341 Localization solutions for parts
[The previous chapter was sealed, and it should be released in a few days.] 】
"Localization is indeed a big problem, I myself am very willing to localize production, but in the automotive industry, in fact, most of the parts are produced by suppliers, although our automobile factories will have a certain right to manage them, but if you want them to come to China to build factories, it is very difficult, let most of them come, this is basically impossible." Chen Zhiwen shook his head and said.
In addition to learning the technology of automobile production, another reason why China wants foreign-funded car companies to produce in China is that when the economy develops, the domestic demand for automobiles will become larger and larger, and the flow of personnel will be higher and higher, and factors such as efficiency will also be needed.
But large-scale imports are too expensive, because the import of a car, that is purely the cost of foreign exchange worth a car, and if the car is produced in China, then at least in terms of labor, there is no need to pay foreign exchange, but this alone is not enough, the labor of the automobile factory, in the cost of the whole vehicle is not high, the highest is a variety of parts.
If various parts can be produced in-house, it will save a lot of foreign exchange and strengthen the capacity of the domestic automotive industry.
However, the automobile industry is a very large industrial chain, involving almost all technologies except biology, a normal automobile industry, there are at least hundreds of first-level suppliers (manufacturers who directly supply automobile factories), and these hundreds of first-level suppliers may correspond to thousands of second-level suppliers (supplying to the first), and there are also third-level and fourth-level ones, and most of them provide the most basic raw materials, such as high-performance steel, plastic particle raw materials, etc., the entire industrial chain is large, not to mention AMCEven Volkswagen can't let these factories move over, and even some of them can't do it, because these parts companies, except for a few, most of them rely on several car companies to survive, and if they move to China, they can only serve one car company, and considering the language barrier, the poor technical foundation in the mainland and other factors, it is not easy to solve.
"Mr. Chen, according to the meaning of the domestic central government, in the initial stage, the joint venture factory can be produced in the way of CKD, but within 3-5 years, it must be gradually localized, at least half of the level, and also take into account the problem of foreign exchange balance, if these cannot be solved, or at least we have to have a solution now, otherwise, it will be difficult for this cooperation project to be agreed by the central government." Rao Bing said with some embarrassment.
In fact, these problems are also the reason why the public negotiations are in a desperate situation, and there is a lot of opinion within the public about this, after all, there is never such a thing when investing in other countries. The premise for an enterprise like Volkswagen to invest in a place is that these places basically have supporting industries, and at most a small part of them need to improve it, or a small part of the supporting facilities are solved by imports.
In this case, the public is not unified in the opinions on whether to build a factory or not, and now it requires Volkswagen to build a relevant automobile industry chain in the next few years plus to ensure the balance of foreign exchange, which is too difficult, not to mention Volkswagen, that is, any automobile factory, and does not have the experience of forming an industrial chain in a place where there is nothing. This is completely inconsistent with the basic principle of a clear division of labor in modern industry.
"In the mainland, no car factory can do well, GM Toyota can't do it, want to achieve this requirement, in fact, can only look at the domestic manufacturers, only their efforts, and then get the approval and quality review of the car factory, so as to form a local industrial chain, otherwise, or the full support of a country, such as the United States support Japan." Chen Zhiwen said bluntly.
For the domestic investment in the automobile industry, he is bound to win, the details of the domestic issues, he is not clear, but the principled issues, he still knows, such as localization and foreign exchange balance, he has long been ready to think of the relevant ideas.
When Midea began to enter the white goods industry, it was not short of money, and it was not able to build an industrial chain by itself, but relied on many small factories in Hong Kong.
The automobile industry is more than 100 times more complicated than household appliances, and it is impossible to form an industrial chain when the gods come, and the only way is for local enterprises to compete for a little bit and become part of the industrial chain.
"But this may involve a lot of AMC technology, and it also needs AMC support." Rao Bing said.
"It's unlikely, we can't teach you one by one, no factory has so much energy." Chen Zhiwen shook his head and said: "However, we can provide the drawings and technical requirements, and then the domestic manufacturer develops and successfully passes our approval, then this part can be localized." ”
A car, above 10,000 or 20,000 parts, the automobile factory only put forward requirements, in overseas is to rely on the ability of countless manufacturers to complete the production of parts, in fact, many parts of the technical understanding, the engineers of the automobile factory can not compare with the supplier.
"If this is done, I am worried that it will take a long time, the technical standards in China are much worse than those overseas, and the production equipment, test equipment and even quality control experience are far inferior, I am worried that it will affect our localization progress." Rao Bing said, the most important thing in China is foreign exchange, before negotiations with Volkswagen, Volkswagen is not willing to produce parts locally, they prefer to use the CKD method for a long time, that is, to introduce parts from abroad, and then domestic assembly on the line, in this way, there is not so much trouble, at the same time Volkswagen can make a fortune overseas, but the domestic side, naturally will not agree, so that the operation of foreign exchange balance can not be reached, and the domestic automobile industry can not be developed.
"Quality control experience or development experience, I can arrange for the United States to come to China for unified training, or arrange some Chinese quality engineers to go to the site for guidance, but the number of personnel may be limited." Chen Zhiwen paused and said: "As for all kinds of equipment or something, it is estimated that it cannot be made in China, and if it needs to be imported, I can arrange for my Hong Kong company to participate in the joint venture, directly invest in some potential parts companies, and with foreign exchange, you can also buy overseas equipment, so that you can kill two birds with one stone." ”
"In this case, it is indeed possible, it is a solution." Rao Bing nodded and said, in fact, all problems are money problems, and the negotiation with the public is also because the public is worried that they will not be able to make money, and the domestic side is the same, worrying that the loss of foreign exchange is serious after cooperation, and Chen Zhiwen is so good at talking, if he can solve it with money, he can solve it with money, and many problems will be solved naturally.
"However, there are many suppliers, and which ones to cooperate with still need to be carefully examined." Chen Zhiwen continued.
"Of course." Rao Bing nodded and said.
"As for the issue of foreign exchange balance, I don't have a solution at the moment." Chen Zhiwen paused and said: "AMC's main market is the United States, the United States has overcapacity, it is unlikely to export cars from the mainland to the United States in a short period of time, I am already trying to find a way to open up the market in Southeast Asia, but it will take a long time."
So my proposal is that within 10 years, I will not convert the RMB earned by the AMC joint venture factory into foreign exchange, and as for 10 years, maybe there will be other ways to form a foreign exchange balance, and then we will discuss this matter, how about it? ”
Volkswagen's solution to the foreign exchange balance is very simple, in Shanghai to build an engine production plant, the production capacity is 3 times the domestic demand, other re-export foreign exchange, AMC obviously does not have this ability, but the fundamental reason to maintain the foreign exchange balance is to worry about foreign capital in the country to make money and then to exchange foreign exchange to leave, resulting in foreign exchange losses, as long as they promise not to redeem foreign exchange for a certain period of time, then there is no problem, as for 10 years later, the mainland government will not be short of foreign exchange, then it will naturally be able to exchange foreign exchange, besides, The domestic auto market will just begin to blow out after 10 years, and at that time, it is estimated that the money earned in China is not enough to expand production, and there is no need to consider the issue of foreign exchange at all, because it may also need to mobilize funds from overseas.
"No foreign exchange? That's the way to do it. Rao Bing was stunned, he was the first person to make this kind of request, but he could make such a decision because he was very optimistic about the future of the domestic economy.
"In this way, the problem of localization and foreign exchange balance has been basically solved, and in the future, it is only necessary to put these problems in the contract." Chen Zhiwen smiled and said, normal companies will definitely care about every penny of profit, but Chen Zhiwen doesn't care at present, even if he doesn't make money in the past ten years, as long as the brand is established in China in the past ten years, the quality is done, and the channels are opened, then it is lying down to make money.
"Indeed, Mr. Chen is really efficient." Rao Bing nodded, today's success was somewhat unexpected to him.
"Any questions?" Chen Zhiwen asked again.
"There is indeed one more thing, we hope that after the joint venture in the future, the two sides can work together to develop new models, such as models suitable for domestic needs." Rao Bing went on to say that in fact, there are many problems of cooperation between the two sides, but what is raised here today are all issues of principle, if Chen Zhiwen, the boss, solves these controversial issues of principle, but other problems can be solved by only taking some time to communicate with the AMC team, at most the length of time is different.
"Joint R&D is OK, but it needs to be completely owned by AMC." Chen Zhiwen said.
"Why is that? Shouldn't it be a joint venture if we develop it together? Rao Bing said.
"Because you don't have this ability at present, you can cooperate with AMC in research and development normally, and what is the essence of this joint research and development, I don't think Director Rao needs me to be so clear, right?" Chen Zhiwen said with a light smile.
No matter what model is developed, in fact, it is AMC's team that develops according to the domestic situation, as for the domestic side, it is completely to follow the learning experience, in this case, it is already very good to be able to learn, and it is unfair to share the final results.
The principle of cooperation with the mainland is to make common profits, or common development, and the two sides take the most basic business rules as the benchmark, and in the case of mutual benefit, they can bring employment, foreign exchange and development opportunities in a certain industry to the country, rather than taking the initiative to make profits.
Although even if you make a profit, there will not be much loss for yourself, but if the cooperation between the two sides is always your own profit, then either the other party will feel stupid, and you will only get more inches later, or you will feel that you have other purposes, it is better to follow the rules, which is also the basis for long-term cooperation, in the long run, so as to better ensure the interests of both parties, just like this kind of joint research and development, if AMC and the mainland cooperate in research and development, the domestic side has not paid much to get results, It may not be a good thing for the future technological progress of the mainland. For example, the domestic auto brands that cooperated in later generations, except for Changan, have not grown much in other decades.
"But if we do joint development, won't our people be involved in the same development? Even if you can't get a general patent, at least you have to have some, right? Rao Bing thought for a while and said, what Chen Zhiwen said is very reasonable, the mainland side has no experience and ability to develop cars in line with Western technology, so it is indeed very unfair to share the final results equally, but on his own side, he has to fight for a little more rights and interests for himself.
If so, what should be the percentage of distribution? How can this be determined? It is estimated that you and I will discuss this for a long time, and I don't think it is necessary at all. Chen Zhiwen shook his head and said: "I intend to arrange AMC to develop the next model suitable for the mainland, in terms of price, technology and quality, it will be in line with the current situation in China, whether it is the direction of research and development or the research and development personnel, they are all my people, so AMC should naturally have all the rights of this new model, however, the personnel involved in the mainland, I can cooperate in the way of separate entrustment, and your people can also participate in part of the research and development, and at the same time you can also get a certain amount of additional foreign exchange, which is paid by the American AMC alone, It's a win-win-win-win thing.
In addition, the new model belongs to AMC, but it still needs to be produced in a joint venture with China, and the mainland will still have a 51% stake, which can also share half of the profits in China. ”
"Will this new model also be a Jeep?" Rao Bing asked.
"No, what it is, we will naturally know after our joint venture." Chen Zhiwen smiled and said, although he thinks that if the leak is not very likely, even if the leak is leaked, other auto factories may not be able to look at this market, but Chen Zhiwen still feels that there is no need to tell the details to the mainland now, at least wait until the joint venture project is negotiated, and then discuss the research and development of new models in detail.
"Well, the research and development of new models is indeed far away, if we can reach an agreement on the localization of parts and foreign exchange balance in the future, then this cooperation can be officially signed soon." Rao Bing thought for a while and said.
It is really much more convenient to negotiate cooperation with Chinese than to negotiate with overseas whites, especially since the other party is the boss, basically able to make decisions, and does not care about short-term foreign exchange gains, then basically avoids the most difficult problem to reach an agreement at present.
"Okay, the American AMC side will send someone over soon, and I hope to reach cooperation in the shortest possible time." Chen Zhiwen nodded and said with a smile.
(End of chapter)