Songjiang Motors had developed 3 models and 6 models. They were Mingming Olympic, Red Star, and Off-Road. They had started mass production. Of course, they dare not to increase the production at the start. The two branch factories had only produced less than 1,000 units a month.
When the few automobile manufacturers in China knew that Bing City Machinery Company was going to start manufacturing automobiles, especially small sedans, they felt it was a joke.
You are a tractor and motorcycle manufacturer, and you want to manufacture good sedans?
Bing City Machinery Company might be the top manufacturer in China for motorcycles and tractors. Be it the sales or product quality, Bing City Machinery Company might be the top manufacturer in China.
But for sedans? Even if the sedans market in China had become popular, there are so many old brands in China. How can Songjiang Motors become popular?
We are using Germany, US, and Japan's advanced technologies and imported their production lines. We also have their experts to guide us. What about Songjiang Motors cars? What's there?
What? They had hired automobile experts from the Soviet Union?
Stop joking. What good cars does the Soviet Union have? The Soviet Union's cars were noisy, old, and uncomfortable to sit on. These few years, Hua Xia had stopped importing Soviet Union cars. Oh, no. It should be the former Soviet Union.
The company that was waiting to see Bing City Machinery Company make a fool of itself was Jilin Province's FAW.
Bing City Machinery Company had poached many people from FAW, and many of them were the technical backbone of the company. FAW could still remember the scene of Bing City Machinery Company putting up a banner in front of FAW's factory.
FAW was waiting for Bing City Machinery Company's cars to be abandoned, and FAW will have to sell their factories. At that time, FAW can acquire one or two factories and increase FAW's production. At the same time, FAW must poach all the people from Bing City Machinery Company. Not only the technicians and experienced workers, but also the ordinary workers!
… …
When everyone was looking at Songjiang Motors cars, Feng Yu, Fu Guangzheng, and the rest were very confident. They had tested 6 models of cars. The lowest retail price was 120,000 RMB, and the highest retail price was 500,000 RMB. One of them was a diesel off-road vehicle, which was not available in China.
But how to publicize it had become a difficult problem for everyone.
Fu Guangzheng wants to advertise in all the major media, especially on CCTV. He also wants to get celebrities to endorse them. It would be best if he can organize an auto show and make it as big as possible. Most importantly, he wants to increase his brand awareness.
Among the Chinese, Songjiang Motors was still a motorcycle. If Songjiang Motors introduced a small sedan, no one will dare to sell it. After all, there are imported cars and domestic joint-venture cars. The quality and after-sales service are guaranteed. We don't have anything.
Feng Yu asked his men to do some calculations. If they were to set up a complete after-sales service center in each of the provinces, it would cost hundreds of millions of RMB! Unless he could make it like the 4S stores in his previous life and charge more than the market price, he would definitely lose money.
However, if there were no after-sales service points, it would give others the feeling that you don't provide after-sales service and reduce customers' desire to buy.
Also, the price of cars is too high. Those motorcycle dealers do not have the ability to sell cars. Even if they only buy two cars, it will cost 2 million. But how can a shop only buy a few cars? There are also the cost of the shops, salesmen, etc., and it will be hard for them to afford it.
Feng Yu had considered all these problems before. His suggestion was to provide the cars to the dealers first, and the dealers only need to pay 1 million RMB as a deposit. But during the sales, the payments must be credited into Tai Hua Trading's account, and then Tai Hua Trading will settle the payments with the dealers. This was also the sales model used by many 4S stores in his previous life.
Bing City Machinery Company can send one mechanic to each store, and the stores can hire two mechanics. This should be enough for the time being. Songjiang Motors cars are more durable than other cars.
This way, it will be similar to the 4S stores in Feng Yu's previous life. The disadvantage was that the Machinery Company will be under a lot of pressure. Once the sales are not good, it might cause a cash flow problem. If it is more serious, the Machinery Company will have to stop production.
But if the sales are good, they can form a sales network faster and increase their sales. This was much easier than setting up their own shops.
Li Mingde was against this. Look at First Automobile Works, Second Automobile Works, and the rest of the automobile manufacturers. They were setting up their own shops and selling their cars themselves. If you give the cars to someone else, what if that person runs away? 1 million RMB as a deposit, and you give the other party more than 10 cars that cost more than 2 million RMB. How risky is this?
Li Mingde had objected to Feng Yu setting up such a big empire. China does not have such a big market. Why do you need to set up such a big empire?
Although only two branch factories had started production, weren't the other branch factories also under construction? Early next year, they will start production gradually. What if the sales are not good?
Feng Yu laughed. He had another way to sell his cars. That was salesmen.
Just like the US, door-to-door sales was a very common sales model. A good salesman's annual income was equivalent to a company's top management. They do not even need to sell their products in stock. They will bring the customers back to the factory to look at the products and let the customers decide if they want to buy.
Of course, Feng Yu was not asking them to go to ordinary people's houses to sell their cars. He was asking them to go to government agencies to sell their cars.
Both Fu Guangzheng and Li Mingde agreed with this idea. In the end, Feng Yu decided to use a two-pronged approach. He will let those motorcycle dealers continue to sell his cars, and he will use the Machinery Company's salesmen to promote his cars to the various government agencies.
If Feng Yu's memory was correct, next year would be the year when the number of Hua Xia's cars will increase. Even the Deputy Divisional Officials will be given their own cars. In some regions, even the section chiefs will have their own cars!
There were many reasons for this. For example, in this 5 Years Plan, investments were the focus of the government. This was related to the promotion of the leaders. There was also the increase in the production of domestically produced cars or joint venture cars. This caused the prices of cars to drop, and the government's revenues to increase. More and more government officials felt that they should buy cars for them.
This was a good opportunity for Songjiang Motors to make a name for itself. It can be said that these 6 models were designed by Feng Yu himself. He provided the ideas, and Liu Michael and the rest designed the cars.
The 3 models were the traditional saloon cars (Olympic), SUV (off-road), and MPV (Red Star).
The target of the saloon cars was Santana. The SUV's target was Jeep and Cherokee. The MPV's target was Mercedes-Benz and Audi!
For the sales, Feng Yu and Fu Guangzheng started to look for the government officials they were close with. They wanted to sell the cars to the leaders first. This way, the rest of the government officials would consider Songjiang Motors!
Feng Yu's first stop was CCTV!
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