The car giant started by marrying the daughter of the king

Chapter 308: BMW X Goes Global Ahead of Time
The impact that the establishment of Yangcheng Peugeot brought to China's automobile industry was greater than Jiang Hui had imagined.

Just when Jiang Hui was leading BMW's technical team to conduct various tests on the BMW Sunbeam prototype, Chen Qi called him specifically.

"Xiao Jiang, AMC's attitude has changed a lot recently. They want to formally sign a joint venture contract with us and build a new factory in the capital to produce their JEEP models."

"What do you think are the pros and cons of this cooperation for Capital Automobile Manufacturing Plant?"

Others may not be very clear about Jiang Hui's abilities and vision, but Chen Qi is very clear about it.

So when it comes to such big things, he is willing to call Jiang Hui to communicate.

"AMC's major shareholder is now Renault of France, right? Are they still willing to build a joint venture with you?"

Jiang Hui had been involved in the negotiations between Capital Automobile Manufacturing and AMC Automobile very early on, and had a relatively good understanding of the relevant situation.

As the person in the Chinese automobile industry who knows the international bicycle market best, Jiang Hui is naturally aware of AMC's development trajectory.

After entering the 1980s, AMC Automobile began to fall into a state of losses.

American banks began to refuse to provide credit loans to AMC. Finally, AMC had no choice but to sell 59% of its shares to Renault of France.

At this time, AMC had changed from an American car company to a French car company.

According to the historical development trajectory, this change of shareholders did not completely change the fate of AMC.

They will continue to be loss-making and will be acquired by Chrysler.

Chrysler's JEEP is relatively well-known in China. In fact, this JEEP was acquired from AMC.

"French car companies have been quite enthusiastic about cooperating with China during this period."

"Isn't this what the newly established Yangcheng Peugeot looks like?"

After Chen Qi said this, Jiang Hui stopped worrying about this issue.

Many ideas from France are sometimes quite unique.

In the Chinese automobile market, they definitely got up early and finished the set.

Although it entered the Chinese market earlier than Toyota, Honda, GM and other automakers, its presence in later generations was very weak.

If French car companies perform poorly globally, so be it.

It just so happens that their performance globally is quite good, except for the poor performance in the Chinese market.

"The Capital Automobile Manufacturing Plant is developing well now. Both the sales of BJ212 and BJ310 are leaders in their respective fields."

"If your cooperation with AMC will not affect the development of these two models, then it is not impossible to cooperate."

"But if the other party asks you to sacrifice the interests of these two models to cooperate with the development of the joint venture car company, then I think it's not worth it."

"Although the technology of international auto giants is more advanced than ours, they will not easily hand over their technology to us."

"It's a good idea to learn advanced technologies from each other through joint ventures, but it's very difficult to realize it."

"Ultimately, the improvement of technology still depends on the R&D investment of our own brand."

Jiang Hui knew that Chen Qi might not listen to what he said.

Even if Chen Qi heard it, the Ministry of First Machine Building might not agree.

Against the backdrop of reform, attracting more foreign-funded enterprises to enter China is also in line with major policy guidelines.

If we look at this issue from a higher level, it may not be a simple matter of corporate interests.

"What you said makes sense, but FAW, Shanghai Auto, and Yangcheng Auto are all cooperating with international auto giants."

"I heard that some other car companies are also in contact with various international giants, hoping to expand their product lines through technology introduction or joint ventures."

"Their various products will definitely pose a great threat to the development of BJ212 and BJ310 by then."

Chen Qi expressed his concerns.

If the sales of BJ212 and BJ310 can continue like this, then Chen Qi naturally has nothing to worry about.

But he knew that such wishful thinking would never happen.

The current landscape of China's automobile market has changed significantly from a few years ago.

In a few years, the situation will be even more different.

At times like this, it is definitely not feasible to just rely on old capital.

Even though the Capital Automobile Manufacturing Plant is already developing vans and making some plans for BJ212 and BJ310, it may not be able to meet market demand.

"Your worries are not unreasonable."

"It all depends on how Capital Automobile Manufacturing responds to this situation."

"If you really can't make up your mind, don't rush to sign a cooperation agreement. Just focus on making your product better first."

Deep down, Jiang Hui certainly does not agree with the large-scale promotion of the development of various joint venture car companies, because he knows that this will not truly and rapidly improve the technological level of China's automobile industry.

The market was given up, but the technology was not learned back.

This should not be the goal that the Ministry of First Machine Industry hopes to achieve.

But for things like this, what he says now doesn’t count.

The only thing we can do is to allow BMW to develop as quickly as possible and become the most influential car company in the industry.

At that time, the development pace of China's automobile market was naturally different from history.

……

Al Jazeera is still very well-known in the Middle East.

They always have some special channels to get videos that are not available outside.

This time, they also broadcast a video showing opposition forces in Argentina blocking a polar bear convoy.

Hundreds of BMW Xs equipped with 107 rocket launchers were seen firing rockets at a long supply convoy.

Although there were tank escorts in front and behind, the Polar Bear convoy did not have much ability to fight back against the large-scale rocket attack in a short period of time.

In a head-on battle, the Afghan opposition would definitely not be a match for the polar bear.

Their planes can blow you to pieces in a matter of minutes.

However, this sneak attack on the transport convoy caused great headaches for the polar bears.

They cannot arrange planes and large troops to escort every time; the cost is too high.

However, if the escort is not in place, Aguo will find an opportunity to launch a surprise attack.

In the past two years, the losses caused by Afghanistan's sneak attacks on transport convoys have been enormous.

The polar bears are already finding it a bit unbearable in their own country, and because of these problems, their attitude towards China has even changed a little.

They have arranged for senior representatives to come for discussions in the hope of improving bilateral relations.

But how can such a thing be accomplished overnight?
Exports can earn foreign exchange, weaken the strength of the polar bear, and ease the pressure on northern China. As the classic combination of 107 rocket launchers and BMW X has achieved better and better results in Afghanistan, many other forces have also begun to focus on this product.

"Xiao Jiang, this time we cooperated with the Fifth Ministry of Machine Building to export 5 sets of BMW X and 107 rocket launchers to Persia, which has created a new export record."

"Baghdad may also come to us to purchase large quantities of similar products in the near future."

Zheng Haiming is in a very good mood now.

Unintentionally, Chaoyang Motorcycle Manufacturing Plant has set a new record.

The video broadcast by Al Jazeera made Persia completely determined.

After fighting with Pakistan for several years, Persia had begun to recover lost territory and reverse the situation.

Taking this opportunity, they prepared to further penetrate into Pakistan and turn around the morale.

However, many of the personnel in the Persian team are newly recruited. If they are asked to operate high-end weapons and equipment, many of them do not know how to do it, and it is difficult for them to master it in a short period of time.

In this case, something simple and easy to use like the 107 rocket launcher becomes even more valuable.

"Leader, this time it was mainly due to good coordination within the ministry. We were able to cooperate sincerely with the Fifth Ministry of Machine Building to jointly develop the export market."

"There are wars in many places in the world right now. As long as we seize these opportunities, we can continue to create records."

Jiang Hui did not expect that Persia would ask for 5 BMW Xs at once this time.

Although the price is not particularly good and not as generous as America, it is definitely not low.

With this business alone, Chaoyang Motorcycle Manufacturing Factory can earn more than 5000 million in net profit.

This is based on the official US dollar exchange rate, otherwise it would be in billions of yuan.

Fifty million in 1983 was still very attractive.

"It's mainly because you helped open everyone's minds. Otherwise, we wouldn't have thought that arms could be sold in this way."

"The 107 rocket launcher is not a new product for the Fifth Machine-Building Ministry. It was developed in the s."

"We also provided free aid to some countries in the past few years, but it did not bring us any foreign exchange income."

"But the situation in the past two years is completely different. The change is huge, not only in the 107 rocket launcher itself, but also in the military factories of the Fifth Ministry of Machine Building having a new understanding and attitude towards the export of all military products."

"Because of these changes, life at the Fifth Ministry of Machine Building has become much better."

"Otherwise, with budget cuts, many factories of the Fifth Ministry of Machine Building will have trouble paying salaries, let alone continuing research on new products."

Zheng Haiming was relatively familiar with the situation in the Fifth Ministry of Machine Building.

They often held meetings together. The products made by many factories of the Fifth Ministry of Machine Building after their military-to-civilian conversion had a lot of overlap with those of the First Ministry of Machine Building, so naturally there was more communication.

"The world is in such a mess right now, it is indeed an opportunity for our military-industrial enterprises."

"But overall, the technological content and added value of our military products are relatively low, and there is no way to compare them with the military exports of the polar bear and the United States."

"I think the Fifth Ministry of Machine Building can set up a specialized company responsible for military exports to develop overseas business, or adopt more flexible methods to handle the export of some weapons."

"After weighing the pros and cons of some weapons that I haven't sold before, I think it's actually possible."

When Jiang Hui said this, the clever Zheng Haiming immediately interpreted some other meanings from it, "Do you have any new ideas?"

Everyone is so familiar with each other, so Zheng Haiming can just ask whatever he thinks of, and there is no need to guess on his own.

"I have a bold idea, but I don't know if it will work."

Jiang Hui carefully chose his words based on some information he knew from later generations.

"Right now, the war between Persia and Pakistan in the Middle East is in full swing, and there is no sign of it ending in the short term."

"In recent years, the Middle East has never been completely stable, and this is expected to remain the case for a long time to come."

"In this case, wealthy oil-producing countries like the Arabs will certainly have great concerns about their own security."

"They have money, but even with money they can't buy some military products on the international market. If we are willing to export them, we might be able to sell them at sky-high prices."

"For example, the United States and the polar bears are unwilling to sell medium-range missiles to the Arab world. If we are willing to sell them, I think it is possible to sell one missile for $1 million."

"If we sell a few dozen of them, we'll have a year's worth of foreign exchange reserves, which is much more meaningful than exporting oil and agricultural products."

Zheng Haiming was stunned when he heard Jiang Hui talk about the export price of medium-range missiles.

Is there really anyone who would buy a missile that costs $1 million?
Although he is not involved in missile research, he believes that the production price of medium-range missiles in China cannot exceed 1000 million yuan.

$1 million…

How much profit margin is there here?

Although the Arabs are not short of money, they don't want to be rich dog owners, right?
"Xiao Jiang, let's not talk about whether medium-range missiles can be exported. Is it really possible that the other party will agree to this price?"

If someone else told Zheng Haiming such an outrageous price, he would definitely treat it as a joke and would not want to ask any more questions.

But Zheng Haiming felt that Jiang Hui's words were still different.

This matter needs to be clarified.

Otherwise, he wouldn't know how to communicate with the Fifth Ministry of Machine Building, and people might think he was talking nonsense.

"Anything is possible in the international arms market."

"It may be difficult for us to understand the situation faced by the Arabs. They have a large amount of US dollars and a large number of oil fields. Money is sometimes just a number to them."

"More often than not they're worried about their own safety and stability, which is priceless."

"Medium-range missiles are extremely sensitive and difficult to intercept."

"Especially if there is something special on the warhead, the deterrent effect will be even greater."

"Sometimes, your deterrent power to some countries near the Arab Empire is greater than that of intercontinental ballistic missiles."

"For them, this kind of weapon with special meaning is worth any amount of money."

"Even if less money is spent, the deterrent effect on neighboring countries will be less."

"If we spend more, others will start to doubt whether we have added any special warheads to it."

Jiang Hui's words shocked Zheng Haiming.

Can arms trade be done in this way?

But what Jiang Hui said seemed to make sense.

China has some things itself, and sometimes it is difficult to consider from the perspective of countries that do not have these weapons how uncomfortable it would be to lack a "trump card".

Once you truly understand it, things will become easier.

I have to talk to the Fifth Ministry of Machine Building as soon as possible. If things are successful, they will definitely thank me.

It would not be surprising if this incident becomes a classic in the arms trade market in the future.

(End of this chapter)