Chapter 1254 New Model Authorization

Li Mingde reported the good news to Feng Yu, saying that the sales in Europe and the United States are no problem. Crazy Field has responded, but it has also been greatly affected. In particular, the profit of Crazy Field this year will definitely be lower than expected.

But Feng Yu felt that things would not be that simple.

Feng Yu is not worried about Crazy Field's counterattack. Feng Yu is not worried about confronting any company in the world, but if those car companies unite, it will be very serious for Bingcheng Machinery Manufacturing Group.

Sure enough, Feng Yu's worry was not unreasonable. Li Mingde called him the next day and told him some bad news.

Crazy Field further cooperated with Yiqi, and authorized two models to Yiqi's joint venture company. At the same time, Yiqi paid a sum of cash to Crazy Field.

But Yiqi is also very ghostly. They insist on not extending the cooperation period. It will become a wholly-owned subsidiary again.

This kind of condition is actually very disadvantageous for Crazy Field. It is equivalent to their continuous sales of model technology to the joint venture company to help improve their technical strength in one go. Although Crazy Field can also share some profits for the cars produced later, it is too little, compared with their joint venture factories in Europe and America.

When Crazy Field cooperated with Yiqi at the beginning, it was planned to use the joint venture company to start their Crazy Field brand, so as to occupy the emerging potential market of China.

Then they rely on exports to China to make more profits. It would be even better if the shares of the joint venture can be increased in the future. If not, they will enter into joint ventures with other car companies.

But at this time, the leaders of Huaxia stopped the joint venture of the new factory. It is impossible for Huaxia car companies to continue to have foreign joint ventures in the past few years.

Of course, this is also the result of Feng Yu's hard work. He told the above about the disadvantages of this foreign joint venture. If some joint venture factories appear every few years, what's the point of the previous hard negotiations? The contract here has expired, and a new joint venture factory has appeared over there. Isn't the market full of joint venture cars of various foreign brands?

If you really want a joint venture, you should also let the other party provide technology, develop new models by yourself, and keep your own brand. Still use the brands of foreign companies. After ten or twenty years, even if the joint ventures of those car companies are over, their own brands will not be well-known, and they will be in trouble again.

When the leader above heard it, it seemed that what Feng Yu said made sense. But they still need to study the specific situation. Therefore, the business of foreign joint venture car companies was suspended, and they will decide whether to reopen after they have studied it thoroughly.

anyway,

Feng Yu's goal has been achieved. This can greatly restrain the invasion of foreign brands, although they have already invaded.

Originally, Feng Yu also thought that in this way, major car companies would definitely get the instructions from above to develop their own brand cars and mainly promote their own brand cars. The above also hinted that if the quality of the car is qualified, some official car purchase orders can be given, which can be regarded as support for these car companies.

The common people always have a kind of mentality, the car that the official rides must be a good car! Just like the domestically produced Hongqi, Jeep, etc., and the later joint venture car Poussin, they were all used as official cars before they entered the eyes of the people and were regarded as good cars.

In this way, after purchasing official vehicles, a psychological suggestion will be formed, which is also the promotion of these state-owned brands.

The leaders above were well-intentioned, but they failed to guard against Mad Tian's move. According to the contract, they need to continue to provide new models to the joint venture company, but it was originally planned for two years, but now it is ahead of schedule.

For Yiqi, it is obvious that the production of joint venture cars is easier, the technology is more mature, and less capital needs to be invested. It takes a lot of money to independently develop a car, especially after the crash test.

Unexpectedly, the matter is not over yet, the joint ventures of other Huaxia car companies have also obtained the authorization of new models, which were only imported before.

These models have also gained a certain reputation in China. After they are made in China, the price will be lowered, but not too much. But many people should know that the price of imported cars is about three times the CIF price. After the joint venture, there will be no such high tariffs, but the price can still be high, and the profit will increase greatly.

There are two roads in front of these auto companies in Huaxia. One is to vigorously produce these joint venture cars, which will have higher profits, although they will still be distributed to those joint venture parties about one-third. The other one is to work hard to develop its own brand cars, and at the same time, it needs to invest a lot of money, and it has to give up the high profits of the joint venture cars here.

This profit is not a small amount, even the profit of many cars can reach 100%.

Those car companies that used to be joint ventures now have new models, and they also cover mid-to-low-end cars. After Li Mingde found out about this news, he immediately felt troubled.

They have no way to make those car companies give up the production of joint venture cars. After all, the major shareholders are still state-owned shares, and the money they earn also belongs to the state. If you keep making suggestions, or even talk about the shortcomings of joint venture cars, you will be disliked by the higher-ups.

Why, your private joint venture can make money, but our state-owned joint venture cannot? Don't you say that the technology is very good, what are you afraid of?

Besides, with the authorization of new models, those car companies have also improved their technical strength.

The leader above replied that we can use the money from selling joint venture cars to develop our own car brand, otherwise where will the research and development costs come from?

After Feng Yu heard the news, he also felt a little headache. This was the case in Huaxia in his previous life. If it weren't for the rise of the car companies of Li Dafu and others, Huaxia would almost not have its own car brand in his previous life.

Although there are still red flag cars, no one recognizes them at all. The technology is backward, the appearance is not beautiful, the interior is also average, and the performance is even more average. Although the price is cheap, there are not many people who buy it, because there are not many people who are good at repairing this model.

It is inevitable that the car will be damaged, even if it is not very bad, it still needs maintenance or something. After sales service is very important. Not to mention the 4S shop of Songjiang brand cars, there are also many private repair shops. There are also many repair shops for Volkswagen, Crazy Field, Bentian, Ford and other cars.

But when you talk about the repair shops of Modu Automobile and Hongqi Automobile, they are rare. Even some small bread repair shops are much more than these.

Such a vicious circle, then private brands will gradually decline. In the previous life, Hongqi launched a concept car worth 5 million yuan to demonstrate its new technology, but the Hongqi car is not selling well? The most profitable and the hottest sellers at once are Crazy Field and Dazhong.

"Mr. Feng, why don't we announce the real cost of those joint venture cars? Let them be forced to lower the price?" Li Mingde came up with a ruthless move.

Feng Yu shook his head. This move is too damaging, and it hurts the interests of those car companies and state-owned assets. In that case, Songjiang Automobile will become the target of public criticism.

Think of another way.

... (To be continued.)