Reborn since 1993

Chapter 1242 Amidst the deafening sounds of gongs and drums and the crackling of firecrackers

"The fact that Dongling High-Tech in Inland has obtained a car license signifies a change in the inland car market, and private car companies may emerge!"

"The mainland's auto industry will enter a phase where state-owned, joint-venture, and private automakers coexist!"

"A representative from Nissan Motor Co., Ltd. stated that Dongling High-Tech's entry into the automotive market may have an impact on the inland automotive market, but it will not affect the status of Japanese brands!"

Hong Kong TV also reported on Dongling High-Tech's entry into the automotive market, but focused more on the car license plate held by Dongling High-Tech.

This is the first private car company in inland China to obtain a car license, setting a precedent in the domestic automotive industry. After Dongling High-Tech, there will definitely be more private car companies obtaining licenses.

However, both domestic and overseas media have expressed some skepticism about whether Dongling High-Tech can shake up the landscape of the inland automobile market.

The cars launched by Dongling High-Tech may make a splash in the inland areas, but few people would believe that Dongling High-Tech can challenge Japanese brands like Toyota and Honda, German brands like Volkswagen, BMW, and Mercedes-Benz, American brands like GM and Ford, and Korean brands like Hyundai and Kia.

Even among inland joint venture car manufacturers like Shanghai Automotive, FAW, Guangdong Automotive, and Shanghai GM, many people doubt whether Dongling High-Tech can compete.

As for Nihon Sekke, it goes without saying that they didn't consider Dongling High-Tech a competitor at all. If Dongling High-Tech didn't have such a good reputation in the electronics industry, Nihon Sekke's media might not have bothered to report on it.

……

"Cars are not like electronic toys; they are real industrial products!"

"I admit that Dongling Hi-Tech is indeed outstanding in the field of electronics. I still remember that the Tamagotchi, which was popular all over the world back then, was launched by this mainland company."

But you wouldn't believe that a company that develops Tamagotchis can build cars, would you? That's the funniest joke I've heard all year!

Ghosn, who had just taken office as president of Nissan Motor Co., was interviewed by Japanese media and was asked about news happening in the Chinese automotive industry.

When Ghosn mentioned Dongling High-Tech, he said in a joking tone that although Nissan Motor, which he now takes over, is also a mess, having suffered losses for seven consecutive years and owing $170 billion, the flamboyant Ghosn still looks down on Dongling High-Tech's entry into the automotive industry.

Ghosn is a renowned master of cleaning up messes, from Michelin tires to Renault, he has fully demonstrated his superb knife skills, always cutting the Ghosn knife when in doubt!

After Renault acquired a 36.8% stake in Nissan, Ghosn was parachuted into Nissan as its de facto leader.

After Ghosn arrived at Nissan, he started wielding the axe again. First, he closed five Nissan car plants and laid off 21,000 people. Then, he sold off assets to pay off debts, including Nissan's aerospace division.

This has made Ghosn highly controversial in Japan. His interview today is a response to the huge public discussion in Japan, with laid-off Japanese employees protesting.

In this interview with Nissan media, Ghosn also explained why he had to close the factory and lay off employees: if he didn't, Nissan really couldn't afford to support those people anymore.

However, in the interview, Ghosn also made a pledge to reduce Nissan's costs by $8 billion, turn a profit within two years, and achieve a profit margin of 4.5% within three years. If he fails to meet any of these targets within three years, he will be fired.

This pledge was quite astonishing; even the Japanese media reporters who interviewed Ghosn were shocked.

If Ghosn can truly achieve what he says, then Nissan, once one of the three giants of Japanese automakers alongside Toyota and Honda, will be resurrected. Even if he only achieves half of it, then everything Ghosn is doing today will no longer be a problem; he will be an idol-level professional manager for Nissan.

If he could do all of that, then Ghosn would be comparable to Kazuo Inamori, a savior of the Japanese automotive industry...

"So, President Ghosn, do you think Dongling High-Tech from mainland China can successfully manufacture cars?" The Japanese reporter asked the last question about Dongling High-Tech's car manufacturing project.

When Ghosn heard this question, he just chuckled and didn't answer directly, but instead asked, "You should ask, will anyone actually buy the cars that Dongling High-Tech manufactures?"

"If Dongling High-Tech needs it, I might consider having Nissan and Renault establish joint venture car brands in mainland China!"

Ghosn said to the camera as if to suggest that if Dongling High-Tech came to him for help, he might consider having Nissan establish a joint venture car brand with Dongling High-Tech in the mainland, so that Dongling High-Tech could have a livelihood!
This statement seems to offer Dongling High-Tech an opportunity to cooperate with Nissan. Although Nissan is currently struggling, there are still many car companies in mainland China that want to cooperate with Nissan and Renault.

As for Ghosn, although he looked down on Dongling High-Tech's car manufacturing capabilities, he coveted the mainland Chinese car market.

Nissan's strategy in the inland car market involves exporting parts and then assembling them inland for sale. Models like the Thunderbird, Cedric, and Patrol have achieved decent sales in the inland market.

However, this model of selling parts is too slow in terms of sales growth. If Nissan could establish a joint venture brand in the mainland and fully enter the mainland market, Nissan's sales might increase significantly in the mainland, which would alleviate a large part of the pressure on Ghosn.

Ghosn's attitude essentially reflects the Japanese automotive industry's attitude towards Dongling High-Tech: they look down on it. At most, they might want to collaborate with Dongling High-Tech on a joint venture to use Dongling High-Tech's licenses to enter the mainland market. However, judging from existing joint ventures in mainland China, even if they cooperate, they can forget about acquiring technology; they will still only be assemblies for foreign brands.

……

According to the information available so far, Dongling High-Tech has already registered the names of car brands such as Land Rover, Jaguar, and Shenzhou. Dongling High-Tech may use these car brands in the future.

"The first phase of Dongling High-Tech Automobile's project is a production base with an annual capacity of 50,000 vehicles!"

"Nissan's new president claims that he is willing to accept Dongling High-Tech's proposal to establish a joint venture between Nissan and Renault in mainland China!"

In Hangzhou, at Geely's headquarters, a group of Geely executives looked at the collected data on Dongling High-Tech Automobile with a hint of sourness. This data has now been reported by many domestic media outlets, and collecting it was not a difficult task.

"Dongling High-Tech has truly obtained the first private car company license in China!"

The speaker was Li Xubing, the general manager of Geely's production department and also in charge of Geely's suppliers. He is the second elder brother of Li Shufu, the founder of Geely.

At this moment, Geely can be considered a typical family business. Production is managed by Li Shufu's second elder brother, while finance and operations are managed by Li Shufu's brother-in-law, Yang Jian. Members of the Li family now hold senior management positions at Geely.

In addition, the introduction of some professional managers and technicians has created a situation where the Li Shufu family and relatives are in charge of internal affairs, while professional managers are in charge of external affairs.

Li Xubing felt a pang of envy when he saw Dongling Hi-Tech obtain a car license plate. Geely had entered the automotive industry much earlier than Dongling Hi-Tech, but it had always been unable to obtain that license plate and remained unregistered.

Even Geely has started selling its first Geely "Haoqing", a minivan that imitates the Xiali, priced at only 30,000 yuan. But even though they have all been sold, they don't have license plates and can't be sold outside of Yuhang Province.

Dongling High-Tech, however, hasn't even started producing cars yet, but it's already been granted the first private car license in the inland region. It's almost as if they've written the words "tailor-made" for it. The difference in treatment between Geely and Dongling High-Tech is like night and day.

"I heard that Dongling Hi-Tech's revenue has exploded this year, and the first car license plate will definitely belong to Dongling Hi-Tech!"

Yang Jian spoke, his eyes full of helplessness. No matter how sour he felt, the gap between Geely and Dongling High-Tech at this time was simply too great.

Geely is currently relying on selling motorcycles. Entering the car market is just a trial run. How much profit can they expect from selling a car for 30,000 yuan?

Compared to Dongling High-Tech's influence, Geely simply can't compare, not to mention its connections in Beijing.

"For Geely, Dongling High-Tech obtaining the car license plate is also an opportunity!"
At least, the door to the automotive industry has been opened to companies like ours!

Li Shufu has a long-term vision. As for whether he envies the treatment at Dongling High-Tech, he definitely does.

However, with Dongling High-Tech as a leading figure in the private car industry, Geely can follow suit without having to be the one to charge ahead in every situation.

Like those major car manufacturers in the past, they set up all sorts of rules, and Geely had no room to resist. Now it's just struggling to survive.

But those rules are completely useless in front of Dongling High-Tech; they can't restrain Dongling High-Tech at all!
Li Shufu saw things clearly: Dongling High-Tech's entry into the automotive industry might not be a bad thing for Geely. In the future, they might be able to act more freely. After all, even if the sky falls, there will be someone taller to hold it up!

Other companies that haven't obtained car licenses, including Chery, Great Wall, and Brilliance Auto, are also eager to sell cars outside their home cities because they lack licenses.

Many companies are also considering entering the automotive industry. After all, it has been proven over the years that there are opportunities to succeed by following Dongling High-Tech. Could it be that the automotive industry is the next big opportunity?

Inside the Dongke Group companies, BYD's boss, Mr. Wang, was also eager to get started, as he too had a heart set on building cars.

What worries Mr. Wang is whether BYD's foray into car manufacturing will displease Mr. Li.

Mr. Wang doesn't care what other car brands think, but if there are rumors that BYD wants to compete with Dongling High-Tech, he will have to think twice.

Although BYD is now known as a battery giant, Mr. Wang has never even considered, let alone thought about, going head-to-head with Dongling Hi-Tech. As one of the earliest companies to join the Dongling Hi-Tech group, he knows Dongling Hi-Tech's strength all too well!
Before BYD enters the automotive industry, Mr. Wang plans to first pay a visit to Mr. Li, the philanthropist, before making a decision!
……

Today, the Pingyang Airport Economic Zone is a scene of fluttering red flags, resounding drums and firecrackers. Although there aren't huge crowds, countless people have gathered here.

Today marks the official signing day for the Dongling High-Tech Automobile Production Base. For the locals of Pingyang, after today, another group of people will be relocated, and their accounts will receive a large sum of money.

(End of this chapter)