Chapter 279 A business worth talking about with tens of billions of dollars
More than 100 years after the birth of automobiles, it is also an era of rapid development of human scientific and technological capabilities.
With the advent of the electric age, the electrical components on automobiles have also changed dramatically.
One of the most representative is the development and evolution of vehicle headlights.
In the early days of automobiles, the first consideration was how to make the car move forward quickly and steadily, not the lighting.
As a result, there is not a single decent light installed on the car.
Later, with the development of the automotive industry, the lights began to develop continuously.
Counting from kerosene lamps, automobile headlights have roughly experienced the era of acetylene lamps, incandescent lamps, halogen lamps, and xenon lamps.
The models sold on the market now are almost all halogen lamps in the middle and low ends, and almost all of the high-end lamps are xenon lamps, with few exceptions.
The headlights designed by Xingchen Automobile Research Institute at the beginning are xenon lamps.
In order to find qualified suppliers, the purchasing department has launched the first round of inquiries to manufacturers such as Hella, Koito Lights, Stanley, and Xingyu.
However, each model basically has its own design, and there is no so-called universal product that can be used.
In this way, it is equivalent to Xingchen Automobile even if it only produces 10,000 units, it needs to develop and produce lamps separately.
This price, naturally, is very exaggerated.
For example, Hela, a headlight directly quoted a price of nearly 5,000 yuan.
The price of the Koito headlights and Stanley is slightly cheaper, and it also costs more than four thousand.
Only Huaxia's local enterprise Xingyu Lamp quoted a price of 3,000 yuan, and even the other party said that if the production of Xingchen Automobile increases, there is still room for this price to fall.
Obviously, Xingyu Lights wants to get this order.
They even came to Yangcheng to visit Cao Yang.
"Mr. Cao, xenon lamp is a heavy metal lamp, by filling the ultraviolet-resistant crystal quartz glass tube with a variety of chemical gases, such as xenon and other inert gases, and then through the supercharger to instantly increase the 12-volt power supply to 23,000 volts, at high voltage, xenon will be ionized and generate a light source between the two poles of the power supply."
"In 1992, Hella and Bosch respectively released their first xenon headlights, and the BMW 7 Series released in 1992 was the first model in the world to use xenon headlights."
"The BMW 730 currently on sale is still using xenon headlights."
"We have been researching xenon headlights for several years, but we have been lacking a good platform."
"So it seems that we don't have any production performance compared to other lighting companies like Hella and Koito, but our technology accumulation is enough to complete the development of parts."
"We are willing to develop with Xingchen Automobile and supply the first model at a price that does not make money."
After a brief introduction to the supplier, Zhou Ling, the general manager of Xingyu Auto Lighting, personally explained to Cao Yang the importance they attached to this order.
It is also very frank about their weakness in xenon headlights.
Because before they came to visit, they had already done all kinds of research and preparation.
Zhou Ling already knew that Cao Yang did not like to use parts from international parts giants such as Hella.
As long as Nanshan's own parts or Huaxia has its own parts manufacturers that can meet the technical requirements, Xingchen Automobile will definitely give priority to use.
"Xenon headlights are truly the most advanced production light technology used in various models today."
"I also believe that you can produce a car light that meets the requirements of the drawing."
"But I want to ask one more question, do you have any research on LED car lights?"
Cao Yang's question stunned Zhou Ling for a moment.
LED lights.
Although they have heard that Hella and other car lighting companies have been carrying out research in this area, they have even prepared some new products to be recommended to OEMs.
But their own accumulation in this area is really relatively small.
At present, it is still in the stage of theoretical research.
Does Xingchen Auto want to be so bold in using LED lights?
"Mr. Cao, LED lamps are energy-saving, have long life and good durability, and the LED components are small in size, compact and easy to arrange and design, fast response, and low brightness attenuation."
"It can be said that this is a very promising development direction in the future."
"The light intensity of a single LED is still insufficient, so it is not possible to reduce the number of LEDs arbitrarily to reduce the specific volume of the lamp."
"At the same time, the smaller volume is not conducive to the heat dissipation of the light source, which requires LED manufacturers to do a good job in the thermal management of the product, in order to give full play to the advantages of LED."
"In addition, the conversion efficiency of the LED drive system is also a key problem, and many solutions in high-power applications do not have high conversion efficiency while taking into account the cost."
"In addition, the traditional constant voltage source drive cannot ensure the consistency of LED brightness, and affects the reliability, life and light decay of the LED. Therefore, LEDs must be driven using a constant current source, which is designed to change the entire lighting system scheme. ”
"In addition, most of the production level of LED lamps has not yet reached the vehicle specification application standard, and even if some manufacturers have reached the vehicle specification application, the production capacity and product consistency may not be enough, and it is difficult to meet the demand for mass production of high-quality vehicles."
Although Zhou Ling was weak in her heart, she was very confident in her appearance.
It's as if they've done in-depth research and development on LED lights.
"Mr. Zhou, what do you think of the prospects of LED lights?"
Cao Yang did not refute Zhou Ling's point of view, but asked other questions.
"In the long run, LED headlights will definitely be a general direction, but I don't think in the next five years, domestically produced models will not be equipped with LED headlights."
"It is likely to start with some relatively simple lamp bodies such as fog lamps and indoor lights."
For this question, Zhou Ling can answer it very easily.
After all, there is no model on the market that is equipped with LED headlights, and according to the logic of the past, even if there is a new model to be equipped in the future, it will start first on the high-end model.
After a generation of products, it will slowly expand.
In this way, let alone five years, she thinks that it will not be applied on a large scale in 10 years.
"In other words, Mr. Zhou, do you recognize the future development prospects of LED lights?"
Cao Yang didn't think it was strange about Zhou Ling's answer.
The automotive industry as a whole is not focusing on LED headlights right now.
Even the xenon headlights are already a relatively advanced configuration in the eyes of many people.
At most, it's a matter of making some improvements to the lens.
"Of course, LED headlights have so many advantages, as long as its shortcomings can be improved, large-scale use in the future is inevitable."
"It's just this time, maybe ten years later."
Zhou Ling didn't know very well why Cao Yang had been struggling with herself.
However, this gave her a bad premonition.
Could it be that Xingchen Auto wants to engage in LED headlights as soon as it comes up, right?
They can't handle this.
"If Xingyu Lamp can master the mass-produced LED lamp technology now, then Mr. Zhou, do you think this will be of any special help to the development of your company?"
Cao Yang continued to ask questions there at his own pace.
"Mr. Cao, our company attaches great importance to the research and development of new technologies, and I also hope that we have mastered the LED lamp technology."
"But frankly, at the current pace, it will take at least another three or five years before we can develop a mature LED lighting technology."
"In this market state, any car lamp company, as long as it can come up with mature and reliable LED light technology in advance, will definitely be able to occupy a leading position in the market competition."
"Not only domestic joint venture car companies may use it, but also international auto giants may also take the initiative to find cooperation."
"Especially on some high-end models, LED lights are still very attractive."
Zhou Ling felt that Cao Yang's problem was getting stranger and stranger.
Could it be that talented people have special ideas?
"Our Xingchen No. 1 model will use xenon headlights in the low configuration and LED headlights in the high configuration."
"At present, your xenon headlights do not have any mass production results, but they are only in a state of development, right?"
"If Xingchen Automobile comes up with LED headlight technology to cooperate with Xingyu, what cooperation plan can you provide?"
Make some parts by yourself, and train a group of related parts companies to make some parts.
This can be regarded as the general direction of parts supply set by Cao Yang for Xingchen Automobile.
Although this Xingyu lamp is not particularly prominent now, after the listing of people in the future, the peak market value will be more than 50 billion enterprises.
If you can win a few percent of the shares, then it is a more cost-effective business to replace the LED car light technology.
A business worth talking about with tens of billions of dollars.
After all, it is impossible for Nanshan Group to really do all the parts by itself.
At least in the last five or six years, this is not the right thing to do.
Although headlights are important, the degree of monopoly is far less than that of control system components such as ESP.
"Nanshan Group has mastered the technology of LED lights?"
Zhou Ling couldn't help but show a suspicious expression on her face.
There's no way, it's really Cao Yang's suggestion, which is too surprising.
I came here to ask for an order, but people wanted to ......
"This can be written in the agreement as a premise for cooperation."
Cao Yang didn't explain so much, and he said it directly, which was more convincing than any explanation.
Nanshan Group already has a strong strength in many parts, which Zhou Ling naturally knows.
Combined with Cao Yang's words, she still has doubts, so she can only choose to believe it first.
"Mr. Cao, if your company can really come up with mature and usable LED lighting technology to cooperate with Xingyu, then we can pay a considerable amount of money to buy this technology."
"You can even take a part of the shares out and replace them."
Zhou Ling is also a very courageous person.
Otherwise, it would not be possible to develop the Xingyu car lights into their current appearance.
Nanshan Group is not bad for money, she is clear about this.
So although she wants to use the money to buy LED lighting technology, she actually knows that it is unlikely.
There is a high probability that the other party wants Xingyu's shares.
Although she is a little reluctant to do this, it is not unacceptable.
The premise is that the LED light technology of the other party is really mature and reliable.
"This specific plan, I can let Minister Su discuss it with you again when I go back."
"Although Nanshan has this technology, we can also open a factory to produce it ourselves, but the energy is limited after all, and we still want to make full use of the existing resources of Huaxia for some parts."
Cao Yang didn't bargain with Zhou Ling directly here.
Instead, he handed over the matter of quarreling and fighting for interests to the people below.
……
"51% is too much, and the technology of LED headlights is of great value, but not to the extent that it is worth 51% of the shares."
Su Xingxing talked about technical cooperation with Zhou Ling, and naturally wanted the lion to open his mouth.
LED lamp technology is now the most cutting-edge technology in car lights, Nanshan Group has made a breakthrough earlier than other manufacturers, he naturally wants to make full use of this advantage.
"Mr. Zhou, you should know very well that as long as Xingyu takes the lead in launching LED headlights, it is a very powerful measure to improve brand power."
"In the future, when those international auto giants look at you again, they will not look at you with colored glasses."
"In the future, there is no need to simply fight the price with others, but you can rely on unique technical advantages to obtain a large number of orders."
"Once the first-mover advantage is formed, the output will be increased quickly and the cost will be reduced, and more and more car companies will definitely use it."
"Even hundreds of thousands of cars with self-owned brand models will consider being equipped with some LED headlights."
"This potential is very much to look forward to."
Negotiation is a game.
Su Xingxing must strive for the interests of Nanshan Group to the greatest extent.
For him, even if the talks collapse, he is not afraid.
It's a big deal that Nanshan auto parts will be produced in the factory by itself.
Of course, the schedule can be a bit tight.
The second phase of Nanshan Industrial Park does not have so many empty factories for various parts factories.
"Su Ministry, up to now, Nanshan only has a stake in cooperation with Yangcheng Huaqiang Factory, if I am not mistaken, it should occupy 3% of the shares."
"If the LED lamp technology provided by Nanshan has mass production value, then we can at most propose a 30% stake to replace this technology."
"After all, for Xingyu, the main business now is brought by halogen lamps."
"We have fully mastered this technology ourselves, and it will definitely continue to be used in large quantities in various models in the next ten years."
"We would like to take the opportunity of cooperating with Xingchen Automobile to apply our newly developed xenon headlamp technology."
"It would be great if LED headlight technology could also be put into use."
"But this price needs to be a more appropriate payment."
Zhou Ling is also a very discerning person who can realize what changes LED headlight technology will bring to the company.
"Otherwise, when we sign the cooperation agreement, we can have some additional VAM conditions."
"If the LED headlight technology given by Nanshan can be recognized by international mainstream manufacturers, then Xingyu will take out 51% of the shares to replace."
"If it's just to supply LED headlights to Xingchen Automobile, then we agree to the 30% stake you proposed."
Before Su Xingxing came to discuss, he naturally grasped Cao Yang's request in advance.
The more shares the better, but 30% is also an acceptable bottom line.
After all, the Huaqiang factory is only 30% now.
If the shares are too much, it is estimated that most manufacturers are unacceptable.
Of course, when it comes to Xingyu's core interests, this kind of negotiation will naturally not be fruitful in a while.
Su Xingxing only talked to Zhou Ling first.
At the same time, in order to let Xingyu see the technical level of LED headlights, the two parties first signed a confidentiality agreement and an exclusivity agreement for LED headlights.
If the cooperation between the two parties is not successful, then Xingyu will not be allowed to produce LED headlights without the consent of Nanshan Group in the future.
In this way, it effectively avoids the other party to learn the technology, but does not cooperate with Nanshan.
……
"Mr. Zhou, judging from the technical information provided by the Nanshan Research Institute, their LED headlight technology really has the level of mass production."
"Especially according to what they explained, the logic of LED driving and control is already a very mature solution."
"Even if you implement their plan, the cost can be at an acceptable level."
"I just don't understand when they started working on LED headlights, and they already have such results."
"I've heard that Koito headlights' research on LED headlights is at the forefront of the industry, and even then, their parts are still in the early validation stage, and it is not said which model will be used."
Lin Ran, director of the technical department of Xingyu Auto Lamp, personally connected with Nanshan Research Institute and confirmed the technical information provided by the other party.
Although this set of technical information is not a complete version, a lot of things can already be seen.
"Nanshan Group has achieved the first place in China in just a few years in terms of auto parts business."
"Especially in terms of control system parts, their machine tool CNC system has also won the first prize of the National Science and Technology Progress Award."
"We also have the ability to develop and produce parts such as ECU and TCU for the engine in-house."
"So the other party can have a more outstanding performance in the driving and control parts of the LED headlights, which I think is normal."
"After all, their technology accumulation in control parts is the strongest in China, and even giants like Bosch feel threatened."
"But it's a bit of a surprise that they're suddenly going to move into LED headlights."
"Before, the parts they made were more powertrain and chassis related parts."
"I don't do a lot of electronic and electrical parts."
Zhou Ling has also been thinking about cooperation with Nanshan Group in the past week.
For the information of LED headlights, she naturally read it herself.
Now that Lin Ran has come to such a conclusion, she is relieved in her heart.
As long as Xingyu lamps really master the technology of LED headlights faster than industry competitors, and can also reduce the cost, then the company is expected to become the largest lamp manufacturer in China in the next few years.
At that time, even if it is only half of the shares, it will be worth more than 100% of the current shares.
"According to the current situation, the cost of this LED headlight is estimated to be about the same as that of xenon headlights."
"Even now we only need to make some changes related to the appearance of the lamp body on the basis of the technical information provided by Nanshan, which can be provided to other OEMs."
"According to the style of each OEM every two years to carry out an annual facelift model, we have the opportunity to get many car companies after 2006 new models of LED headlight orders."
"The time in between is just right for us to renovate the production line and digest and absorb the LED headlight technology."
"Mr. Zhou, judging from the cooperation between Nanshan Group and Yangcheng Huaqiang Factory, I think they are actually a good partner."
"Not to mention the strong technical strength, it does not interfere with the daily management of cooperative manufacturers."
"Of course, 51% of the shares must be too much, and our company must not lose its status as a major shareholder."
Lin Ran felt that if Xingyu missed this opportunity, it would be a pity for Nanshan Group to find other manufacturers to cooperate.
No matter how many shares there are, they must also have value.
Otherwise there is no point.
Besides, if the cooperation cannot be negotiated at that time, Nanshan Group will directly enter the field of lamp production by itself, and Lin Ran will not have any confidence to win the competition.
"I will communicate with Minister Su again, and the two sides will finalize the details of the cooperation again."
"This time, we're going to take a gamble!"
"As long as they agree that we will trade 40% of the shares for this technology, I will sign a cooperation agreement with them."
Zhou Ling is not a grinder.
The more important the matter, the shorter the time to make a decision.
Opportunities don't always await you.
……
"Mr. Cao, this is the cooperation plan finally discussed with Xingyu Auto Lights, and the main project is that we use LED car lamp technology to buy shares in exchange for 40% of the other party's shares."
"In addition, there are some details of technical cooperation and transfer, and the other party also needs some designers of our research institute to join the new company."
"In the future, when we launch the second model, they will consider building a factory in Yangcheng."
"At the same time, we need to help them approach Ford, General Motors and Volkswagen to promote LED lighting technology."
Su Xingxing spent more than ten minutes to carefully report the cooperation between Nanshan Group and Xingyu Auto Lights.
However, since both parties want to keep a low profile on this matter, they do not plan to hold a large-scale cooperation signing ceremony.
"Since the talk is almost over, let's sign it."
"When the time comes, it is enough to let the finance department arrange two financial personnel to go over, and the others do not need special intervention."
Cao Yang still has confidence in the management team of Xingyu Lights.
If they didn't have the level, they wouldn't have been able to develop to that scale in later generations.
Instead of arranging for someone to meddle in the past, it is better to simply behave a little more cheerfully.
Supervise the financial work, and leave the rest alone.
"Now that there is such a cooperation case between Yangcheng Huaqiang Factory and Xingyu Auto Lamp, can we also take the initiative to find excellent domestic manufacturers to cooperate with other parts?"
"This should help us get orders from other OEMs in the future."
Although as long as the competitiveness of QCD is sufficient, Nanshan Auto Parts can also obtain orders from other OEMs.
However, with the development of Nanshan car companies such as Xingchen Automobile, other OEMs will definitely have stronger and stronger fears.
Unless the parts manufacturers of Nanshan Group are only positioned to serve their own companies, it is definitely more conducive to development and growth to adopt a cooperation model similar to Huaqiang Factory or Xingyu.
"Well, you comb through it and see what other parts can be done like this!"
Cao Yang thought for a moment and agreed to this direction.
Walk on three roads, and slowly compare which road is the most suitable in the future.
Maybe there will be unexpected surprises waiting for Nanshan Group.
(End of chapter)