technical school in the Red Star Factory, and our technical college and automobile department in Xingde are the cradles of training personnel in the automobile industry! The talents cultivated by Xingde not only supply local automobile companies, but also go out of Xingde to participate in the construction of automobile factories across the country, and they are all college graduates who are competing for automobile manufacturers and related parts manufacturers across the country! ”
Lin Qiangsheng said with some surprise: "I didn't expect that you Xingde have really cultivated a lot of automotive professionals!" (To be continued......)