Technology company, I will become the light of China!
Chapter 478: The price war and tariff war started, Chen Xing successfully integrated domestic car co
As the car price war kicks off, a battle against leading cars has begun around the world.
The official website of the German Ministry of Foreign Affairs was the first to release lithium battery control regulations, and mentioned that Pilot Auto was engaged in low-price dumping.
Anyone who has lived in Germany knows that Germany has very strict price controls on foreign goods and even has a special "Anti-Dumping Duty Law Regulations."
Simply put, if the market price of foreign goods is far lower than that of similar German goods, their customs will impose an anti-dumping duty of 30% to 50%, plus a vehicle tariff of around 20%. The actual tariff collected can be as high as 50% to 70%, or even higher!
For example, the standard version of the Linghang 001 is 20.9 Long Guo yuan, and when exported to Germany, it sells for 25.9 Long Guo yuan, including international transportation costs.
The German tariff is the total value of the goods multiplied by the tariff ratio. For example, if the standard version of the Pilot 25.9, which costs RMB 001, is subject to a 50% tariff, it would be equivalent to RMB 38.85 per car, which is the price of a German Pilot car.
If I insist on selling it for 20.9, it would be equivalent to selling the car at a loss because there is a large commission on export tariffs.
This is also the reason why there is a huge difference between the prices of Mercedes-Benz, BMW and Audi in Germany and in the Chinese market, because there are tariffs to regulate prices.
This time, Germany showed no mercy. As a heavy industrial country, it wanted to protect the development of its own automobile brands as much as possible and directly included Pilot Auto on the red tariff list.
Not only was a maximum anti-dumping duty of 50% imposed, but the normal tariff was also raised to 35%. In other words, if a pilot car wanted to enter the German market, it would first have to pay an 85% import tariff to Germany. This is an unprecedented proportion in the history of automobile product catalogs.
However, Germany is not an exception. The United States, France, Italy, and almost all Western countries have announced tax rates on pilot cars. Among them, the tariffs in France and Italy have reached an astonishing 120% and 130%, respectively. It seems that they do not welcome pilot cars to enter their countries' markets.
In addition to Western countries, neighboring peninsulas and island countries also imposed high tariffs, with proportions as high as 70% and 80%, also on the grounds of dumping.
All the major car-making countries seemed to have agreed on it and issued tariff announcements the moment their car companies started the price war.
But it is worth mentioning that except for the major car-making countries raising tariffs, other countries have not made much statement.
Since they cannot produce cars, Pilot Auto has not affected their domestic interests, so there is naturally no reason to impose tariffs.
……
The United States across the ocean.
The CEOs of the world's famous automakers, including General Motors, Ford, Mercedes-Benz, BMW, Audi, Toyota, and Honda, were all staying at a star-rated hotel in New York to witness the start of the price and tariff war.
After the failure of the Marsick plan, Davich, the future successor of the US Federal Reserve, followed his father's instructions and attended the "Automakers' Joint Meeting". The main content of this meeting was how to regain market share.
to be honest.
It’s about how to fight a price war.
After discussions among dozens of presidents, it was finally decided to significantly reduce prices.
It is said to be a significant price reduction, but in fact it is just squeezing out the premium and returning to the normal price range.
Take the 2015 BMW 320Li as an example. It has a 2.0T, 184-horsepower L4 engine, a maximum power of 135KW, a maximum torque of 270N·m, and a zero-to-hundred acceleration of a full 8 seconds. Even though the configuration is not very good, it costs 34 yuan.
You can imagine how high its brand premium is when you spend 34 yuan to buy a car that can accelerate from 8 to km/h in seconds.
It is no exaggeration to say that even if the price of the BMW 320Li is reduced by half, both the BMW Group and the Brilliance Group will make money.
The entry-level models are so watered down, not to mention the BMW luxury models. Some of them have a net profit of up to 60% of the entire vehicle. They just take the car logo and start making money.
But it is not their fault that they deliberately cut leeks. After all, in the past, there has never been a domestically produced car in Longguo that can be both cheap and have good performance. Users can only choose the entry-level models of BBA.
At this time, Davic was sitting on the sofa in the office on the top floor of Building 666, holding a wine glass in his hand, with scarlet wine swaying on the wall of the glass.
He tasted a little, smiled and said, "No matter how good Linghang Automobile is, it will not be successful if it cannot go abroad. Let's see how you, Chen Xing, deal with it."
This time, the plan against Pioneer Automotive involved not only Jewish capital, but also most of the Western capital consortiums, especially those whose interests were harmed, such as Germany's Thyssen Consortium and Flick Consortium, France's Rothschild Consortium and Paris Union Consortium.
If they could stay out of the fights in the mobile phone field before, they really cannot be immune when the war breaks out in the automobile field.
The mobile phone industry has always been controlled by the United States. They hope that Chen Xing will fight to the death with Apple, Qualcomm, and Hanxing Group. At any rate, it will not harm their interests.
But not this time!
German industry is the backbone of the economy.
French cars, such as Peugeot, Renault and Citroen, contribute a huge amount to the economy and employ more than 100,000 people. If Pioneer kills these companies, it will be a heavy blow to the French economy.
Human nature is selfish. When the interests of the majority are harmed, they will unite to safeguard their own interests.
But if something is beneficial to oneself, such as the subsidy war between Meituan and Ele.me, where one can have a meal for 3 yuan and order a two-pound barbecued crayfish for 10 yuan, I believe most people hope that they will continue the war and will not speak out to oppose it.
"As expected of Mr. Davechi, he was able to think of uniting with other Western countries to form an anti-dumping alliance. This time Chen Xing has shot himself in the foot and must be crying out in pain." Robert Heavey, the head of the Navigation Group, gave a thumbs up, perfectly portraying the role of a flatterer.
"With both the price war and the tariff war going on simultaneously, no matter how capable Chen Xing is, Linghang Automobile will not be able to leave Longguo." Lyle Wallace, the head of the Bailey Group, also echoed.
"Of course." Davic was very confident. He took a sip of red wine and looked at Robert Heavey and asked, "What's the progress of the thing I asked you to do?"
"We don't have too many clues. After all, southern Henan is in Longguo. It is impossible to conduct an in-depth investigation. From the current perspective, Wei Yan is indeed a blank slate and there are not many suspicious points." Robert Heavey responded.
"Where are you?"
Davitch looked at Lyle Wallace.
Lyle Wallace, who is handsome and looks like a man with a feminine appearance, smiled and praised: "I have to say that he is capable. The insider trading has been set up and tens of billions of dollars have been raised. All of them are funds from Chinese people in the United States. As long as we fluctuate the stock market and add junk high-priced stocks, we can drain their money without anyone noticing."
"Keep monitoring. If there is anything unusual, notify me immediately." Davic said in a deep voice.
The United States is a country made up of immigrants, and he does not discriminate against immigrants. However, Wei Yan appeared too suddenly and his abilities are particularly strong, so he needs to observe him carefully before making use of him.
After several rounds of investigation, he really didn't find any problems.
"Oh, right." Davic seemed to have thought of something and asked solemnly, "How is Microsoft doing? Is the stress test button ready?"
"Everything is ready."
"Yes, the top hacker teams have been researching it repeatedly and have already come up with some ideas. This time they are determined to tear a hole in the GIANT PANDA bank settlement system."
Robert Heavey and Lyle Wallace quickly responded that compared to Pilot Auto, the biggest headache for Jewish capital was the GIANT PANDA bank settlement system.
Because the GIANT PANDA bank settlement system has gradually expanded its scope of influence, most countries in the world, except the United States, have defaulted on this backup option.
Although the SWIFT bank settlement system is still the mainstream, it is not the only one, which is what Jewish capital cannot accept the most.
In the past, they only needed to use the SWIFT bank settlement system to know how much strategic resources China and Russia had purchased, but now these data are blurred.
The ancients said: Know yourself and know your enemy, and you can fight a hundred battles with no danger of defeat.
The reason why the United States was able to launch a textbook attack in the Gulf War was that it knew both itself and the enemy, used its own strengths to attack the enemy's weaknesses, and left Iraq with no ability to fight back.
It is also because of this that the Jewish consortium and the Anglo-Saxon consortium have a common goal.
The first is to boycott Pilot Auto and protect the interests of domestic American automakers.
The second is to destroy the GIANT PANDA bank settlement system, restore the SWIFT bank settlement system to its former glory, and maintain the hegemony of the US dollar.
3. Revitalize the US stock index.
4. Completely defeat Longxing Group.
In addition to these four goals, there are also crackdowns on the smuggling of Longxing Group mobile phones and banning ByteDance's TikTok, but these two goals are no longer possible.
Let’s talk about Longxing Group’s mobile phones first. Whether it is Longxing X3, Geek X2, Tianyu X1, or Cuican X2, a complete industrial chain has been formed in the United States.
Want to stop it?
Then we can only issue a ban.
But if the United States imposes a ban, can the Eastern superpower tolerate it?
Besides, it is really unacceptable to ban mobile phones, and the United States cannot afford to do so.
As for TikTok, with the dual influence of the Ice Bucket Challenge and brain-computer interfaces, it has become an indispensable short video dating software for young people in the United States.
There are nearly 2 million people in the United States, and a conservative estimate is that 5000 million people are using TikTok. Zhang Ming has also been invited to the United States many times to discuss formal entry into the U.S. market.
However, he refused them all.
Entering the US market means being subject to supervision and constraints.
How good it is now. We will not enter your market, but only enter your people’s mobile phones. Zhang Ming will not be stupid enough to really legalize it.
Precisely because Longxing Group’s mobile phones and TikTok are both “smugglers” in the United States, the United States has no way to stop them. They can’t just come to search mobile phones or uninstall TikTok, which would infringe on the personal freedom of the American people, and protests are inevitable.
……
While Davich was talking with Robert Heavey and Lyle Wallace, far away in the Capitol Estate in Washington, U.S. House Speaker Renato Marotta also ended his conversation with Clayton, the patriarch of the Rothschild family.
Davic persuaded the car companies to cut prices, while Clayton and Renato Marotta persuaded the state to impose tariffs.
This spectacular game was not something that Davic could have created.
Renato Marotta hung up the phone, looked at the latest intelligence file and said, "Dragon Country's automakers have gathered at Longxing Group. It goes without saying that Chen Xing is going to join forces with other automakers to expand production capacity, but unfortunately, I'm one step ahead of you this time."
Don't underestimate the US intelligence agencies. They are always keeping an eye on Chen Xing, even knowing that he went to Hong Kong.
Although he knew that Chen Xing went to Hong Kong Island and that he went to the International Finance Center in Central, he couldn't find out what Chen Xing did.
However, even though he didn't know what Chen Xing had done, Renato Marotta was very clear that Longguo was planning a big move, which might be related to Linghang Automobile. Combined with today's meeting, the Western Anti-Dumping Alliance hastily issued an announcement to boycott Linghang Automobile.
And at the same time.
the other side.
As various countries issued announcements to increase tariffs, the Ministry of Finance of Long Country also held an emergency meeting to discuss the next response strategy.
"Italy imposed a 130% tariff, which clearly shows that they don't want to export Pilot cars to their country. In my opinion, in retaliation, we should not allow French cars to enter the country either."
"If you can't win, just increase tariffs. These people are still so disgusting!"
"Almost all countries in the world that can manufacture cars have imposed huge tariffs on Pilot Auto. They are trying to isolate us."
"When jackals come, we have sticks; when good friends come, we have wine. If I were to say, if they fight, we'd fight too, to see who can beat who!" The dozen or so people attending the meeting were all filled with righteous indignation and clenched their fists.
In the past, Longguo Automobile was not doing well. When foreign automobile companies came to Longguo to make money, not only were joint ventures allowed and tariffs were exempted, but profit sharing ratios as high as 50% were common. Now that Longguo Automobile has shown some signs of success, are you overturning the table?
Tian Bingan, who was sitting in the main seat, coughed twice, signaled for silence, and said, "Tariffs are a serious matter and need to be considered carefully. Even if we make a plan to increase tariffs, we cannot increase their production costs."
Whether it is Mercedes-Benz, BMW, Audi, General Motors or Ford, they are all state-owned joint venture car companies in Long.
Tariffs are imposed on imported goods. The main body of the joint venture auto companies are Longguo enterprises. The cars produced locally by Longguo enterprises are not imported, so there are no tariffs.
Of course, these foreign-funded car companies will also export vehicles to China, but the proportion is extremely small, and it is probably unrealistic to want to use tariffs to retaliate.
"What should we do now?"
"They have bullied us to the point of being bullied. We must fight back severely!"
"That's right. If tariffs don't work, then we can impose corporate income tax on them. I don't believe they can be so arrogant!"
"I support!"
"I support it too!"
All the participants were furious. They had never seen anyone so shameless as to resort to underhanded tactics when they couldn't win. However, Tian Bingan remained calm and thought about strategies to fight back.
……
Dragon Kingdom Deep City.
Longxing Group Bantian Base.
As he was in a meeting, Chen Xing didn't know what was going on. He was signing a production capacity borrowing contract and a lithium battery supply contract with the president of Long Guoyou Automobile Company.
The circumstances of each business are different, and the time required to draft a contract is also different. It was not until noon that the contract details were finalized.
"The contract is made in four copies, two of which are retained by Party A and Party B, and the remaining two are notarized by each party at a notary office to ensure the legality and integrity of the contract."
"Party A, Longxing Group, provides polymer semi-solid batteries and Thor all-solid batteries for 9 Dragon Country Currency and 15 Dragon Country Currency respectively. Please check if there are any loopholes in the contract terms and what needs to be supplemented."
As soon as the lawyer of Longxing Group finished speaking, the lawyers of car company CEOs including Wang Fu, Jian Chunhe and Zeng Hong checked the contract again and responded quickly after confirming that there were no problems.
"no problem."
"That's okay with me too."
“There are no more.”
The lawyer of Longxing Group nodded slightly, opened the contract in his hand and said:
"Since there is nothing to add and no questions, let me tell you about the terms you need to fulfill. BYD Group needs to provide two 6000-ton integrated die-casting machines and corresponding supporting equipment, such as welding equipment, spraying equipment, and testing equipment..."
"The handover between the two parties needs to be witnessed by a third party, and the two parties need to sign to confirm that there are no problems with the equipment. After the third party agency signs, the contract will take effect. Is there any problem with this?"
"No."
"no problem."
CEOs including Wang Fu and Zeng Hong responded personally.
Because it involves borrowing automobile production capacity lines, this is a prerequisite for signing the contract. If the equipment does not meet the standards, the contract will be invalid and will not take effect. This can prevent inferior products from being sold as good ones.
"Mr. Chen, please take a look at the contract. If there is no problem, we can sign it."
The lawyer handed over the contract.
Chen Xing has a lot of work to do because he has to sign contracts with more than a dozen car companies.
But this did not pose a problem for him. It only took him five minutes to confirm that there were no problems with the contracts, and then he signed and stamped them.
In four copies, Chen Xing signed more than fifty contracts in a row for more than a dozen car companies.
"Everything is fine."
After stamping the last contract, Chen Xing glanced at all the bosses present and said, "Check the contract again to see if there are any omissions. If there are no problems, then go back and prepare early."
This sentence seems like a reminder, but in fact it is an order to leave, because there are many CEOs of new car companies waiting to discuss business in the conference room.
Since they cannot afford the die-casting machines and supporting equipment, they can only use other methods to satisfy Longxing Group's appetite.
"Okay, let's check it again."
About five minutes later, BYD CEO Wang Fu stood up, looked at Chen Xing and said, "There is no problem with the contract. I will not bother you anymore. We will see you later."
"Mr. Wang, walk slowly."
Chen Xing smiled and nodded.
At this time, Zeng Hong also stood up, looked at Chen Xing and said, "I have no problem here either, Mr. Chen, let's meet again next time."
"Okay, let's get together next time."
One by one the CEOs stood up and left, leaving only the CEO of the new car company, Chen Xing and Yao Nana in the meeting room.
When Yao Nana closed the door of the conference room, Chen Xing looked at the CEOs of these new car companies and said, "You are all top talents who have accurately captured the trend of new energy vehicles. I admire your talents."
Faced with the sudden praise, Li Xiang, He Peng and other CEOs of new car companies looked at each other and quickly responded modestly.
"Mr. Chen, thank you for your compliment. Your press conference gave us some inspiration, so we wanted to see if there is any chance for us to cooperate."
"Mr. Li is right. We were able to discover the trend not because of our foresight, but because we watched your press conference, Mr. Chen, and then we thought about making new energy vehicles."
"That's right, if it comes to talent, then Mr. Chen, you are a genius!"
Li Xiang, CEO of Ideal Auto, He Peng of Xpeng Auto, and Li Bin of NIO have all lowered their postures, and are almost groveling.
Perhaps even they themselves could not believe it, but in Chen Xing’s previous life, they were the leading car company of new energy vehicles in Longguo.
Take Li Xiang's Ideal Auto for example. It is a new car company that has fought hard to carve out a niche for itself and dared to challenge Tesla and BYD. Even Lei Jun praised it.
Chen Xing smiled calmly and continued, "Please don't be so modest. I also understand that only when a steady stream of blood flows into an industry can there be competition and innovation in the industry. But I have to say this in advance. If you want to get the supply of lithium batteries, you need to give up some of your equity."
"How many?"
Li Xiang asked.
He had expected this.
They couldn't provide equipment or anything else. The only thing that interested Chen Xing was the company's equity.
"20%. If it's less than that, you can turn left and ask CATL." Chen Xing's attitude became tough.
Negotiation requires a combination of hard and soft tactics. Being too soft will make others think you are easy to manipulate and they will easily push your buttons. Being too hard will easily lead to a breakdown in the negotiations. Knowing how to be soft when necessary and hard when necessary tests the negotiator's experience.
“20%…”
When the shares to be withdrawn were mentioned, Li Xiang, Li Bin and He Peng all hesitated, but then their eyes gradually became firm.
It is definitely not an option to look for CATL, because its lithium batteries are different from those of Longxing Group in at least one dimension. If they want to build cars, they can only choose Longxing Group.
"Okay, 20 is 20."
Li Xiang gritted his teeth and responded.
He thought about it and decided that as long as he had lithium batteries, everything else would be easy.
Seeing his expression, Chen Xing smiled and said, "I won't take your 20% equity for nothing. Huaxia chips, L3 driverless technology, and motor and electronic control systems can all be licensed to you."
"hiss!"
"Really? Mr. Chen!"
The people who were still hesitating were delighted. If Chen Xing really did this, they would be able to build a better car than the Pilot 001. This was definitely not a joke.
"Really, but I have a condition." Chen Xing changed the subject.
"What conditions?"
"What is it?"
"Mr. Chen, please speak."
Li Xiang, He Peng and others could not hold back any longer; they had not expected that Chen Xing would provide them with such in-depth technical support.
"Come with me to attack foreign-owned cars."
As soon as Chen Xing finished speaking, Li Xiang couldn't sit still anymore and asked, "Are you asking us to also make commuter vehicles below 30 and continue to squeeze the living space of foreign-funded car companies?"
"No!" Chen Xing shook his head and explained, "You can make whatever cars you want. You just need to target foreign car companies. They have been making so much money in our Long Country. It's time to put some pressure on them."
In the past, the people of Longguo were bullied and had no choice, with the premium being 50% or even 60%. Now what Chen Xing has to do is to give the people a choice and kill those foreign car companies.
He was also well aware that the counterattack from foreign-funded car companies could come at any time, so instead of Pilot Auto fighting alone, it would be better for it to attack with all its forces.
"No problem, Mr. Chen. Since you said so, I will definitely respond. Thank you for giving me this opportunity." Li Xiang was the first to express his opinion, followed by He Peng, Li Bin, Zhao Kuo...
"Thanks to Mr. Chen for his technical support. We will let those foreigners know that Dragon Country's domestically produced cars are the coolest!"
"That's right, domestically made products are the coolest, and the automotive industry should have been reshuffled long ago!"
"They have been cheating us for so long with the premium, it's time to let them feel what it's like to turn the table over!" (End of this chapter)
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