What's wrong with me being a rich man?

Chapter 682 Times Have Changed (4k)

Yu Xing has commented on foreign brands such as BBA in the past. Although he did not comment on them often, his comments are widely circulated.

He is relatively restrained in this regard, but he can't help but bring up some of his past remarks whenever something happens in other fields. Especially after Guo Shanfeng's bloodbath in the car industry was exposed, the media made timelines of his few minor conflicts with colleagues in the car industry, and talked about the progress of the two lines with great interest.

He speaks little, but does a lot.

Now, at an event like the Silicon Carbon Technology Day, which aims to promote the establishment of domestic standards, Yu Xing's mention of competitors, even openly criticizing their slow response, is sure to make the front page.

His words sounded triumphant at first glance, and many reporters at the scene urged Mr. Yu to give more specific evaluations. However, the head of Silicon Carbon, who rarely makes public appearances recently, only mentioned it briefly and then introduced Silicon Carbon's plans for the second half of the year, emphasizing the release of five Kyushu editions, which can be regarded as a warm-up for publicity.

Although Yu Xing hadn't faced so many reporters and onlookers for a while, he was very relaxed and answered questions about the automotive industry and even overseas lawsuits.

Guo Shanfeng and the investigations and lawsuits he faced have always been a difficult shadow to explain, but now, with the progress of the settlement process with foreign regulators such as BaFin and SEC, it will no longer bring such heavy pressure.

Under the camera's lens, the head of the silicon carbon company had one hand in his pocket, looking very calm. However, as the reporters' attention unconsciously shifted to short selling and kept asking for more details, his public Q&A session basically came to an end.

Lu Yinghan, a reporter from China Automotive News, watched this scene and listened to the questions from her colleagues. She felt helpless as her own questions were drowned out by the noise.

He wasn't interested in short selling, but he was very interested in what Mr. Yu said about BBA, Japan's Mitsukoshi, and the changes in the era he announced.

The names that flashed by in Mr. Yu's words—CATL, Jingjin Electric, Huichuan Technology, Rongbai Technology, Sanhua Intelligent Control, and others—are manifestations of the profound changes taking place in the industry. In the past, the industry was dominated by fuel vehicles, but in the new energy era, core technologies have been developed and transferred.

Lu Yinghan has been reporting on the automotive industry for over a decade. In the past two years, he has witnessed the rapid development of Silicon Carbon Group, exceeding everyone's expectations. Looking at Silicon Carbon's open-source vehicle system and industry alliance today, and listening to President Yu's few words of reflection, a strong premonition arose in his heart.

The times are not only changing, but the speed at which they are changing is beyond everyone's imagination, just like the development of carbon and silicon.

Yu Xing had already signaled to stop asking questions, but the reporters kept bombarding him with questions, so he could only have his bodyguards make room so he could leave quickly.

Some reporters were already satisfied, while others tried to catch up and get an exclusive interview.

Lu Yinghan followed along, chasing after President Yu who was walking away quickly. She was blocked by the bodyguards once or twice, but still managed to jog behind him in a roundabout direction.

He was on the heavier side, and the weather was hot, so he quickly became out of breath and could only express his interest: "Mr. Yu, Mr. Yu, I'm not interested in short selling, I just want to ask about things in the industry."

Upon hearing the voice, Yu Xing turned around, smiled, and then quickly disappeared.

Lu Yinghan was disappointed. She had just turned around and taken a few steps when she was stopped by President Yu's secretary.

"Teacher, wait a minute, let me have some water over here." Zhang Yangxu turned back and invited Lu Yinghan.

Lu Yinghan hesitated for a moment, then was pleasantly surprised to see President Yu sitting in the car.

As soon as he got into the car, his eyes were drawn to the interior layout, and he asked, "Mr. Yu, is this a five-seater version of Kyushu?"

Yu Xing smiled and nodded: "Yes, how does it feel?"

Lu Yinghan touched the trunk from left to right, and even leaned over the back seat to look back, before saying, "The trunk is finally bigger, and the space is very spacious."

"The trunk space in the six-seater model is indeed a bit cramped, but there's nothing we can do about it; we've done our best," Yu Xing said. "The six-seater can accommodate many different scenarios, while the five-seater has a stronger loading capacity and more space."

The configuration of the five-seater Kyushu will not change much, with some details optimized, but its large space and strong loading capacity are natural advantages.

Lu Yinghan was very familiar with the Kyushu model and asked, "President Yu, what about its pricing?"

Yu Xing hesitated and said, "The internal consideration is still ongoing, and it will be a little later before a decision is made."

Lu Yinghan then asked, "President Yu, will Kyushu launch a pure electric version? I've noticed that many car owners who have used Kyushu vehicles for a period of time actually feel that a larger battery provides a better user experience."

This is a voice emerging from Kyushu car owners, and it also represents recognition of the Silicon Carbon Group.

However, the main factor currently slowing down silicon carbide development in this area is the advancement of battery technology.

“Carbon Silicon will definitely make pure electric vehicles, but we need to see how well the market accepts them and consider all factors,” Yu Xing replied. “Carbon Silicon’s first pure electric vehicle may not be from Kyushu; we’ll have to see.”

Lu Yinghan wanted to ask about the future vehicle plans for silicon-carbon materials, but when she saw Secretary Yu whisper a few words to her, she immediately felt a tightness in her chest and quickly brought up the topics they hadn't discussed earlier.

He was referring to exactly what Yu Xing had mentioned in passing.

The electrification transformation of German luxury brands (BBA) is perfunctory; they seem to treat new energy as a marketing gimmick and a tool to comply with emissions regulations.

Mercedes-Benz has announced plans to launch more than ten pure electric vehicles by 2025, but its first model based on the EVA pure electric platform will not be released until 2018. BMW launched the i3 and i8 in 2013, but three years later it is still stuck in the same place, without any breakthrough in the architecture of pure electric vehicles. All of them are modified models based on the fuel platform. Meanwhile, its announced plan is to launch the first pure electric X3 EV for the mainstream market in 2020.

As for Audi, Lu Yinghan believes that Mr. Yu's word "lying flat" is very accurate. It doesn't even have a mass production plan that can be implemented. All its new energy ideas are still on the drawing board of two pure electric sedans to be launched before 2020.

Yu Xing listened patiently, but also with some surprise, to the reporter's eloquent speech.

He felt that the other person was not asking questions, but rather expressing their observations about the industry.

After he finished speaking, Yu Xing asked, "Um, what do you want to ask me?"

Lu Yinghan was in high spirits after sharing some of his thoughts with the leading figure in new energy. He then asked, "President Yu, what's your opinion?"

“I…” Yu Xing chuckled, “I see foreign brands the same way you do. They are just adding an electric motor and a battery to a gasoline car. They are just trying to meet emission requirements. This is not a restructuring of their product system from the perspective of electrification. So, this is also a good competitive opportunity.”

He said, "Any manufacturer that sees the achievements of Silicon Carbon Group in the domestic market and the pre-orders of Tesla's Model 3 this year would be slow to react if they do not immediately invest in the development of electrification."

"The changes of the times are beyond anyone's control, and those who are slow to react will pay the price for their slowness."

Lu Yinghan became even more excited: "President Yu, I noticed that you mentioned many domestic suppliers. What do you think is the main factor driving this change of the times?"

“Different markets have different needs, but whether it’s the US, China, or Europe, everyone is starting to advocate for the development of new energy vehicles. China will be implementing a credit policy in the second half of the year. Well… let’s not go into that. It’s about emission requirements for automakers, and this is a mainstream consensus globally.” Yu Xing suddenly realized that he seemed to have mentioned something he shouldn’t have. “Don’t say it, but that’s basically what the domestic credit policy means.”

Lu Yinghan nodded repeatedly: "President Yu, if it's not an interview question, but just a private inquiry, is a points system going to be implemented in China as well?"

Yu Xing did not answer, but gave an affirmative look.

Last week, he saw the draft opinion on the credit policy from the higher authorities. In layman's terms, it aims to force the domestic auto industry to transform towards electrification through policy. Producing new energy vehicles will earn credits, while high-emission gasoline vehicles will incur deductions. This is the dual-credit policy. The higher authorities intend to release a consultation document in the second half of the year, and it will be officially implemented within the next one or two years.

Similar policies have already emerged abroad, all of which undoubtedly drive changes in the automotive industry from a policy-driven perspective. Volkswagen's emissions cheating was also a response to increasingly stringent EU standards.

If this draft opinion is released, it will undoubtedly be a major benefit to the Silicon Carbon Group.

Based on current sales forecasts, revenue from points alone could reach hundreds of millions of yuan in the future.

Zhang Yangxu leaned over and said a few more words.

Yu Xing nodded and said to Lu Yinghan, "The industry is changing rapidly, but many people haven't really noticed. Let's do an interview when we have time."

Lu Yinghan quickly asked, "President Yu, one last question: at what stage do you think BBA and Mitsubishi will catch up?"

After asking the question, he felt that President Yu's eyes seemed somewhat blank, but he thought it was just his imagination.

Yu Xing considered for a while before answering, "It's hard to say."

He shook his head repeatedly: "Hard to say, hard to say."

Lu Yinghan couldn't figure out what President Yu meant by those words. Did he think that foreign brands would catch up slowly or quickly?
He took the two bottles of drinks that Zhang Yangxu handed him and got out of the car.

Under the bright sunlight, Lu Yinghan touched her cool drink and thought that summer should be the season when cars like the Kyushu, equipped with mini-fridges, really shine.

Lu Yinghan was still savoring the experience of the latest five-seater Kyushu, and Zeng Yuqun, who had just gotten into the car, also noticed it immediately and started talking about its market expectations.

Zeng Yuqun believes that the five-seater version of Kyushu can also achieve sales of 100,000 units next year.

"It's not that easy. There's not as much competition in the six-seater market, but there's a lot more competition in the five-seater market," Yu Xing said with a chuckle. "It's easier to do business in a niche market, but it's much harder in the mass market."

Zeng Yuqun said, "If you had launched the five-seater version from the beginning, you might have already sold 200,000 units by now."

Yu Xing laughed: "President Zeng, don't flatter me. We'll soon run out of the subsidies from Shanghai and Zhejiang. We'll have to add interest-free car purchase policies in the second half of the year, so the pressure this year is quite high."

This is a preferential policy that Silicon Carbon Group will implement at the end of June, aimed at offsetting the unfavorable factors in the two major markets.

Zeng Yuqun seemed to have completely forgotten the unpleasant exchange with Silicon Carbon about the technology roadmap, and his words were full of praise. He also expressed his admiration for Silicon Carbon Group's timely adjustments to its market policies.

"Mr. Zeng, you're asking so many questions. Does Ningde also want to manufacture cars?" Yu Xing asked casually.

Zeng Yuqun shook his head: "I have absolutely no interest. With your carbon silicon, that's enough. Why should we get involved in car manufacturing? We just want to be the most reliable battery supplier for new energy vehicle companies."

Yu Xing smiled and said, "Then I'll have to recommend your reliability to the new client."

Zeng Yuqun became interested.

Yu Xing lifted the XPeng Motors car slightly.

Zeng Yuqun's interest waned considerably: "I thought you were going to introduce a client like SAIC."

Yu Xing shook his head: "The development of new energy now depends on our private enterprises. I think they have a good attitude towards making cars."

Zeng Yuqun believes this evaluation is quite high.

However, when he met Xia Yan and He Xiaopeng, toured the G3 mule cart with great interest, asked about the batteries currently in use, and heard the name of Liandong Tianyi.

Zeng Yuqun fell silent.

Xia Yan felt the way President Zeng was looking at her and felt like he was looking at an idiot.

He had previously wanted to stick to his battery strategy, but now, faced with this intense feeling, he suddenly felt an involuntary sense of shame.

Zeng Yuqun looked back at President Yu and said, "Is this what you mean by having an attitude in car manufacturing?"

Yu Xing shrugged; attitudes are all relative.

Looking at the two people in front of him, Zeng Yuqun could only say, "You guys are certainly serious about making cars, but you need to choose the batteries carefully. President Xia, President He, you... well, you need to think it over more."

He Xiaopeng forced a smile: "President Zeng, we were worried about CATL's production capacity being tight, so we prepared a backup plan. We haven't reached the stage of large-scale use yet."

Zeng Yuqun felt that what he said was not very professional, but since General Manager Yu had introduced it, he didn't say much. He just told General Manager He to try CATL's batteries when he had time.

Xia Yan used her last bit of courage to mention the situation of overseas batteries, mentioning that Panasonic uses 18650 cylindrical cells.

Zeng Yuqun showed no anger at all, but instead smiled and said, "President Xia, I won't say anything about you being able to use Panasonic batteries, but as for you using domestic cylindrical cells, I can only say that you will definitely regret it."

Yu Xing still explained to the two of them: "CATL's breakthrough in energy density of square battery cells is very impressive. President Xia, President He, the times are developing very fast, we must study it carefully."

He Xiaopeng looked at Xia Yan, who really had nothing to say.

These two people in front of her, if not the dominant force in the domestic new energy market, certainly represent a large portion of it. Xia Yan was even a little flattered that they were willing to recommend and explain things to her like this.

"Mr. He, Mr. Xia, let's have dinner together tonight. There are quite a few suppliers there." Yu Xing brought up the dinner party that evening. "It's a good opportunity to finalize part of the joint procurement. We'll prioritize those standardized semiconductor devices, general electronic components, and general standard parts. They're easy to order and quick to produce results."

He Xiaopeng nodded without hesitation and said, "Okay."

Then, he looked at Xia Yan.

Xia Yan opened her mouth, "President He, didn't you want to quit? Why are you making this decision so quickly now?"
Yu Xing nodded to Xia Yan as if it were the most natural thing in the world, and said with a smile, "Have a couple more drinks tonight."

Xia Yan subconsciously agreed, and then realized that what she was feeling was precisely the pressure from the investors.

(End of this chapter)