Technology company, I will become the light of China!
Chapter 461: Good money drives out bad money, Masik organizes a dinner party to fight back
"Fuck, Mr. Chen, is he planning to build a supercar?"
"The top racing events, would it be the 24 Hours of Le Mans, the ROC World Championship, or the FIA GT Grand Prix?"
"I would have scoffed at it before, because domestically produced cars are not used in Le Mans 24 Hours or FIA GT Grand Prix, let alone in domestic events. But now, with more than 600 horsepower and more than 700 Nm of torque, our Longguo cars may not be unable to participate in international events."
"I heard that making supercars always loses money. Ferrari was forced to sell itself to Fiat Group because it lost too much money. Isn't Mr. Chen afraid of losing money?"
"Longxing Group is now a large company, so even if it loses money, how big can it lose?"
As Chen Xing officially announced the type of his next flagship car, the entire internet was abuzz with discussions. At this moment, the entry "Chen Xing wants to build a supercar" appeared on Weibo's hot search list, maximizing the exposure as much as possible.
Many professional racing drivers saw the news and checked Chen Xing’s final speech at the press conference, and quickly sent private messages to recommend themselves.
You should know that whether it is cars or domestic drivers, they are basically not seen in events such as the Le Mans 24 Hours Endurance Race and the FIA GT Grand Prix.
Why is this happening?
Are domestic drivers not good enough, or are domestic cars not good enough?
The answer is undoubtedly the car.
Today, the fuel vehicle sector is dominated by cars from Germany, Italy, Japan and the United States. When their car companies provide vehicles for free to compete in competitions, they will naturally give priority to their own players.
Because there is a better racing soil, there will be excellent racing drivers.
In a nutshell, it’s not that Chinese people don’t have racing talents, but that they don’t have the environment to discover and cultivate talents, because domestic cars are still at the level of others from decades ago.
Deep city of Fukuoka.
International Speedway.
Sitting in the stands in Shenzhen, BYD CEO Wang Fu always followed Chen Xing. He never thought that one day, domestic cars would be able to crush Mercedes-Benz, BMW and Audi in sales.
You have to know that once upon a time, "Longguo Automobile" was a synonym for something that was not presentable.
But we cannot blame others for discrimination. This is because there are a large number of patented technologies in important components such as engines and gearboxes. The patent barriers formed by this have restricted Chinese car companies in many ways, and they cannot build cars that can compete with Mercedes-Benz and BMW at all.
But now...
engine?
Is the internal combustion engine a man’s romance?
Since you are restricted everywhere, just give up!
Permanent magnet synchronous motors and induction asynchronous motors can completely replace internal combustion engines, and they are more powerful and can instantly generate full torque.
This is a bit like going off on a tangent. In the past, we tried desperately to catch up with the internal combustion engine, but found that we could not catch up. Suddenly, we discovered that electric vehicles not only have a simple structure and no patent restrictions, but also have performance far superior to fuel vehicles.
"Please exit in an orderly manner. See you at the next press conference. By then, I believe our domestically produced cars and patented technologies will be able to reach a higher level."
Chen Xing walked on the track and waved to the crowd in the stands.
There was constant applause at the scene, welcoming Chen Xing's departure.
After walking about a hundred meters, Chen Xing came to a blue Pilot 001, opened the back door and got in, disappearing from the live camera and everyone's sight.
Standing at the entrance of the second-floor stands, Masick felt mixed emotions, as the sales volume and price of the Pilot 001 were far lower than his Tesla.
Does he have a way out?
There was no way out for him.
Since Tesla has signed a "betting agreement" with Shanghai, if Tesla fails to fulfill the corresponding terms, Mazda will have to repay tens of billions of dollars in debt.
"No, we can't sit still and wait for death."
Masike had a grim expression on his face. Looking at the number of people who had placed reservations still jumping on the LED screen of the press conference, he suddenly thought of something.
He walked quickly against the current and returned to his seat in the stands. When he saw that BMW Group CEO Nagel, Mercedes-Benz Group CEO Olaf Reiter, Audi Group CEO Dussmeier, Honda Group President Kazuki Otaki, and Toyota Group President Takahiro Saikawa had not left, he finally breathed a sigh of relief.
"President Nagel, President Olaf Leiter, President Dusmai." Masik did not greet them one by one, but glanced at the presidents of foreign companies and invited them, "You all came from afar, why don't you sit down and have a meal together?"
Olaf Leiter, Dusmai and others looked at each other, exchanged glances, and then nodded in response.
"Being respectful is worse than obeying orders."
"Thank you for the invitation."
Several people stood up and waited for the crowd in the stands to thin out, while the CEO of a domestic enterprise not far away listened to the general situation.
Chen Hong, CEO of SAIC Group, sensed something unusual and quickly approached and asked, "President Masike, do you still remember me?"
Masike frowned. Of course he knew Chen Hong. They both worked in the car industry in Shanghai. But he felt that Chen Hong must have bad intentions by trying to get close to him at this time. She might be a "spy" sent by Chen Xing to gather information.
Although he was unhappy and on guard, he still smiled and said in a relaxed manner, "Of course, Mr. Chen from SAIC."
"Just remember me. I wonder what President Masike thinks of Pilot 001?"
"very good."
"really?"
"Yes."
Masike remained alert all the time. He did not dare to trust the Dragon people easily now, because those who came up to him out of nowhere must have ulterior motives.
Seeing that the other party was on guard, Chen Hong simply laid her cards on the table and said, "Just now I heard you guys were planning a dinner party. I'm quite interested, so I wanted to ask if I could join."
"Feel sorry."
Masik shrugged and did not give any reason for his refusal.
Chen Hong glanced at the foreign company presidents and found that they were all staring at her. It was obvious that these people would all attend this extremely important dinner.
As soon as the launch of Pilot 001 ended, Masick couldn't wait to organize a dinner party. Even a fool could guess the content of the dinner party.
Since the performance and price of the Pilot 001 were too abnormal, in order not to be eliminated, Chen Hong, who usually puts face first, lowered herself again and said with a pleading tone: "Mr. Noemi Paz and I are friends, we are on the same side."
When he said this, he deliberately lowered his voice, fearing that other CEOs of friendly companies would hear it.
Marsick looked at Noemi Paz beside him, as if asking for his opinion.
Noemi Paz glanced at Chen Hong, then looked at Masike, and finally nodded, tacitly approving their relationship.
SAIC Group and General Motors Group have in-depth cooperation, and the two have also jointly established SAIC-GM.
When it comes to SAIC-GM, ordinary people may feel unfamiliar with it, because except for people in the automotive-related fields, who would be bored enough to check the car companies? But if you mention the brand of the car, then basically everyone is familiar with it.
SAIC Group and General Motors have launched a total of four models in Longguo, namely the magical car Wuling Hongguang, the three treasures of losers Chevrolet, the emperor of yellow Cadillac, and the Buick, which is known as the imitation Maybach.
Of the four vehicle brands here, except for Wuling, which has a third party, the other three are shared equally between SAIC Group and GM.
What does a 50-50 split mean?
This means that half of SAIC Group’s net profit will flow to the United States.
Although a large amount of funds flow into the United States, this does not prevent SAIC Group from making a fortune and becoming one of the largest companies in the country.
Because of their deep interest bond, Noemi Paz and Chen Hong often organize gatherings and have some personal connections.
"You're very welcome." Since Noemi Paz came forward to guarantee it, Marsick let down his guard.
He also thought about it carefully. Chen Xing priced the Linghang 001 between 20.9 and 29.9, which offended all friendly car companies. Chen Hong should be a friend rather than an enemy.
“It’s an honor.”
Chen Hong breathed a sigh of relief.
Although the two spoke in a low voice, it attracted the attention of many people, including CEOs of car companies.
Those who can sit here are basically old foxes, and they can figure out what Masike wants to do by organizing the group.
Zeng Hong, the CEO of GAC Group, rolled his eyes slightly, stood up and walked to Masike, saying hello: "President Masike, Mr. Chen, how are you?"
"Mr. Zeng?"
When Chen Hong saw Zeng Hong approaching, he thought about it briefly and immediately understood what he meant, but he did not say it out loud because the one who was in the "east" position now was Masike.
When the organizers of the party are clearly identified, inviting others without the host's consent is a sign of low emotional intelligence.
Don't think that only the Dragon Country has such social customs. Every country in the world has such social customs. This is a tacit understanding that is learned naturally.
"Zeng Hong..."
Masike also knew why he came, and he looked at several CEOs of Japanese companies.
However, Honda Group CEO Kazuki Otaki and Toyota Group CEO Takahiro Saikawa both shook their heads, because they no longer have any cooperation with GAC Group.
If there is no interest involved, why would someone act as your guide?
"Sorry..." Zeng Hong interrupted Masike before he could finish his words, arguing for himself: "Chen Xing's move has already cut off the roots of our car company. There is an old saying in Long Country, 'Many hands make light work.'"
"This..." Masike looked at Chen Hong, wanting to hear his opinion.
As an old fox in the business world, Chen Hong naturally understood what he meant and expressed her own opinion: "Indeed, the pricing of Linghang 001 is to reshuffle all car companies. One more person means one more force."
"Makes sense."
Masik nodded.
Although the pricing of Linghang 001 at RMB 20.9 and RMB 29.9 is conducive to stimulating national consumption, it also offends competitors.
Originally, they made a net profit of 30% or even 40% from selling a car. But once the situation was messed up by Linghang 001, they would be amazing if they could avoid losses, let alone make a net profit.
……
"What are those people doing? Something doesn't seem right." Lei Jun, who was sitting in the front row, looked at Ren Guofei and reminded him to look back.
Ren Guofei turned his head to take a look, then retracted his gaze and said, "They must be planning something big. We need to warn Chen Xing."
The pricing of the Linghang 001 has already touched upon the interests of other friendly car companies. It goes without saying that no good will come from their coming together.
Lei Bushi touched his chin, thought of something, and said in a deep voice: "It seems that they are anxious, but I don't know how they will play their cards."
The Mi 1 mobile phone he released once made competitors furious with its price of 1999 yuan. Many CEOs of copycat phone companies cursed at him, and some even wanted to threaten him at their homes.
But this is normal. Cutting off someone's financial resources is like killing his parents.
The 3999 yuan copycat smartphones are selling well, but you charge a full 1999 yuan. Isn't this cutting off people's source of income?
"You have experience, give me some advice."
Ren Guofei smiled and said.
"What else can I do? At most, I can ask Chen Xing to stay out of the spotlight and go out as little as possible." Lei Jun's teasing was serious, which made Ren Guofei think carefully.
This world is not as simple as it seems. Behind every success, there are often piles of corpses.
In order to tap into the trillion-dollar automobile market, it is perfectly normal to create some unexpected incidents, such as car accidents.
"Let me call and tell him." Ren Guofei took out his cell phone.
"Let me do it. I have more experience in talking about these things." While stopping him, Lei Jun took out the mobile phone from his pocket.
Luo Hao, Duan Yongping, Chen Yong and other mobile phone manufacturers' CEOs all looked serious; they didn't want anything to happen to Chen Xing.
After all, the current Longxing Group has close ties with them. Once the Longxing Group changes its leader, no one knows what will happen.
Wang Fu, who had sharp ears, heard the general idea of the conversations on both sides, but he couldn't get involved in either side, because BYD was a purely domestically produced independent research and development company. He wanted to attend the dinner with Masick but had no guide. He wanted to get close to Ren Guofei and Lei Jun, but they didn't communicate much in normal times.
"Ugh!"
He sighed and could only choose to leave first.
And at the same time.
the other side.
Shenzhen International Racing Circuit.
underground garage.
After getting out of the car, Chen Xing first thanked the staff of Shenzhen International Racing Circuit one by one, and then sat back in the driving seat of his customized version of Pilot 001.
"Assistant Xiaolong, call Yao Nana via WeChat video."
【Calling for you. 】
After a short wait, the WeChat video call was connected.
"President."
"How are the sales?" Chen Xing talked to Yao Nana while driving.
"It's still growing steadily. We have sold 22 units so far, and I expect to reach 170 million units this month." Yao Nana said with excitement. This is an unprecedented sales record.
You should know that Wuling Hongguang, known as the national god car, only sells 160 million units a year, while Linghang 001 sold 22 units in less than an hour and a half. It is absolutely possible to surpass a year in one month.
It’s no wonder that people are rushing to buy it, mainly because the configuration of the Linghang 001 is so good.
The standard version can accelerate from 2.81 to km/h in less than seconds, has sufficient battery life, charges quickly, and most importantly, is extremely smart. Who can resist this?
Which man can refuse to spend two hundred thousand to buy a new car worth one million?
"22 vehicles, with a net profit of 3 yuan per vehicle. If they can be delivered smoothly, that would be a net profit of 66 billion yuan. If you add in the insurance income, it's estimated to be 80 billion yuan."
Chen Xing silently calculated in his mind.
Since the car is entirely domestically produced and the technology is also in-house, even if the Linghang 001 is sold for 20.9 yuan, it can still make a profit of 3 yuan, which is something that joint ventures cannot match.
In addition, Longxing Group has also reached a business cooperation with domestic insurance companies, which will be responsible for operating the insurance business, of which 50% of the net profit will be given to Longxing Group, Kunpeng Company and Dami Company.
Originally, Life Insurance, Ping An Insurance, and Pacific Insurance wanted to negotiate terms and reduce the commission rate to around 30%. However, Chen Xing used only one sentence to make them submit. That sentence was: "If you are unwilling to cooperate, then we will start the vehicle insurance business ourselves, which will only cost tens of billions more."
Then there are other companies. These insurance companies may sneer at them, but these are the three technology companies at the top of the pyramid in Dragon Country. They can definitely do it by spending tens of billions.
Do insurance company CEOs have a choice?
They have no choice.
If they really go all out, then Chen Xing will just have to spend tens of billions to gradually improve the vehicle insurance claims process, related rights and interests, and open local branches.
Fortunately, everything went well.
Chen Xing didn't really want to start an insurance company, because people who work in insurance have strong local connections, and having money doesn't necessarily mean you can get in.
As the saying goes, a strong dragon cannot defeat a local snake, so there is no need to offend everyone.
"I'm going back to the company now, and you continue to increase the hype." After thinking about it, Chen Xing gave instructions to Yao Nana.
"Okay, I will continue to contact the official operation teams of Weibo and Douyin."
"Then I'll hang up first."
"Ok."
The video call was closed, and the Yao Nana video frame on the central control screen disappeared. Chen Xing continued, "Send a message to Lan Junyi and Dong Shaopeng. The content should be delivered as fast as possible and overloaded."
【Sent to a group.】
When Lan Junyi and Dong Shaopeng, who were far away in the Longxing base, received the WeChat message, they replied to Chen Xing and immediately began to urge the production factories under their jurisdiction and asked all the sales outlets to prepare to welcome customers.
They thought that the Linghang 001 car would sell well, but they didn't expect it to be so crazy. 18 units were ordered in one hour. If it was a month, wouldn't the number be millions?
It is no exaggeration to say that at this moment, factories in the north and south are working at full speed to cope with the next wave of vehicle deliveries.
(I want to climb up step by step)
(Waiting for the sun to look at its face quietly)
(Small sky has big dreams)
The phone rang, and Chen Xing looked at the central control screen. It was a call from Lei Jun.
"Answer."
As soon as the words fell, the smart assistant of Pilot 001 answered the call.
"Hey, brother Chen, are you free?" Lei Jun's slightly boyish voice came out.
"I'm driving back to the company. What's the matter, Brother Lei?"
Chen Xing asked.
"It's not a big deal, it's just that the price of the Pilot 001 is too low, which has affected the interests of many rival car companies. I just saw Masick organizing a dinner party. You have to be careful these days and try not to go out as much as possible."
Lei Bushi's tone was filled with worry.
Now Chen Xing’s Longxing Group has become the backbone of Dami Company, Kunpeng Company, and semiconductor industry chain companies, and no accidents can be allowed to occur.
"Dinner party? Interesting."
Chen Xing smiled.
He had actually anticipated that foreign automakers would unite to fight against the impact of the Pioneer 001.
But does it work?
The patent fees for fuel vehicles are too high!
Moreover, the engine is very delicate, costing several times the price of the motor.
With the same performance, new energy vehicles cost 50% or even more less than fuel vehicles, and this is not an exaggeration at all.
"CEOs of SAIC, Changan, and SAIC, all of these friendly auto companies, have come over. Anyway, you should be careful. You should know that a cornered dog will jump over the wall."
Rebus continued.
If you cut off someone's source of income, they might just be able to do anything.
When he first launched the 1999 yuan Mi 1 mobile phone, he received more than one death threat letter and his home’s iron door was splashed with red paint. This frightened him so much that he didn’t dare go home for half a month and stayed in the company the whole time.
As good money drives out bad money, he gradually emerges from the shadows.
"I understand. I will try to be careful during this period." Chen Xing didn't take it to heart, or perhaps he had already made up his mind.
Not to mention that Chen Xing, Chen Yapeng and Liang Ruolan's family have already settled in the Longxing base. Just take Zhao Chenguang's secret forces as an example. He really doesn't know who dares to touch him in Shenzhen.
You know, Zhao Chenguang is the chief of intelligence, and any movement in the territory of Long Country cannot escape his eyes.
Even if Zhao Chenguang is unreliable, there is still the old leader Wang Shan. Unless Chen Xing is seeking death on purpose, no one can touch him in Shenzhen.
Four words.
Be confident!
……
Shenzhen star hotel.
VIP box.
Tesla CEO Marsh sat in the main seat, and other group presidents, such as BMW Group CEO Nagel, Mercedes-Benz Group CEO Olaf Reiter, Audi Group CEO Dussmeier, Honda Group CEO Kazuki Otaki, and Toyota Group CEO Takahiro Saikawa, had already taken their seats.
Sitting on the edge were the CEOs of a number of Chinese auto companies, including Chen Hong, CEO of SAIC Group, Zeng Hong, CEO of GAC Group, and Tang Ruiyang, CEO of Changan Group.
As the dishes were served one by one, the door of the private room was closed by the waiter. Masike did not rush to eat, but went straight to the point:
"The price of Linghang 001 is too low. Chen Xing is clearly trying to start a price war. What strategies do you have to deal with it?"
"I have a question." BMW Group CEO Nagel did not talk about the response strategy, but had questions to ask Masick.
"what?"
Marsik listened carefully.
"A 20.9 yuan car with a 2.81-second performance, a 2000-megapascal vehicle structure strength, a 120-degree battery and self-healing tires, is this really profitable?"
Nagel's words aroused everyone's curiosity. Except for Masick, which specializes in electric vehicles, everyone else here is a fuel vehicle manufacturer.
If this kind of configuration is put into a fuel car, it will cost at least one million yuan.
"Of course there is. Linghang 001 is a highly self-developed vehicle, and the expensive part of new energy vehicles is the battery pack. Longxing Group is a supplier of battery packs. I expect the profit to be around 1 yuan." Masike gave the answer.
"If he is not selling at a loss, then we can't engage in a price war. I can't lower the price of Maybach to 20." Olaf Reiter, CEO of Mercedes-Benz Group, chose to give up.
The CEOs of other manufacturers looked at each other, and they thought the same thing in their hearts.
The purpose of a price war is to hurt both sides, and see who’s funding chain is broken first.
But now you say there is still money to be made at 20.9 yuan. As one gains while the other loses, which car company can withstand this type of price war?
Both sides suffer losses, this is a price war.
Nagel, Olaf Reiter, Dusmai, Otaki Kazuki, Nishikawa Takahiro, as well as Chen Hong, Zeng Hong and other car company executives all looked at each other, not knowing what to do.
You can’t engage in a price war because the other party may not be losing money at all.
But if you want to compete fairly, you have to at least pay out a million-level luxury car configuration. How can they be willing to destroy their own brand?
"It's an unsolvable situation."
Chen Hong was secretly annoyed.
Chen Xing set the price too low, leaving them with no way to fight back.
When everyone was at a loss, Masik suddenly spoke up, looking around the room and said, "In addition to fighting a price war with them, we can also take legal action, because the pricing of the Linghang 001 may have touched the realm of monopoly."
(End of this chapter)
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