The car giant started by marrying the daughter of the king

Chapter 357: An unexpected order from Shencheng

Jiang Hui doesn’t care what other manufacturers think of BMW cars.

Now he is thinking about making BMW bigger and stronger as quickly as possible, and then many problems will be solved.

"Director Jiang, an automobile retail and service chain company in the United States has placed an order with us for 200 million automobile wheel bearing bolts and more than 100 million bolts used on automobile chassis."

"The export value of these parts exceeded 100 million U.S. dollars, and it was the first export order since our factory was established."

As the director of Shenzhen Teqiang Fastener Factory, Zhang Teqiang has been under a lot of pressure recently.

He took a gamble and chose to follow BMW to build a factory in Shenzhen, and also gave up a large portion of his shares to Nanshan Technology, surely hoping to succeed.

In addition to providing support for BMW cars, the new factory naturally also wants to expand its customer base.

Many factories in Shenzhen have achieved results in exporting and earning foreign exchange. Zhang Teqiang, who had no idea in this regard before, also hopes to achieve some results in exporting and earning foreign exchange.

So I participated in the Canton Fair held in Yangcheng some time ago, but did not complete any specific orders during the Canton Fair.

Their factory mainly produces bolts and nuts that use the Dacromet surface treatment process, and their prices are higher than those of their domestic counterparts.

Although corrosion resistance can be greatly improved, for many customers, price is the most important.

Therefore, apart from some customers asking for a few samples, it can be said that Shenzhen Teqiang Fastener Factory did not gain anything from this Canton Fair.

I didn't expect that almost two months have passed and the American customers are actually going to place an order with me.

After repeated confirmation, knowing that the other party was serious, Zhang Teqiang immediately came over excitedly to report the good news to Jiang Hui.

"This is a good thing. Once you open up the American automotive aftermarket, you won't have to worry about orders in the future."

Jiang Hui has a good understanding of the situation in the American automotive aftermarket.

It can be said that the situation there is quite different from that in China.

Decades ago, various after-sales service chain stores became popular in America, and the entire market was divided up among a few large giants.

A merchant who can order millions of bolts at one time is most likely one of the giants.

After all, this is the first time to cooperate with Shenzhen Teqiang. Normally, we would only order a small batch for trial.

If small-scale orders now reach several million bolts, then the next orders are even more worth looking forward to.

The weather in many places in America is relatively cold, and roads need to be salted in winter to prevent ice, which will cause problems for the corrosion protection of automobile chassis parts.

For example, the various bolts and nuts on the chassis need to be regularly checked for rust and replaced in a timely manner.

This is big business.

The most important thing is to start with bolts and nuts. In the future, spare parts companies in Shenzhen can cooperate with after-sales merchants in the United States to develop export business.

Compared with entering the supply chains of auto giants such as General Motors and Ford, the threshold for the aftermarket is much lower.

As long as there is no problem with the quality and the price is advantageous, it will be relatively easy to get the corresponding orders.

After all, the after-sales chain stores also want to make more money.

"Yes, we are now thinking about whether we can further export more types of bolts and nuts to America."

"It would be perfect if we could export half of our products and supply the other half to the domestic market in the future."

Zhang Teqiang is now very glad that he was able to follow BMW's requirements to come to Shenzhen to build a factory. Otherwise, with the previous style of Chaoyang Fastener Factory, it would be impossible for it to participate in the Canton Fair.

As for exporting to earn foreign exchange, most people in the factory probably wouldn't even think about it.

"That day will come, but the quality must be improved. Otherwise, if the reputation is ruined, it will be difficult to do business in the future."

The next few decades will be the best opportunity for Chinese products from all walks of life to enter the international market. Zhang Teqiang's idea is entirely possible to achieve.

Nanshan Technology can also put more effort into this aspect.

With China's cost competitiveness, as long as the technical and quality issues of parts are resolved, other issues will not be a problem.

Thinking of this, after meeting Zhang Teqiang, Jiang Hui immediately asked Zhou Yun to call Hou Guoming and Chen Chenxing over.

"Shencheng Teqiang just received a bolt order from the American aftermarket, which made me think that Nanshan Technology could also find a few parts to try to enter the aftermarket market."

"The market is huge, and the profits are better than orders from vehicle manufacturers. The key is that the threshold is not that high, and the installation speed is very fast."

As a professional in the automotive industry, Jiang Hui knows all too well the huge difference between aftermarket parts and mass-produced supporting parts.

For example, if the front grille is mass-produced and supplied to the OEM, it is necessary to carry out synchronous testing with the OEM very early to see whether the air intake volume matches the engine requirements, and whether there will be any abnormal noise or risk of falling off after installation.

Basically, it is impossible to go from obtaining the order to formal mass production without two years.

But it’s different for after-sales parts. As long as they can be installed normally and consumers are willing to pay for them, that’s enough.

This is indeed a good opportunity for Chinese auto parts companies that are eager to expand their market.

The American automotive aftermarket is even more special. Since labor costs are relatively high, many drivers are willing to purchase parts and replace them themselves.

This gives aftermarket parts more opportunities to replace original parts.

After all, the performance of aftermarket parts looks the same or even better, and the price is cheaper than the original parts. Who doesn’t like it?

"Director, Nanshan Technology doesn't produce many types of parts. Most of the parts used in the BMW Sunshine are purchased from various supporting factories."

"And not every part has a strong demand in the aftermarket. For parts like tires, wiper blades, air filters and oil filters, our domestic technology is still far behind that of international giants. I guess American consumers also recognize brands."

Hou Guoming naturally hopes that Nanshan Technology can also blaze a unique path in exporting and earning foreign exchange, but he does not think things will be that easy.

The threshold for after-sales parts is not that high, but this market has long been divided up.

For example, in the field of tires, the pattern of giants such as Michelin, Continental, Bridgestone, and Goodyear has basically been formed. There are many tire manufacturers in China, but even if they are combined, they are no match for any of the other manufacturers.

Similarly, filters and other products are widely used in the aftermarket and have been targeted by manufacturers such as Bosch and Mahle, and have already formed brand influence. It is conceivable how difficult it is for Nanshan Technology to win and squeeze out their market. "I thought about it and felt that we could start with two parts in the early stage, that is, the fixed caliper and the bellows on the exhaust pipe."

When the people below had no idea about such a major strategic policy, Jiang Hui felt that he did not need to worry too much and could just point out the direction for everyone to move forward.

No matter what field you are in, choices are often more important than hard work.

Jiang Hui helped everyone choose the right direction to work towards, so that it would not be so easy to fail in the future.

"Fix the calipers and the bellows on the exhaust?"

Hou Guoming frowned, obviously not understanding the significance of this choice.

"It seems that no car models in our country use fixed calipers? Even Mercedes-Benz cars don't have such arrangements."

"Isn't that thing usually used on sports cars?"

"As for the bellows on the exhaust pipe, generally the exhaust pipe manufacturer buys it directly from the manufacturer and then installs it on their own pipe, right?"

There is a domestic car modification market now, but they are all practical modifications.

In an era when private cars were very rare, Hou Guoming could not understand his own thoughts, but Jiang Hui did not find it strange.

“Painting the fixed caliper in a special color, such as bright yellow or red, is very eye-catching.”

“Although they are currently installed more on sports cars, there are certainly a lot of consumers who like to have fixed calipers on their cars because of this.”

“The sports car market has given fixed calipers a high-end and classy image, but not everyone can afford a sports car, and not every family is suitable for a sports car.”

"As a result, as long as there are relatively affordable fixed calipers in the American aftermarket, all chain stores will definitely promote them vigorously, making fixed calipers an important part of the aftermarket business in the future."

As long as there is profit, the enthusiasm of chain stores in those parts of America will definitely be very high.

Jiang Hui knows that the prospects of fixed calipers are very promising, and they will definitely be needed on Chitu sports cars in the future.

Therefore, it is necessary to ask Nanshan Technology to conduct research on fixed caliper technology in advance and export it to earn foreign exchange.

"Director Hou, I think the plan the factory director mentioned should be feasible."

"The number of cars in the American market is so high that even if only one percent of people want to replace the calipers on their cars with fixed calipers, it will be a very huge market."

“The price of fixed calipers is not low, so the value they create is even more worth looking forward to.”

As the person in charge of the sales area, Chen Chenxing is more receptive to Jiang Hui's views.

He even felt that Jiang Hui's words had opened a new window for him, and he could completely open up a new track for the future sales of auto parts.

"I understand the fixed caliper situation, but what about the bellows? That's also something that's interesting?"

Hou Guoming is not a stubborn person. Jiang Hui is the factory director and what he said makes sense, so he will definitely accept it.

“The situation with the bellows is really different than with the fixed caliper.”

Since we want to expand our after-sales business, we naturally have to open up various ideas.

Taking this opportunity, Jiang Hui plans to explain the situation of the overseas automotive after-sales market to Hou Guoming and Chen Chenxing.

"Car modification has been popular in the United States, Europe and other countries for many years. Many consumers like to do some DIY to make their cars look more special."

"Modifying the exhaust pipe to make it sound like a sports car is a common modification demand in the modification market."

"To achieve this goal, we need to make some modifications to the exhaust pipe or even replace it."

"As an important component that runs from the engine exhaust manifold to the rear of the vehicle, the exhaust pipe is not only closely related to noise reduction, but also involves various performance requirements such as shock absorption."

"After the exhaust pipe is modified, it will most likely affect the noise reduction and vibration performance. In many cases, the vibration will be too large to affect the driving experience. Even if it does not reach this level, it will cause the exhaust pipe's life to decrease or the hook at the connection to fall off."

"After all, after the high-speed and high-temperature exhaust gas comes out of the engine combustion chamber and passes through the exhaust pipe quickly, it will definitely produce various impacts and bring various vibration effects."

"The common practice of various OEMs at present is to add a special structure at the front end of the exhaust pipe to make the connection between the two exhaust pipes more flexible, so as to minimize vibration."

"Some high-end models also use bellows to alleviate the vibration and impact between the front and rear ends of the exhaust pipe."

When it comes to car design, Jiang Hui is definitely the most professional in China.

Hou Guoming and Chen Chenxing couldn't help but take out paper and pen and start taking notes.

These things will definitely come in handy in the future.

"After modifying the exhaust pipe of a modified car, if it can be replaced with a bellows with better shock absorption performance at the same time, it can minimize vibration and reduce the impact of the modification on the car chassis."

"I believe that the people in the chain stores in America should be able to understand this logic and reason more easily, and they are also deeply touched by it."

"So as long as we can develop a bellows with good shock absorption performance and low price, we will definitely have the hope of winning the aftermarket, and even further winning the mass production supporting market of some OEMs in the future, which will be no problem at all."

After Jiang Hui's detailed explanation, Hou Guoming and others naturally understood the significance of fixed calipers and bellows.

Considering the global car ownership, if this business is done well, it seems that the impact on Nanshan Technology will be greater than the impact of sales changes on BMW.

"Director, I have some experience with fixed calipers, but how can I make this kind of bellows to the level you mentioned?"

If you don’t understand, just ask.

This has become a good habit developed by BMW's technicians.

“This is actually very simple. The key lies in the design skills.”

"We will work together to finalize the design of the bellows in the next few days, and then arrange for someone to go to Hong Kong City to find a law firm to assist in registering a global patent."

"This new generation of bellows technology will surely become a product widely used by various automobile manufacturers in the future."

After Jiang Hui said this, Chen Chenxing and Hou Guoming became even more curious.

Can you do something else with a bellows?
(End of this chapter)