Feng Yu had come to Shanghai for another reason. Li Mingde is having a meeting in Shanghai. It's the National Automobile Industry Development Forum.
SAIC Motor Corporation had become the host, and Li Mingde is unhappy.
How can SAIC Motor Corporation compete with Bing City Machinery Company in terms of brand awareness, sales territory, and profits? Just because we have farming machines and motorcycles, we are given a pass?
Actually, there is another reason. Bing City Machinery Company is competing with Spring City's No.1 Automobile Company, and the higher-ups had pointed this out.
At night, in Feng Yu's suite, Li Mingde and Feng Yu are having a meal and two cans of beer.
"Hmph! SAIC Motor Corporation dares to scold us? Aren't they a joint venture? Although we are also a joint venture, we are funded by Hong Kong and the private sector. Our management and employees also own the shares. We are the ones who represent a collective enterprise! "Li Mingde said angrily.
During the meeting, SAIC Motor Corporation's General Manager said there is something wrong with Bing City Machinery Company's shareholding structure. The State is not the major shareholder and used this to make fun of Li Mingde.
He even said it is a mistake for Li Mingde to own the company's shares. Li Mingde almost cursed out loud.
What's wrong with me holding shares? This is a reward from the company, and I am rehired after retirement. I did not ask for a single cent of my salary. Can't they give me some shares as a reward? Bing City Machinery Company had grown from a small local factory to a famous machinery factory in China, and I had contributed a lot. If not, why would the shareholders agree to reward me with shares?
SAIC Motor Corporation's General Manager Niu is just saying that the grapes are sour!
"Old Li, stop it. Why are you angry with them? It's only because their Santana prices dropped last year, and their domestic sales surpassed us. What's wrong with that? Including our overseas sales, we are still the top. "
Hua Xia has seven automobile manufacturers, and Bing City Machinery Company is still the strongest. Last year, their sales had exceeded 100,000 units, and SAIC's sales are only about 80,000 units.
Also, you can ask others if they prefer Songjiang Motors or Shanghai's joint venture cars.
"This year, the other automobile manufacturers had introduced a few new models, and the terms of their joint ventures are much better than before. If we are not the first to develop our own cars, do you think they will get such preferential terms?"
Indeed, because of the emergence of Songjiang Motors, Hua Xia's automobile research and development had become more successful. Moreover, it also deeply stimulated the other automobile manufacturers. Those automobile manufacturers also became determined and broke through some technical difficulties. Their technical strength was greatly improved.
But Hua Xia's technologies are still lagging behind overseas manufacturers, including Bing City Machinery Company. Hua Xia is still lagging behind Japan, Europe, and the US.
For example, Bing City Machinery Company had just mastered the most advanced technologies, and overseas manufacturers had started mass producing them a few years ago.
The technology gap between both companies is narrowing. This is all because of Bing City Machinery Company. No other automobile manufacturer had expected this.
In the beginning, those overseas manufacturers had cooperated with Hua Xia's manufacturers. Although they had exported some technologies, they had kept the better technologies to themselves.
Also, to a certain extent, they had delayed the development of the Chinese automobile manufacturers and let them develop in the direction they want. The Chinese automobile manufacturers will become their spare parts manufacturers.
But now, Hua Xia's brand image is greatly affected. They thought their automobile brand will enter the hearts of every Hua Xia citizen. But now, Hua Xia's most popular automobile brand is China's own innovative brand, Songjiang Motors!
The development speed of the automobile companies had exceeded their expectations. It was almost a year faster than they had imagined!
Hua Xia had made the automobile industry one of its pillars and wants to develop it. They had also restricted the import of automobiles, including the tariffs and the quantity.
The automobile manufacturers had thought about it and decided to continue their joint ventures to license new models and technologies to Hua Xia's automobile manufacturers.
But during the joint venture negotiations, they noticed Hua Xia's attitude had changed.
During the initial negotiations, they had the upper hand. Those automobile manufacturers had proposed many harsh conditions, and the other party had agreed to them.
This time, the automobile manufacturers still want to cooperate with Hua Xia's automobile manufacturers, but none of them agreed!
The automobile manufacturers had cooperated with Hua Xia's automobile manufacturers to import new technologies. Since the automobile manufacturers had gotten the technologies, and they had developed new technologies, the automobile manufacturers will cooperate with Hua Xia. Although the authorized models and technologies are more advanced, they are only better than Songjiang Motors' old models.
With Songjiang Motors' strength, they will surely introduce new models. What if their introduced models are suppressed by Songjiang Motors again?
They had spent so much money to introduce new models, and it will be a huge loss if their introduced models do not sell well. Even the employees will not agree to this, let alone the higher-ups.
This time, the automobile manufacturers changed their attitude. They had agreed to give Hua Xia 49% shares in the past, but now, they will only give Hua Xia 30% shares, and Hua Xia must pay more.
That's right. Your technologies are worth a lot of money, but they are not new. If Hua Xia does not agree, we will cooperate with Songjiang Motors. We are all on the same side, and we can get better terms.
This is Hua Xia's trump card. Hua Xia has similar technologies as Hua Xia. Although Hua Xia is lagging behind, who says they do not have new technologies?
Those overseas automobile manufacturers realized that Hua Xia's automobile industry is no longer what they thought it was. Just one Songjiang Motors car had messed up their plans.
Audi was the first to agree. They licensed their A6 to Shanghai Motors, and the terms are very favorable. Audi had no choice. The people from Shanghai Motors said their A6 looks similar to Songjiang Olympic. Although its performance is better than Songjiang Olympic, people will think they are imitating Audi.
Audi did not expect their car, which had been in the market for less than two years, to get such a bad evaluation. Audi panicked when they saw SAIC Motors approached other automobile manufacturers. They lowered their terms and asked for only 25% of the new model's profits, and they had to pay twice as much as they had expected.
Audi had wanted 49% shares at first and had even wanted 50% shares. But now, they lowered their terms by a lot!
After Audi signed the contract, the other automobile manufacturers followed Audi's example and asked them to increase their investment to lower the value of their technologies.
In the end, all the new joint ventures got only 30% shares, and Hua Xia's automobile technologies reached a new level!
… …
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
