Toyota's price cuts across the board shocked not only Zhang Wenhao, but also other car brands. The psychology of these brands was similar to Zhang Wenhao's analysis. They were indeed defeated by Dongchen's technology, but they
But they are not worried about how much impact Dongchen will have on their market. However, Toyota has now made such a move, which will immediately bring huge pressure to them!
Models that were positioned as competitors of a certain Toyota model in the past have lost their competitiveness directly due to Toyota's price drop. For example, Toyota Camry, Volkswagen Magotan, Honda Accord, and Buick Regal are competitors in the same class, and each has its own characteristics.
Each has its own potential users for its market share, but if the price of the Camry suddenly dropped by more than 30,000, then other models will simply not be able to compete with it. (Just read the novel.) "
General Group and Volkswagen Group are holding emergency meetings at this moment. The center of the meeting is Toyota's price reduction measures, and they cannot affect Toyota's own decision at all. Therefore, they can only respond to Toyota's move and come up with their own measures.
countermeasures.
As Zhang Wenhao expected, soon after Toyota announced the price reduction, other brands responded one after another. The response speed was staggering, as if they had already agreed with each other, and consumers across the country suddenly also responded.
It set off a wave of discussion, and the latest car prices of various models and matching preferential policies were exposed everywhere on the Internet, and among the public, all the topics these days began to focus on cars."
Families and consumers who were not prepared to buy a car in the past, or who were planning to buy a car in the future, have directly increased their car buying pace. Now, they feel that the price of the car is an opportunity that cannot be missed, and they have begun to prepare to buy, while relatives and friends
Among them, the most discussed topics are which car each other is optimistic about, how much the price of this car has dropped, and when is the best time to sell it.
At the same time, Zhang Wenhao and Long Xiaoyue walked into the building of the Ministry of Commerce. Today, the Ministry of Commerce is going to hold an internal meeting. The theme of the meeting is matters related to Dongchen Automobile's cooperation with other state-owned brands.
On this occasion, Zhang Wenhao still needs Long Xiaoyue to come out to support him, and the position he posted today is no longer Long Xiaoyue's assistant, but the plenipotentiary representative appointed by Long Xiaoyue.
In addition to Zhang Wenhao and Long Xiaoyue, the attendees were also five major companies: FAW, Second Automobile Works, China Overseas Automobile Group, Yanjing Automobile Group, and Northern Automobile Group. These companies are all state-owned enterprises, and their ability to implement the above policies is 100%.
Therefore, private automobile companies were not notified to participate. On the one hand, it was due to poor compliance. On the other hand, the Ministry of Commerce also wanted to keep the money from outsiders. It first used the advanced technology of Dongchen Automobile to arm state-owned brands. Private brands can
Let it go for now.
At this meeting, the Ministry of Commerce issued a red-headed document, and it will be classified as confidential by nature. Those attending the meeting from other companies are all top leaders of the company, and are not even qualified to bring an assistant.
After the person in charge of the Ministry of Commerce made a simple opening statement, he handed the matter directly to Zhang Wenhao and said: "We'll let Mr. Zhang, the plenipotentiary representative of Dongchen Automobile, give you a brief introduction to the specific plan."
Most of the top leaders of these companies present are middle-aged, and some are already in old age. However, the two people from Dongchen Automobile are very young. Long Xiaoyue is only twenty-three or four years old, and Zhang Wenhao is because of the clothes he wears.
Dressed in formal and mature clothes, he looks like he is the same age as Long Xiaoyue. However, even so, the leaders of these enterprises are still not used to it, because the framework and system of state-owned enterprises make them look at young people in a way that they always look at juniors.
Feeling... Zhang Wenhao opened the microphone in front of him and said calmly: "Everyone, the main reason why we need to hold such a meeting today is because Toyota's previous price reduction behavior has led to a comprehensive price reduction in the entire market.
Now, you should also be suffering from this. As for the products produced by your companies, their original competitiveness is relatively weak. They can only rely on compressing profit margins and maintaining cost-effectiveness to maintain their own markets. Now, these multinational companies
After companies start to cut prices, your living space will be infinitely compressed. If you are asked to lower the selling price according to their proportion, I think you will not have any profit margin, right? Quite a few words."
The faces of the leaders of these companies are a little embarrassed, but they cannot refute it. It is an obvious fact that their products lack competitiveness. This is due to their backward technical strength. Zhang Wenhao is from Dongchen, and their technical strength is top-notch, so
You can blame any car manufacturer in the world.
After Zhang Wenhao said this, many people next to him also looked in agreement. After all, they knew very well that the profit of the product was originally small, and they relied on low profit and high cost performance to compete in the market. Now, others have lowered their prices.
But they can't lower the price any further. If they lower the price any further, they will have to operate at a loss. When the time comes, others will measure how much they make when selling a car, while they will measure how much they lose when selling a car.
The top leader of FAW said with a helpless look: "Our best brand in the family car market now is FAW Pentium. Pentium was originally produced on FAW Mazda's platform. Our chassis and engines are all from Mazda."
technology, but our price is one level lower than that of Mazda. Therefore, it is also relying on this to ensure that we can have more than 100,000 sales every year. However, now Mazda has also begun to implement price reduction strategies, which has caused our Pentium to lose
In the past few days, foreign companies have begun to cut prices. Pentium sales have not exceeded 20 units per day. Judging from this, we may not be able to sell even 10,000 units a year. Now we have begun to prepare to shut down 80% of our production capacity.
, shrink production, save costs, and reduce losses.”
Zhang Wenhao nodded and said: "Presumably all domestic brands are facing such an embarrassing situation now. Most of the consumers who originally bought domestic cars were unable to afford cars of imported brands or joint venture brands. Now, they have begun to cut prices significantly.
This will make domestic brands even less competitive. If this continues, I think it will take less than a year for all domestic brands, except those that focus on the lowest-end market, to be crushed."
"That's right." The leader of China Overseas Automobile Group nodded and said: "Our own brand Roewe is also facing such a situation, which is very embarrassing. If this continues, this brand will be destroyed, and we, China Overseas Automobile Group, will be in trouble in the future.
We can only produce joint venture cars. [*You]"
Zhang Wenhao smiled slightly and said: "This is also the purpose of holding this meeting today. The Ministry of Commerce did not clearly explain the main purpose of this meeting to you when issuing the document. The reason is that the content to be discussed in this meeting is relatively confidential, so
It’s not appropriate to mention it directly in the document, but since everyone is sitting together now, I’ll make it clear.”
Having said this, Zhang Wenhao paused and said sternly: "In view of the current situation, the private brands of your respective companies may have to face a difficult choice in a short period of time, whether to continue to sacrifice the already very meager profits to run the business.
, it is better to shut down most of the production capacity and wait and see what happens, and maintain its own strength, but I can tell you clearly that neither of these two paths is feasible."
Others looked a little grim, and Zhang Wenhao spoke again: "Faced with this situation, the country has two solutions. One is to use strong measures to prohibit these brands from cutting prices in order to protect the viability of state-owned brands. However, this will inevitably
It will cause misunderstanding among the people, and it will be a large-scale misunderstanding. Therefore, this method cannot be used unless it is a last resort. Moreover, even if it is used, it may not have good results, and I am afraid it will be counterproductive.”…, “
The second method is to find ways to improve our competitiveness so that we can gain a firm foothold in this torrent of price cuts, and what I want to talk to you about today is this second method."
The person in charge of FAW asked: "Mr. Zhang, do you mean that Dongchen is interested in cooperating with us?"
Zhang Wenhao nodded and said with a smile: "If we didn't intend to cooperate, we wouldn't be sitting together today." After saying that, Zhang Wenhao paused and said: "Now, Dongchen gives everyone a solution, let's see
Let’s see if everyone can accept it.”
The person in charge of FAW's eyes lit up and he blurted out: "Please tell me."
Zhang Wenhao smiled and said: "That's right. We suggest that you temporarily shut down at least 70% of your production capacity to reduce costs and avoid a large amount of cash being occupied by a bunch of unsold cars. And the 70% of the stopped production capacity,
All of them will be used for OEM production for Dongchen."
"If you have your own engine production line, you will have full authorization to operate the production line to Dongchen. In return, Dongchen will provide you with Dongchen's own engine and authorize you to use Dongchen's engine in your own models.
And we guarantee that the price of the engine authorized by Dongchen will not be higher than that of engines of the same level on the market, but its performance will be improved by at least 15%."
This sentence made everyone present shine. Dongchen's engine? This is good news! If equipped with Dongchen's engine, their fuel economy is unmatched by other brands, although other brands are implementing price cuts.
Sales, but if the economic efficiency of domestic brands of cars has been greatly improved, then they can naturally make up for the gap caused by the other party's price cuts. After all, buying a car is only a temporary effort, but maintaining a car is a continuous expense for at least several years. If you can
Compared with reducing use and maintenance costs, the latter is more cost-effective.
At this time, the person in charge of Yanjing Automobile asked: "In this case, wouldn't there be a contradiction? We will first give 70% of the production capacity to Dongchen, and then we will replace it with Dongchen's engine and compete with ourselves.
Our strength is guaranteed. In this way, the demand for our own brands will be maintained, and may even increase. With only 30% of the production capacity left for us, it will be difficult for us to meet market demand."
Zhang Wenhao smiled calmly and said: "This is the condition of cooperation. After all, Dongchen cannot authorize the engine to you in vain, and the price is not higher than other engines of the same displacement level in the market. Dongchen has made
Concession, your company will naturally have to make certain concessions and sacrifices before it can be called cooperation."
With that said, Zhang Wenhao added: "Actually, you can do the math. None of your car production lines can produce at a capacity of 100. Basically all production lines are producing at idle speed, and the production capacity used will not exceed the original production capacity.
The maximum load of the production line is 60%, and I will take 70%. For the remaining 30%, if you produce at full capacity, the output will only be reduced by half. However, you can regain the market competitiveness, which is better than being constantly suppressed.
Isn’t it much better for foreign brands to crack down on exclusion like this? Quite a few words.”
Everyone was silent. Zhang Wenhao was right, but Zhang Wenhao's request was still a bit difficult for them to accept.
It felt like I had fallen into the water with all my belongings. Someone was rowing over and said, if you give me 70% of what you have on you, I will let you get on the boat. However, to them, they still
They held on to a glimmer of hope that they could swim to the shore on their own, but they didn't want to think that if they fell into the water and drowned, the end would be worse than this.
Zhang Wenhao said: "I don't want 70% of your production capacity for nothing. This 70% of the production capacity will be allocated to Dongchen, and you will be responsible for the OEM. Dongchen will guarantee your profits for this part. When the time comes,
Compared to you, you can operate 30% of your productivity by yourself, and the remaining 70% also has a good income, which will not allow you to shut down most of the production lines and lay off a large number of employees."... Zhang Wenhao then said another one.
Conditions, said: "I will not occupy 70% of your production capacity for a long time. As long as we start cooperation and sign the agreement, starting from the first day of production, I will take the initiative to reduce it by 5 percentage points every quarter.
In other words, after the first quarter of cooperation is completed, I will adjust the ratio from 70:30 to 65:35. After three months, it will be 60:40. I will take you a total of 70 points and pay them back every three months.
If you go back five, that's twenty a year, and in three and a half years at most, Dongchen will no longer use your production line. And by then, you can still get Dongchen's engine supply, and what I can promise you is
, if our cooperation is happy, Dongchen can consider licensing other technologies for you to use."
This sentence caused ripples among everyone. If just now they felt that they were facing a contract of betrayal, then now, they are much more rational and comfortable. With this cooperation method of constantly returning points, they
Still acceptable.
In fact, what Zhang Wenhao needs is a time difference. He can't conjure up multiple car production lines at once like magic. This is illogical and inconsistent with the rules. Even with a super learning system, he still has to eat one bite at a time.
Eat, now faced with the price reduction crisis led by Toyota, it needs to increase production capacity in the short term to occupy the market. On the one hand, it avoids the market and potential markets being robbed. On the other hand, it also makes consumers have more confidence in Dongchen.
As for the production lines of these state-owned enterprises, even if they keep letting Zhang Wenhao use them, Zhang Wenhao will never agree. What he really wants is his own production lines and his own high production capacity. Now, he needs the production lines of these enterprises to give him
Gain time, and with the time gained, he will run at full capacity and build his own production line.
At this time, the person in charge of Yanjing Automobile asked: "Mr. Zhang, the engine authorized by Dongchen to us is promised to be about 15 times better than the current engines of the same level. However, from what we know, the Dongchen engine's
Compared with engines of the same level, the performance and fuel consumption are improved by 3040%, which is twice the difference. Can I understand that what Dongchen authorized to us is just a castrated version?"
Zhang Wenhao nodded unabashedly and said: "Dongchen's own core competitiveness is naturally impossible to give up to others, but even the castrated version is enough for you to improve your market competitiveness. Moreover, our other
We can also license a stripped version of our core technology to you, such as our transmission system."
The person in charge of the Ministry of Commerce who presided over the meeting said: "The suggestion made by Mr. Zhang is still very beneficial to you. First of all, your production capacity is currently wasted a lot, and you are facing huge competitive pressure, and the replacement of your own brands
Dongchen Engine also needs to continuously accumulate market reputation, so the gradual rebate proposed by Mr. Zhang is also very reasonable for you. If there are too many rebates, you will get excess production capacity at once, but the market cannot digest it, and you will still be satisfied
You will have an impact on yourself. If the rebates are less, you will not be able to get more production capacity, which will be detrimental to your competition."
Everyone nodded frequently, looking thoughtful. At this time, Zhang Wenhao made another move and said: "What we have to do now is not just cooperation, but also facing decades of impact and competition from foreign brands.
Exclusive, it is time for domestic brands to launch a counterattack, and Dongchen is willing to be the vanguard of this counterattack. If everyone reaches a consensus today, then we will no longer be just a few car manufacturers, but an alliance and a unified
battle line.”
The person in charge of the Ministry of Commerce's eyes lit up and he blurted out: "Mr. Zhang's idea is very good! We might as well just create an alliance directly, just like the SkyTeam Alliance and Star Alliance of airlines, it is a
With a common brand, in the future, in addition to their respective brands and logos, our products will also add an alliance logo, so that the overall competitiveness will be even more significant!"
These words moved everyone present, and everyone started talking about it. Zhang Wenhao thought that this might not be a bad thing, so he said: "In this case, I agree with this idea. After we reach a cooperation, we will announce it to the public."
In an automobile alliance, in addition to brands like ours, we can also attract more domestic brands to join in the future, pushing up the overall competitiveness of domestic automobiles!" (To be continued.
(.).
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