The car giant started by marrying the daughter of the king

Chapter 243: Jiang Hui takes action to develop the automotive industry
"This is indeed a problem. We haven't actually finalized the final size data yet."

"After the wheelbase is lengthened, the design and production requirements for parts such as the drive shaft have increased."

"The vehicle's maneuverability will decline, and there is a lot of improvement to be done in this area. It is indeed not suitable for our factory yet."

Chen Qi listened to the advice.

He is very confident in Jiang Hui's vision.

Besides, he would have other things to discuss with Jiang Hui later, so it would not be appropriate to create any disagreement on the first issue.

"Yes, if we make full use of existing resources and combine them with social needs to develop a car with good quality, high comfort and low price, there should still be a big market for it."

Chen Qi felt very comfortable hearing Jiang Hui's words.

Since he had already left the Capital Automobile Manufacturing Plant, Jiang Hui was unwilling to get involved in too many specific matters.

Things like directly helping to design the appearance of a car are simply impossible.

Being able to help Chen Qi with his opinion is already the most I can do.

Fortunately, Chen Qi did not make such an unreasonable request, but decisively chose a mature imported brand car to "learn from".

Anyway, although the domestic patent law has been promulgated, it is not much different from not having it.

"Xiao Jiang, I have another idea I want to discuss with you. I guess Director Qin has mentioned it to you before."

After talking about the car, Chen Qi immediately shifted the topic to something he was more concerned about.

"You're talking about the cooperation between Capital Automobile Manufacturing and BMW Technology to sell the BJ212 to Southeast Asian countries, right?"

Jiang Hui did not keep Chen Qi in suspense, but took the initiative to bring up the matter directly.

"Yes, you also know how strong the domestic demand for export earnings is now."

"The Fifth Ministry of Machine Building recently secured a $5 million export order, which caused a huge sensation in the entire Chinese industrial community. Not only did the Fifth Ministry of Machine Building praise the relevant personnel, but other ministries and commissions also used this case as a typical example."

"In recent years, our Capital Automobile Manufacturing Plant has been regarded as a model of reform among the factories under the First Ministry of Machine Building, and we naturally do not want to fall behind now."

"But we have little experience in exporting, so we would like to hear your opinion."

After getting to know each other over this period of time, Chen Qi also realized that Jiang Hui had the final say in the Chaoyang Motorcycle Manufacturing Plant.

The representative of BMW technology in Hong Kong City is a person who doesn't care about anything.

Even the other party is not in the factory most of the time.

There are rumors that the person in charge of BMW Technology is actually Jiang Hui’s daughter-in-law.

So this time Chen Qi chose to discuss the export of BJ212 directly with Jiang Hui.

"BJ212 is naturally very competitive in our country. Currently, no off-road vehicle can compare with it. Even the sedans produced by most factories cannot compare with it in terms of comprehensive performance."

"But objectively speaking, its power performance and comfort are still far behind similar products of international auto giants."

“It’s not that we can’t sell it abroad, but we can basically only rely on low prices to attract a certain number of consumers.”

If you don’t have a brand or technological advantages and want to sell more, there is only one way.

Jiang Hui did not beat around the bush, but directly expressed his opinion.

Naturally, Chen Qi understood these contents.

Especially after accompanying Jiang Hui on a half-month inspection trip to General Motors in the United States last year, he gained a more intuitive understanding of the gap between China's domestic automobile industry and the international advanced level.

Therefore, he never thought about allowing BJ212 to enter the markets of powerful automobile industrial countries such as Japan and the United States.

The hope of that is basically zero.

On the contrary, in places like Southeast Asia, the economic strength of some countries is actually quite good, at least stronger than the per capita level in China.

Selling BJ212 to these places is more or less feasible.

Chen Qi doesn't expect to sell tens of thousands of vehicles a year, but he will be happy as long as he can sell a few thousand.

After all, the export earnings of several thousand BJ212s are definitely more than 1000 million US dollars.

In an era when foreign exchange reserves were only a few hundred million, this was a very large export amount.

The most exported items from various parts of China are currently various agricultural products and handicrafts, as well as crude oil.

The unit prices of these things are generally not high, and it is hard to earn some foreign exchange.

However, what are imported are basically various equipment and instruments, each of which is of considerable value.

The more this happens, the tighter the foreign exchange situation becomes.

Many factories proposed their own production line transformation plans, but due to the need to use foreign exchange to purchase equipment from abroad, the final transformation plan has been delayed.

To a certain extent, this has also affected the development of China's reform.

No wonder the various ministries and commissions now attach far more importance to export and foreign exchange earnings than people in later generations can imagine.

"What you said is all true, and we in the factory are aware of this as well."

"We don't have the experience or the ability to export."

"So I thought about whether I could cooperate with BMW Technology and let them act as the agent of BJ212 to sell it overseas."

After Chen Qi said this, Jiang Hui did not answer immediately.

The original purpose of BMW Technology's establishment was to prepare for a joint venture with the Chaoyang Motorcycle Manufacturing Plant.

But I will definitely enter the automotive industry in the future. It seems that it is not impossible to start as a car agent or dealer now.

At that time, BMW Technology will not only be able to act as an agent for the Capital Automobile Manufacturing Plant, but it can also consider cooperating with other automobile giants to build sales stores in the port city to sell cars directly.

It even registered branches in some Southeast Asian countries, opened local car sales stores, and built its own sales network to prepare for future development.

These all seem to make sense.

Of course, the beginning is definitely difficult.

But once we succeed, when we enter the automotive industry in the future, it will be much easier to export our products.

Thinking of this, Jiang Hui did not hesitate any longer and said, "In principle, there is definitely no problem with this cooperation."

"But you also know that BJ212 has no reputation overseas, and after-sales service is also a big problem."

"If BMW Technology sells the BJ212, it will need to set up sales outlets in many places to provide after-sales services to customers."

“These costs are very high.”

Cooperation is cooperation, and Jiang Hui is not doing charity.

BMW Technology must not do business at a loss during this cooperation process.

Fortunately, Chen Qi can understand this point.

"I understand what you said, so our factory's cooperation plan this time is also very sincere."

"The price of a BJ212 sold to BMW Technology is only $8000, and we also provide subsequent spare parts at cost price."

Although Chen Qi could accept a lower price, everyone hoped to sell it at a higher price.

So he first offered a relatively high selling price.

"Based on the current domestic black market price, 8000 US dollars is basically 5 RMB."

"This price is even higher than the BJ212 sold domestically by Capital Automobile Manufacturing."

Jiang Hui would definitely not agree to such a high price.

This concerns your own pocket.

"Less than 5 yuan is the price arranged by the Planning Commission according to the planned quota, but it may not be available on the market."

Chen Qi explained a little awkwardly.

He naturally knew that the price of $8000 was a bit high.

This time it is not arms trade, but normal sales of civilian cars.

Naturally, we need to fully consider the prices in the overseas automobile market.

After BMW Technology buys the BJ212, it still needs to export it to various parts of Southeast Asia. Adding in a series of costs such as transportation fees and tariffs, it must make money in the end.

"Director Chen, you are my old leader. I will definitely give you my full support."

"However, the terminal sales price of a car of this level in Southeast Asian markets such as Siam is basically less than US$212."

"Whenever the export price of Capital Automotive Factory exceeds $5000, BMW Technology will lose money, or even suffer a big loss."

Jiang Hui had said so much, so Chen Qi didn't insist any further.

"5000 dollars is 5000 dollars, but we hope to export at least 2000 BJ212s per year."

The goal of earning US$1000 million in foreign exchange is what Chen Qi hopes to achieve.

Of course, it would be best if there were more.

"Okay, I can communicate with BMW Technology and we can start working together."

"If the cooperation goes smoothly, we can continue the cooperation on the cars produced by Capital Automobile Manufacturing Plant next year."

After Jiang Hui said this, Chen Qi's mood immediately became much better.

The export price of US$5000 is not low, but it is not high either.

Chen Qi originally felt a little regretful.

But the situation is different when we think about further expanding the scale next year.

"Thank you very much, our factory is waiting for your good news."

Naturally, there was no need for Chen Qi and Jiang Hui to discuss the specific details of the export right now. After all, Jiang Hui was nominally only the director of the Chaoyang Motorcycle Manufacturing Plant and had no other relationship with BMW Technology except a cooperative relationship.

Therefore, even if Capital Automobile Manufacturing wants to negotiate, it has to talk to the Hong Kong city representative of BMW Technology.

Both sides are very clear about this.

After seeing Chen Qi off, Jiang Hui began to think about the next steps.

Due to the rapid development of the computer industry in the United States, his funds in the American stock market have grown to about 2000 million US dollars.

This money is enough for me to do something about it.

Although domestic policies still need to be opened up step by step, there are already some areas where we can take some actions.

Moreover, since the country attaches so much importance to foreign exchange, we must find ways to obtain more foreign exchange so that we can have more say in some future cooperation.

Otherwise, even if a large amount of RMB is earned in the Chinese market, the value cannot be fully reflected.

(End of this chapter)