Manufacturing Empire in the Valley

Chapter 1414 The price is ridiculously high
Niu Xiaoqiang smiled and stretched out his right hand: "Congratulations, let's sign the contract now."

Next, the two parties discussed the details of the contract. Since the main terms had already been negotiated, the original contract was drafted together without much effort.After checking that there was no problem, the two signed their names on the spot.

Heman shook hands with Niu Xiaoqiang again to celebrate, the two exchanged a few pleasantries, and then Heman said goodbye: "Secretary Niu, I need to go back to China as soon as possible to arrange production matters, so I won't stay here any longer. If there is anything to do, let's call , In addition, I hope that you can arrange the production of the original engine parts as soon as possible, and MAN will purchase according to the price stipulated in the contract."

Niu Xiaoqiang nodded with a smile: "Mr. Herman, please rest assured that Fang's Automobile is definitely a reputable company. As long as it is clearly stipulated in the contract, we will strictly implement it without discount."

Even if Herman doesn't urge Niu Xiaoqiang, Niu Xiaoqiang himself will immediately arrange production matters, because this contract can bring Fang's Automobile more than [-] million U.S. dollars in profits every year. The largest annual income earned, facing such a huge profit, Niu Xiaoqiang naturally will not neglect.

According to the stipulations of the contract, MAN will purchase raw auto parts of no less than [-] million U.S. dollars from Fang’s Automobile every year, and these raw parts will be shipped to Germany for finishing and assembly operations. It is used on heavy duty trucks and MAN buses.

In addition to the original parts of the engine, MAN will also purchase the original parts of the gearbox and the original parts of the vehicle chassis.These are the core parts of the car, and the price is relatively high.

However, in this contract, the purchase unit price offered by MAN was 60.00% higher than the market price. As a result, the prices of the original parts of these parts soared a lot, which obviously did not meet the current market price.

But even so, Mann is willing.They are very clear about how much profit they can reap after monopolizing super carbon steel resources. Compared with the profit, their current efforts are completely worthwhile.

After Niu Xiaoqiang finished speaking, he politely sent Heman and others outside the door, and waved goodbye to Herman.

Seeing Heman leaving with a smile on his face, Niu Xiaoqiang couldn't help but secretly cheered: I'll make you happy for a while, during which time I will use the money I earned from you to vigorously develop truck technology, and wait until My technical level has almost improved, and I will immediately enter the heavy truck field on a large scale, and see if you can stop it.

This contract only stipulates that Fang's Automobile shall not sell raw parts to other truck companies, and Fang's Automobile itself is not restricted.

Maybe MAN felt that Fang's technical level in the field of heavy trucks was too low, so it did not impose any restrictions.The actual situation is indeed like this. The design and manufacturing level of Fang's heavy trucks is indeed far behind that of MAN. If there is no super carbon steel, the performance and quality of Fang's heavy trucks cannot be so excellent.

Even with the support of super carbon steel, it is impossible for Fang's heavy trucks to shake the position of MAN in the field of heavy trucks.In the automotive industry, if a brand wants to become bigger and stronger, it needs to spend a lot of time and energy to build a good reputation, and it also needs a certain foundation and precipitation.

Fang's heavy trucks can be regarded as having nothing in these aspects at present, and there is still a long way to go to catch up with Shangman.Before signing this contract, Niu Xiaoqiang did not invest too much in heavy trucks, and his main energy was all on cars.

This is not to say that Niu Xiaoqiang deliberately prefers one to another, but that the heavy truck market is far inferior to the car market.At present, the global heavy-duty truck market is only about 200 billion US dollars, but the scale of the family car market is as high as 680 billion US dollars, and it is still growing. It is clear at a glance which is more important.

In addition, Niu Xiaoqiang has obtained a lot of technical reserves from Packard Motors in the field of cars. Compared with investing heavily in heavy trucks with little technical reserves, investing in cars is obviously more suitable.

It is precisely because of the existence of these factors that Niu Xiaoqiang will focus his development on the field of family cars.

The current situation is a bit different. Niu Xiaoqiang can get a large sum of money from MAN. With the money, he can increase investment in heavy trucks without worrying about the shortage of funds.

He can even invest the extra money in the field of family cars, continue to expand investment in this important market, and develop more high-end technologies.

Thinking of this, Niu Xiaoqiang couldn't help humming a happy ditty. As soon as he returned to the office, Niu Qiuxiang couldn't help asking: "Xiaoqiang, is there something wrong with this contract?"

Niu Qiuxiang originally wanted to record the details of the negotiation, but Niu Xiaoqiang and Heman communicated in English throughout.Her=Although she has learned English, she is still a little far from being able to understand spoken English, so Niu Qiuxiang was a little confused during the entire negotiation process just now.

When signing the contract, Niu Qiuxiang helped to copy the documents. When she was copying the documents, she saw the purchase unit price marked on it, and the more she looked at it, the more surprised she was.

Niu Qiuxiang couldn't understand what the two were talking about, but she could still understand part of written English.After repeated confirmation, Niu Qiuxiang was sure that what she saw was the purchase unit price of the original parts.

She is still very clear about the market situation, and seeing that the price stipulated in the contract is ridiculously high, she can't help feeling quite puzzled.

Under normal circumstances, it is impossible for the original parts to be sold at such a high price, but the contract is clearly written in black and white, which makes people feel incredible.

Just now Herman was still there, so it was difficult for Niu Qiuxiang to ask.Now that Herman had left with his people, Niu Qiuxiang naturally had no worries, so she couldn't help asking her own questions.

Niu Xiaoqiang heard the third sister said that there was a problem with the contract, so he couldn't help asking curiously: "Sister, what's wrong with the contract?"

Niu Qiuxiang pointed to the purchase unit price marked on the contract, and asked with a puzzled face, "Is the amount of these purchase unit prices too exaggerated?"

Niu Xiaoqiang laughed when he heard the words: "Sister, don't worry, there is absolutely no problem with the pricing of these purchases. If there is a problem, how can Man Company sign a contract with me? Do you really think people are so easy to fool?"

Niu Qiuxiang widened her eyes and said, "Xiaoqiang, how did you let the people of Man Company accept such an unreasonable purchase price? This, this is incredible!"

(End of this chapter)