499 Advantages of Own Supply Chain

"Okay." Chen Zhiwen nodded and said, in Shanghai in June, the temperature is not very hot, but there is still a little, especially today's weather is better, the sun is relatively large, and people are also very uncomfortable in the case of direct sunlight.

"This way, please." Qiu Ke stretched out his hand and signaled, and their car stopped in front of the office building, and as for the others, they had also agreed to come here before the test drive.

Walking into the hall, Chen Zhiwen rushed to a refreshing coolness, the whole hall, there are several vertical air conditioners blowing cool breeze, and the surface of the vertical machine also reflects the logo of beauty.

Coming to a conference room on the 6th floor, Chen Zhiwen glanced at the air conditioner again and asked, "Is the whole public using Midea air conditioning?" ”

"Yes, in terms of price, Midea is the cheapest, and the quality is better, and Germany also recognizes this brand, so Volkswagen's office building air conditioners are Midea." Qiu Ke smiled and said: "As far as I know, many foreign brands in Shanghai have also bought Midea air conditioners, and even the government has begun to adopt them, but the number is relatively small." ”

"Thank you for your recognition of my company's products." Chen Zhiwen laughed.

This is the advantage of localized production, the domestic production of electrical appliances, must be much cheaper than imported, and because their own factory has the ability to balance foreign exchange, theoretically speaking, domestic people buy this air conditioner, do not necessarily need foreign exchange.

Of course, if it is sent to the Friendship Hotel or sold to various joint venture factories in foreign exchange, it is also a skill, but this proportion should not be very large. Those who can spend in foreign exchange at home are always a very small number of groups. It is not like food and beverages, which can be sold to overseas tourists.

Whether it is the government, foreign companies or some private individuals, if there is a choice, they must choose the most cost-effective, after all, the name of Midea is not small even in Europe and the United States.

When they buy it, especially the air conditioner, there will definitely be colleagues and friends who will also come to experience it, which is the most hardcore advertisement. In the future, when the domestic economy is better, it will slowly spread out, so that it can affect more people, and in the future, after the domestic market is further opened to foreign investment, CCTV's advertising itself has been won, so it can take down the market in the shortest possible time, at least the middle and high-end are their own, and the low-end is still left to local brands, which may also be the meaning of the mainland government, but they can also benefit indirectly by investing in shares, controlling the supply chain, etc.

However, the current progress is still relatively slow, mainly due to the lack of money on the government's side, not only the US dollar, but also the RMB. Too many factories in the mainland are so inefficient that they are asking the government for money, and local governments and even the central government are running fiscal deficits.

Even when I went to Baosteel a few days ago, there was no air conditioning in the office. Or, at least, not yet.

"Yes, Mr. Chen is keen to invest in China, of course we support it, Hong Kong capital is also Chinese capital, haha, and Midea brand air conditioners are much cheaper than other imported brands." Qiu Ke smiled and said: "Even the Germans think that Midea's air conditioner is very good, and their residence in Shanghai is also a Midea air conditioner." ”

"This is also the result of localized production, otherwise the air conditioners produced in Hong Kong will be much more expensive if they are exported to the mainland." Chen Zhiwen said.

In today's international economic situation, many developed countries still produce industrial products with technical content in their own countries, especially Japan, but they can only be limited to the middle and high-end, low-end electrical appliances and textile industry, basically either give up or transfer to South Korea or Wanwan.

Because of this, high-end industrial products are more expensive, air conditioning is barely on the side, the world can make air conditioners, there are really not many countries, even Hong Kong and Yanjing factories, some parts are also imported from Japan, mainly because the industrial chain is incomplete.

Relying on this advantage, developed countries are basically easy to harvest the world's developing countries, the mainland wants to buy Japanese electrical appliances, the price is staggering, for example, before in eastern Guangdong Province, Chen Zhiwen happened to see a Japanese audio, the price is 12000, this price, you can almost buy a half suite in Shenhai City, of course, there are also tariff reasons.

In the first ten years of the change, various overseas industries wanted to sell their products to China at a high price, and then make money without any risk, but these brands, no matter what industry, will not work in the end, because there will always be a few brands that will enter the country for localized production.

Any country conserves foreign exchange, even if there is no shortage of foreign exchange reserves.

Therefore, as the first to eat crabs, the home appliance factory moved to the mainland, and it was able to control the market here to a large extent.

"Yes, after localization, the cost will inevitably be greatly reduced, and the domestic people will be able to buy it, which can be said to be a win-win situation." Qiu Ke said: "Mr. Chen, we at SAIC Volkswagen also want to localize the production of parts as soon as possible, so in this matter, we hope to cooperate with Mr. Chen!" ”

"Santana's car, no matter how localized, is not something that ordinary people can produce." Chen Zhiwen smiled and said.

Their own washing machines, refrigerators, TVs, and electric fans, localized production, and rich people can still afford to buy them after the cost is reduced, after all, the three major pieces of marriage in big cities in the 80s include household appliances.

The air conditioner is more troublesome, this thing itself is expensive, and there is a lot of pressure on the power grid according to it, therefore, at present, in China, it takes almost 5,000 yuan to install an air conditioner, which is equivalent to the price of half a small house in the general location of Shanghai City. However, there is no shortage of rich people in any era, last year alone, the number of air conditioners installed in the country exceeded 50,000, and this number will increase at an exponential rate in the future.

One of the initial purposes of Santana is actually for government cars, as well as Jeep, and the main purchaser is still the government department, which will only slowly change in the 90s.

"Mr. Chen is right, but China also hopes to reduce the cost as soon as possible, the lower the cost, and when the economy gets better and better in the future, maybe many people will be able to buy a car." Qiu Ke said with a smile.

"How do you work together?" Chen Zhiwen said quietly, he actually already knew, but he needed the other party to speak first, and the cooperation in the shopping mall was basically the first person to speak.

"I know that Mr. Chen's Hutchison has invested in a large number of local parts companies in Yanjing City, and as far as I know, many of these factories have been approved by AMC and have already supplied them, so I wonder if they can also supply to SAIC Volkswagen?" Qiu Ke asked.

According to the general logic, if the automobile company looks for parts companies to supply, it is basically directly searching, especially Volkswagen, if it is released, I don't know how many parts companies will want to rush in and get the opportunity of Volkswagen suppliers.

But the current situation is that many parts factories in Yanjing are a lot of AMC's technology, quality guidance and Hutchison's investment, they value these companies, although they may not be able to meet the requirements of the public, but they have been ahead of other companies too much, otherwise, Shanghai is also a first-tier city in China, in fact, a little stronger than Yanjing on an industrial basis, and there is no shortage of various processing factories inside.

You must know that the automotive industry is a very special industry, to meet the requirements of various processing accuracy or various standards is only the most basic, how to be able to make the same quality products sustainably and stably is the most tested place for parts companies in the automotive industry.

Any part of the car must ensure the consistency of quality, even if there is a problem, it must also ensure the same problem, so that it can be evaluated whether it can be accepted. Because the car is composed of tens of thousands of parts, today your parts are unstable and cause this problem, and tomorrow the parts are unstable, so the car will still make a fart?

Overseas automobile companies have been researching for decades to stabilize the management of parts companies, and have launched a complete quality management model. From design to production, it is basically fully covered, but it is very difficult to do it well, and many overseas companies can only say that they are doing so.

SAIC Volkswagen, at present, mainly uses the CKD (overseas imported parts assembly) mode of production, and the central government has also issued an order to gradually localize, but after they brought German engineers to various potential suppliers in Shanghai, they were basically completely vetoed.

I thought that the Germans were deliberately making things difficult, but the Germans also came up with a set of strict VDA standards, and even took a few mainland executives to some local supplier companies in Germany for inspection, and the reply was that other suppliers' suppliers were really doing so well.

After looking at the VDA standard, Qiu Ke and others are even bigger, and the average factory, even if it is willing to invest, it is estimated that it will take a few years before it can barely reach an acceptable level, which is not qualified.

In this case, Yanjing Jeep, which had invested in a joint venture automobile factory in Yanjing and had already begun to produce a small number of localized parts, became the target of Qiu Ke and other teams.

After investigation, it was found that as early as three years ago, AMC began to cultivate hundreds of suppliers in Yanjing in batches to teach the management model of American auto parts companies, and at the same time, Hutchison's investment company also screened and invested in many suppliers to help them increase equipment and change the management model, and even Hutchison and AMC also set up a large-scale test center in Yanjing, which can provide vehicle and parts testing centers in various environments.

With the support of technology + capital of the two companies, Yanjing has hundreds of local parts companies that can barely reach the German management standards, although the management model of the United States and Germany is different, but the quality objectives are also the same.

Many of these parts companies are nearly half owned by Hutchison, and without the permission of foreign investors, they may not supply SAIC Volkswagen.

After all, these companies are cultivated by foreign investors with great effort, and if Volkswagen is asked to do such a thing in Shanghai, they will definitely not want to.

"Of course, SAIC Volkswagen can contact them directly." Chen Zhiwen smiled and said.

The automobile industry cannot be monopolized by one company, not to mention that AMC has a weak foundation, even if Chen Zhiwen now has a company of the level of Volkswagen Toyota in his hands, it is impossible to think of monopolizing the mainland automobile market.

But the parts industry, but not so strict, they spent so much money and energy to cultivate local suppliers and shares, but for this day, as long as the supply to SAIC Volkswagen, then FAW-Volkswagen, after the American car entered the mainland, more or less so many of their own subsidiaries, can also eat some meat, the era of hegemony, localization is not only the domestic government requirements, or market demand, otherwise how to compete with other brands? If an American car brand dares to assemble only in the mainland, it does not need the government to come forward, and the price is so high that absolutely no car can be sold, because at that time, there were already many joint venture brand cars in the mainland.

However, there is not much hope for the Japanese and Korean systems, these two countries basically like to eat alone, their own car companies, basically only give orders to suppliers in their own countries, and even the home appliance industry, suppliers from other countries, if they want to enter the market, it is a little difficult.

At present, the supply chain companies invested by Hutchison are also producing large parts that are not easy to transport by ocean, and the cost of CKD is relatively high, and then slowly support the local industry in the future, or just like that, the company will expand its business to produce other parts.

"Thank you, Mr. Chen." Qiu Ke smiled and asked again: "I wonder if Mr. Chen can consider arranging these parts companies to build branches in Shanghai?" ”

(End of chapter)