"Manager Li, are you interested in taking charge of the motorcycle business? After you buy the shares, I can arrange a Deputy General Manager position for you. You will be in charge of the motorcycle business. " Feng Yu's offer to Li Dafu was better than Bing City Machinery Company's Deputy General Manager, who was in charge of the motorcycle business.
Li Dafu paused for a second and shook his head: "General Manager Feng, I still prefer cars. I hope I can be in charge of the automobile business."
Feng Yu nodded. If Li Dafu does not like cars, he will not approach him.
"Then let's talk about cars. Do you have any suggestions for Songjiang Motors?"
"Other than the cargo vans, Songjiang Motors has 3 models. Small sedans, off-road vehicles, and business vehicles. Business vehicles are not selling well. The off-road vehicles are mainly used by the military, and the sedans are mainly used by the government. These two models are selling well, right? "
"You have analyzed well. Continue."
Li Dafu continued: "But the selling price of these 3 models is more than 100,000 RMB. Although 100,000 RMB is not a lot for cars. But 100,000 RMB is enough to stop many people who want to buy cars. I think we should introduce a new brand. A low-cost car brand. We can lower the selling price to less than 50,000 RMB or even 30,000 RMB. "
Feng Yu said. Li Dafu is going to go for the low-end brand. But luckily, he did not mention Songjiang Motors. Low-cost cars will give people the impression that this brand is a cheap product. This will lower the brand value of Songjiang Motors and affect the sales of mid-range and high-end cars.
Feng Yu had also considered introducing low-cost cars. But in his previous life, low-cost cars were introduced around the year 2000. At that time, China's economy was improving rapidly, and people's demand for cars had increased. The concept of using cars as a means of transportation was also introduced.
But now, motorcycles are the preferred mode of transportation. Songjiang Motors 100 can be bought for 10,000 RMB, and there is no need to worry about the roads. The only drawback is the weather.
"Do you think we should introduce low-cost cars now?" Feng Yu asked.
"Of course not. But we need to develop the relevant technologies now. When the time is right, we will introduce low-cost cars. I estimate that it will take about three to four years. By that time, our technology should have taken shape, and the Chinese people's income should be enough for them to buy a car. Although motorcycles are good, in most people's minds, cars look more prestigious than motorcycles. "
"That is to say, you think Songjiang Motors is going to develop smaller and cheaper cars?"
"No, it's developing both high-end and low-end cars at the same time. Let's make Songjiang Motors a mid-to-high-end automobile brand, and then introduce a low-end automobile brand. We will do both at the same time. "
"We have to research the technology of both high-end cars and low-end cars. How much more money do we have to invest in research and development? We invested so much money, when can we earn it back? "Feng Yu asked.
"The automobile industry is a capital-intensive industry. But technology is also very important. If not, our domestic cars will not become joint venture cars. It's because we don't have the technology, and those overseas automobile manufacturers rely on their technology to make high profits. Currently, our Songjiang Motors technologies are the most advanced in China. But compared to those overseas automobile manufacturers, we are still lagging behind. If our technologies cannot catch up with the rest of the world, we can only sell our cars in Hua Xia, and the European market will be taken over by other automobile manufacturers. "
In Feng Yu's previous life, Geely Automobile had focused on developing technologies. They had acquired Volvo not only because of Volvo's brand, but also because of their technologies. If not, why would a declining brand be worth so much money?
Feng Yu had been emphasizing technologies to Li Mingde. Without technologies, they can only exploit their workers, and what's the point of manufacturing cars?
Feng Yu only knows the development trend of the automobile industry and where the technologies should be developed in the future. But he does not know how to develop these technologies.
Luckily, Bing City Machinery Company has many experts, and many of them are engineers from the former Soviet Union. They are still training engineers from Hua Xia, and their technologies are improving.
Songjiang Motors' technologies might not be faster than those overseas automobile manufacturers, but they are not slow either. They are much faster than those joint venture automobile manufacturers in China.
Songjiang Motors can develop fast is not because of their advanced technologies. It is because of the exterior design, performance, price, etc. Most importantly, the government and the military purchase their vehicles.
After the military purchase, the Chinese knew that Songjiang Motors is exported to Europe. Longjiang Province and many other provinces also started to purchase Songjiang Motors vehicles.
In Feng Yu's previous life, all these departments had purchased Audi and Santana from SAIC and FAW. But at the same price, Songjiang Motors vehicles are more beautiful and comfortable. Also, it is a domestic brand, and they can claim that they are supporting the development of China's automobile industry. Actually, they are doing this to avoid being criticized by their higher-ups.
In the past few years, it was the rapid development of official cars. Almost all the governments began to purchase a large number of official cars in the name of work needs. In Feng Yu's previous life, in 1995, the cost of government vehicles is already an astronomical figure. In the following few years, the cost of government vehicles is still increasing.
This is the government's responsibility. Feng Yu is only taking over those imported and joint-venture car markets and use the profits to improve Songjiang Motors' technologies.
Many of Li Dafu's ideas are the same as Feng Yu's. Feng Yu likes Li Dafu more and more. It is not a bad idea to let Li Dafu take over the automobile business.
"Manager Li, I agree with your ideas. You are suitable to work at Bing City Machinery Company. You can tell me now. How much are you willing to buy the shares?" Feng Yu smiled and asked.
"If I sell the company, I will get about 60 to 70 million RMB. With my savings, I should have about 80 million RMB. I want to buy 2% of the shares." Li Dafu gritted his teeth and said.
"Manager Li, your company's profits are quite good now. Don't you think it's a pity to sell the shares? Maybe after you invest in Bing City Machinery Company, the profits will not be as good as now. "
"My company's development is at its peak. Unless there is a large amount of funds, we will not be able to develop new materials. I think the future of the automobile industry will be much better. I think in 3 to 5 years, the value of my shares in Bing City Machinery Company will double!"
"You are ambitious! Since you trust us so much, I will lend you another 20 million RMB without interest. You can buy 2.5% of the shares. What do you think? "
Li Dafu is overjoyed. "Thank you, General Manager Feng. Please rest assured, General Manager Feng. I will do my best to help Songjiang Motors!"
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