That year the flowers bloomed 1981

Chapter 1504 This is a conspiracy
"Once you can produce your own engines, we'll part ways amicably."

Director Tan's final words left Li Ye and Lu Zhizhang speechless, and even Lu Zhizhang couldn't help but be moved.

The cooperation terms offered by Director Tan were not only very sincere, but also very much in line with the "mutual assistance" style among state-owned enterprises in the 1970s and 1980s.

The predecessor of the light vehicle company provided the complete set of production drawings for the Beijing 130 to hundreds of enterprises across the country free of charge, enabling countless small and medium-sized automobile factories across the country to survive because of the 130.

So now, Director Tan is only asking the light vehicle company to purchase his engines at "cost price," and he's even sending experienced technicians to help with the research and development. They can also "part ways" at any time.

Isn't this mutual assistance between brother units?
However, Li Ye did not believe in this kind of "selfless help".

Because decades later, he had seen too many cases of "making small gains but suffering big losses," and he also knew that Director Tan's real purpose was to increase production capacity as soon as possible and take the lead in forming an industrial scale.

Perhaps Lu Zhizhang's understanding of the scale of the industry was still somewhat vague; he only felt that Director Tan's "cost price" was very generous.

However, Li Ye knew that once Director Tan's products reached a certain scale, even if his own KamAZ engine was successfully developed, he would fall behind Director Tan and even fall into the predicament of "being slow at one step and slow at every step".

Decades later, China's most proficient rare earth industry was actually built on the principle of achieving large-scale production at "cost price".

Who would have thought that at the beginning, China was held back by the US in the rare earth sector? Later, China endured the frustration and worked at cost price or even at a loss, coupled with its own market demand, to gradually turn the tide.

There needs to be a market and production volume for technological iteration. If you can't sell your products and nobody buys them, how can you iterate?

This is similar to the chip industry in mainland China. Li Ye has poured countless amounts of money into it over the years, but it is still very difficult to make progress.

Because the application market for chips in mainland China is too small, and overseas manufacturers keep undercutting prices while their product quality is inferior, if it weren't for Li Ye's persistent insistence despite having plenty of money, the project would have been shut down long ago.

So, when it comes to heavy-duty diesel engines, the heavy-duty truck market in mainland China is only so big. If Director Tan offers the bait of cost price and takes it all for himself, and the entire market is filled with his diesel engines, what will users think?
People in China tend to trust established brands, and within a few years, this becomes a consumer habit.

Even if Li Ye's KamAZ engine is successfully developed a few years later, his opponent will be Steyr, which is equipped with a mature engine. At that time, will users buy Steyr or your KamAZ?
Trucks aren't cars; they're for making money. Users want products that can haul a lot, run fast, and are durable. Your new product, Li Ye, has just been launched, so it's bound to have various minor problems that are hard to find in a lab.
It would be strange if Li Ye were to be considered a competitor to Director Tan's diesel engines, given that Director Tan's diesel engines have undergone numerous improvements through industrial-scale production.

Therefore, Li Ye decided to politely decline.

He looked puzzled and asked, "Director Tan, I should also say something I shouldn't, but actually our KamAZ and Jicheng Heavy Truck's Steyr are competitors. You're supplying us with engines at cost price. That doesn't make sense!"

Factory Director Tan pursed his lips and looked at the guests at the banquet.

Li Ye smiled and waved, and several of his colleagues who had been drinking with him hurriedly went out to "go to the restroom together."

Once only Li Ye, Lu Zhizhang, and Factory Director Tan remained in the private room, Factory Director Tan said in a deep voice, "Of course I know that the two companies are competitors, and I also know that what I'm doing might draw criticism from Jicheng, but I believe you will be the ultimate winners."

Lu Zhizhang exclaimed in surprise: "You believe we can win?"

"Yes, you will win."

Factory Director Tan stated confidently, "Because you not only have the most advanced management structure, but you are also the company that values ​​technology the most. In addition, you have the most comprehensive after-sales service network in the country, and most importantly, you have the ability to cultivate the market."

When your new light truck was first launched, everyone lined up at the factory gate with money in hand to pick it up. Even with a price increase of 3,000, you still couldn't buy it. Everyone said you were fools who didn't want to make money. But now, who still calls you a fool?

The Steyr is too expensive, more expensive than three Geely 141 cars. What are you going to tell customers? Do you make more money from one car than from three cars?
But I don't think you'll sell heavy trucks at such a high price, and then users will experience the benefits of heavy trucks, so as long as Kamaz goes on the market, you'll win."

Li Ye raised an eyebrow and smiled slightly. A genius is a genius; he actually guessed his strategy.

However, Li Ye still asked with a smile, "Director Tan, since you know we will win, it doesn't make sense that you would still support us in developing our own engine!"

"Hey, didn't I just say? If you think it's not a good match, we can part ways amicably. But what if you think it is a good match?"

Factory Director Tan said frankly, "President Li, you've also been abroad to understand the overall situation. We live in an era of global cooperation, and the prevailing attitude is that it's better to buy than to make. If we can buy high-quality, low-priced goods, there's no need to manufacture them ourselves!"

Well! Director Tan is certain that Li Ye will be unable to do without him in the future. In addition, Director Tan is also very shrewd. As long as he can help him increase production capacity, he doesn't care whether he works with Li Ye or Jiqi.

With Director Tan's magnanimity, his frankness, and his open scheme, most people would find it hard to resist and would give in to his wishes.

Unfortunately, he ran into Li Ye.

. . . . . . . . . . . .

Li Ye got Director Tan half-drunk, but still didn't budge despite Director Tan's repeated probing.

After seeing them off, Lu Zhizhang asked Li Ye, puzzled, "Li Ye, do you feel something's not right? If we use their diesel engines, we can conduct full-scale road tests this year and start production next year."

Li Ye shook his head and said, "Old Lu, we're not in a planned economy in the mainland anymore. In a market economy, it's not a life-or-death struggle, but it's all about ability. We can't entrust our lifeline to someone else's reputation."

Lu Zhizhang blinked, as if he understood something, but still asked worriedly, "But judging from what Director Tan said, they have mastered the most advanced equipment. There are only three companies in the world that can do this, and the cylinder block strength requirements for heavy-duty diesel engines are too high."

“We are developing the fourth one,” Li Ye said calmly. “Last year, some companies in mainland China started developing similar large-scale equipment, so you don’t need to worry.”

"Hey, I was worried for nothing."

Lu Zhizhang was completely relieved.

From the moment he teamed up with Li Ye, he always encountered all sorts of "good things".

When the first factory needs a certain type of component, there "just happens" to be an inland company that has just introduced overseas technology or has spent a lot of money on research and development to provide the most suitable component for the first factory.

You have to understand that these suppliers were all "working hard for little reward" at the beginning. They invested a lot of money to produce excellent products for the small output of the first factory. If the cars in the first factory were not sold in the end, they would all go bankrupt.

As time went on, Lu Zhizhang also figured it out. Li Ye was fighting a war with reinforcements coming from all directions. Everyone around him was his own people. First, they would fully support Li Ye, and second, they would absolutely not allow anyone to hold him back.

Just like the casting equipment that Director Tan is very proud of this time, it was developed and promoted by domestic manufacturers last year under the leadership of Wen Leyu.

Although the equipment developed may not be as advanced as that of Austria due to various limitations, all the profits still ended up in the pockets of their own people.

This is actually the same principle as "industry scale".

As long as there are research and development tasks, those mainland engineers who are content with just a few hundred yuan a month will not have to sell tea eggs or set up small stalls for a few taels of silver, ultimately wasting their talents in the mud.

(End of this chapter)