Chapter 506: New Company! Another strategic transformation of Nanshan Group

Lingnan Province moves quickly.

On the second day after Huaxia issued the "Automobile Industry Adjustment and Revitalization Plan" and the "Notice on Carrying out the Pilot Work of Demonstration and Promotion of Energy-saving and New Energy Vehicles", the new energy vehicle production subsidy policy belonging to Lingnan Province was introduced.

Yangcheng City subsidizes 50,000 yuan per car that meets the standards.

The same is true in Lingnan Province.

The only difference is that the subsidy requirements of Lingnan Province appropriately reduce the content of cruising range.

After all, Lingnan Province is not the only automobile company in Nanshan Group.

For today's people, the range of electric vehicles has been reduced from 400 kilometers to 300 kilometers, which is actually not less.

And the range of buses has been reduced from 300 kilometers to 200 kilometers, which is barely enough.

Such conditions can be regarded as fully considering the needs of most enterprises in the province.

Of course, to put it bluntly, this has taken into account BYD's needs.

So when they saw the official announcement of this policy, BYD's people were also relieved.

"Mr. Wang, the province basically subsidizes the mileage we propose, so that we can not only engage in electric buses, but also electric taxis."

"As for plug-in hybrid vehicles, the minimum range of 50 kilometers has also been clarified, and the same can be included in the subsidy."

"It's just that the amount of the subsidy has been reduced from 50,000 yuan to 30,000 yuan."

"Considering the national, provincial and municipal subsidies, I think it is more appropriate to focus on promoting plug-in hybrid next."

Wu Huabi, director of BYD's automobile sales department, came to Wang Fu's office with Liang Chuanqing and Lv Faxiang, the head of R&D, as soon as possible.

For BYD Auto, they are now focusing on lithium iron phosphate batteries.

The energy density of this battery is relatively low, and when used in electric vehicles, although it can barely reach a range of 300 kilometers, the cost is not low, and it is not cost-effective to plug in and hybrid.

Considering the subsidy, then the plug-in mix seems to have a better chance of profitability.

The most important thing is that although the plug-in hybrid can be charged, it can run without charging, which can solve the range anxiety of electric vehicles to a certain extent.

This is actually a very important thing.

"From the perspective of cultivating consumer habits, it is actually more appropriate to directly produce electric vehicles."

"But what you said also makes sense, companies also need to consider the cost issue."

"Let's focus on promoting plug-in hybrid vehicles first, and we can just find one electric vehicle to change."

Regarding Lian Furong's feedback, Wang Fu still attaches great importance to it.

When the company is big, you can't rely on the boss to judge everything, and you have to fully mobilize the enthusiasm and subjective initiative of the people below.

Otherwise, it is not enough for the boss to be tired.

"From the perspective of battery cost, if there is a dedicated EV platform, then the cost of battery packs can be reduced by at least 10%."

"In the long run, it is certainly not the way to change from a petrol truck to an electric car."

"Mr. Wang, is our company going directly to develop an electric vehicle platform?"

"In this way, the battery pack can be made more square, and in the future, it can also be based on this electric vehicle platform to further produce other models?"

As the person in charge of BYD battery, Lv Faxiang also has a clear idea of the future development.

In his opinion, a specialized electric vehicle platform, which is definitely needed.

It's nothing more than a question of whether you want to do it now or later.

"At present, there are very few companies engaged in electric vehicles in the world, and most of them are based on the traditional fuel vehicle to become an electric vehicle platform."

"If you want to develop an electric vehicle platform specifically, this investment may be a bit large."

"I think it's better to wait for the development of electric vehicles to be clearer before considering this aspect?"

Liang Chuanqing, as the overall R&D leader, has many issues to consider.

The electric vehicle platform is good, but it costs money to get it.

The cost of directly copying a certain platform may not be very high.

But if you go to the original work yourself, the situation is completely different.

Maybe the money for the electric vehicle platform is enough to develop several new models.

Although the development of BYD cars has been rapid in recent years, last year's sales rose to 300,000.

But BYD Auto's profit per car has not been very high.

The production of a car will earn about 3% of the processing fee, and some models do not even have a 3% profit margin.

In this case, to spend a lot of money on the research and development of electric vehicle platforms, Liang Chuanqing must be more cautious.

After all, the more money you spend in this place, the less R&D you spend elsewhere.

"This time the policy announcement is the first stage of the development of electric vehicles in China."

"At this stage, most companies should rely on subsidies to survive, and it is estimated that there are not many electric vehicles purchased in the market."

"So at this stage, we really don't need to engage in a special electric vehicle platform, and consumers won't care."

"After three years, I think Huaxia's electric vehicle development should enter the second stage."

"At that time, both battery and motor technology should be more mature."

"Ordinary consumers are starting to consider accepting some electric vehicles."

"At that stage, we were investing in the research and development of an electric vehicle platform."

Wang Fu made the final decision on the development of the electric vehicle platform.

Engage, definitely to do.

But not now, but in three years.

In this regard, Liang Chuanqing and Lu Faxiang did not say anything more.

……

Within the Nanshan Group, a special meeting is being held in response to the two automobile policies announced by Huaxia a few days ago.

The entire Nanshan Group executives, with the exception of some who had nothing to do with the policy, attended the meeting.

"Mr. Lin, what is the theme of today's meeting?"

Zhang Jing sat next to Lin Cheng in confusion.

At today's meeting, the heads of companies such as Nanshan Special Steel and Nanshan Carbon Fiber were not invited to attend.

As the person in charge of Nanshan Semiconductor, Zhang Jing felt that it was quite strange that he was called over to attend the meeting.

It's just a discussion on the release of car policies, so what does it have to do with him?

"I don't know."

"Why don't you ask Minister Zeng?"

Lin Cheng shrugged his shoulders and said that he didn't understand anything either.

Of course, he kicked the ball to Zeng Tingting by the way.

"I probably don't know as much as you do."

"What is the topic of today's meeting, I want to ask you."

Zeng Tingting didn't lie to everyone, she really didn't know what she was going to do today.

Of course, since it is related to the policy issued, the topic must be related to new energy vehicles.

Everyone knows this.

But Nanshan Group is actually working on new energy vehicles with Yangcheng Automobile Group now, does Mr. Cao have a new idea?

"I heard that after the announcement of this policy, various car companies are actively engaged in electric buses, and that thing should be the best."

"Every place that is included in the new energy demonstration city must have corresponding policies to support the implementation of relevant projects."

"In this case, in the procurement of buses, tilting towards electric vehicles should be the easiest goal to achieve."

"Otherwise, as a demonstration city, it will be quite embarrassing to not achieve the above goals."

Dong Shengnan, Minister of Finance, interjected beside him.

As the Minister of Finance, she is still relatively clear about the income of electric vehicles.

Without the support of the subsidy policy, she feels that electric vehicles will not go far at all.

In the same way, she also supports Nanshan Group's electric vehicle program, as far as possible to develop in the direction of electric buses and electric buses, which can make full use of the support of Yangcheng City.

"I've heard that in the United States, Tesla is ready to go public this year."

"In fact, I think that with this policy, the group can set up a company similar to Tesla to specialize in research and production of electric vehicles."

"Maybe it will bring a surprise to everyone when the time comes."

Lin Cheng's words were thrown out, and everyone was silent for a moment.

It is not the first time that a similar topic has been raised in Nanshan Group.

But in the previous period, the conditions were obviously immature.

Now, things seem a little different?

"I think Mr. Lin's proposal is very good, we now have the technology accumulation of batteries, motors, electronic controls and other related components, and the production of electric vehicles is not a particularly difficult thing for our company."

"If the electric vehicles sold are mid-to-high-end products of three or five hundred thousand, then it is still possible to achieve profitability after taking into account subsidies."

"Of course, how to get consumers to choose our electric vehicles may be something that needs to be well planned."

As the vice president of the group, Huan Yongxiang is also in charge of research and development, and seriously considered Lin Cheng's plan.

With this in mind, I really think that this plan seems to be feasible.

"Low-end cars rely on Nanshan Hongqi, focusing on car sales within 250,000 yuan."

"High-end cars rely on Xingchen and Jaguar Land Rover, covering all products from 500,000 to 5 million."

"In this way, between 250,000 and 500,000, our group is really lacking some models."

"It's just that the space for this part of the market is not small, and it's worth doing a good job."

"Before, I was thinking about whether to let Jaguar Land Rover or Xingchen launch a model within 500,000 yuan, but Mr. Cao did not agree."

"Now it seems that it is likely that this part of the market is reserved for electric vehicles by Mr. Cao?"

Zeng Tingting gave her "guess" very boldly.

Her guess was naturally not nonsense, but based on some conversations between Cao Yang and her before.

Some of the content of the discussion may have been just a simple discussion at the time, but that also reflected some of Cao Yang's thoughts.

"Although there is a subsidy policy now, the conditions for engaging in electric vehicles may not be very mature, right?"

As the general manager of Nanshan Engine, Cheng Tao actually has a little subconscious resistance to new energy vehicles.

What electric car do you want?

Isn't a large displacement oil truck fragrant?

If the power is not enough, the engine will make up!

Fuel consumption is too high, hybrid cars to use!

How nice is that there is no range anxiety and no need to develop any new technologies?

"If you want to say that the conditions are ripe, it is definitely immature now."

"But when the conditions are ripe, there may be a lot of electric vehicle brands on the market."

"At that time, if we want to fight a bloody way again, the difficulty will be much higher."

"And if it is too late to engage in electric vehicles, it may give people a feeling that Nanshan Group cannot keep up with the pace of new technology development, which is very fatal."

As soon as Dai Hanbiao's words came out, many people couldn't help but nod.

This angle is indeed quite special.

However, it is not without reason.

For example, Mercedes-Benz in later generations, they launched electric vehicles at a slower pace, and electric vehicles sold very badly.

It has even begun to affect its sales of fuel vehicles.

On the contrary, BMW has done a little better in this area.

"From a cost point of view, it is certainly not so cost-effective to engage in electric vehicles, even if there is a subsidy, it is difficult to make a lot of money."

"However, from the perspective of the preference of the capital market, companies with imagination in the future may be able to get a lot of support in terms of financing."

"I think if the group wants to engage in electric vehicles, then this electric vehicle should be able to take a different pace of development from Xingchen Automobile."

"Either it is to find an investment institution to raise money and burn money, or it is to go public and raise money as soon as possible."

"This road, even if we don't take it, other companies will definitely take it."

Dong Shengnan further added his opinion.

At this time, Cao Yang finally stepped on the point and came to the conference room.

"The discussion is so lively, do you have any ideas?"

Most of the time, the meetings of the Nanshan Group are not so formal and do not make people feel so restrained.

When Cao Yang came in, he naturally heard a few words about what everyone was discussing.

Today's meeting was meant to be discussed with you.

So it's a good time for you to sort out what you just discussed.

"Mr. Cao, that's the case, just ......"

Zeng Tingting looked at everyone and quickly summarized what everyone discussed.

"It seems that everyone's minds have been opened."

"Actually, my thoughts are similar to what you discussed."

"Huaxia's promotion of the development of new energy vehicles has now risen to the level of the national development strategy."

"Especially last year, the price of crude oil once exceeded $150 a barrel, and the proportion of domestic crude oil imports is increasing."

"Although oil prices have fallen now, with the recovery of the economy, oil prices will definitely rise slowly."

"Coupled with the fact that domestic car sales are increasing year by year, the consumption of oil is also increasing year by year."

"Therefore, new energy vehicles must be supported by policies, and the support is likely to be greater and stronger."

"I think it's very good that you just proposed the establishment of a new electric vehicle company."

"That's one of the main purposes of my convening today."

Now that the people below have already talked about it, Cao Yang naturally has no need to let everyone discuss it step by step.

Just say what you think, we just want to engage in electric vehicles.

The rest is what this electric car is going to do.

"Our group's current battery technology is the most advanced in China, and it is also the most advanced in the world."

"The biggest technical obstacle to electric vehicles is that they don't exist."

After Cao Yang's words were finished, Lin Cheng first stood up in support.

Regardless of whether there was a doubt before, there is certainly no doubt now.

Besides, to engage in electric vehicles, Nanshan battery is the biggest beneficiary, in the public and private, Lin Cheng is absolutely supportive.

"On the side of Nanshan auto parts, we have completed the development of core components related to motors and electronic controls, and they can be mass-produced at any time."

Dai Hanbiao naturally wanted to stand up and express his stance at this time.

For electric vehicles, the structure of parts and components is definitely very different from that of fuel vehicles.

Many companies are stuck on this threshold.

Although there are some companies outside that are researching new parts in this area, the technical level is a big problem.

"I'm worried, why should consumers buy electric cars?"

"What are the advantages of electric vehicles and what are their selling points?"

"You can't tell consumers that electric vehicles are more environmentally friendly, so let's support them, right?"

"99 out of 100 consumers will not buy an electric car because of environmental concerns."

Zeng Tingting raised a more pointed question.

As the head of the sales department, she needs to consider the future sales of electric vehicles.

If you don't think about this issue at the planning stage now, you will definitely be in big trouble at that time.

In fact, before 2020, or before 2017, although the electric vehicle market in Huaxia was very lively, the sales were not very good.

One of the most important questions is what Zeng Tingting mentioned, what is the selling point of electric vehicles?

If you want to talk to consumers about environmental protection, few people will definitely buy it.

Consumers in China never think about environmental issues when buying things.

It is obviously unrealistic to hope that this view will change.

In this case, how to highlight the advantages of electric vehicles is very important.

"What Minister Zeng said is very reasonable, simply replace the engine and gearbox of the current fuel vehicles, and put the battery and motor into it, consumers will not buy it."

"There are no advantages to such an electric car."

"So we're going to give electric cars something different."

"The group has now set up an intelligent network center, and a large part of the research content in it can be used in electric vehicles."

"Of course, there are a lot of things that our Star Cars and Jaguar Land Rover can definitely use."

"Intelligence and networking make electric vehicles have a completely different driving experience from fuel vehicles, and only in this way can we attract everyone to buy electric vehicles."

"For example, most of the current fuel vehicles do not have screens, or the screens are very small."

"Then if we want to engage in electric vehicles, we must go to the big screen and concentrate as many functions as possible in the screen control, so that everyone feels that this car is different from fuel vehicles."

"Of course, that's not the most important thing."

"Intelligence is the real advantage of electric vehicles."

"In the future, if our electric vehicles can achieve autonomous driving, then it will definitely attract many young people to buy electric vehicles."

"This also involves the replacement of many parts."

"For example, semiconductor components, which are not used in fuel vehicles now."

"But in the era of electric vehicles, the amount of chips will increase exponentially, and the computing power requirements for chips will also rise rapidly."

"This is also very different from traditional fuel vehicles."

Cao Yang appropriately revealed his thoughts and plans.

But there are some things that don't say much.

Point to point!

Just let everyone be clear about the direction of development.

Don't make an electric car that is similar to a traditional gasoline car, then it will definitely be a failure.

Historically, many car companies have this problem with their early electric vehicles.

In addition to promoting energy conservation and environmental protection, there are not many publicity points that can be found.

Such an electric car is destined to be unsellable in China.

Only by re-taking a track that is different from that of fuel vehicles can there be a future.

"Mr. Cao, our electric vehicle brand, I feel that many things are a little different from the group's traditional projects, is it necessary to give a separate name, so that people can't directly associate the name with Nanshan Group at a glance?"

Mi Ying interjected next to her.

The group is about to set up a new company, and to some extent, this is also another strategic transformation of Nanshan Group.

Once this company succeeds in the future, it is likely to drive the development of another industrial chain.

The engine is gone!

The gearbox is gone!

But the battery, the motor, these parts are up.

Even Nanshan Semiconductor has followed.

Two different tracks, developed separately, seem to be better.

"Future Automotive Co., Ltd."

This time, Cao Yang gave the answer directly.

Nanshan Group should have its own electric vehicle company, producing models of less than 500,000 and more than 200,000 or 300,000.

It's something he's been thinking about for a long time.

Including the name has also been considered before.

"The future represents the future of electric vehicles, and it also shows that our group is full of expectations for this electric vehicle company."

"The name may sound a bit ordinary, but when you taste it, you think it's pretty good."

Mi Ying's analysis was immediately recognized by others.

Soon, the name Future Automobile Co., Ltd. was officially decided internally.

"Mr. Lin, in this company, you are the executive deputy general manager, and Zeng Tingting is also the deputy general manager."

"Although the future of this company is limited in the short term, in ten years, perhaps the future market value will be higher than that of Xingchen Motors and Jaguar Land Rover combined."

"I hope that everyone can manage this new electric vehicle brand well and run the new company well."

When it's time to draw a cake, it's natural to draw a cake.

is higher than the combined market value of Xingchen Automobile and Jaguar Land Rover, and this cake is now only Cao Yang dares to draw like that.

(End of chapter)