"President, something big happened!" Junichiro Watanabe, the person in charge of Toyota Asia, rushed into the office of President Fujio Cho in panic.
Fujio Cho put down the report in his hand and frowned. "What happened? Is General Motors doing something big again? Volkswagen, BMW, or Volkswagen? Or India's Tata Motors? "
In Japan, Toyota had successfully overtaken Honda and became the number one brand. These few years, Toyota had focused on developing the North American market. In the entire North American market, Toyota was able to compete with General Motors.
Both companies are about the same in Asia. But as Hua Xia expands their market share, Toyota is confident they can overtake General Motors. Toyota plans to become the world's top automobile manufacturer within five to eight years.
This year, Toyota's pre-tax profits are over 6.5 billion USD, and next year, they plan to increase their profits by 15%. They will become the world's second largest automobile manufacturer within three years, and they believe they will be the world's top automobile manufacturer in the future!
"No. There are no major automobile manufacturers making any moves. Wait … there is a company that can be considered as a major automobile manufacturer, and it will affect us greatly." Junichiro Watanabe replied.
"What do you mean by a major automobile manufacturer? Yes means yes, and no means no. Which company are you talking about? Nissan? Or Hyundai? "
"No. It's Hua Xia's automobile manufacturer, Bing City Machinery Manufacturing Group."
Bing City Machinery Manufacturing Group?
Fujio Cho frowned. This company is not easy to identify. In terms of automobile sales, they had occupied the majority of the Chinese market and Eastern Europe's market share. They had even entered the European and US markets.
However, the technical prowess of this company wasn't that great. It was only in terms of exterior design and comfort. When it came to the engine and chassis, it could only be considered second-rate.
But because they had occupied Hua Xia's market share, their annual sales had exceeded 1 million vehicles last year. 1 million vehicles is the difference between a major automobile manufacturer and an ordinary automobile manufacturer. Toyota's sales last year were less than 6 million vehicles.
Although the gap is huge, when Toyota's annual sales exceeded 4 million, Bing City Machinery Manufacturing Group is still manufacturing tractors!
This speed of growth was too terrifying!
Fujio Cho was furious. If it wasn't for this company, their cooperation with Hua Xia's company will be much better, and their profits will increase by at least 500 million USD.
By exporting Hua Xia's cars, they will be able to generate more profits. This Bing City Machinery Manufacturing Group had slowed down Toyota's expansion, especially in Hua Xia.
In other words, all the automobile companies' expansion in Hua Xia had been seriously affected. It couldn't be helped. They had an absolute advantage in terms of price when comparing cars of the same class. Coupled with the support from the government, it was only natural for the company to develop rapidly.
To Toyota and other automobile manufacturers, the Government of Hua Xia is supporting them by purchasing Songjiang Motors for their official vehicles! In fact, it is because Songjiang Motors cars are cheap, easy to use, comfortable and stylish.
In Feng Yu's previous life, even without Songjiang, most of Hua Xia's cars were from Audi.
"What's wrong with this company?" Fujio Cho asked.
"They had introduced two new models of Oriental Deer, which is their SUV brand, with 4.0L and 4.8L engines. They also introduced a new series of pickup trucks. These are the models we are promoting to Hua Xia. "
SUVs and pickup trucks are Toyota's main imported models for Hua Xia. As for their sedans, they are not selling well and cannot be compared to those joint ventured vehicles and Songjiang Olympic.
Toyota had the confidence to increase their brand awareness with their large CC SUVs and pickup trucks. But Bing City Machinery Manufacturing Group seems to be going against them. Just when they are trying to increase their sales, Bing City Machinery Manufacturing Group is introducing the same models as them. They are trying to snatch this market share!
What shocked Fujio Cho the most is Bing City Machinery Manufacturing Group can mass-produce large CC engines. This means their technologies had improved a lot.
"How much are their two models selling?"
"Oriental Deer's two models of vehicles. The 4.0 CC is priced at 49,900 USD overseas and 359,900 RMB in Hua Xia. That's less than 45,000 USD. The 4.8 CC is priced at 59,900 USD overseas and 459,900 RMB in Hua Xia. That's around 55,000 USD. That pickup truck is also split into 4.0 and 4.8 CC, and it uses the same engine. The overseas price is slightly higher, and the Hua Xia's market price is slightly lower … "
Toyota's 4500 is more than 600,000 RMB in Hua Xia, and the difference is too obvious!
Bing City Machinery Manufacturing Group had really developed a low-cost engine with high CC!
Wait, overseas prices? They are also selling their vehicles overseas?
"You are talking about overseas prices? Are you talking about Eastern Europe?"
"No. Not only Eastern Europe. They had mentioned during their product launch that they will be entering Europe and the US soon. President, pickups and SUVs are very popular in North America, Europe, and even Africa. If they produce such low-priced models overseas, it will have a huge impact on our market! "
"Not only Eastern Europe? Why can they sell their vehicles so cheaply in Europe and the US? Don't they need to pay taxes? Don't they need to make money? "Fujio Cho is puzzled. How much is the production cost of one vehicle, and what about other expenses? Do they need to pay for advertising, transportation, etc.?
"President, Europe and the US have low import taxes for these products. Furthermore, Hua Xia had joined the WTO, and their taxes are lower. Most importantly, Bing City Machinery Manufacturing Group has joint venture factories in the US and the UK!"
"Don't talk to me about these. I only want to ask you if we can lower our production cost."
"President, our production efficiency is higher, but Hua Xia's labor cost is too low."
"Other than Hua Xia's market, can we suppress them in the US and European markets?" These are all excuses. The US and European markets do not have an advantage in terms of labor cost.
"This should not be a problem. Their selling prices do not have much of an advantage in the US and European markets. Also, their profits will not be high at their selling prices. I think they are trying to enter the market as soon as possible. I think we can work with the other manufacturers to suppress them! "Junichiro Watanabe's eyes flashed fiercely.
"Cooperate with other manufacturers? Do you think it will work? Are you confident of doing it? "
"How will we know if we don't try? After all, if we can get rid of Bing City Machinery Manufacturing Group, we will be able to enter Hua Xia's market! I think they will be interested in this pie. "
"Alright. You will be in charge of contacting other manufacturers. If this is successful and we enter Hua Xia's market, I will recommend you to be the Vice-President!"
… …
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