Chapter 430: The Big Selling Type A Car
In late 1898 and early 1899, a Fiat Model A was introduced, which was ridiculed by major automakers, who called it a disgrace to the automobile industry.
Some laughed at its lack of horsepower, others at its simplicity, and others at the fact that it was a beggar's ride.
However, no matter how ridiculed by other manufacturers, its price of only 3,400 lira is a huge advantage that no one can look directly at. And such a low price has also made many middle-class people who are greedy for luxury goods such as cars generously donate. For a while, there were more cars on the street, and they were basically middle-class people driving A-type cars, which attracted a lot of attention.
The Fiat Model A sold out all 1,500 A-type cars produced in advance within one week. Then the dealer sent a telegram urging the goods, piled up on Agnelli's desk.
Seeing the telegrams piled up on the table, Agnelli did not expect it, nor did the management of Fiat.
"The new equipment is now being commissioned in our new building. The newly recruited 3,000 people are being trained, and they will be ready to start work after the equipment is commissioned. This will allow us to produce 3,000 Model A's in a month, which should alleviate the current situation. ”
Agnelli heard the words of the production supervisor and preached with one hand on his waist. "It's still too little, and now our orders will be produced for half a year according to the capacity you said, which is absolutely not good. I have asked people to continue to purchase equipment, and we need to continue to expand the recruitment of personnel, and I estimate that we will be able to recruit another 5,000 people to meet our needs. ”
Hearing Agnelli's bold words, the production supervisor said with a little embarrassment. "The number of qualified people in the vicinity of Turin is almost exhausted, and we have to go elsewhere to recruit people."
"Then go somewhere else and bring people to me, we can't keep customers waiting."
While Fiat was aggressively expanding production, the three Renault brothers were also in the office at the newly opened Renault headquarters in France to discuss the impact of the Model A on them.
Louis Renault was born in Paris in 1877 into a wealthy merchant family. As a teenager, Louis Reynaud became fascinated by motorboats, which led him to design and patent a high-efficiency steam engine at home. At the age of 21, Louis Renault converted his De Dion tow motorcycle into a car that was rare at the time and drove it to a friend's Christmas Eve party on Rue de Elder, where Renault became famous in Parisian social circles.
Louis Reynaud was the first to speak. "Now the whole of Europe is talking about the Model A. Even though I didn't meet Giovanni Agnelli, I admired this guy who rewrote car production. ”
"Now is not the time for us to marvel, we have to develop a new car that can compete with the Type A, otherwise we will be killed by Fiat. You look at their sales, 1500 cars sold in a week, it's crazy. And it only sells for 3,400 francs, so we can only lose money. Brother Fernand Reynaud said that the company was in urgent need right now.
At present, Renault has only produced 10 cars, and this kind of vehicles sold by thousands as soon as others came up, which made the three Renault brothers not good, so how should they compete with each other next?
While Renault was thinking about his own way out, Carl Benz was also talking to his wife about the Model A in Germany. "I really didn't expect that this young man named Giovanni Agnelli is really business-minded and can make a car with good performance at such a low price."
His wife, Beretta Ringer, asked. "You've handed over the company to the people below, do you still want to meddle?"
"It's not like you don't know, this time the situation is different, Fiat produced 1,500 Model A cars and sold out in just a week. Have you ever seen a car with such high sales before? Carl Benz explained his concerns to his wife.
Beretta Ringer knew it was Carl Benz who couldn't rest assured of his company. Carl Benz already had a reputation for inventing the automobile, and now Mercedes-Benz, which he founded himself, is focusing on high-end cars and sports cars. In the face of this menacing A-type car, I don't know if the company can deal with this spoiler.
In Mercedes-Benz, the general manager of Mercedes-Benz, Benz Jr., is also discussing this Model A with his assistant, "This is a revolutionary car, it will enlarge the entire car market, a great car." ”
Hearing his boss praise this civilian car, the assistant asked. "Do we develop one too? I heard that many car factories are thinking about this Model A. ”
When little Benz heard his assistant's words, he said contemptuously. "If you want to compete with the cost of this car, it is key, and the most important thing for the civilian car audience is the price. If you want to achieve an advantage in price, you need to do a lot of industrialization to reduce costs. Fiat now has a factory with 5,000 people, and they only have a few people to produce cars, and it is really a big deal to hear that Volkswagen plans to recruit another 5,000 people. ”
As a German entrepreneur, it is not difficult to inquire about Italy, which is currently very friendly to Germany. I knew that Fiat built a large factory with 3,000 people, and then relied on Dongfeng trucks to occupy the market. Not long ago, the appearance of Volkswagen buses was also a conqueror, and now this Model T is added.
According to Benz's own calculations, 70% of cars in the European market are now Fiat products. What a big market this is, and little Benz himself knows that there is no car company that can compete with Fiat in a short period of time.
Now European car manufacturers are looking at Fiat with envy, and they have too many complicated feelings about the Model A.
In late 1898 and early 1899, a Fiat Model A was introduced, which was ridiculed by major automakers, who called it a disgrace to the automobile industry.
Some laughed at its lack of horsepower, others at its simplicity, and others at the fact that it was a beggar's ride.
However, no matter how ridiculed by other manufacturers, its price of only 3,400 lira is a huge advantage that no one can look directly at. And such a low price has also made many middle-class people who are greedy for luxury goods such as cars generously donate. For a while, there were more cars on the street, and they were basically middle-class people driving A-type cars, which attracted a lot of attention.
The Fiat Model A sold out all 1,500 A-type cars produced in advance within one week. Then the dealer sent a telegram urging the goods, piled up on Agnelli's desk.
Seeing the telegrams piled up on the table, Agnelli did not expect it, nor did the management of Fiat.
"The new equipment is now being commissioned in our new building. The newly recruited 3,000 people are being trained, and they will be ready to start work after the equipment is commissioned. This will allow us to produce 3,000 Model A's in a month, which should alleviate the current situation. ”
Agnelli heard the words of the production supervisor and preached with one hand on his waist. "It's still too little, and now our orders will be produced for half a year according to the capacity you said, which is absolutely not good. I have asked people to continue to purchase equipment, and we need to continue to expand the recruitment of personnel, and I estimate that we will be able to recruit another 5,000 people to meet our needs. ”
Hearing Agnelli's bold words, the production supervisor said with a little embarrassment. "The number of qualified people in the vicinity of Turin is almost exhausted, and we have to go elsewhere to recruit people."
"Then go somewhere else and bring people to me, we can't keep customers waiting."